The term "Financial Core" was first used in a 1963 United States Supreme Court decision, National Labor Relations Board v. General Motors.
Although GM sought to undermine the UAW, the court's ruling that collective bargaining led to better working conditions for all workers was a win for unions.
Specifically, the case grew out of General Motors Corporation's (GM) refusal to recognize and negotiate with the United Auto Workers (UAW) in Indiana.
In subsequent years, ongoing challenges to unions before the Supreme Court resulted slight reductions to agency fees when compared to member dues in some cases.
[8] The Financial Core agency fees amount to the non-member's portion of the actual costs to staff and manage union operations including contract negotiations that protect workers interests and improve the working conditions.
[9] The question this time was whether an employee who is Ficore and not a union member can be required to pay a fee equal to full union dues if a portion of those fees are used for purposes beyond collective bargaining: contract negotiations, contract administration, grievance adjustment, and the like.
[10] This additional carve out to the Financial Core ruling determined workers can opt out of paying toward union spending on "non-representational" activities.
[12] This ruling grew out of a complaint by FiCore employee Harry Beck, who protested the Communication Workers of America's support of 1968 Democratic presidential candidate Hubert Humphrey.
[10] Since unions have decades of history supporting Democratic candidates and agendas, the 1988 decision has been seen as a slight win for often Republican-leaning corporate interests.
[17] The 1963 ruling limited the burdens of membership upon which employment may be conditioned to the payment of initiation fees and monthly dues.
"[1] 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."
However, workers who have claimed FiCore status are not subject to any union disciplinary action, and cannot be prohibited from accepting work in non-union productions.
The efforts by advertisers and ad agencies aim to produce non-union commercials at less expense by paying performers less than union minimums.
Workers who cross this de facto strike line are referred to as "union busters" or "scabs."
Performers wishing to work on non-union projects can instead claim FiCore status and avoid any union ramifications.
This option allows performers to circumvent any SAG-AFTRA obligations, rules, guidelines, and discipline including union actors' pledge to refuse to work non-union jobs.
As such, SAG-AFTRA contracts require ongoing payments whenever a performer's image airs in a TV spot.
[32] Talent agents are not permitted to take more than 10% commissions from SAG-AFTRA performers due to provisions in the standard union contract.
But where a performer is FiCore and not represented by the union, talent agents are free to collect 20% commissions, the maximum allowed by California Labor Law.
In most cases that 20% commission is doubled, allowing talent agents to grab 40% of the money budgeted for the actors performance.
In non-union TV commercials talent agents' double-dipping allows a 40% take when compared to the money paid to a performer.
Part of the educational outreach was the launch of the Ads Go Union[36] campaign that visits improv comedy houses and nonunion commercial sets.
Some of the pro union videos include SAG-AFTRA members; Jon Hamm, Allison Janney, J.K. Simmons, Eric Stonestreet, George Lopez, Marion Ross, Nick Offerman, Mindy Sterling, Zoey Deutch, Mayim Bialik, Dermot Mulroney, and more.
[39] At one time, then-WGA West president Patric Verrone and his then-WGA East counterpart, Michael Winship, put out a joint statement naming members who chose to break solidarity by claiming Financial Core status as writers "who consciously and selfishly decided to place their own narrow interests over the greater good.