Including an overview of the
Employee Free Choice Act (EFCA)

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Overview of EFCA
NLRB Changes During Clinton Administration
Why Companies Oppose Unions
Company Employee Relations Strategy
Why Employees Organize
Managers and Supervisors Role in Maintaining Union Free
Status
 Do’s – Don’ts
Typical Unionization Process
Early Warning Sign
Union Authorization Cards
Election Procedures
Overview of Company Labor Audit
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What is a Union
 A labor union is a group of employees that ban together to bargain collectively with their employer.
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Unions just like companies are in business to make money.
Employees who are happy – who like their work and their supervisor – have no interest in a union.
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National Labor Relations Board
Union Election Statistics
Fiscal Year 2008
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No. Union Elections
No. Won by Union
No. Lost by Union
1,503
938 (62.4%)
565 (37.6%)
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Total Employees Voting
Total Employees Unionized
Total Employees Remaining
Union Free
104,382
61,950
42,432
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Employee Free Choice ACT
(EFCA) is legislation to “Amend the
National Labor Relations Act”
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QUOTE
“I support this bill because in order to restore a sense of shared prosperity and security, we need to help working
Americans exercise their right to organize under a fair and free process and bargain for their fair share of the wealth our country creates.”
“The current process for organizing a workplace denies too many workers the ability to do so. The Employee Free
Choice Act offers to make binding an alternative process under which a majority of employees can sign up to join a union. Currently, employers can choose to accept —but are not bound by law to accept —the signed decision of a majority of workers. That choice should be left up to workers and workers alone.”
Senator Barack Obama, 2007
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 Can eliminate secret ballot elections
 NLRB can force union representation with majority “card check” process
 Union can demand bargaining to begin after certification
 If contract is not signed within 90 days union or employer can request federal mediation
 Can lead to binding arbitration within 30 days
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Damages of three times back pay for unlawfully terminated employee
EFCA would impose $20,000 penalty upon each violation
March 1, 2007 House of Representatives passed the Act by vote of 241 to 185
March 30, 2007 Senate voted 51 – 48 to table discussion. 60 votes are needed to re-address bill… stay tuned .
President Obama (co-sponsor) has promised to sign bill if passed.
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EFCA
Small Business Exemption
 Small businesses are excluded providing:
 $500,000 gross volume (1959)
 $3.3 million (based on inflation today)
 Must have minimum of 3 bargaining eligible employees
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CURRENT NLRB Rules vs. EFCA
 Current
 Union Authorization Cards
 Secret Ballot Election within
42 days
 NLRB Certified Election
 If Union Wins:
 Both parties must bargain in good faith
 EFCA
 Union Authorization Cards showing majority status
 If Union Wins:
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Both parties must bargain in good faith
If no agreement in 90 days – federal mediation
If no agreement in 30 days of mediation – binding arbitration for 2 year contract
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CURRENT NLRB Rules vs. EFCA
Improper Termination During Organization Process
 Current
 Re-instatement
 EFCA
 Back pay plus 2X liquidated penalties for improper termination
 Civil penalties of up to
$20,000 per violation
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 Employers shall not
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Interfere with employees engaging in concerted activity
Dominate or assist labor unions
Discriminate because of concerted activity
Retaliate for filing charge with the Board
Refuse to bargain collectively with Union
 Unions shall not
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Restrain or coerce employees engaged in concerted activity
Cause discrimination against employee b/c of union membership
Refuse to bargain collectively with Employer
Engage in unlawful strikes or boycotts or numerous other specified activities
Charge excessive or discriminatory fees
Engage in unlawful picketing
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Clinton Administration’s Impact on
Organized Labor
 Reduced time from petition to election from 50 to 42 days
 AFL-CIO loan of $10 MM to Teamsters strike fund
 AFL-CIO devoted 34% of budget to organizing (3% previous)
 AFL-CIO re-opened Organizing Institute and tripled in size
 Linda Chavez-Thompson first female minority executive
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Clinton Administration’s Impact on
Organized Labor
 Continue to offer 100% backing to Edward Kennedy
 Union elections increased 12% with union winning
50.3%
 Hiring and training new organizers at record rate and targeting women and minorities
 College students recruited for summer organizing
 Created long-term organizing strategies involving southern and midwestern United States
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Clinton Administration’s Impact on
Organized Labor
 Increased visibility of local organizing efforts by aligning with churches, religious and Civil Rights organizations
 Increased lobbying efforts for more liberal changes in labor laws that support organizing efforts
 Established corporate campaign strategies
 Improved awareness through more effective use of
Internet and web pages
 Expanded use of celebrities
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New Organizing Tactics
Blitz Campaigns
Women organizers
Student organizers
Church support
Religious overtones
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Union Membership as a Percentage of the U.S. Civilian Workforce
40%
35%
30%
25%
20%
15%
10%
5%
0%
36%
32.50%
30.10%
22.00% 22%
16.10%
13.50%
12.00%
1945 1950 1960 1970 1980 1990 2000 2006
Year
Source: U.S. Department of Labor, Bureau of Labor Statistics, 2007.
