Workforce: Managing Intense Labor Forces

As this article is being written, the heated saga of the Employee Free Choice Act (EFCA) continues. On March 10, Rep. George Miller (D-Calif.) and Sen. Tom Harkin (D-Iowa) introduced EFCA, also called the card-check bill, to Congress. The measure was previously introduced in 2007 and passed the House but failed in the Senate.

The controversy centers on three key provisions, all of which would make it easier for employees to form unions. First, the bill provides for certification of a union if the National Labor Relations Board (NLRB) finds that a majority (50% plus one) of employees sign authorization cards. Although the option of a secret-ballot certification vote remains, the bill would make it illegal for a company to order it. Second, EFCA would require federal mediation of a contract if an agreement is not reached within 90 days. If, after 30 days of federal mediation, an agreement still does not exist, the dispute would then be referred to arbitration. The results of the arbitration would be binding for two years. And, third, cardcheck legislation would increase penalties for employers that violate union organizing rules.

At press time, the fate of EFCA (H.R. 1409, S. 560) was still uncertain. Most expected an easy ride through the House but a rougher journey through the Senate. When Sen. Arlen Specter (R-Pa.) expressed his opposition, groups such as the National Association of Manufacturers and United Fresh Produce Association applauded since he had supported the legislation in the last Congress. But the battle was far from over.

Scores of business associations, as well as organizations representing labor groups, have jumped into the ring. Punches from both sides are fierce. Each group predicts certain disaster if the opposition prevails.

The reality is less extreme, however, and supervisors of material handling operations should resist the urge to react impulsively based on negative rhetoric.

A more sensible option is developing a plan of action that reduces vulnerability to labor-related problems. Lost productivity, increased turnover and even litigation and penalties may be avoided by carefully reviewing and updating policies and procedures, educating supervisors and supporting a work environment that hinges on open communication, fairness and teamwork.

Without or without EFCA, material handling professionals will likely be more vulnerable to labor-related issues. In the short time since his inauguration, President Obama has already signed three executive orders affecting federal contractors. Two of the three protect organizing rights.

And, businesses will likely have more to worry about than unions. The Obama Administration is working on a variety of new legislative initiatives relating to immigration, healthcare, discrimination and compensation. (See the sidebar, “Legislative Update From the Hill,” for more.)

According to D. Albert Brannen and Tracy L. Moon Jr., partners at Fisher and Phillips LLP, an Atlantabased law firm that represents employers in labor, employment, civil rights, employee benefits and business immigration matters, there’s no single approach that prepares every operation for potential changes. Each company must analyze its own workforce, industry, location and resources to develop its own plan.

However, Brannen and Moon offer three measures any employer can take right now: