Thursday, April 23, 2009
Chamber Hosts Webinar on Employee Free Choice Act of 2009
The U.S. Senate is currently considering legislation that would make major changes to rules governing both how unions are formed and processes during collective bargaining. The Maryland Chamber of Commerce in partnership with Shawe Rosenthal LLP presented a webinar on the Employee Free Choice Act of 2009 (EFCA) outlining the history of the legislation, the current political climate and the potential impact of the legislation on employers.
Under current law, to form a union, employees must file a petition with the National Labor Relations Board (NLRB), and establish a showing of interest in support of the NLRB petition, which is done by a showing of signed union authorization cards to the Labor Board. If a sufficient number of signed cards are provided, the NLRB will then conduct a secret ballot election to determine whether a majority of the employees desire the formation of a union. If the employees vote for union representation, the union and the employer are charged with bargaining in good faith over wages, benefits and terms, and conditions of employment; however, the duty to bargain does not compel either party to agree to the other’s proposal to make concessions.
EFCA amends the National Labor Relations Act in three key ways:
• Elimination of employee secret ballot elections: EFCA would effectively do away with the secret ballot elections process and instead determine the employees’ desire to form a union exclusively through the presentation of a majority of signed union authorization cards. This change exposes employees to risk of being pressured by either party to sign or not sign the authorization card. Also, it eliminates the opportunity for the employer to campaign and educate their employees on their benefits and opportunities with and without union representation.
• Imposed binding, third-party interest arbitration: EFCA imposes a contract on employers through binding third-party interest arbitration, if no first contract is reached after 120 days of bargaining. That is, if an agreement cannot be reached, an arbitration panel will be given the power to resolve the issues, and will force employers to agree to a two-year contract with outlined terms and conditions, despite the employer’s right, under current law, to refuse agreement to the union’s proposals. Arbitrators have the power to impose wage increases, health insurance benefits, union pension plans, overtime pay, job classifications and work rules, and other costs, regardless of the employer’s resources.
• Increased penalties against employers: EFCA dramatically increases the penalties against employers for Unfair Labor Practices (ULPs) but does not present any increased penalties against unions.
If passed, the legislation has the potential to cause “stealth” organizing drives, cards signed based on pressure and misinformation, and cards signed by employees lacking adequate knowledge of the risks of unionization and benefits of “union-free.” The legislation also has the potential to have a major negative impact on small businesses, as unions can be formed within businesses with a minimum of two employees, and representation includes regular part-time workers.
As the legislation is being considered, businesses should be reassessing the ability to withstand a union campaign, addressing problems in the workplace and educating employees about EFCA, its elimination of their right to vote, and the risks of signing union cards.
Businesses interested in contacting their representatives about EFCA can contact Vice President of Government Affairs Allyson Black at .(JavaScript must be enabled to view this email address). To view the webinar presentation click here.
A special thank you to Steve Shawe and Shawe Rosenthal for hosting this important webinar for our members.
Please be aware that if you have only 2 employees, you could be impacted by this law if it passes. We believe unions will target small employers, knowing they only have to get a simple majority of signed cards before the clock starts ticking towards binding arbitration.
Senator Barbara Mikulski has asked for business input as to how EFCA would impact your business. Please be sure to do so and to share your comments with Allyson Black.