Definition of Agency shop:
A system whereby a recognized trade union receives a sum of money from non-members equivalent to the subscriptions of members, in recognition of the collective bargaining done by the union on non-members behalf; a place of work operating this system; also attributive, as agency shop agreement, etc.
A working environment where employees are required to pay union fees, even if they are not union members. The agency shop typically requires such payments to cover the relevant unions services in contract negotiations, settlement of grievances and general administrative procedures.
Meaning of Agency shop & Agency shop Definition