The people have spoken. Barack Obama will be the 44th President of the United States. During the campaign, Obama promised to sign the Employee Free Choice Act (EFCA) into law. The EFCA will not only eliminate secret ballot elections, it also imposed heavy fines for violating the National Labor Relations Act and limits the time period for collective bargaining on a first contract. If management and the union can not agree within 90 days, negotiations immediately move to non binding arbitration for 30 more days. If the two sides still can not agree, the process moves to binding arbitration. In other words, if the contract is not settled within 120 days while negotiating a first time contract, a third party will decide all contract terms. This could have devastating effects on newly organized corporations in that management may be forced to comply with binding arbitration whether or not they can afford the terms of the agreement.
We believe the EFCA will be passed in both houses and signed into law by the President by late spring of 2009. Although Republican senators could attempt to filibuster to prevent passage in the Senate, it is widely believed that the current version of the bill will become law.
Democrats have long maintained that the secret ballot process doesn’t work because management coerces employees to vote NO. Our experience is quite different than what many democrats claim. In virtually every election, we receive complaints from employees that they were deceived or pressured to sign a union authorization card. We expect this union tactic to continue thereby “unionizing” companies under false and corrupt circumstances.
Non union companies must prepare now for the eventual passage of the EFCA. Preparation involves determining your vulnerability, strategic planning, strategic hiring, training and cultural development. Remember, unions do not have to wait until the law is passed…Card signing activity can begin now.
Don’t be caught unprepared! Strategic preparation to defend your company from the EFCA onslaught should begin now. You can test your union vulnerability (click here) to assure you maintain your freedom to manage.