LEGISLATIVE ALERT- March 11, 2009

Posted on: March 11 2009 | Posted in: Key Issues
LEGISLATIVE ALERT
MARCH 11, 2009


Yesterday, the U.S. Senate and the House of Representatives were introduced to the Employee Free Choice Act (EFCA), also known as the Union Card Check. The EFCA has gained strong support from pro-union Congressional members in recent months. The unions and President Obama’s staff are suggesting that passage of the EFCA is America’s salvation to the current financial conditions.

Here are some key points to the Act that could be detrimental to your business:

· Allows employees to have free choice by eliminating the proposed authorization card sign-off approach.

· Allows the Secret Ballot system to continue.

· Removes litigation as a manner of creating a contract. Allows a union and employer to negotiate the contract, and gives the employee their free choice to ratify that negotiated contract. Removes the 120-day mandate for contract creation.

· Allows mediation rather than forced arbitration.

· Creates penalties that are fair and just by increasing penalties for all players—employers should not be the only group to face increased monetary penalties and fines under any labor law.

Please contact your U.S. Senators and your U.S. Representatives to let them know how detrimental and harmful this proposed legislation will be if passed.

LEGISLATIVE ALERT
MARCH 11, 2009


Earlier today we reported on the proposed Republican version of the Employee Free Choice Act (EFCA) which favored employers.

Below are the key points of the Democrat-sponsored version of the EFCA introduced yesterday to the U.S. Senate and the House of Representatives.

What follows are some key points to the Act that could be detrimental to employers:

1. Employees Lose Their Free Choice Of A Secret Ballot
First, the EFCA eliminates the employee’s right to a government-run secret election ballot to state whether or not the employee agrees to allow a union to represent all employees collectively when dealing with terms and conditions of employment.

2. Contract Terms May Be Determined Through Mandatory Arbitration
Second, the Act potentially eliminates employees’ rights to approve the contract terms negotiated with their employer by union representatives. EFCA provides that once a union is designated the representative of the employees, the employer must come to terms under its first contract with the union within 120 days, and failing to do so will result in the terms and conditions of the contract being determined by a government appointed arbitrator. An arbitrator will decide how much money an employee will make, what benefits an employee will receive, what percentage of benefits the employer must pay, and what the conditions of work will be for a term of two years. The employees will lose their right to ratify the contract, and the employer will lose its right to run its business in a profitable and successful manner.

3. Employers Will Be Subjected To Greater Penalties
EFCA calls for extensively larger monetary penalties for employers who violate employees’ rights under the Act. Unfortunately, the Act, as currently presented, lacks fairness. There are no increases in penalties for unions.

Please contact your U.S. Senators and your U.S. Representatives to let them know how detrimental and harmful this proposed legislation will be if passed.