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Union Membership by Industry
Government
Utilities
Transportation
28.20%
22.00%
Construction
Educational Services
17.60%
13.50%
Communications
13.00%
Manufacturing
11.70%
Mining
10.90%
Wholesale/Retail Trade
5.00%
Agriculture
Financial, Insuranace
0%
2.30%
1.40%
5% 10% 15% 20% 25% 30%
Union Members as Percentage of Total Workers in Industry
35%
36.20%
40%
Source: U.S. Department of Labor, Bureau of Labor Statistics, 2007.
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Why Companies Oppose Unions
According to Economists Richard K. Vedder and Lowell E. Galloway
 Economic cost of unions from 1947-2000 exceeds
$50 trillion of lost income and output
 States with a 10% unionized workforce can expect 0.7% increase in unemployment rate
 Average UAW worker earns over $81.00 per hour in salary/ benefits with retiree health care. In
2000 economists predicted plan would begin bankruptcy auto industry by 2009.
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Why Companies Oppose Unions
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Disruptions caused by strikes
Labor contract provisions may put employer in a uncompetitive situation
Unions often create divisiveness between employer and its employees – “us versus them”
Employer loses the right to deal with employees individually
Increased expense and difficulty in administering work rules, etc.
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Companies Disadvantages of
Unionization
 Negative effect on Quality and Service
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Lack of managerial flexibility
Management time wasted
 Divided loyalty between company and union employees
 Higher operating cost
 Dealing with job actions
Strikes
Sick outs
Slow downs
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Companies Disadvantages of
Unionization
 Unions have employees file numerous and erroneous charges
OSHA
EEO/State Human Rights Commission
Department of Labor
State Insurance Health Agencies
Increase in Workers Compensation claims
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Company Labor Relations Strategy
….Company Statement re: Unions
We want to maintain a positive ongoing relationship among all our employees.
We will respect our employees and maintain candid and honest communications concerning the business and the impact to our employees.
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Implementing An Effective Union Avoidance
Strategy
 Example of company policy on unions:
 The reason our employees haven’t wanted a union is simple. Over the past years we have consistently provided steady employment, safe working conditions, fair treatment and promotional opportunities as well as wages and benefits which are competitive in our industry and we are committed to maintaining these high employment standards for the future.
In addition, every employee is treated as an individual and respected as an important member of our team. This means you can speak directly with your supervisor or any other member of the management team and we can work directly with you without interference from a union. We want you to share your ideas and concerns with us because we believe that our growth is a direct product of our team efforts and contributions. A union can add nothing to our team nor can they get anything more than the company is willing to provide. We believe unions create artificial walls that hamper your individual success and the team success of this facility. We firmly believe that union is not necessary!
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Why Employees Organize
 Favoritism
 Lack of Appreciation
 Concerns about Job Security
 Lack of Communication
 Not feeling “in on things”
 Money is usually not a primary motivator
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Why Employees Organize
Working Environment
• Inadequate staffing
• Mandatory overtime
• Poor working conditions
Compensation
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Non-competitive pay
• Inadequate benefits
• Inequitable pay raises
DESIRABILITY OF
UNIONIZATION
Management Style
•Arbitrary management decision making
•Use of fear and intimidation
•Lack of recognition
Employee Treatment
•Job insecurity
•Unfair discipline and policies
•Lack of response to complaints
•Harassment & abusive treatment
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Maintain a Pro-Employee Environment
 EVERYONE:
L.O.Y.A.L
.
