OPEN SHOP: An employment arrangement in which workers of a firm are free to join or not join a union because employment is unrelated to union membership. Because an open shop tends to limit the proportion of a firm's employees represented, this can significantly dilute a labor union's market control. Open shops are established in states that have right-to-work laws. See also | labor union | closed shop | union shop | right to work | collective bargaining | supply to a firm | factor market | monopoly | market control | yellow-dog contract |