By BLR Founder and CEO Bob Brady
When candidate Obama was looking for votes, he praised the Employee Free Choice Act, a bill that has been languishing in Congress. It would make it much easier for employees to organize into unions and give the government czar-like powers to impose collective bargaining “agreements.”
Will President Obama pursue this agenda? (And if he does, could we see unions organizing the financial sector—where many looter—CEOs left rank—and—file employees high and dry?)
It's hard to tell how soon and how fast Obama will pursue this agenda, but because it is the kind of initiative that is close to his community-organizer heart, we in HR should be thinking about how we would deal with it.
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But let’s back up a step. Should we in HR (and business, in general) be for or against this law?
It would change several fundamentals in labor relations law. First, employers that face an organizing drive would find it very hard to insist on a secret ballot. Instead, if a union gets a majority of employees to sign cards favoring it, the election is over and done with. The union wins, even if, say, employees would like to withdraw their support.
The second change is in the way that a contract could be “negotiated.” If a contract is not swiftly negotiated after the union wins certification, the Federal Mediation and Conciliation Service would have the power to appoint arbitrators who could decree the terms of a contract, which would be in place for 2 years.
A third change would give the NLRA much stronger enforcement tools, including the ability to impose sanctions such as greatly increased fines and back pay.
If passed, it would quickly and dramatically change the union-employer relationship. We should expect many more rules in the workplace and much less discretion when it comes to hiring, promotion, pay raises, and work rules.
Sound extreme? It does to me, but this is no far-out, fringe bill. With the Democratic majority and Obama’s support, it stands a serious chance of passage, though maybe not right away.
Would this be good for the country? Despite their excesses in the recent past, unions were an important driver of the middle-class revolution of the twentieth-century America. (Growing up as I did, with a dentist-father who prospered because his steelworker patients could afford to pay his bills, it certainly contributed to my welfare!)
Nevertheless, as an employer who has written about and practiced HR for the last 30 years, and as someone whose company started out with me as its sole employee, and now employs 150 people (plus at least that number of freelancers, contract employees, and suppliers), I know that BLR as we know it wouldn’t have happened if we’d been unionized. Fast, innovative growth in a complicated, changing environment requires a lot of flexibility, and while unions have a lot to be said for them, flexibility isn’t one of their virtues.
My prediction is that the Democrats will try to pass the Employee Free Choice Act, and President Obama will support it—but not in the first days of his presidency. The bigger problems of the economy are going to get attention first. Unlike the Ledbetter law, this will be controversial in the Congress. Obama owes a lot to union support, but many, many people have reservations about this proposal. In fact, in the early days of his presidency, Obama seems to be softening in his support.
If we do get the Employee Free Choice Act, wouldn’t it be poetic justice if it first came to those companies whose looter-CEOs destroyed value and left with platinum parachutes? But it probably won’t. These entities will argue poverty and play their get-out-jail-free cards. More likely, unless we prepare by making employee communication and empowerment a priority, it will come to successful organizations that can “afford” it, thereby setting in motion a replay of the GM/Chrysler/Ford debacle, 20 or 30 years hence.
Regardless of whether the EFCA passes or not, HR’s job—now, and always—must be to communicate with employees. We have to listen to concerns, and help management formulate responses.
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We have to do it NOW and not wait until a union is poking about the workplace, when changes can be seen as unfair labor practices. A start in this process should be conducting an employee attitude survey. (See the note at the end of this column for more information about BLR’s attitude survey.)
How do you feel about the Employee Free Choice Act? Would it be a good thing for America? For your company? For you? Complete our short survey, and we’ll report on the results in a coming column.
[If the survey link doesn’t work for you, paste this address into your Web browser: www.surveymonkey.com/s.aspx?sm=_2bqJjLcan1unQ5cRUMztmBQ_3d_3d ]
That’s my e-pinion. I’d love to hear yours. E-mail me at Rbrady@blr.com.
