Employee Free Choice Act and Economy
Business groups and organized labor will use our current economic crisis as an argument for their divergent points of view about the Employee Free Choice Act. And both sides have points to score.
The argument on the side of business is cogent. The economy has been turned on its head. Businesses are closing right and left. Others are teetering on the brink of failure. Employees are losing their jobs at a record pace.
If union organization is made easier via the Employee Free Choice Act, other businesses will close. They don’t have the money to deal with unions. Unions increase the cost of doing business, and we can’t afford that right now. Businesses that don’t close will move jobs overseas to avoid union hassles.
Finally, look where unions have gotten the big three automakers. They’re virtually bankrupt, largely because of the excessive wages and benefits they’ve had to pay as a result of collective bargaining agreements.
The argument on the side of labor has its own cogency. The economy has been run into the ground by the management of businesses. Executives have made obscene amounts of money, while keeping the wages of rank and file employees stagnant. The staggering layoff numbers are occurring because most workers don’t have unions to protect them.
As for the big three automakers, don’t blame their predicament on unions. They’re failing because of decades of bad management, huge sums of money paid to executives, and terrible decisions about new products. Executives, not unions, have allowed foreign competitors to eat their lunch.
The Employee Free Choice Act will provide a framework for ordinary workers to make more money, which will be an economic boon. EFCA is one more way to jump start an economy businesses have almost ruined.
Stay tuned as the argument continues.
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About Chris Parker
Chris Parker's practice focuses on the representation and counseling of companies in matters pertaining to the workplace and the protection of their intellectual property and trade secrets. In addition to serving as an advocate for clients, Mr. Parker is also trained as a mediator and frequently serves as a third-party neutral.
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About Jimmy Daniel
Jimmy Daniel provides counseling to businesses of all sizes related to the employment relationship. He assists in the drafting of employment agreements, policies, and handbooks, as well as provides guidance related to compliance with federal, state, and local legislation such as the Fair Labor Standards Act and the Family and Medical Leave Act.
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About Larry Bridgesmith
While serving in an Of Counsel relationship with the firm, Mr. Bridgesmith also serves as the Executive Director at the Institute for Conflict Resolution at Lipscomb University and as an officer and principal in Strategic Resolutions Group, LLC. In these roles, Mr. Bridgesmith brings over 30 years of legal experience in dispute resolution and innovative workplace strategies to clients, students and business entities alike.
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John,
Good points all around. I saw “Norma Rae” the other day. Still packs a powerful punch. And it foreshadowed some of what we are seeing now—racial inclusion(after a few bumps in the movie), the idea of equality that is a by product of O’s election, and a reminder that unions are formed for reason other than economic ones(great passage in the movie where employees are telling the union organizer their issues and it is stuff like “they bricked up a wall without telling me and now I can’t see outside” or the “ladies bathroom does not have the necessities”. Union organizers should show it to all those they are trying to recruit. Best, Mike
Thanks, Mike. You’ve caused me to want to watch Norma Rae again and will do. Hope you’re well.
John