Stephen Cabot's Blog | Labor Relations

From the desk of Steve Cabot:

As we have expressed on other occasions, one of the most profoundly disturbing aspects of the Obama administration is its blatant contempt for the separation of powers mandated by the Constitution. In large ways and small, the executive branch has acted with utter disregard for long-established custom and the rule of law, showing no restraint in imposing its will in the relentless pursuit of its power-consolidating agenda.

A favorite tactic has become the use of arbitrary rule-making in areas clearly reserved for Congress. A major malefactor in this regard is the NLRB, acting more as an arm of the Obama administration than an independent agency created to arbitrate labor disputes and ensure workplace fairness.

A glaring example was the recent issuance of a rule with several odious provisions:

  • The invasion of worker privacy through the forced turnover of personal contact information, including telephone, email and physical addresses.
  • The denial of an employee’s right to “opt out” of being besieged by union organizers prior to an election, even at home.
  • The authorization of “ambush elections,” forcing workers to decide on union representation within as few as 7 to 10 days, well short of the time necessary for management to present its case to workers.
  • In a separate action, the NLRB authorized union bosses to cherry-pick small pockets of support in an organization and create “micro” bargaining units, thereby gaining a foothold in places where a large majority of workers might oppose unionization.

Congress is now the process of pushing back against these arbitrary rules using a provision of the Congressional Review Act called a Resolution of Disapproval. If enacted, this joint resolution will reverse these onerous regulations and reestablish the rights of employers and their workers.

With passage assured in the Republican-controlled House, it remains for the Senate to follow suit. The measure – S.J. Res. 36 – already has 45 co-sponsors and needs only a simple majority to pass. You must act now by calling your senators and urging them to vote YES on S.J. Res. 36.

Update, April 24, 2012:
Senate Democrats, joined by Sen. Murkowski (R-AK) defeated S.J.Res. 36 today by a vote of 54 – 45, in essence approving the NLRB’s usurpation of power. Sen. Sanders (I-VT) abstained.

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From the desk of Steve Cabot:

Since the soothsayer’s warning to Julius Caesar, the Ides of March has carried a dark connotation of doom and betrayal by someone close – a trusted advocate or ally. And that’s what came to mind as I read several items within the past week which highlighted the increasing divergence between the priorities of Organized Labor and the workers they claim to represent.

Here we are, still mired in the worst economic times since the Great Depression, and what do we hear from the union bosses – words of concern and a willingness to work with management to save jobs and build productivity? Not even close.

In a recent interview, AFL-CIO president Richard Trumka spelled out his commitment to partner with radical (which he calls Progressive) political action groups to push the Far Left agenda of this administration. These are ideologically-driven efforts utterly disconnected with – and often in direct opposition to – the well-being of the American worker.

Is it any surprise, then, that employees – at least in the private sector – are questioning the value (and values) of their union leaders?  They see the abuses, the pointlessly confrontational attitude toward management, the unauthorized allocation of dues to political purposes antithetical to their interests, the intimidation in organizing elections, and the general hijacking of their rights. And increasingly, they don’t like it.

But out of this disillusionment has come great opportunity. For years, the Cabot Institute has believed in – and counseled clients to embrace – a WIN/WIN approach in the workplace, one that sees employees as partners, not pawns. One that rejects us/them in favor of a true shared vision.

And today, more than ever, we are seeing the fruits of this philosophy. I encourage you to reach out to discuss the specific ways we can assess your situation and suggest the best strategies going forward. You can call me directly on my cell phone (215-990-3423) or contact Georgetta McCabe, my administrative assistant, on her direct line: 800-655-2042.

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Feb/12

11

ERA: RANK-AND-FILE REVOLT?

From the desk of Steve Cabot:

It has always suited union bosses to paint employers as privileged ogres getting rich off the backs of their workers. Envy and resentment are emotions easily stoked and manipulated, and Big Labor has been shameless in using “us/them” rhetoric to distract the rank-and-file from the real workplace abuses, namely their loss of individual rights.

Times are changing, however. Workers have begun to shake off their shackles and support measures restoring their liberty. One of the key pieces of legislation codifying these reforms is the Employee Rights Act (ERA), introduced in August 2011. The measure has been bottled up in committee by the Democrat majority in the Senate, but there appears to be a renewed groundswell of support for its passage, with at least 70% of union households now endorsing its key provisions. (See my September 2011 blog entry below for more specifics.)

