A classic study of the free rider problem is presented in Mancur Olson's 1965 work, The Logic of Collective Action.
[2] In labor relations, the free rider problem exists because the costs of organizing a union and negotiating a contract with the employer can be very high, and because employers will find it too cumbersome to adopt multiple wage and benefit scales, some or all non-union members may find that the contract benefits them as well.
[3] Thus, the incentive is for some individual workers to "ride for free" by not paying the costs, which can lead to the collapse of the union and no collective bargaining agreement.
[7][8] The International Labour Organization's Right to Organise and Collective Bargaining Convention can "in no way be interpreted as authorising or prohibiting union security arrangements, such questions being matters for regulation in accordance with national practice.
[17] In Australia, the legal status of union security agreements has varied widely across each state and the national government and over time.
In February 2015, Illinois Republican Governor Bruce Rauner filed suit, claiming that fair-share agreements are unconstitutional and a violation of the First Amendment right to free speech.
[23] The case is named after Mark Janus, an Illinois child support specialist covered by a collective bargaining agreement.