Employee Free Choice Act Introduction Appears Imminent

The Employee Free Choice Act (EFCA) could be introduced in both the House and Senate next week. This is a law that could be the final nail in small business.

Representative George Miller (D-CA) and Senator Edward Kennedy (D-MA), the respective chairmen of the House and Senate labor committees, reportedly will be the prime sponsors.  (In 2007, EFCA passed the House of Representatives, but stalled in the Senate after proponents failed to muster the 60 votes needed to bring the bill to a final vote.)

Current federal law provides two opportunities for employees to decide whether or not to form or join a union:

1. Through a private ballot election administered by the National Labor Relations Board, or

2. By the collection of signed authorization cards (known as “card check” recognition).

Under current law:

• When a union receives a majority of votes through a secret ballot, the union is certified as the sole bargaining agent on behalf of the employees.

• When a union receives at least 30 percent of signed cards, the employer can request that a private ballot election be held.  (When a union receives at least 50 percent of signed cards, the employer can either recognize the union immediately or request an election.)

EFCA would drastically change current law and allow a union to bypass the election process after collecting authorization cards from a majority of employees.  Thus, employers would lose the right to request that an election be held.

If enacted into law, EFCA would:

• Eliminate employees’ opportunity to vote in a federally-administered, private ballot election;

• Require binding arbitration within 120 days after a union is certified through a signed card collection process, if the employer and the union are unable to reach an agreement;

• Restrict an employer’s communications to employees about the workplace issues involved in the union organizing drive; and

• Create new fines against employers for an expanded list of unfair labor practices

Mandatory binding arbitration called for under EFCA could impose unwanted employment conditions on both employees and employers, by an arbitrator who will know little about the company, its finances or where or how it makes money. The arbitrator, without knowledge of the company and absolutely no money or investment, would make a binding decision on the Employer that could diminish profit or even destroy the company.  Employees also could simultaneously lose their rights to vote on union representation and to approve workplace contracts.

On April 21^st HR-OneSource along with a number of other sponsors will present 2 sessions that will highlight the potential new regulations and the impact they will have on Employers.  David Garza of the National Labor Relations Board will discuss the NLRA Act and the possible changes and how the NLRB will respond to various situations; and Jack Lipovac of HR-OneSource will present what Employers need to do when faced with a union organizing campaign.  Please see our conference page for more information.