Get Ready for Big Labor's Big Push

The election of President Barack Obama and the power shift in Congress towards Democrats means that organized labor will have new friends in high places. That, coupled with Americans' anxiety over the state of the economy and their own threatened job security, could usher in a new expansion for organized labor, with union membership potentially growing by the millions across all industrial sectors—including healthcare.

Jim Trivisonno, president of Detroit-based IRI Consultants, says executives at hospitals—where thousands of employees perform high-stress jobs that can't be outsourced—should understand that as one of the nation's few growth industries they'll be the targets of an intense union membership drive over the coming months and years. "This is a severe economic downturn. There is some real concern across the country about job security and losing benefits," Trivisonno says. "Healthcare in that respect is no exception. The unions can certainly leverage that anxiety for signing union pledges."

The Employee Free Choice Act, up for debate in Congress this year, is expected to be an early test of the newfound power of organized labor after eight years in the wilderness under the Bush administration. The bill was co-sponsored last year by then-U.S. Sen. Obama, D-IL. Defeating the so-called "check card" bill is also the highest legislative priority of business groups like the U.S. Chamber of Commerce.

The Obama administration has also nominated pro-labor U.S. Rep. Hilda Solis, D-CA, as labor secretary. That nomination is expected to go through, despite Republican opposition. And, Obama will nominate three people to fill now-vacant seats on the five-member National Labor Relations Board, which oversees and interprets the thousands of laws and regulations that bind unions and employers.

With the ground clearly shifting toward organized labor, Trivisonno says hospitals should take the time now—if they haven't already—to determine whether or not they are vulnerable to a union drive. "In its simplest term, maintaining a union-free environment is something called 'good management.'" he says. "Unions usually don't exist unless management has made a mistake and they've gone off course somehow. Workers rarely organize or vote for a union because of wages or benefits. It's usually management treatment, and employee involvement and engagement."

In other words, if you've got a union knocking on the door, it may be your fault.

Symptoms of a dysfunctional working environment include high employee turnover and productivity and quality slides. Trivisonno recommends conducting vulnerability assessments. "It's important to use diagnostic tools like surveys, focus groups, and ongoing assessments to keep your finger on the pulse, and then do something with the results," he says. "The worst thing you can do is ask a question and then not doing anything with the answer. Then you're further behind than when you started."

Hospital executives must also be able to explain to employees why they should vote against a union. "You can clearly state that you respect unions and employees right to organize but your preference is to deal directly with employees," Trivisonno says.

Hospital executives must also have an action plan in place before any attempt to organize workers is underway. Trivisonno says that's because the final negotiated version of EFCA that passes Congress will probably include an expedited election process. Currently, employers have about six weeks to prepare for a union vote after a petition is filed. EFCA may reduce that to five days. "They can't wait. Employers should already state what their position is on labor unions to their employees," Trivisonno says. "You will have a few days to communicate to everyone in your organization you position on why they should or should not vote for a union. That is an incredible departure from what we have today. That is why executives need to reexamine their communications systems. Where do people get their information, and how is it delivered?"

Despite your best efforts, if employees vote to organize, deal with it. You lost. Get over it. Trivisonno says it's important for employers to recognize the vote and pledge that they will respect that right and bargain in good faith.

Here's my take: Trivisonno makes a lot of sense. The fact is, working Americans are righteously ticked off. Despite what is written about sub-prime loans and people living beyond their means, the vast majority of American workers plays by the rules, and acts responsibly. Nevertheless, they're losing their jobs and seeing their benefits cut through no fault of their own while reading about the people who created this mess giving themselves multimillion-dollar bonuses for failure.

Broadly speaking, if there is a huge resurgence of organized labor, management has nobody to blame but itself. It's not the healthcare industry's fault that the economy is in the tank, but it is going to absorb the aftershocks. It won't be the first time that healthcare cleans someone else's mess.