This is a forum for my observations about a variety of human resources topics and to discuss and question current human resources practices. I want to keep the good things about HR and dump the things that stink. I am sometimes controversial, sometimes humorous, and always educational.
Monday, March 22, 2010
EFCA After Healthcare: Rising From the Dead?
Will EFCA now rise from the dead? If it does the version that will be worked on will be that of Senator Arlen Specter (pun not intended by happily pointed out.) An article in the September 17, 2009 issue of the Washington DC Employment Law Update blog dealt with Specter's "Compromise" version of EFCA. It pointed out that Specter's compromise gets rid "Card check" aspects of bill. However, quoting a Washington Post article, writer blogger Jay Sumner stated "...the amended EFCA would try to make union elections more fair by sharply limiting the time between organizers' declaration that they have enough support to call an election and the day of the vote, to reduce the potential for employer intimidation. Organizers would also be guaranteed access to workers if employers held mandatory anti-union meetings on company time. And the penalties for employers who break labor law rules would be triple what they are today." (The emphasis is mine and points out a bad precedent. Unions have all the access they need to have after work. A time that the employer does not. Unions have the right to visit in the homes of workers, employers do not.)
The second part, and more dangerous part of the bill, gets altered as well. Sumner points out "As for the equally contentious arbitration provision, the amended bill would still impose forced government arbitration if the parties cannot agree to the terms of a first contract within a specified time period, but would establish a “last best offer” model for final resolution. Under this approach, the arbitrator chooses between the two parties’ contract proposals, rather than exercising unfettered discretion on contract terms."
Sumner summarizes by stating "While on the surface these amendments appear to temper some of the more controversial terms that have been anathema to business interests, the changes are not drastic enough to attract wide-spread support within the business community, most of which is opposed to EFCA in any form and in particular is opposed to first contract arbitration. In fact, this version of EFCA – unlike the original bill – would provide union organizers with unprecedented access to the workplace. While the suggested bill would preserve the representation election process, the shortened election period would limit an employer’s ability to present its position to employees so that employees can make a fully-educated decision on unionization having heard both sides." (The emphasis is mine).
This compromise is bad news. By stripping the "card check" from the bill and preserving "secret ballot elections" much of the uninformed will think that the bill is palatable. IT IS NOT!
So lets not let down our guard! Pay attention to what is going on. I am sure unions are chomping at the bit to get this pushed through. And as the Healthcare bill showed DEAD AND BURIED may only be a perception and EFCA may yet rise from the dead and walk ZOMBIE like to reality.
Wednesday, July 01, 2009
Update on EFCA: SEIU Rejects "Card" Signing: SAY WHAT???

Amazingly the SEIU, as the article states "One of the giant union's allegations echoes a key argument that corporate interests make against the proposed law, the Employee Free Choice Act: that labor activists can intimidate or mislead workers during organizing campaigns." Talk about being two-faced! The SEIU has turned to the NLRB and has charged the rival union with unfair labor practices (ULPs) and wants the petitions set aside. Yet Andy Stern, president of the SEIU, says this does not change his stance on EFCA. Sure, not as long as it will work for his benefit. But let it work against him and he is for using current labor law. Sounds like a good argument for not needing EFCA in the first place.
Thursday, June 25, 2009
Why Unions Are Bad For Companies, Employees and Customers