While passage of an intact ERA is unlikely before this fall’s elections, supporters in Congress will attempt to attach individual elements to other legislation destined for a presidential signature. I’ll keep you posted on the latest developments as they unfold.

In other encouraging news, freedom of choice for employers and their workers got a big boost when Indiana became the 23rd right-to-work state, the first in the “rust belt” to do so. Unfortunately, the pushback against forced unionism has hit resistance elsewhere in union strongholds like Wisconsin, where the threat (and actuality) of recall elections has weakened the resolve of some reformers.

Whatever the political developments this year, however, we know the Obama administration will continue to push its anti-employer agenda – with or without constitutional authority. And should you find your organization needing assistance with any labor relations matters, I encourage you to call me directly on my cell phone (215-990-3423) or contact Georgetta McCabe, my administrative assistant, on her direct line: 800-655-2042.

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Jan/12

23

GROUNDHOG DAY: THE UNFUNNY VERSION

From the desk of Steve Cabot:

In the 1993 romantic comedy, “Groundhog Day,” weatherman Phil Connors, played by Bill Murray, was forced to live through the same dreadful 24 hours, again and again, where nothing changed – until he did. Central to the plot was that only he was aware of this repetitive phenomenon; everyone else was totally oblivious. It was an amusing film and did well at the box office.

Unfortunately, employers – and the rest of America – are being forced to live through a darker, more sinister version of this movie, one in which the lead character continues to push his Big Labor “change” agenda without regard to constitutional restrictions or political precedent. Unlike the original, however, we are all very much aware of what’s going on – only nobody’s laughing, except union leaders and their allies.

The most recent and egregious examples of the president’s imperial excess can be seen in his brazen misuse of “interim appointments” to fill vacancies on the NLRB. With the Senate still officially in session, Mr. Obama ignored the vetting role of that body and simply declared that pro-union partisans Richard Griffin and Sharon Block would join Terence Flynn as new, unapproved members. When challenged by Senate leaders, the president had his Attorney General issue a lockstep ruling supporting his decision. So much for the separation of powers.

But it doesn’t stop there. For example, when Congress refused to pass legislation restricting the rights of workers, the administration promptly switched to rule-making to implement its agenda, including  authorizing “quickie” or “ambush” elections which stack the deck against employers.

The bottom line is that sensing their time in power may be limited, the forces of Big Labor in and out of government are hell-bent on reshaping workplace dynamics as aggressively as possible. I have been helping my clients prepare for the worst for three years, and every day that goes by validates the wisdom of that strategy.

I encourage you to reach out with any labor relations concerns you might have. You can call me directly on my cell phone (215-990-3423) or contact Georgetta McCabe, my administrative assistant, on her direct line: 800-655-2042.

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Nov/11

28

TO YOU & YOURS: HAPPY HOLIDAYS!

From the desk of Steve Cabot:

These are challenging times for optimists.  I remember writing a year ago that as disruptive as 2010 had been for millions of American workers and their employers, 2011 could well be even more difficult.  I take no joy in the accuracy of that prediction.

But as much as we may feel like frogs swimming in that famous pot on the stove as Washington continues to turn up the heat, I do believe in the core strength and wisdom of the American people.  My hope is that when it’s time to write an assessment a year from now, we will have righted this ship of state, setting the stage for real recovery, and reversing the policies that have discouraged and divided us.

In this moment, however, I prefer to set aside those concerns and reflect on those aspects of life that transcend the sorts of struggles we all face from time to time.  I’m grateful for my clients – for their confidence and constancy – and for my family and friends who deepen my experience of living and bring joy in so many ways.

Yes, there will be opportunities soon enough to address the issues that confront us as employers, and I will be returning in a month to write on those important matters.   Until then, I hope you will find ways to offer and receive the love and support that is central to the significance of this season.

As always, for assistance with any labor relations issues, I encourage you to call me directly on my cell phone (215-990-3423) or contact Georgetta McCabe, my administrative assistant, on her direct line: 800-655-2042.

