Union Payroll Deductions and Recent Federal District Court Action
The multiple revisions of the Collective Bargaining Agreement (hereafter "CBA") between NCGA and the Farm Labor Organizing Committee (hereafter "FLOC" or "the Union") from 2004 to now have all consistently included a provision which required NCGA farmer members who employed a farmworker who joined FLOC to deduct 2.5% of the worker's weekly earnings and remit the money to the Union. As such, NCGA required the farmer members to comply with this provision as a condition of NCGA membership.
The current CBA is a one-year agreement which automatically extended on January 1, 2021, as provided for in Article 16 of the CBA. That CBA had been negotiated between NCGA and FLOC in the fall of 2016 for a term of 4 years ending December 31, 2020.
In 2017, the North Carolina General Assembly passed, and Governor Cooper signed into. law, an amendment to General Statute 95-79 that made any agreement requiring an agricultural producer to transfer funds to the Union for the purpose of paying the employee's Union dues or membership foes invalid and unenforceable. The law also enacted other things which are unrelated to this correspondence.
FLOC subsequently filed a lawsuit in Federal Court in the Middle District of North Carolina, case caption 1:17CV1037, seeking to stop and permanently block this provision. The Court issued a preliminary injunction that temporarily blocked enforcement of the provision while the litigation made its way through the judicial process.
On September 15, 2021, Federal District Court Judge Loretta Biggs issued an Order dissolving the preliminary injunction that had blocked implementation and enforcement of this provision.
NCGA staff has discussed the provision, and the Judge's Order, with Counsel representing the Association on labor and employment law matters. We are concerned that because the CBA currently in effect is a 1-year agreement that was automatically renewed, or extended, on January 1, 2021, that it could reasonably be argued that the current CBA is subject to the provision in North Carolina General Statute 95-79.
As a result, we are notifying you that as of September 15, 2021, NCGA is suspending the requirement for farmer members who employ a farmworker who is a member of FLOC to deduct and remit the employee's dues and membership fees to the Union as a condition of being a member of NCGA.
However, the Order issued by Judge Biggs makes it clear that it is legal and permissible for farmers who elect to do so to voluntarily deduct and remit dues and membership fees to the Union provided they are not required to do so as part of any agreement. Thus, NCGA suspends the requirement that farmers must make dues and membership fee deductions and remittances to the Union if they choose not to do so. If you voluntarily elect to continue to make dues and membership fee deductions, you may rely on the existing authorization signed by your workers and provided to you by NCGA at the beginning of the worker's new term of employment.
There is likely to be additional legal action on this issue. NCGA and its Counsel will follow any additional action closely and send additional correspondence to you when, or if, circumstances warrant.
Admittedly, these issues are complex and will likely lead to questions. If you have a question, please contact Jay Hill at 910/638-4085 or Lee Wicker at 910/639-1858.