Opponents of the Employee Free Choice Act, desperate in their efforts to kill the proposed legislation that would level the playing field for workers seeking to form unions, have come up with another line of attack. They are making a lot of noise over the bill’s arbitration provision. The argument is just another straw-man attempt at gutting legislation that would enable more workers to have a voice on the job. (And one more sign of desperation—to wit, the trotting out of widely loathed figures like Dick Cheney and Karl Rove to attack the Employee Free Choice Act.
Here’s the deal. Even after employees select a union to represent them, they need to bargain a first contract. But there’s no incentive for management to bargain in good faith. The longer contract negotiations are dragged out, the less likely one will ever be settled. In fact, nearly half of workers are denied a first contract, even when they’ve won their union.
So, the Employee Free Choice Act provides that when an employer and newly formed union are unable to bargain a first contract within 90 days, either party can request mediation by the Federal Mediation and Conciliation Service (FMCS). If no agreement has been reached after 30 days of mediation, the dispute is referred to binding arbitration. All time limits can be extended by mutual agreement.
This change eliminates current incentives for employers to delay and stall negotiations and will dramatically reduce the delay, frustration and animosity generated by the company-dominated system. Thomas Kochan, professor at Massachusetts Institute of Technology’s Sloan School of Management says the process could be set up to allow for a neutral arbitrator, an employer-chosen arbitrator and a union-chosen arbitrator.
We can design a fair process.
Because all too often what workers experience when trying to negotiate a first contract is what’s happening right now to Johanna Moon. The 25-year veteran of Trump Plaza in Atlantic City and her colleagues joined the UAW two years ago, but still do not have a contract. The workers formed a union because, despite many years on the job, they were living paycheck to paycheck and some had no health coverage. If the Employee Free Choice Act was law, these workers would have a contract. Clearly, they need one badly.
As usual, opponents of Employee Free Choice are out of sync with Main Street America. According to new public polling conducted by Hart Research Associates and commissioned by the AFL-CIO, 61 percent of the public supports first-contract arbitration.
In fact, Big Business supports arbitration as well—as long as the boss controls the process. An issue paper from the U.S. Chamber of Commerce Institute for Legal Reform states: "Virtually any type of dispute between private individuals or entities can be addressed by arbitration, including, for example, contract, real estate, employment and tort disputes." In October 2008, The New York Times reported on a study that found businesses used mandatory arbitration in 75 percent of consumer agreements but just 24 percent of contracts overall, showing they were used to prevent class-action lawsuits. (H/t to Michael Whitney at SEIU.)
The Chamber of Commerce knows arbitration works for business—and it doesn’t want the same for America’s workers.
By giving workers the choice to request mediation and arbitration, the Employee Free Choice Act guarantees that every worker who forms a union will get a contract. Likewise, by giving workers the choice to request mediation and arbitration, the Employee Free Choice Act eliminates the incentive for employers to bargain in bad faith.
And that’s why Big Business doesn’t want it.



14 Comments












Support this site!
Subscribe to the newsletter
Advertise on Firedoglake
Send
us your tips
Make us your homepage
About Firedoglake
Thanks Tula.
Management negotiating in bad faith?
Whoever could have anticipated…?
Most of the situations where arbitration was used, it was set up to benefit the big guy. What is the fair way they think they can get a “neutral” arbitrator?
I truly believe that organized labor is the last bastion of defense for the lower and middle classes. I never will understand people’s ire towards unions. Go ahead and get rid of them tomorrow, see what happens. Wages would plummet and benefits would be gone. Hurray for the 60 hour work week!!! EFCA must be passed.
In somewhat related news- Chrysler is cutting 25% of their dealerships. Don’t worry though, the economy is getting better:
http://yellingatthemoon.com/20…..e-mad.aspx
The antipathy toward unions has to do with the fact that they went too far, and additionally, became corrupt and out for the leaders only.
I agree that unions are labor’s only hope. But they have a bad reputation and they haven’t done much to repair it. They need a major PR campaign to pump what they’ve done for labor, but they seem too stupid to figure that out.
The unions were corrupt but the workers were still better off. The union leaders seemed to make sure their peeps had a living wage and bennies.
I’m not denying that. I was responding to MYATM wondering why there is ire toward unions. And as long as there is, unions will have a hard time influencing policy. Which is why I suggested a PR campaign to counter the bad impression with evidence on what they’ve done on the positive side.
Tula, excellent post; you said it all in the headline.
eCahn and MaryMc, don’t you find it -your choice of adjective- that SEIU has it’s largest loans from BofA and Amalgamated Bank?
“The SEIU has borrowed millions from Bank of America as well as Amalgamated Bank, a union-owned bank with a breakaway group that SEIU has tried to recruit into its ranks.”
Interesting. And curious. Wouldn’t seem to reflect well on SEIU.
and then when no contract is bargained, a decert is next, the union is tossed out and organizers have to start all over again or just walk away.
And that’s exactly what the companies want. I’m afraid the unions will cave in to concessions just to get the thing passed. We will end up with a weak, watered down useless bill in the end.
They need a major PR campaign to pump what they’ve done for labor, but they seem too stupid to figure that out.
ABSO FRIGGIN’ LUTELY!
Juan is ‘on top’ of the ‘labor scene’; like most any human endeavor, it’s about the power and money.
At US Airways, fleet service agents started an organizing drive in 1993. The company violated the law and got a slap on the wrists. The NLRB recognized the union in 1995. Fleet got their first contract in 1999.
Seven years – that is not extraordinary – it is SOP.
Tula, be careful with baseball arbitration. Some versions of it impose the last best offer, which is deadly in the hands of bad-faith management negotiating an initial contract.
If there was ever a time for the Employee Free Choice Act, that time is now. Not only is it nearly impossible to form a union without fear and intimidation by employers, but union-busting has grown into a $4 billion a year business in the U.S. alone.
Companies that previously had good relationships with their union employees have been emboldened by weak labor laws. One of those is the McGraw-Hill Companies. Read more at:
http://nabetcwa54.org