EFCA Basics for Managers

How the “Employee Free Choice Act” Changes Labor

Law

(HR800 as of October, 2008)

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Labor unions don’t like losing• Labor unions lose most elections • Even when they win, they often fail

to reach favorable contract terms (or any terms at all)

• Why?• Employers know the importance of a

fair and respectful workplace• Unions have little/no real value to

offer

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Money talks

• Union political clout has grown with the size of their contributions

• The number one Congressional priority of Labor is the Employee Free Choice Act (HR800)

• Narrowly failed in 2007; waiting on the elections November ‘08

• Nothing FREE about it

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What would EFCA do?

• It adds Sec. 9(c)(6,7) to the National Labor Relations Act: let’s call it the Forced Choice provision

• Simply stated, no more secret ballot elections on unionization if the union gets 50% plus one to sign a card or petition

• All they need is the cards• In “an appropriate unit”, meaning it

could be a department or part of a location

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What’s wrong with that?

• Goes against the grain of American culture PLUS union members polled don’t like it either!

• Subjects the card signers to scrutiny and pressure (even threats) that are minimized in a private ballot booth election.

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What else?

• It adds Sec. 8(h) to the NLRA: let’s call it the Forced Contract provision

• First, sit down.• If no contract is reached within about

120 days from the union card victory, it may demand (and get) a panel of arbitrators to hear both sides and decide EVERY disputed term of your new contract.

• You will live with this result for two years.

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More?

• Yes, there’s more.• It amends Sec. 10 and 12 of the

NLRA: call it the Forced Muzzle.• By raising penalties and fines to

unheard of levels, unions hope to keep employers and their managers from speaking out against the union attempt in fear of making a mistake and suffering the consequences

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Example

• How will it affect your desire to be free and open in your conversations with employees if you know you could be fined $20,000 per incident for unintended slip-ups like asking an employee how they feel about the union?

• Even if you didn’t ask that prohibited question, employers routinely lose such claims when accused (no fines today)

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How would things be different?• Dozens of implications• Quick, ill-informed and coerced choices

by employees• Surprised employers unable to respond• Lack of a known election day/finality• Arbitration of your workplace terms by

law professors, academics and grievance arbitrators (or a hurried contract with unintended consequences for all)

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How would things be different?• New opportunities to attack non-

traditional union targets due to stealth tactics and smaller units

• Bad news or policy changes can trigger quick card signing activity

• A renewed emphasis on preparedness and knowing employee engagement/opinions

• An extra premium on manager skills and communication capabilities

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Some questions to consider

• How does this affect employee/new hire communications now and later?

• What/when/how/who?• What training might help our

managers?• Are you ready to respond if cards

appear?• Do you have a point person to stay

informed and connected to CAI on this?

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CAI

• We are members of CAI• Pre-passage, CAI will keep us

informed of developments• CAI will train us on union issues and

management skills at our request, and survey our employee opinions

• If it is passed, effective communication resources, assistance, video and materials will be ready