L = Listens
O = Observes
Y = Doesn’t Yell
A = Advocates
L = Learns
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Front-line leaders role in preventative labor
 The key to maintaining a union free status is being a dedicated and positive leader
 It cannot be repeated enough that in the eyes of the employee, the supervisor/ manager is the employer.
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Traits of a good leader
 Accurate
 Accurate when explaining policy, procedures and providing feedback.
 One wrong word or forgotten sentence can change the entire meaning of what was said.
 Knowledgeable
 Understanding policies and procedures before trying to interpret them for employees.
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Traits of a good leader cont…
 Clear
 Uses words and terms that are sure to be understood by employees.
 Impartial, does not take sides
 Ask questions
 Get employees to ask questions
 Doesn’t take it for granted that everyone understands the point simply because no one asks any questions or everyone says they understand 31

Traits of a good leader cont…
 Careful
 Conscious of their facial expressions, gestures, posture and tone of voice
 Rewards initiative
 Gives credit where credit is due
 If you take credit for an employee’s idea or suggestion, you can be sure that employee will never suggest anything again
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Traits of a good leader cont…
 Acts with integrity
 24-7
 Once lost/may not return
 Most important executive trait
 Fortune article
 Guard it
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Communication is critical
A good leader has learned to listen…
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Best Ways to Remain Union Free
Make the Union Unnecessary
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Maintain consistency
Share timely and factual updates
 Formally and Informally
Be proactive
Know and uniformly apply rules
 Weigh cost/benefit and be able to justify any deviation from rule
 Beware of the application of rules not previously applied in practice
 Review disciplinary actions
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Best Ways to Remain Union Free
Make the Union Unnecessary
 Avoid employee perceptions of unfairness or favoritism
 Show greater appreciation for employees
 Feedback is critical – give praise along with suggestions for improvement when needed
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Best Ways to Remain Union Free
Make the Union Unnecessary
 Show employees they do not need a third party coming into the facility to ensure fair treatment and consideration
 As long as employees are treated fairly, there is no need for a union
 Without a union, problems can be resolved individually and there is more personal contact between employees and management
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Recognizing Unexplained Change
 Before a Company can react to the attempted unionization of its employees, it must be aware of it’s existence
The Key: BE AWARE
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Communicate “change” timely and accurately
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Typical Unionization Process
Organizing Campaign
Authorization Cards
Representation Election
Certification
Contract Negotiation
(Collective Bargaining)
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Recognizing Early Warning Signs
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Good performers begin slipping
Argumentative questions in front of employee groups and supervisors
Group complaints and petitions start to appear
A “new” leader starts to appear
Employees appear to be divided into two groups
Increase in employee turnover
An increase in union terms such as:
Seniority Grievance Bumping Security
More questions regarding wage administration, benefits and policies
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Recognizing Early Warning Signs
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Unwanted postings
Articles on unions
Strangers begin appearing in parking lots, entrances
Union literature begins to appear
Applicants who are over qualified
Employees stop talking to supervisors
Supervisors “grapevine” goes dead
More group discussions/Employees get quiet when a member of management comes up
Employees start questioning supervisory authority
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Recognizing Early Warning Signs
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More time spent in break rooms, restrooms and parking lot
More and more employees at local “watering holes”
Former employees begin showing up at the facility or hanging out
Employees normally not seen together forming groups
Nature and frequency of employee complaints
Anti-company graffiti
Any other event out of the ordinary
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New Organizing Approaches
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Blitz campaigns
Large amount of organizers
Weekend organizing
100% home visits from Friday – Monday
Specific union not identified
No cards at work
No visible organizing during initial card signing
70% cards signed prior to petition
Utilize churches
Personal attacks on management
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Importance of Front-line Supervisors and Local Management
 The front-line supervisor is the most important factor influencing employee decisions in any attempt by a union to organize employees
 The front-line supervisor has the most daily contact with employees
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Importance of Front-line Supervisors and Local Management
 The front-line supervisor has the best opportunity to communicate management’s point of view – “eyeball-toeyeball”
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The front-line supervisor represents the
“eyes and ears” of management
Simply put…to the Employee, the frontline supervisor is the “Company”
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Importance of Communicating with
Employees
Role of Supervisor
 Communication is key: supervisors must give employees the opportunity to ask questions and create an atmosphere in which they are not afraid to ask questions
 Participate in two-way communications
 Supervisors must listen to employees and inform management about any inkling of union activity
 Recognize there are problems in every group of employees
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Importance of Communicating with
Employees
Role of Supervisor
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Bring problems to the attention of top management for resolution
Solve problems either by explaining the policy or taking steps to correct the situation
Seek to learn what the employees think of the company
Sell company benefits
Know employee’s background and relationships
Discipline consistently
Avoid favoritisms in scheduling, assignments, overtime, etc.
