Among the obstacles to reducing unemployment are those created by certain provisions in the Labour Code. One of the obstacles is the “closed shop,” dating from the era of the first British trade unions (1860). In the same spirit, the Rand formula stipulates that obtaining a job can be conditional on paying dues to the union at the company. Both these formulas are currently in use in Quebec. This exerts a constraint on businesses by requiring them to hire only those who pay into (Rand formula) or join (closed shop) the house union.
*Economic Note (in French) inspired in part by Unions and Right-to-Work: The global evidence of their impact on employment, a book edited by Fazil Mihlar.