The Audacity of 2010

Flashback to January 2009: A new Administration, buoyed by a spirit of “hope and change,” sweeps into Washington promising to pick up the shattered remains of the U.S. financial system, manage multiple wars and reform the healthcare system. So far, all of those promises remain in the “unfulfilled” category, but they have diverted attention away from numerous legislative proposals that could have major impact on material handling professionals, and very soon, too.

Big changes could be coming in 2010, and not all of them will be welcomed by manufacturing and distribution companies.

Attorneys specializing in labor and employment law — like Jennifer L. Neumann and Michael W. Groebe, authors of the exclusive article that follows — predict the U.S. workforce will be next in line for a regulatory overhaul as soon as economic and healthcare debates cool.

Material handling professionals have already braced themselves for potential change as the debate over the Employee Free Choice Act (S.560, H.R.1409) rages on. Currently, EFCA, also known as the card-check bill, has been referred to committee in both the House and Senate, and it's moving at a snail's pace. But Congress has proposed additional labor-related bills that, if passed into law, will impact every business involved in sourcing, allocating and distributing raw material and finished product throughout the world's interconnected supply chains. — Ed.

Change was the cornerstone of Pres. Obama's campaign. Now, armed with Democratic majorities in the Senate and House of Representatives, he is positioned to deliver.

While the Obama Administration has spent most of 2009 focusing on economic stimulus and healthcare reform, labor reform is likely to be next on the agenda as we enter the New Year.

The Groundwork

Pres. Obama has already prepared the foundation for change. Back in January, during the first few days of his presidency, he signed the Lilly Ledbetter Act, which extends the time period within which someone can file a claim of compensation discrimination.

Previously, the clock started running the date compensation was set, not the date of the most recent paycheck. Now, under the Lilly Ledbetter Act, the clock resets with each new allegedly discriminatory paycheck, thus significantly expanding the statute of limitations on suits alleging compensation discrimination.

A day after signing the Lilly Ledbetter Act, the President issued three executive orders, each of which assists unionization. The first, E.O. 13494, prohibits government contractors from using contract monies for anti-union efforts. Contractors cannot use designated funds to hire lawyers or consultants to help prevent unionization or prepare anti-union materials.

The second, E.O. 13495, requires that, when a federal service contract terminates, the employees of the terminated contractor are given a right of first refusal to new employment with the successor contractor. When successor employers hire a majority of a unionized workforce, they will likely have to recognize an existing union under the National Labor Relations Act. Thus, E.O. 13495 makes it easier for unions to remain in place when government contractors change.

The third, E.O. 13496, mandates the posting of a notice in the workplace by contractors informing employees of their legally protected right to join a union.

Pending Legislation

Now, labor-related legislative proposals are pending in the House of Representatives and Senate. Four in particular — the Forewarn Act, Employment Non-Discrimination Act (ENDA), Paycheck Fairness Act (PFA) and the Employee Free Choice Act (EFCA) — would have serious implications for manufacturers and distributors if signed into law.