Dunn and Gennard found 111 British redundancies when a closed store was introduced, 325 people were involved,:125, and they stated: “While supporters of the closed store can argue that it is estimated that at least 325 layoffs are a relatively small number of closed shops compared to the total population, critics would consider this figure to be substantial, arguing that dismissal is too much.” :126 With regard to the store closed before entry, they stated: “Its raison d`être is to exclude people from jobs by denying them union membership.” :132 Some well-established unions, who fear the entry and influence of newer unions, have attempted to enter into store contracts to thwart the entry of newer unions, AMCU and LAMUSA believe, in their strong historical handles. The four major sports leagues are unions, although a franchise may be in a state with a right to work or a constitutional provision. Also known as pre-open store contracts, store contracts are entered into to protect union workers. Under this type of agreement, a particular company may require all of its employees to be part of a particular union or union. Because there are many safeguards for both employers and workers, it is very difficult to enforce store contracts on both sides of the agreement. All forms of closed business in the Commonwealth are illegal under the 1996 Labour Relations Act. There was an attempt by the Howard government to change the definition of what represented a closed store as part of the 1999 Workplace Relations Legislation Amendment (More Jobs, More Pay).  However, the invoice was subsequently rejected.  The alliances of the International Labour Organization do not care about the legality of closed store rules and leave the issue to each nation.  The legal status of commercial contracts concluded varies considerably from country to country, from prohibitions of the agreement to comprehensive regulation of the agreement to an unmentioned agreement.
It is clear why an employer would choose not to enter into such an agreement. Most employers consider store contracts to be reprehensible, perhaps fairly so. Why should we give a union the right for all our employees to become members who ask for it; and why should we accept what becomes more of a condition of employment? A store closed before entry (or a simple closed store) is a form of union security agreement under which the employer undertakes to recruit only union members and workers must remain members of the union at all times to remain employed. This is different from a closed company after entry (Us: Union Shop) which is an agreement that requires all workers to join the union if they are not already members.  In a union activity, the union must accept as a member any person hired by the employer.  The only compelling reason why an employer can accept and, if necessary, welcome a store agreement concluded is to limit union competition on the ground, since the existing union essentially monopolizes the employer`s union affiliation through the store agreement reached. The U.S. government does not authorize the union shop in any federal authority, whether state law permits it or not. The Taft-Hartley Act also prohibits unions from imposing excessively high initiation fees as a condition of membership, in order to prevent unions from using introductory fees as a means of removing non-unionized workers from a particular sector. In addition, the National Labor Relations Act authorizes contractors to enter into pre-lease agreements in which they agree to source from a group of workers seconded by the union.