The Employee Free Choice Act – What’S an Employer to Do?

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The Employee Free Choice Act – What’S an Employer to Do? Reprinted with permission from the New York State Bar Association Journal, September 2009, Vol. 81, No. 7, published by the New York State Bar Association, One Elk Street, Albany, New York 12207. POINT OF VIEW BY EVE I. KLEIN, BRUCE J. KASTEN AND JOANNA R. VARON EVE I. KLEIN ([email protected]) is a partner at Duane Morris LLP in New York City practic- ing in the area of employment law, labor relations and litigation. She earned her law degree from Cornell Law School and her undergraduate degree, with distinction, from Cornell University School of Industrial and Labor Relations. BRUCE J. KASTEN ([email protected]) is a partner at Duane Morris LLP in Philadelphia, practicing in the areas of employment law, labor relations and employment litigation. He is a graduate of the Columbus School of Law of The Catholic University of America and earned his undergraduate degree from the University of Scranton. JOANNA R. VARON ([email protected]) is an associate at Duane Morris LLP in New York City. She received her law degree from the Benjamin N. Cardozo School of Law, where she was senior articles editor of the Cardozo Arts and Entertainment Law Journal. She received her undergraduate degree, with high honors, from Rutgers University. The Employee Free Choice Act – What’s an Employer to Do? he labor movement’s top legisla- any corresponding increase in penal- cess; (3) potential revisions to EFCA; tive priority, the Employee Free ties for union misconduct. and (4) steps employers can take to TChoice Act (EFCA), proposes The chances for passage of at least be ready for the changes the EFCA is the most sweeping set of amendments some version of the EFCA this year expected to have on the organizing to the National Labor Relations Act have improved dramatically from last and collective bargaining processes. (NLRA) since passage of the Taft- year, when it easily passed the House Hartley amendments in 1947 and, pos- but was blocked by a threatened fili- No Secret-Ballot Election sibly, in the NLRA’s 75-year history. If buster in the Senate. The election of The Union Representation Process passed, EFCA will dramatically alter President Barack Obama, who cospon- Under Current NLRA Law the landscape of labor–management sored the EFCA last year, as well as The key provision of the EFCA is its relations in favor of unions seeking to Democratic gains in the Senate last virtual elimination of an employee’s organize nonunion employers. fall and Al Franken’s (D-Minn.) recent long-standing right to a secret-ballot The EFCA proposes significant victory in Minnesota – which gave election to vote for or against union departures from three long-standing Democrats control over 60 Senate seats, representation. Under current law, the NLRA principles. First, the EFCA will the number needed to overcome any representation process begins with a either virtually eliminate secret-bal- Republican filibuster – increased the demand for recognition by the union. lot elections, the primary method by chances of the EFCA’s passage in some If the employer declines to recognize which employees express their prefer- form in the short term. In fact, reports the union voluntarily, the union may ence on the issue of unionization, and have indicated that Senate Democrats file a representation petition with the allow labor organizations to unionize have made a deal that will result in National Labor Relations Board (NLRB workforces simply by directly solicit- a Senate vote this fall. Supporters of or the “Board”) regional office where ing and obtaining signatures from a the deal – spearheaded by Senators the bargaining unit is located. The peti- majority of the employees in an appro- Sherrod Brown (D-Ohio), Tom Carper tion must be supported by a “showing priate bargaining unit, or condense the (D-Del.), Mark Pryor (D-Ark.), Charles of interest,” which is typically satisfied period from a union’s filing of a repre- Schumer (D-N.Y.) and Arlen Specter by signed “authorization cards,” dated sentation petition to the election to five (D-Pa.) – hope it overcomes the reser- no more than one year prior to the peti- to 10 days. Second, the EFCA will force vations of moderate Democrats who tion date, from at least 30% of employ- employers into “interest arbitration” have expressed opposition to the bill as ees in an appropriate bargaining unit. for the first collective bargaining agree- it is presently drafted. As a practical matter, most unions will ment if the parties fail to negotiate a This article examines: (1) the rep- not file a representation petition until mutually acceptable contract within resentation and collective bargaining they have obtained signed authoriza- 120 days. Third, the EFCA will funda- process under the NLRA; (2) how the tion cards from at least a supermajority mentally alter the remedial nature of provisions of the EFCA, as presently (60% to 70% or more) of the employees the NLRA by imposing treble-back- drafted, will make it easier for labor in the proposed unit. Notwithstanding