Thursday, November 13, 2008

Check Please? The Employee “Free” Choice Act and More

The Presidential and Congressional elections will almost certainly result in a dramatic shift away from relatively employer-friendly national labor policies that have existed for nearly a decade. What impact will this have for employers?

The labor unions that supported President-Elect Obama and the congressional Democrats will expect to see their signature issues placed at the top of the new administration’s legislative agenda. That likely means passage of some version of the Employee Free Choice Act (“EFCA”) and the lesser-known Re-Empowerment of Skilled and Professional Employees and Construction Trades Act ("RESPECT"). Enactment of these two proposed pieces of legislation will alter radically both the balance of strength between employers and unions and the ability of employers to supervise their workplaces effectively.

EFCA has four primary goals: (1) to allow unions to organize employees (without the employer’s knowledge, much less an opportunity to express its opposing viewpoint) through card checks and eliminate secret-ballot elections; (2) to force employers to accept unreasonable bargaining demands from unions by compelling employer participation in binding interest arbitration of all unresolved issues; (3) to order employers to abide by the decisions of an outside arbitrator who does not have to accept responsibility for a bad decision; and, (4) to mandate employer payment of back pay, liquidated damages and potentially significant fines where an employer has violated employee rights to unionize.

The U.S. House of Representatives passed the EFCA in 2007. However, a Senate filibuster backed up by a threatened presidential veto prevented the passage of the bill. Under the incoming presidential administration, a veto is unlikely and, in light of an increased Democratic Senate majority, the likelihood of a successful filibuster is highly uncertain.

RESPECT will amend dramatically the nearly 60 year old statutory definition of a supervisor under the National Labor Relations Act by: (1) eliminating the two most common supervisory duties – the authority “to assign” other employees, and the authority to “responsibly to direct” other employees; and (2) requiring that a supervisor spend the majority of work time engaging in the remaining duties outlined in the definition (i.e., the authority to exercise independent judgment in the interest of the employer, to hire, transfer, suspend, lay-off, recall, promote, discharge, reward, or discipline other employees, or to adjust their grievances or effectively to recommend such action). With its passage into law, RESPECT will increase the number of employees, currently considered supervisors, who can join unions and seriously impair management’s ability to supervise effectively the workplace. President-Elect Obama already has stated that he agrees with this proposed legislation.

If you are interested in understanding these anticipated laws and an employer’s best defense to these laws, then you are invited to attend a free breakfast seminar provided by Zashin & Rich on Thursday, December 4, 2008 from 9:00 a.m. to 11:00 a.m. 

Employers attending the seminar will gain knowledge on topics including, but not limited to:
  • a comprehensive overview of the proposed statutory changes to the National Labor Relations Act, and the likely impact of these changes upon workforce unionization and labor negotiations;
  • a presentation of union avoidance strategies and tactics that focus upon minimizing opportunities for unions to obtain union authorization cards from a majority of employees; and,
  • a discussion of recommended adjustments to workplace policies and procedures to reduce the potential adverse consequences of complying with these potential new laws.
The free seminar will take place at the offices of Zashin & Rich, and will include a free breakfast. Two standard CLE credits have been applied for. Limited seating is available. To make a reservation or receive more information, please contact Heather Hatfield (hlh@zrlaw.com) at 216-696-4441.