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From the desk of Steve Cabot:

I wasn’t too surprised when Organized Labor decided to throw in with the motley mobs currently laying siege to cities across the country. After all, they have a lot in common. The anti-capitalist, redistributionist rhetoric coming from the agitators is standard fare at union rallies, and the paramilitary tactics of intimidation, disruption, and forcible occupation of public and private property are right out of the SEIU handbook.

The truth is, this is a natural – if unholy – alliance:  the demonstrators want to weaken corporations and demonize profits, and the labor unions are more than happy to provide logistical and financial assistance as a means of building their own public support and political power. For them, this is simply another step toward their goal of reestablishing workplace hegemony.

This is an ongoing saga, one with significant long-term implications. If you’re interested in learning more about the state of Organized Labor today and its impact on our economy, I invite you to read a compelling special report just released by Human Events entitled, The Big Labor Stranglehold:  Killing Jobs & Hurting America.” Written by Dr. Carl F. Horowitz, project manager for the National Legal and Policy Center, this 26-page report looks beyond the well-publicized but misleading statistics about declining union membership and documents the strategies, goals, impact, and prospects of Big Labor in America.

To receive your complimentary copy, simply click here or on the image below to go to the Human Events website. Once you register, a pdf version of the report will be sent directly to the email address you specify.

For assistance with any labor relations issues, I encourage you to call me on my cell phone (215-990-3423) or contact Georgetta McCabe, my administrative assistant, on her direct line: 800-655-2042.

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Sep/11

21

EMPLOYEE RIGHTS ACT: WIN/WIN

From the desk of Steve Cabot:

One of the truly unfortunate aspects of Organized Labor is how workers are regularly robbed of their rights by union leaders claiming to have their interests at heart. It happens when employees are denied secret ballot elections, sometimes with the complicity of management. It happens when union dues are funneled to causes or candidates antithetical to the preferences of individual members. And it happens when workers are punished for daring to question or object to union policies or decisions.

Relief – or at least the prospect of it – is now at hand in the form of the recently-introduced Employee Rights Act. This legislation protects the rights of workers while leaving intact the appropriate prerogatives of management and labor. It is truly a win/win proposal and has our wholehearted support.

Included among the major provisions are:

  • Secret Ballot Elections – Employees are guaranteed the right to a secret ballot election when choosing whether or not to join a union.
  • Union Recertification Elections – Unionized workplaces must hold a secret ballot referendum every three years to determine whether employees wish to remain represented by their current union.
  • Paycheck Protection – Unions will need to get written consent from members before spending their money on matters unrelated to collective bargaining (e.g. the support of political candidates or causes).
  • Standardized Election Timing – Employees must be given at least 40 days prior to a ratification election to receive and consider information from both management and union representatives.
  • Decertification Coercion Prevention – The NLRA provisions protecting workers from intimidation or coercion in exercising their rights (including the right to decertify the union) are strengthened.
  • Secret Ballot Strike Vote – Employees have the right to a secret ballot vote before union leaders can declare a strike.
  • Criminalizes Union Threats – Unions are forbidden to use violence, or threats thereof, as a means of coercing employees.

Passage of this legislation is unlikely before the 2012 elections, but employers seeking assistance now in these or other labor relations matters should call me on my cell phone (215-990-3423) or contact Georgetta McCabe, my administrative assistant, on her direct line: 800-655-2042.

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From the desk of Steve Cabot:

Maybe it’s arrogance, as Organized Labor feels increasingly emboldened by its protectors and enablers in the Administration and Congress. Or maybe it’s desperation, as union leaders sense a political sea change that threatens those cozy relationships and their delusional demands at the bargaining table.

Whatever the motivation, what is clear is that employers are being confronted increasingly by labor tactics as old as extortion and physical violence and as new as cyber attacks and a range of dirty tricks impacting companies and their customers alike.

One current high-profile illustration of over-the-line union thuggery involves a broad campaign of blackmail, extortion and other criminal acts against Sodexo USA, which has filed suit against SEIU in federal court under the RICO Act. A U.S. district judge recently denied the union’s motion for dismissal, thus green-lighting the case for immediate prosecution.

One of the documents discovered as this case has unfolded is a 70-page “how-to” intimidation manual (click here to download) which encourages, among other things, targeting board members and their families for public harassment and personal embarrassment within their community. You may remember an example of this in May when SEIU drove 14 busloads of screaming, bullhorn-equipped, placard-carrying protestors to the home of Bank of America’s deputy general counsel in suburban Washington, DC, terrifying their teenage son who was alone in the house.