This study finds:
- "Unions function as labor cartels. A labor cartel restricts the number of workers in a company or industry to drive up the remaining workers' wages..... Companies pass on those higher wages to consumers through higher prices, and often they also earn lower profits. Economic research finds that unions benefit their members but hurt consumers generally, and especially workers who are denied job opportunities.
- The average union member earns more than the average non-union worker. However, that does not mean that expanding union membership will raise wages: Few workers who join a union today get a pay raise. ....The economy has become more competitive over the past generation. Companies have less power to pass price increases on to consumers without going out of business. Consequently, unions do not negotiate higher wages for many newly organized workers. These days, unions win higher wages for employees only at companies with competitive advantages that allow them to pay higher wages, such as successful research and development (R&D) projects or capital investments.
- Unions effectively tax these investments by negotiating higher wages for their members, thus lowering profits. Unionized companies respond to this union tax by reducing investment. Less investment makes unionized companies less competitive.
- Economists consistently find that unions decrease the number of jobs available in the economy. The vast majority of manufacturing jobs lost over the past three decades have been among union members--non-union manufacturing employment has risen. Research also shows that widespread unionization delays recovery from economic downturns.
- Some unions win higher wages for their members, though many do not. But with these higher wages, unions bring less investment, fewer jobs, higher prices, and smaller 401(k) plans for everyone else.
- Economic theory consequently suggests that unions raise the wages of their members at the cost of lower profits and fewer jobs, that lower profits cause businesses to invest less, and that unions have a smaller effect in competitive markets (where a union cannot obtain a monopoly).
- .....union contracts compress wages: They suppress the wages of more productive workers and raise the wages of the less competent. Unions redistribute wealth between workers. Everyone gets the same seniority-based raise regardless of how much or little he contributes, and this reduces wage inequality in unionized companies... But this increased equality comes at a cost to employers. Often, the best workers will not work under union contracts that put a cap on their wages, so union firms have difficulty attracting and retaining top employees.
- Studies typically find that unionized companies earn profits between 10 percent and 15 percent lower than those of comparable non-union firms."
Much more can be read in this study. If you truly want to know the costs, ALL THE COSTS, that are associated with unions read the article. It talks about how unions have cost GM and the US.
Probably the item I find the most disagreeable is this following statement on individualism. It is why I have never belonged to a union, it goes against how I was raised.
"Final union contracts typically give workers group identities instead of treating them as individuals. Unions do not have the resources to monitor each worker's performance and tailor the contract accordingly. Even if they could, they would not want to do so. Unions want employees to view the union--not their individual achievements--as the source of their economic gains. As a result, union contracts typically base pay and promotions on seniority or detailed union job classifications. Unions rarely allow employers to base pay on individual performance or promote workers on the basis of individual ability."Wednesday, March 11, 2009
EFCA: Biden, Unions and Congress Start "The Dance"

- EFCA would eliminate the secret ballot election that is normally required for your employees to select a union, and replace it with a much less formal "card check" process that is controlled by the union and is secretive, selective, and susceptible to abuse and coercion.
- Even more alarming are provisions in EFCA that would require so-called "interest arbitration" of the first contract once a union gets in. Under these provisions, if the first contract is not negotiated to conclusion between the parties within a relatively short 120-day period, the contract dispute would be referred to an arbitrator who would then determine the contract terms for a two-year period with no right of appeal.
Most of the attention has been focused on the first provision and there has been a backlash against it. Several states are even introducing legislation to preserve secret ballot elections in their states.
However, most labor negotiators that I know and have read about are more concerned with the second provision. Few first time contracts are negotiated in 6 months, much less 120 days. The failure to do so enforces an arbitrator designed contract, one that will not be in the best interest of the company.
I am playing "seer and soothesayer" and making a prediction. I predict we will see an attempt to "compromise" on the "card check" provision to make EFCA more palatable to the public while maintaining the more harmful "interest arbitration" provision.
I have written my Congressional representatives, both House and Senate, and expressed my opinion. I suggest you do the same. Guess we will have to see if President Obama is waiting to tap Joe Biden and cut in to dance with the AFL-CIO on this one. New Labor Secretary Hilda Solis has already been at the dance and has been filling in her dance card too.
Tuesday, February 10, 2009
Career Opportunity for HR in the EFCA

Friday, February 06, 2009
Card Check, Email and Social Media: A Clash of Interests

