Proposed Employee Free Choice Act would Dramatically Alter the Union Determination Process

The Employee Free Choice Act, which has been passed by the United States House of Representatives and is currently pending before the Senate, is widely regarded as the most sweeping labor relations proposal in decades. The primary significance of this proposed legislation is its impact on the way that employees decide whether to accept or reject union representation.

Currently, if 30% or more of the employees within a potential bargaining unit sign union authorization cards, the National Labor Relations Board conducts a secret ballot election to determine whether a majority of the employees want a union. This election process — long considered the primary vehicle for employees to make union membership determinations — ensures that an employee's vote on union membership is private.

The Employee Free Choice Act would eliminate the secret ballot election, provided that the union gathers signed union authorization cards for more than 50% of the potential bargaining unit. In this event, the company would be required to recognize and bargain with the union without an election.

Critics of the proposal argue that reliance on authorization signatures, rather than a secret ballot vote, could lead to widespread coercion of employees — in an effort to intimidate them into signing authorization cards on behalf of the union. As Labor Secretary Chao has stated, "The right of a worker to a private-ballot election is a fundamental right in our democracy that should not be negotiated away by either management or labor, nor legislated away at the behest of special interest groups."

The proposed legislation also sets forth timetables for the negotiation process after union certification, and for mandatory arbitration if the negotiations for the collective bargaining agreement fail to conform to the stated timetables.

The House passed the Employee Free Choice Act by a vote of 241-185. The proposal is expected to receive a tougher test in the Senate, and President Bush has pledged to veto the Employee Free Choice Act if it passes. Even if defeated now, observers have acknowledged that this legislative effort will set the stage for another attempt after the 2008 elections. We will continue to provide you with updates on the progress of this legislation.


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