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closed shop[¦klōzd ′shäp]
in capitalist countries the demand presented by a trade union to an entrepreneur that the latter hire only members of that particular union. In making these demands, the union often assumes the obligation of supplying the entrepreneur with the labor force needed. Under preferential hiring, which is a variety of the closed shop, the entrepreneur pledges to give preference to members of this union in hiring workers. The demand for the closed shop is resisted by entrepreneurs, whose interest is in weakening the trade unions. In the USA the closed shop is prohibited by the federal Taft-Hartley Act of 1947 as well as by the laws of several states. The closed shop is also prohibited in several provinces of Canada, in Australia, and elsewhere.