pay awards and civil damages against organizations to organize nonunion a union’s demand for recognition employers for improper conduct dur- workforces and will fundamentally based upon its claim to the employer ing a union organizing drive, without change the good-faith bargaining pro- that it has a majority, as evidenced 38 | September 2009 | NYSBA Journal POINT OF VIEW by the signed authorization cards, tion or fear of reprisal. Employees who ee free choice, significantly, the EFCA an employer has an absolute right to have signed authorization cards for applies a different set of rules regard- reject a union’s demand for recogni- the union nevertheless have a right to ing decertification elections. The EFCA tion. For example, the employer may vote “no” in the election if they have explicitly restricts its application to cir- not be convinced that a majority of its changed their mind, or had signed in cumstances where “no other individ- employees have knowingly selected to order to have the opportunity to learn ual or labor organization is currently be represented. If an employer declines what the union was about. Only if a certified or recognized as the exclusive to voluntarily recognize the union, the union receives a majority of votes cast representative of any of the employees union files an election petition with in an election will the Board issue a in the unit.”4 the NLRB, and the Board schedules a “Certification of Representative.” Both the Board and the courts “have federally supervised secret-ballot elec- long recognized that the freedom of tion during which employees have an Representation Election Procedure choice guaranteed employees by opportunity to vote on the question of Under the EFCA Section 7 is better realized by a secret representation. The EFCA eviscerates the time-test- election than a card check.”5 Note, The period of time between the ed and democratic procedural safe- however, there is no mechanism for filing of the petition and the election guards of the secret-ballot election. the employees to request an election, (on average six to seven weeks) is Specifically, the EFCA amends Section leaving the decision entirely up to the “campaign period.” During this 9(c) of the NLRA to provide that when the union. A union with cards from a time, the employer and the union have a petition is filed by an individual or majority of employees is unlikely to an opportunity to advise employees labor organization claiming to repre- request an election when it can “win” about the practical implications of sent a majority of the employees in a and be certified on the basis of the union representation by distributing unit appropriate for the purposes of cards and avoid a challenge. Thus literature and holding information- collective bargaining, the EFCA’s proposed sole reliance on al meetings. Employees discuss the [i]f the Board finds that a majority authorization cards can pose signifi- issues, raise questions, and request of the employees . has signed cant dangers for the employer. information and answers to their ques- valid authorizations designating First, the legislation is devoid of any tions from both their employer and the individual or labor organiza- safeguards to ensure that a union will the union. With unionization of the tion specified in the petition as not gain representative status through private sector currently at an all-time their bargaining representative and coercive tactics. Union representa- low of 7.6%, this campaign period that no other individual or labor tives and employees fervently advo- has become an increasingly important organization is currently certified cating unionization have historically time for employers to answer ques- or recognized as the exclusive rep- employed a variety of improper tactics tions from employees who, in large resentative of any of the employees in connection with solicitation of autho- part, have limited exposure to unions, in the unit, the Board shall not rization cards, including peer pressure, little experience with union represen- direct an election but shall certify misrepresentation, harassment and tation or the election and bargaining the individual or labor organiza- intimidation. It is not uncommon for process, and little knowledge of their tion as the representative described union representatives to unlawfully legal rights in the face of organizing in subsection (a).1 promise that union initiation fees will efforts. The Board closely regulates In other words, the Board will issue be waived only for employees who the campaign process and the parties’ a Certification of Representative based sign authorization cards or to threat- conduct by imposing content and time solely on authorization cards signed by en that employees who do not sign restrictions on electioneering activity a simple majority of the employees in an cards will be terminated if the union and by providing a forum for challeng- appropriate unit – with no election and is certified as the employees’ exclu- es to improper or coercive campaign no campaign period for the employer sive bargaining representative.
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