By BLR Founder and CEO Bob Brady

BLR founder and CEO Bob Brady ponders the probable passage of the Employee Free Choice Act and the impact it will have on readers, and he suggests one step all organizations can take today.

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?

Fundamental Changes

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.

Good for the country?

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.

Response to Excesses

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.

Communication—Now!

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.)

Worried?

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.