If you have been reading these posts at all, you know by now that the Employee Free Choice Act (EFCA) contains a provision allowing unions to organize using a method referred to as "card check." Wikipedia defines card check "...as a method of organizing employees into a labor union in which employers enter into an agreement to recognize the unionization of its employees if a majority of employees in a bargaining unit sign authorization forms, or "cards". " What most people do not realize is that the signed "card" does not need to actually be a card, that is a holdover from the days when it actually was a card, back in the days when there was nothing like email and electronic signatures. Many experts feel today that union organization will be done in large part by use of email and to a lesser extent through the use of social media, such as FaceBook, MySpace and Twitter. Their recommendation to employers is to severly restrict the use of email to business only purposes and eliminate access to social media from work computers.
Unfortunately, this butts heads with the increasing trend of (primarily) younger workers using email and social media for personal communication throughout the day. In fact many recruiters are using social media for recruitment purposes. People access and read blogs throughout the day. Web 2.0 use is a mix of work and personal that becomes almost impossible to limit. If you try you may have push back from younger workers who complain that this makes the workplace too stifling, which is the opposite type of workplace you want to have to remain union free.
It will be a fact that unions will use your email system to try to organize workers against you. Expression of interest through an email response may very well count as having "signed the card." So what do you do? You need to educate your workers. Educate them on:
- The company position on remaining union free. Let them know how the company will be harmed economically.
- Educate them on how unions may try to organize them, forewarning them about emails and contacts on social media. Letting them know not to respond to these contacts without first checking out the facts that may be presented.
- Encourage open communication with your employees about the economy, unions and the continued well being of the company.
You can draft tighter non-solicitation policies, which includes the use of email. But it may be difficult to totally control email use. But there is software to monitor email traffic if you want to do so.
I would like to hear from some of you who have email policies that restrict use of email. Please leave a comment and let us know how you do it, monitior it, and how effective that has been.
As a closing note, the card check provision is getting alot of attention. This attention may be a diversion to keep our attention away from the second provision of EFCA, Interest Arbitration and enforced contracts, which is the much BIGGER EVIL of EFCA.
Tuesday, February 03, 2009
Andy Sterns: Business' Biggest Enemy?

Thursday, January 22, 2009
More on the Employee Free Choice Act

I had the opportunity to attend a seminar/briefing conducted by two notable attorneys from two well known law firms in the Atlanta area, Bennet Alsher of Ford & Harrison LLP and Daniel Shea of Nelson Mullins Riley and Scarborough LLP. They discussed alot of the impending legislation that will be introduced by the Congressional Democrats, supported by the Obama administration. They, Dan Shea in particular, discussed the EFCA, starting with a little history.
But first, let me remind you of the provision of EFCA. First, there is card check recognition, which would allow unions to declare a victory in organizing employees simply by getting 50% plus 1 signatures. It would eliminate the use of secret ballot elections. Secondly, there is First Contract Arbitration. This would require the government to impose terms of agreement if no agreement is made within 180 days. This binding agreement would be in force for 2 years. Thirdly, there would be increased penalities for Unfair Labor Practices to the tune of $20,000 per violation and the potential for treble damages. Oh, by the way, these penalties are for managment only! Now onto the information.
Dan Shea pointed out that originally, the Wagner Act had card check as the prime method of unionization written in the original law. The abuses by the unions, such as coercion, intimidation and threats of physical violence, forced lawmakers in 1947, in the Taft-Hartley Act, to change the process to secret ballot election. Dan also pointed out that Canada, which has a workforce that is 30% union (down from 40%) originally had card check solely as the method of union organization. The abuse of this method was so bad that the two largest provinces changed to secret ballot election. I confirmed this by some investigation and found this bit of research from a researcher named Sarah Johnson. "In the last 25 years, a major change has occurred in the way unions are recognised in Canada. In 1976, every jurisdiction in Canada used card check. Today, more than 50% of the Canadian labour force is covered by mandatory vote legislation and union recognition procedures continue to be a matter of policy concern and debate ..."
In case you think it is only business leaders and Republicans who find the use of secret ballot elections preferable here are quotes from some primary Democrat leaders. From The Union News we have "The leading House sponsor of card check is Rep. George Miller, who also served as campaign manager of Mr. Waxman's race against Mr. Dingell, settled by secret ballot. What's more, along with 10 House Democrats, Mr. Miller wrote a 2001 letter to Mexican government officials encouraging the "use of secret ballots in all union recognition elections." The letter states: "We feel that the secret ballot is absolutely necessary in order to ensure that workers are not intimidated into voting for a union they might not otherwise choose." In the inner workings of Congress representatives recognize the value of a secret ballot as evidenced by this quote about a vote to replace a key member of a committee. "Even Rep. Louise Slaughter, chairwoman of the House Rules Committee, told Congressional Quarterly she was relieved the vote would be a private one: "It's a secret ballot. . . . Thank the Lord." So there is just a bit of hypocrisy.
Dan and Bennet both thought that there may be some manauvering to soften the blow of EFCA, but they both believe that the bigger issue of EFCA is the First Contract Arbitration. Most first contracts are not usually negotiated in less than six months. The 180 day requirement is entirely unreasonable. And then to have the government impose your terms is disasterous. To give you an idea, in Canada, this method ended up with a WalMart Auto shop being forced to give employees a 32% increase in wages, despite a very competitive market that did not allow a comparable price increase. The result? WalMart closed the center the next day and all the newly unionized employees were out of work.
Another tidbit, the 50% +1 on card check is for the appropriate bargaining units, which you may not even know what that definition is until you are presented "your" union by the NLRB.
Lastly, there will be ABSOLUTELY NO SANCTIONS against unfair labor practices engaged in by the unions.
This law is the unions NUMBER 1 PRIORITY and they have alot of support. The NLRB will be heavily union biased as is the new Secretary of Labor (after all her father was a Teamster president.) So be aware, be educated and be active. Let your Congressional representatives know this is bad law. Here are a couple of educational resources. From UnionFacts. com info on intimidation. Lots of info from The Union News.
Monday, August 04, 2008
Employee Free Choice Act AGAIN: If You Are Not Scared Now You Should Be!

