To unionize or not unionize? That is the question employees may have no choice in facing if the proposed changes in the wording of the National Labor Relations Act of 1935 come to pass.
The legislation, originally introduced during the Bush administration in 2007 and rejected, has been resurrected by the 110th Congress. It can be especially vexing for employers in the Hudson Valley region, where a typical business has fewer than 25 employees.
The Employee Free Choice Act, better known as Card Check, is causing consternation among companies large and small ”“ at least, for those who know about it. While the concept has its merits ”“ giving employees the ability to perhaps better their working conditions, benefits and salaries ”“ H.R. bill No. 1409 also has many concerned that those who conduct business ethically and treat employees fairly will be more challenged than necessary. Billionaire and economic guru Warren Buffet pulled no punches on the legislation: He”™s against it. Â
Several local chambers of commerce are putting together seminars to let their members know exactly what Card Check will mean to their businesses should the legislation pass. Charles North, president and CEO of the Dutchess County Regional Chamber of Commerce in Poughkeepsie, says most employers are unaware of the intricacies of the bill and how it would affect them if it becomes law.
“We”™re hosting a seminar on April 22 at 3:30 p.m. at the Hampton Inn here in Poughkeepsie so our members can learn more about Card Check,” he said. Other chambers are following suit, said North, “because most of our small-business owners are so preoccupied with the economy and keeping their doors open, they haven”™t had the ability to research the ramifications. This is vitally important information for small businesses, which could effectively wake up and find they are now running a union shop.”
Michael Kaufman, board chairman of the National Restaurant Association in Washington, D.C., and resident of Chappaqua, said the proposed legislation is “wrong for America. It would end the secret ballot. People are entitled to express their views in private. Card Check would enable union representatives to sign people up without the employer even knowing about it. “
“The pressure on people to sign is also a concern,” said Kaufman. “What happens if the majority sign off on the card and some don”™t? The ramifications to those who don”™t want to unionize can be enormous because their vote is not a secret.”
Kaufman said if the bill passes and the majority of employees check off on unionizing, “a union representative comes into the workplace for collective bargaining with the employer, a decision must be reached within 120 days, or a federal arbitrator will step in ”“ that person would make the decision about wages, working conditions, what the agreement would be and what the employer should do. This would give government extraordinary power to come into a business they know nothing about and dictate how it would be run.
“For a small business that relies on good relationship with a small group of employees, there”™s a good chance no one will start that process, because at the end of the day, if the business does not make money and becomes noncompetitive, there is no business to speak of,” he said. “Small businesses are not investment bankers. They”™ve mortgaged their house to build their business or borrowed money from their family or bank. If they lose their business, they lose everything.”
On the flip side, workers who don”™t receive overtime or fair compensation in New York ”“ a fire-at-will state, say Card Check backers ”“ will force negligent employers to play fairly. U.S. Rep. Maurice Hinchey, D-Saugerties, attending the yearly launch of Sloop Clearwater in Poughkeepsie last week, is adamant in his advocacy of the legislation.
“It”™s a great tool for the working people in America,” he said. “Unions helped build this nation. I think unions will help bring us back to greatness.” Hinchey”™s not alone: President Barack Obama has thrown his support behind the bill.
Paul Vitale, vice president of government affairs and community relations for The Business Council of Westchester, said the organization does not support the Employee Free Choice Act.
“Essentially, the pressure will be on employees to sign without any privacy, which is a fundamental right during the voting process, whether you are in a voting booth or talking about unionizing,” he said. “The other caveat in this legislation is there is really no incentive for the employer and employees to sit down with a union representative and create a collective bargaining agreement. When the 120-day window closes for agreement to be reached, a federal arbiter will come in and decide for the business.”
Vitale said The Business Council is revamping its Web site to include an advocacy page, “which we hope will not only keep members aware of what is happening but put them in touch with their legislators to let them know their position on this change to the National Labor Relations Law.”
