Stephen Cabot's Blog | Labor Relations

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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:

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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From the desk of Steve Cabot:

Businesses across America are suffering at the hands of an aggressively pro-union National Labor Relations Board (NLRB). As a result, 86 national business associations and 131 state and city associations have formed the Coalition for a Democratic Workplace. The Coalition’s mission is to amend the National Labor Relations Act, so that businesses can operate at maximum rates of productivity and profitability.

The Coalition supports the Job Protection Act, H. R. 1976, which would, according to an article in the P J Tattler, clarify the NLRA “with respect to state right to work laws, reining the agency in after a series of unprecedented actions that heavily tilt toward Big Labor.”

From allowing micro unions to organize to preventing Boeing from operating in a right-to-work state, from permitting union organizers to trespass on private corporate property to promoting card checks, the NLRB has been proving to be one of the most injurious institutions to the health and growth of American businesses.

We urge all readers of the Cabot Institute of Labor Relations blog to contact their congressional representatives and voice their support for the Job Protection Act, H R 1976.

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May/11

13

NLRB GOES AFTER ARIZONA

From the desk of Stephen Cabot:

In a further attempt to promote card checks, the National Labor Relations Board has filed suit to void a voter-approved constitutional amendment in Arizona that allows the formation of unions only by secret ballot elections.

This is not only blow against democracy, for Arizonians voted to approve the way unions could be formed, but it is also evidence of the NLRB’s ongoing determination to promote Card Checks as a way of increasing union membership.

Arizona’s attorney general will fight the lawsuit, making a stand for democracy and the rights of workers and management to decide upon unionization based upon secret ballot elections.

That, however, has not curtailed the intentions of the NLRB, which now plans to sue South Dakota as well over its passage of a constitutional amendment similar to Arizona’s In addition, the NLRB may initiate legal action against South Carolina and Utah in the coming weeks or months. It is apparent that if organized labor cannot get congress to pass the Employee Free Choice Act (aka, Card Checks), then it will let the NLRB do its bidding, even if it involves abrogating the votes of citizens.

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Feb/11

18

BEWARE THE MICRO UNION INVASION

From the desk of Stephen Cabot:

In an effort to further aid organized labor, the National Labor Relations Board (NLRB) is considering permitting unions to organize small numbers of workers in any company. Unions may choose to organize as few as five to ten employees, while not bothering with dozens or even hundreds of others. Obviously, it will be far easier for unions to organize five to ten workers rather than an entire workforce. The result will be the formation of “micro unions.”
The creation of “micro unions” would permit unions to focus on workers who have specific job descriptions, ones that may be easier to organize than other types of workers.
If a union wanted to organize workers at department stores, for example, it could choose to organize stock workers, shipping clerks, and sales clerks without attempting to organize more senior level employees. Similarly, in hotels, unions could attempt to organize maids, busboys, waiters, and bell hops, while not bothering with desk clerks and various levels of managers. Such efforts, if successful, would not only give unions a foothold into various businesses, but it would give them negotiating leverage, for a “micro union” could call for a strike, thus making it impossible for the non-union employees to operate a company. Like an army winning one small battle after another, such a step-by-step approach would provide unions with an eventual opportunity to win the battle against management and take over the entire workforce.
It is essential that management learn the appropriate survival strategies so that it can defeat incremental efforts at unionization. It will be one of the vital topics at my upcoming labor relations seminars.

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Feb/11

11

THE COMING SEIU TSUNAMI

From the desk of Stephen Cabot:

According to an article in The Wall Street Journal (www.wsj.com), the Service Employees International Union, which presently has 2 million members, intends to launch a major offensive against corporate America that will “peak in the summer of 2012.”

The Union intends to recruit new members to its ranks in 10 to 15 major American cities, including Cleveland, Milwaukee, Miami, and Detroit. Its recruitment efforts will take place at political primary events, town hall meetings, and other gatherings. No doubt, its focus will be at Democratic Party events, for the SEIU is a stalwart contributor to Democratic candidates. In the last presidential election, the SEIU spent $70 million! It is reportedly prepared to spend tens of millions of dollars on its aggressive new recruitment efforts.

Many of its members are public sector workers who will receive inordinately large pensions upon their retirement, which will further contribute to the near bankruptcy of states. The Union, obviously, hopes to defeat any legislative measures that will curtail the size of those tax-payer funded pensions. Hence, its forthcoming efforts to beef up its membership rolls and deliver the maximum number of votes to its Democratic allies in 2012.

It is essential that both legislators and Corporate America prepare effective survival strategies to defeat the deleterious efforts of the SEIU. If not, public service pensions will indeed bankrupt one state after another leading to financial devastation throughout the land.

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From the desk of Stephen Cabot:

Right-to-work states are growing faster than states where unionization is the norm. A study by Richard Vedder, published in the Cato Journal, found that 4.7 million U. S. citizens moved to right-to-work states from forced-union states during the years 2000 to 2008. In addition, his study found that there is a “statistically significant relationship between right-to-work laws and economic growth.” In fact, during the years 1997 to 2007, those right-to-work states enjoyed a 23% more rapid growth rate for per capita income than states in the Northeast and Midwest.

Not only are jobs and people leaving the forced-union states, but companies, domestic and foreign, are choosing to build new manufacturing facilities in right-to-work states, primarily in the South. Such trends do not portend an economic resurgence for forced-union states. The onerous deficits that are hurting those states will only get worse.

And governors and state legislatures realize that one ailment keeping their economies on life support are unions. It is no wonder then that three states are considering becoming right-to-work states. They are Indiana, Michigan, and Wisconsin. Those states, like their neighbors in the northeast, desperately need new businesses, greater employment, and more tax dollars. The only way they will grow their economies and achieve their goals is to become right-to-work states. Other states should take notice and join the trend to economic growth.

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Jan/11

28

THE UAW ON THE WARPATH

From the desk of Stephen Cabot:

Not satisfied with bringing the Detroit automakers to near financial collapse as a result of onerous union rules and regulations, the United Auto Workers (UAW) now wants to impose its typically stifling workplace scenarios on foreign auto makers that have built manufacturing facilities in the United States. Those facilities employ tens of thousands of workers who enjoy middle class salaries and benefits. Their morale and levels of productivity are high.

Nevertheless, the UAW has not only promised to expose so-called human rights violations at those facilities as if shining a light on third world dictatorships, but it also intends to utilize $60 million of its $800 million strike fund to achieve its objectives.

To further the achievement of its goals, the UAW is also demanding that auto makers give up their right to free speech by agreeing not to discuss unionization on company grounds unless UAW representatives can participate. Yet, union representatives can and do visit employee homes where they proselytize for unionization without company representatives being present.

And card checks (as one might have expected) are also included in the UAW strategy. Utilizing card checks, unionization would occur if a majority of employees sign cards signifying that they want to be represented and if the union can claim there has been a history of “anti-union activity.” Once unionization has been established and there is no agreement on a contract after six months, the UAW wants the matter turned over to binding arbitration, which had been an ingredient of the congressionally rejected Employee Free Choice Act.

It is apparent that the UAW is intent on driving up its dues-paying membership rolls, which have dropped from 1.5 million members in 1979 to 400,000 members today. Its $800 million strike fund could be enormously increased by unionizing workers at those entire foreign car manufacturing facilities that are building vehicles in the United States.

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From the desk of Stephen Cabot:

The National Labor Relations Board (NLRB) has threatened to sue four states for ensuring that workers can enjoy a basic democratic right to cast secret ballots when it come s to the possibility of unionization. The four states, South Dakota, South Carolina, Arizona, and Utah, have mandated the use of secret ballots in union elections.

The NLRB has made the Alice-in-Wonderland assertion that secret ballots violate federal law. Though Congress has refused to pass the Employee Free Choice Act that would have permitted unions to coerce workers into signing “card checks” to ensure union representation, the NLRB has repeatedly looked for opportunities to present unions with opportunities to impose the use of “card checks” on workers, who may not want to join a union.

Indeed, the most effective tactic that workers have against forced unionization is the secret ballot. No union organizer gets to coerce, embarrass, or intimidate a worker to join a union when the workers’ preferences are made oblique by casting secret, anonymous ballots.

We back the efforts of Minnesota Republican Representative John Kline to amend the National Labor Relations Act (NLRA) with the passage of the Secret Ballot Protection Act. While the Republican dominated House of Representatives very well may pass the amendment, the Democrats in the Senate will not pass it. Corporate America, therefore, will have to wait until the election of 2012 to be delivered from the high-handed, pro-union actions of the NLRB. Meanwhile, it is essential that corporations put in place survival strategies that prevent labor relations problems before they arise.

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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.