P.S. An employee attitude survey is a key way to determine where your workforce stands. BLR has a free survey that all are invited to use. Now in its third year (but based on BLR’s internal use for almost 15 years), this survey has been used by thousand of employers. It gives you breakdowns by department, duration of employment, status, and much more. Most important, it shows you how you are doing relative to other employers in our database.
To see what you get for free, Take a look at the questionnaire and sample report.
The writer of this article makes some interesting points. First, "It would change several fundamentals in labor relations law. First, employers that face an organizing drive would find it very hard to insist on a secret ballot." I've always marveled why "secret balloting" is given so much validity. My employment experience and research shows that things done in the "dark" usually effect employees adversely. Open transparency in this employment process would in my view foster better communication and trust. Second, "If passed, it would quickly and dramatically change the union-employer relationship. We should expect many more rules in the workplace and much less discretion when it comes to hiring, promotion, pay raises, and work rules." The EFCA would dramatically change not only the union-employer relationship but the employee employer relationship. Here's why the EFCA will be good for both employer and employee. The EFCA is the single most important piece of employment legislation before Congress since the Emancipation Proclamation! The Employee Free Choice Act, "TO AT WILL" or "Not TO AT WILL" that is the question! I believe the battle lines have been drawn between those who want to maintain an antiquated 19th century form of employment doctrine here in the 21st century. At-will simply put means an employee can be fired at any time, for any reason or no reason. The employee can also fire the employer for any or no reason. If the employer fires you, your employment with that organization is over. The burden of proving your termination not being justified is on you! If you are employed At Will, your employer does not need good cause to fire you. I believe the Employee Free Choice Act by design creates a true partnership between employer and employee. In my view, "At Will" doctrine has spawned and reinforces an employment environment that is; (1) adversarial by creating an "us versus them" in the American workplace employment mindset (2) emboldens employers to maintain, sustain and perpetuate discriminatory employment practices (3) monumentally wasteful of monetary resources and public goodwill in needless litigation
According to the language of the Employee Free Choice Act, it will: (1) give employees greater liberty to form unions and establish employment contracts (2) punish anti union employer retaliation and harassment (3) compel employers to deal timely and honestly in negotiating contracts
I believe that elements of corporate America want to maintain an antiquated and out dated system of employment to preserve the ability to discriminate against certain groups and races. Here is the evidence to support that assertion.
In fiscal year 2007, 37.0% of all (EEOC) Equal Employment Opportunity Commission complaints filed were race discrimination based. 30.1% were sex discrimination or gender discrimination based and national origin is 11.4%. The American workplace is comprised of the good, bad and the ugly as any other society in the world. Unfortunately, race discrimination is more of a reality in the United States because it is the most racially diverse western industrialized nation. Everyday unscrupulous employers routinely take adverse unjust employment action including termination against employees by hiding discrimination, retaliation, harassment, bullying and more behind "At Will" doctrine. For example, a female employee who spurns the sexual harassment advances of her boss then finds her performance evaluations suddenly taking a turn for the worst. Several warnings later she is terminated, now what. The employer mindset, "You're out the door now try to prove my hostile intent." Unfortunately since most career seekers and employees don't have a clue about their basic employee rights, she now has to stumble along trying to navigate the process of showing the firing was retaliation, hostile work environment or Quid Pro Quo. Will the average employee or job seeker have even been trained to be aware of what these terms mean? Not to mention the legal expense and emotional stress of a lawsuit. My research shows employers count on employees not having the financial wherewithal to pursue and sustain a lawsuit and most do not. Many companies routinely operate in "conspiracy or collusion" between managers, supervisors, directors, HR and ownership in taking adverse action against employees. I have experienced this phenomenon in the private sector and local government! I believe The EFCA will force employers to abide by the letter of protecting employee rights if not the spirit of it. It is my hope that the EFCA legislation will get passed by Congress in a form that truly fosters and equitable bond of mutual trust, respect and cooperation between employer and employee. Let's face it; you can't have one without the other. They are joined at the hip! "At Will" employment is another dinosaur whose time has come for a decent burial.
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