EFCA Still Potent for Organized Labor

There's word out of Congress that the most contentious provision of the Employee Free Choice Act that would have made organizing workers far, far easier will be whittled from the bill. The New York Times  reported on Friday that moderate Senate Democrats dropped the so-called "card-check provision" from EFCA as a means of securing a filibuster-proof 60 votes for the rest of the package.

Card check would have required employers to recognize unions as soon as a majority of employees signed cards saying they wanted to organize, effectively eliminating the secret ballot. The unions love it. Management hates it, and both sides lobbied ferociously for their cause.

Before you make party balloons out of surgical gloves and form conga lines in the C-suite, remember that the card check provision is only one—albeit key—component of EFCA, the most labor-friendly legislation under consideration in Washington in years. Instead of card check, unnamed Senate and labor officials told the Times that the revised bill would mandate shorter unionization campaigns and faster elections, which will give management less time to react to a union threat.

"A lot of people are confused. When they say EFCA is dead, it's the card check provision that may be in question," says James G. Trivisonno, president of Detroit-based IRI Consultants. "The House may feel differently, so I wouldn't count it out completely. But, clearly there is going to be some kind of reform and it is going to impact employers. The time is now to start looking at employee relations policies and practices."

The federal government's view of the labor-management paradigm has shifted remarkably in the few months since President George W. Bush left the White House. One of the most business-friendly presidents in recent history was replaced by the very union-friendly President Barack Obama, who is an unabashed supporter of card check. Obama has strong ties to Andy Stern of the Service Employees International Union. They meet regularly at the White House.

Democratic appointees also will control three of the five seats on the National Labor Relations Board, which holds great leeway in setting the rules and adjusting the goal posts. And before she was appointed NLRB general counsel this spring, Julia Clark held the same post for the International Federation of Professional and Technical Engineers.

"Nothing precludes the NLRB through their rule making authority from potentially shortening the time frame (for unionization votes) and maybe even ruling on card check," Trivisonno says. "A lot of folks are focused on the single issue of card check but there is so much out there legislatively and the unions' ability to influence the administration is incredible. They've got access. They are going to use it."

In other words, keep your guard up. Organized labor is making an aggressive push to grow its membership and SEIU—which already represents more than one million healthcare workers—has specifically targeted the healthcare sector. Whatever shape EFCA takes when it comes out of Congress, President Obama will quickly sign it, and the NLRB will enforce it, all to the benefit of organized labor.

It's going to happen, so Trivisonno says management needs to prepare. Employees need to hear the case against organized labor. "It's very important to articulate and not be afraid of discussing with your employees your position," he says. "Some employers feel that if they mention the "U" word it is going to help the union. Nothing could be further from the truth. Make sure that people are clear on your position early on."

I am not taking sides on this issue. While organized labor can be justifiably criticized on many, many fronts, critics must also concede that unions helped build the middle class in this nation by pushing for fair wages, better working conditions, the 40-hour work week, overtime pay, and countless other contributions that have improved the lives of tens of millions of men, women, and children, most of whom have reaped the benefit despite never having been in a union. When it comes to organized labor, I subscribe to a simple dictum: Management gets the union it deserves.