US union develops payroll card to circumvent fee collection restrictions

US union develops payroll card to circumvent fee collection restrictions
22 Oct 2018

A major US workers’ union has developed its own payroll debit card in response to proposed regulations that would restrict the automatic collection of union fees from member’s pay packets.

The move follows a recent five-to-four Supreme Court decision that indicated today’s requirement for workers to pay mandatory union dues violates members of the public sector’s constitutional rights. According to Bloomberg, the ruling means unions can no longer make non-members pay union fees, despite their legal obligation to represent all workers covered by a given contract.

This means that the proposals made by the Trump administration limit individual states’ ability to send money from the Medicaid healthcare fund to “third parties”. Medicaid said the move would prevent states from being able to automatically deduct union dues from members’ pay packets, as the states are the ones that employ in-home healthcare service providers. 

As a result, the Service Employees International Union (SEIU) Local 2015 — the country’s largest home healthcare union — is launching a pre-paid debit card, co-branded with payroll services giant ADP to try and get round the situation. According to PYMNTS, the SEIU is hoping the card will ensure most members’ dues continue to be paid.

The launch of a debit card would enable workers to authorise ADP to load their wages onto the cards and forward their union dues to the SEIU. The cards can also be used to pay bills, cash cheques and hold government benefits. According to the SEIU, the cards could prove particularly beneficial for workers without a bank account.

The union is also preparing to launch a “recommitment” campaign in an effort to retain, or win over, up to 100,000 workers.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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A major US workers’ union has developed its own payroll debit card in response to proposed regulations that would restrict the automatic collection of union fees from member’s pay packets.

The move follows a recent five-to-four Supreme Court decision that indicated today’s requirement for workers to pay mandatory union dues violates members of the public sector’s constitutional rights. According to Bloomberg, the ruling means unions can no longer make non-members pay union fees, despite their legal obligation to represent all workers covered by a given contract.

This means that the proposals made by the Trump administration limit individual states’ ability to send money from the Medicaid healthcare fund to “third parties”. Medicaid said the move would prevent states from being able to automatically deduct union dues from members’ pay packets, as the states are the ones that employ in-home healthcare service providers. 

As a result, the Service Employees International Union (SEIU) Local 2015 — the country’s largest home healthcare union — is launching a pre-paid debit card, co-branded with payroll services giant ADP to try and get round the situation. According to PYMNTS, the SEIU is hoping the card will ensure most members’ dues continue to be paid.

The launch of a debit card would enable workers to authorise ADP to load their wages onto the cards and forward their union dues to the SEIU. The cards can also be used to pay bills, cash cheques and hold government benefits. According to the SEIU, the cards could prove particularly beneficial for workers without a bank account.

The union is also preparing to launch a “recommitment” campaign in an effort to retain, or win over, up to 100,000 workers.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

OTHER ARTICLES THAT MAY INTEREST YOU

Forsa demands tax relief on Irish trade union subs

New European Labour Authority to boost fair movement of workers

Lesotho sanctions huge 62% pay hike for factory workers

 

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