The History of Financial Core
How Did Financial Core Come To Be?
Under the National Labor Relations Act (Sec. 8 (a) (3)) an employer and a labor organization may agree to condition employment upon membership in the union. The 1963 ruling limited the burdens of membership upon which employment may be conditioned to the payment of initiation fees and monthly dues. In the words of the court, "Membership as a condition of employment is whittled down to its financial core." Or, in other words, "If an employee in a union shop unit refuses to respect any union-imposed obligations other than the duty to pay dues and fees, and membership in the union is therefore denied or terminated, the condition of membership for 8 (a) (3) purposes is nevertheless satisfied and the employee may not be discharged for nonmembership even though he is not a formal member."
Who Does The Financial Core Affect?
The primary impact of the financial core issue has been in the acting industry. By joining the Screen Actors Guild or American Federation of Television and Radio Artists as a financial core member, an actor can pursue work in states such as California, where union membership is a prerequisite to work in the industry. Full members of these unions are prohibited from working non-union jobs, but financial core members are not restricted by the rules of the unions and so may work either union or non-union jobs. When working a union job, they would receive the same benefits as full constitutional members. Similarly, in the Writers Guild of America, financial core members are able to remain working during labor strikes.
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