Employee Free Choice Act Ends Free Choice

The Employee Free Choice Act (EFCA) is proposed federal legislation designed to amend the National Labor Relations Act. A key provision of the act is the elimination of employee's rights to a secret ballot in a union election.

Focal Points:

• The current U.S. labor law, the National Labor Relations Act, states the U.S. National Labor Relations Board (NLRB) gets to certify a union as the exclusive representative of employees. This certification is based on a union being elected by either a majority signature drive, the card check process, or by secret ballot election overseen by an impartial federal board. An election is held only if more than 30 percent of employees in a bargaining unit sign statements asking for representation by a union. Under the EFCA, union organizers would only need to gather signatures from 50 percent or more of the employees in a bargaining unit using the card check process and no longer need a secret ballot election. The card check process is not secret and there are cases where workers have been pressured in various forms into signing the cards.
• Additionally, if the union and employer cannot agree upon the terms of a first collective bargaining contract within 90 days, either party can request federal mediation. According to the EFCA, mediation could lead to binding arbitration if an agreement still cannot be reached after an additional 30 days.
• The bill came up for key votes in 2007. All Senate Democrats voted yes and only two Democrats in the House voted no. While the bill passed the House, it failed in the Senate because the Democrats were unable to get the required 60 votes to stop a Republican filibuster. Support for the bill is a key plank of this year's Democratic Party's platform. The bill will most definitely come back for a revote in the next Congress in 2009. George McGovern, a former senator from North Dakota and 1972 Democratic Party presidential candidate, has voiced strong opposition to this act stating the legislation is "a disturbing and undemocratic overreach not in the interest of either management or labor."

Experton Group believes passage of this legislation will cause harm to enterprises operating in America, as unionization will be forced upon a number of companies and their competitiveness will be diminished.

Additionally, the elimination of the secret ballot for any election is a dangerously undemocratic step and the card check process exposes employees to coercive activities. As this legislation can have far-reaching impacts on corporate effectiveness, efficiency, and profitability, executives should carefully review the provisions of the EFCA and make their corporate and personal positions known to their legislators.