It has been equally alarming to watch the union tactics in the Verizon strike. You may have seen the viral video of a picketer pushing his young daughter in front of a moving Verizon truck while shouting obscenities at the nonunion employees trying to get to work. In a related incident, police in Uniontown, PA reported an act of “criminal mischief” in which the power was cut to all land lines in the area,  including those to state police barracks and other emergency services. All indications are that it was an inside job.

This is disturbing stuff. And while Organized Labor may take comfort knowing they are being given a long leash by the pro-union NLRB and Department of Justice, 2012 is coming – and the American people will be heard.

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From the desk of Steve Cabot:

With his Congressional rubber stamp privileges revoked by the decisive loss of the House of Representatives last November, President Obama continues to use the rule-making and regulatory powers of the Executive Branch to work his will on employers.  He seems emboldened by the push-back from the American people, and is doubling down on his efforts to “transform” the country in his remaining time in office.

Previously, we described how the Democrat-dominated NLRB recently proposed rules which would significantly impact management’s ability to makes its case leading up to a union ratification election. Now it’s the Department of Labor which has stepped in to influence and intimidate employers who seek advice from outside attorneys and consultants (officially known as “persuaders”) as they prepare for these elections.

Specifically, the DOL has proposed a rule related to the reporting requirements under Section 203 of the Labor-Management Reporting and Disclosure Act of 1959, which would broaden “advice” to mean any “oral or written recommendation regarding a decision or course of conduct.” The rule stipulates that both the company and its consultants must open their books to report any of the newly-covered activities – and, even more intrusively, the details of any compensation involved.

As usual, the devil is in the details, as found in the language of the rule:

“For example, persuader activities may additionally include: Training or directing supervisors and other management representatives to engage in persuader activity; establishing anti-union committees composed of employees; planning employee meetings; deciding which employees to target for persuader activity or discipline; creating employer policies and practices designed to prevent organizing; and determining the timing and sequencing of persuader tactics and strategies.”

The rule goes on to state that even “union avoidance” seminars and conferences offered by lawyers or labor consultants to employers will constitute “reportable persuader activity.”  The proposed rule was  published on June 21, 2011, in the Federal Register. Public comments can submitted until August 22, 2011.

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Jun/11

24

A NEW THREAT TO CORPORATE AMERICA

From the Desk of Steve Cabot:

Having failed to get congress to pass the Employee Free Choice Act (EFCA), organized labor is now benefitting from proposed new rules issued by the National Labor Relations Board (NLRB). The new rules will ease the way for organized labor to win union elections by dramatically truncating the period of time from petition to election. It currently takes an average of 57 days from petition to election; under the new rules that period would be reduced to from 10 to 21 days. Of course, union organizers often spend months convincing employees to vote for unionization, prior to the filing of a petition. Now, the newly imposed brief interregnum will significantly curtail a company’s ability to educate employees about the disadvantages of unionization.

As if that were not sufficiently injurious to Corporate America, the NLRB rules would also permit the electronic filing of election petitions, defer litigation about voter eligibility until after an election, require employers to provide a union with the phone numbers and e-mail addresses of all employees prior to an election, consolidate all litigious matters into a single post-election appeals action in order to eliminate individual actions that could delay an election.

One can only speculate what additional pro-union rules and regulations the NLRB may issue in the coming months. Certainly issues of wages and benefits will be an enticing subject for the NLRB ideologues to consider.

Corporate America has, thus far, been too complacent, believing that because the number of union members has decreased over the years that unions have been rendered ineffectual. In fact, unions are vigorously preparing for an aggressive assault on Corporate America, and its chief advocate and front-line ally is the NLRB, which is proposing a number of radical threats to Corporate America that should not be ignored.

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Disclaimer: Although this blog may be helpful in informing clients and others who have an interest in labor relations issues, it is not intended to be legal advice. The thoughts offered in this space refer to complex matters, and the significance of them – i.e. how they might apply (or not) to any particular individual or organization – may vary considerably. Readers should not rely on the information or opinions expressed in this blog as a substitute for competent legal or consultative advice specific to their circumstances.