Rand Formula Law and Legal Definition

Rand formula is a term of Canadian labor law whereby union dues are withheld from the pay of an employee, whether or not he or she belongs to the union. This formula makes the payment of trade union dues mandatory regardless of the worker's union status. This formula ensures that no employee opts out of the union simply to avoid dues yet reap the benefits of the union's accomplishments. The formula was introduced by Justice Ivan Rand of the Supreme Court of Canada Justice Ivan Rand, in 1946 as an arbitration decision ending the Ford Strike of 1945 in Windsor, Ontario. The Canada Labor Code and the labor relations laws of a majority of provinces contain provisions requiring the Rand formula when certain conditions are met. The Rand formula applies to all employees whether they are union members or not.