Under the proposed legislation, companies could no longer have the right to insist on one secret ballot. Instead, the Free Choice, or "card check," legislation would let unions form if more than 50% of workers simply sign a card saying they want to join. It is far easier for unions to get workers to sign cards because the organizers can approach workers repeatedly, over a period of weeks or months, until the union garners enough support."
Monday, June 30, 2008
Advice for Non-Union Employers: Follow Or Rue the Day!

Wednesday, June 18, 2008
Hone Your Labor Negotiation Skills: You Are Going to Need Them

Thursday, May 15, 2008
Cornucopia of HR Topics: The Carnival of HR

Tuesday, May 13, 2008
So Much for Free Choice: Unions and Secret Pacts With Employers

The unions are the Service Employees International Union (SEIU), (the AFL-CIO breakaway) and Unite Here. The employers are Sodexho, Inc. and Compass Group USA. The agreements go beyond neutrality agreements (organizing attempts that the employers do not dispute) and there is a selection process between the company and the union on which locations can organize and which cannot. Thus, the unions and the employers decide who has the right to belong to the union and not the employees themselves. These agreements have been criticized and the question has been asked what the trade-off is. Well the trade-off is that the unions get to increase their membership without dispute and the companies get the unions to agree to not strike. Sounds good? Maybe for the unions, maybe for the employer, but not for the employee! The employees do not get to decide if they want to organize, they do not get to have a say by secret ballot, and if they are organized they cannot strike if they so desire.
Makes you wonder whose side the union is on doesn't it? Well I have always said that a union today is just a business and they make their money off of dues. If they can increase their membership and hence their revenue by making secret deals they will do so even if it does not benefit the employees. The businesses who are entering into these agreements are probably trying to limit their damages, thinking they would probably have been organized at sometime anyway (which means they probably deserve a union). So they get to pick who gets oranized and who doesn't. But they are not thinking in the best interests of their employees either.
So the unions gain, the companies gain and the employees lose. What a great system.
Tuesday, May 06, 2008
Sign of the Times? Union Activity Rising?

Tuesday, April 15, 2008
Unions and Democrats: Bad News for Companies in 2009

Tuesday, March 11, 2008
Secret Ballot As a Foundation to Freedom: Not to Unions!
The title of the legislation is totally bogus. In fact the EFCA seeks to take away any concept of free choice by requiring employees to make a public declaration of their support, or lack there of, and sign a card or petition for union representation. Up to now employees have been allowed to sign (or not) and then, after a campaign by both sides, decide by secret ballet whether they wanted a union or not. The EFCA seeks to take that away and give employees no opportunity to hear the merits (or lack of) union membership and then decide in a private way to vote for or against. Having to decide openly in a public forum opens the process to the use of intimidation or coersion. And for those of you that don't think unions do that anymore watch the following video.
So watch this legislation carefully.
