Employee Free Choice Act-Employers BEWARE!

On March 10, 2009, the Employee Free Choice Act (EFCA) was introduced in Congress!

The bill was sponsored by Representative George Miller (D-CA), the House Education and Labor Committee Chair, and Senator Tom Harkin (D-MA). The legislation would amend the National Labor Relations Act to allow unions to use the “card check” process – and bypass the secure, private election format – each time they attempt to organize workers.

Background

The National Labor Relations Act currently provides two opportunities for employees to decide whether or not to form or join a union:

1. Private ballot election - When a union receives a majority of votes through a secret ballot election administered by the National Labor Relations Board, the union is certified as the sole bargaining agent on behalf of the employees, or

2. “Card check” recognition - When a union receives at least 30 percent of signed authorization cards, the employer can request that a private ballot election be held. (When a union receives at least 50 percent of signed cards, the employer can either recognize the union immediately or request an election.)

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EFCA & NLRMA are BAD for Business!

Calling all business owners!

(The following was published by:  Ballard, Spahr, Andrews & Ingersoll LLP,  on March, 18, 2009.)

“Alternatives to the proposed legislation known as the Employee Free Choice Act (EFCA) (H.R. 1409; S. 560) have started to emerge as legislators seek to reach a compromise between labor and management interests. Congressman Joe Sestak, D-Pa., recently introduced the National Labor Relations Modernization Act (NLRMA) (H.R. 1355). Unlike EFCA, the NLRMA would apply only to employers having 20 or more employees and would not eliminate the requirement for secret ballot union elections, thereby avoiding EFCA’s controversial card check provisions.

Similar to EFCA, the NLRMA sets time limits during which an employer and the union must reach a first collective bargaining agreement and mandates interest arbitration. The NLRMA periods are longer than those under EFCA. EFCA provides a 90-day initial period, whereas the NLRMA gives the parties 120 days to reach an initial agreement. If unsuccessful after 120 days, the parties may contact the Federal Mediation and Conciliation Service (FMCS) and request the appointment of an arbitration panel.

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