THE EMPLOYEE FREE CHOICE ACT

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1 THE EMPLOYEE FREE CHOICE ACT ORGANIZED LABOR S QUEST FOR GROWTH & POWER Gregory J. Hare, Esq. 191 Peachtree Street, N.E. Suite 4800 Atlanta, Georgia (404) greg.hare@ogletreedeakins.com Web:

2 UNION MEMBERSHIP IN THE U.S. PERCENTAGE OF TOTAL U.S. WORKERS '78 '80 '82 '84 '86 '88 '90 '92 '94 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 * BUT UNION WIN % IS WAY UP!

3 WHY DID UNIONS LOSE CLOUT? Decades of economic evolution & legislative progress But, what do the unions blame? NLRA lost its balance Too hard for unions to win elections Too hard for unions to negotiate contracts Too easy for evil employers to cheat

4 UNION RESPONSE Pumped half billion $$$ into getting pro-labor politicians elected Pushed legislation to change the NLRA playing field Result: EFCA LOOMS!

5 Employee Free Choice Act Overview Fundamental change in the way a union can get into a facility Fundamental change in what happens if a union gets into a facility Significant increase in penalties imposed on employers who try to fight against unions

6 EFCA You talk about something that could jumpstart the labor movement. The Employee Free Choice Act, that s it. James Hoffa President IBT

7 EFCA Number one, I think that we should pass the Employee Free Choice Act. That will make it easier for unions to organize, make it harder for companies to block unionization. Then Senator Barack Obama

8 Union Organizing Current Law Paid union organizers collect signatures NLRB reviews signed cards and schedules election Employer & Union Info. Campaigns Among Employees NLRB conducts secretballot election *42-50 DAYS If majority choose union, then... NLRB Certification: Employer must recognize union and bargain

9 BIG CHANGE #1 EFCA MAKES WINNING EASY Paid union organizers collect signatures Quickie Organizing NLRB reviews signed cards and schedules election Employer & Union Info. Campaigns Among Employees NLRB conducts secretballot election * FORCES EMPLOYEES INTO PUBLIC CHOICE If majority choose union, then... NLRB Certification: Employer must recognize union and bargain

10 Collective Bargaining Current Law What happens when a union gets in? Employer must bargain in good faith No obligation to make concessions NLRA doesn t dictate contract terms Most times, 1 year passes still no contract If employees unhappy, try to decert after 1 year

11 BIG CHANGE #2 EFCA GUARANTEES ROI GUARANTEED UNION CONTRACTS Bargaining starts in 10 days After 90 days of failed bargaining, go to mediation After 30 days of mediation, go to mandatory arbitration Government appointee sets contract: * wages * benefits * work rules * start times, etc. Union gets more

12 Penalties Current Law What happens if an employer says or does something wrong? Rescind termination Rehire & make whole with backpay Bargain over other changed conditions Cease & Desist Notice No penalties

13 BIG CHANGE #3 EFCA GIVES EMPLOYERS PAUSE Triple back pay NEW PENALTIES Civil penalties (up to $20,000/violation) for employer misconduct Mandatory Injunctive Relief

14 RECENT STATUS UPDATE DELAYED... CERTAINLY NOT DEAD HARRY REID (D - Nev.) EFCA On Hold (8/31/09) Behind Healthcare, Energy, Banking & Finance TOM HARKIN (D - Iowa) Labor Reform Remains A Priority (9/1/09) EXPECT ACTION IN 2010 Before Mid-Term Election

15 LIKELY OUTCOME EFCA LITE COMPROMISE LEGISLATION: Still Dramatic Change Card Check Out... Quickie Vote In (5-10 days) Property Access/Equal Time For Union Still Guaranteed Contracts & Stiffer Penalties NLRB RULEMAKING: Secret Weapon NLRB Nominees Are Extremely Pro-Labor Craig Becker: AGC of SEIU Mark Pearce: Union-Side law firm in Buffalo Skip Legislation... Just Change The Rules To Help Unions Bottom Line: Be Prepared For Major Change

16 WHY DO EMPLOYEES SEEK UNIONS? Union organizing is issue driven Everyday, you are building your campaign platform! How supervisors treat employees determines whether union card signing catches on.

17 WHAT TO DO #1: ALL EMPLOYERS Non-Union Philosophy Statement Why is it important for your company to remain union-free? Mission Statement customized top-down message Leaders must embed vision into company culture Every manager must know how to answer the basic question Why is having a union a bad idea?

18 WHAT TO DO #2: ALL EMPLOYERS Supervisor Training Game plan to win before kick off Once card signing takes off, it s too late Supervisors must be trained on card signing Early warning signs No solicitation/distribution rules enforcement Positive Employee Relations training Consistency in applying rules Fairness in discipline Active employee problem solving

19 WHAT TO DO #3: ALL EMPLOYERS Issue Identification Audit Employee interview cross-section Morale gauge Supervisor assessment In Touch? Issue resolution action plan Work rules adjustments Problem Solving Wage & Benefit Review

20 WHAT TO DO #4: AT RISK EMPLOYERS Vulnerability Assessment Identify cells of anti-company sentiment Likely union pushers Demographic trends Develop action plan What if highly regarded What if long time bad eggs

21 WHAT TO DO #5: AT RISK EMPLOYERS EFCA Response Team Develop knowledgeable team of HR & OPS leaders Communicators Ready to go... Anywhere... Anytime Develop written action items What to do? What tools do we have... need? Gather union data and prepare prototype materials Implementation calendar (flexible)

22 WHAT TO DO #6: TARGET EMPLOYERS Employee Education Campaign State reasons for company s opposition to unions Craft message to deter card signing Determine intensity and style Pro-Company... Or Anti-Union? Delivery tactics Posters, handouts, check stuffers Group meetings/town hall Videos Custom website

23 QUESTIONS? ACTION PLAN? THANK YOU! Gregory J. Hare Ogletree Deakins (404)