Supervise people – not a file
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What Supervisors Can Do and Say
TAKE ACTION
 Silence is not golden
 Silence implies support/lack of opposition
 Supervisors have the right to speak out about unions.
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F.O.R.E.
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 Communicate facts and correct any false or inaccurate statements made by the union
 Example:
 Cost of union dues and assessments
 Strike replacements
 Discuss the unions false promise
Don’t guess at answers to a question
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Supervisors should express their opinions about the union
 However, they should not threaten, nor promise employees any benefits.
Supervisors can and must tell employees why a union is unnecessary at the company.
“…In my opinion, unions are out to protect their own interest before the interest of the employees.”
…”and here are some examples”
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 Establish clear lines and limits of tolerance
 Clearly communicate work rules to employees
 Administer discipline uniformly and avoid making “exceptions” for anyone
 Follow the employee handbook and insure it is being followed by your employees
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 Share your experiences, co-workers, and others personal experiences regarding unions.
 Give personal and real work examples to employees about the many disadvantages of a union.
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What Supervisors Cannot Do and
Say
For supervisors and managers, these “don’ts” are largely common sense rules and can be remembered by the acronym…
S.P.I.T.
Don’t make any statement if there is any doubt in your mind as to their correctness or interpretation.
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SPY
 Supervisors cannot:
 Ask employees if they have signed cards or attended meetings
 Give the impression that they are observing the employees union activity
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Don’t take notes if you see employees meeting in groups
 Tell employees that co-workers are informing you about union activity
“I heard you said a lot at the Union meeting last night.”
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PROMISE
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Supervisors cannot:
 Promise increased wages, promotions, or benefits to obtain support for the employer
Do not speculate over what ‘could’ happen or
‘what you think was meant’ by something sent out by the company
Do not negotiate with employees
“If you vote against the union, I’ll see to it that you get a promotion.”
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INTERROGATE
 Supervisors cannot:
 Ask employees what they think about the union
 Ask employees if they have signed a union authorization card
 Ask employees how they intend to vote
 Call employees individually or in small groups into offices or private areas to talk about the union
“Who is going to the Union meeting tonight?”
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THREATEN
 Supervisors cannot:
 Threaten loss of job or reduction of income or benefits if union wins
 Say there will be a strike if the union wins
 Threaten that the operation will be moved or shut down if the union wins
“I’ll see to it that you’ll never get another promotion or wage increase.”
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Union Authorization Cards
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May file petition for election with 30% signed cards
May demand recognition with more than 50%
With more than 50% cards signed and an Unfair
Labor Practice, company may be forced to bargain in good faith without election
With more than 50% cards signed and union loses election if company has committed Unfair Labor
Practice, the company may be forced to bargain in good faith
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 NLRB orders within 42 days of petition
 Agreement of eligible voting employees
 Secret ballot
 Monitored by NLRB representative
 Simple majority wins
 Election certification
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Most Important Aspect of Contract
Negotiation
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The need for a Management’s Rights Clause
Termination
Layoffs
Hiring practices
Transfers
Suspensions
Discipline
Size of workforce
Work schedule
Safety rules
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(Full Audit with Book)
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On-going training of managers/supervisors
 No longer wait until signs of activity
Unions will have
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Your company information
Wage data
Employee’s home address
Manager’s names
Card signing has already began
Section on why companies oppose unions
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Employer impact
Front-line supervisor impact
Sample company policy on unions
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 Overview of National Labor Relations Act
(NLRA)
 Relevant NLRB procedures with elections
 Filing election petition
 Processing petition
 Voting eligibility
 Election day
 Certification
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 30% required for election
 Assume they have 70%
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Overview of Management’s
Response to Activity
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Identify internal organizers
Identify external organizers
Identify problem department/shifts
Develop employee profile=1, 2 or 3 (red light, yellow light, green light)
Identify union/local/city
Identify issues
Identify supervisor training needs
Contact legal support team
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 Handling demand for recognition prompt and unconditional rejection
 Review legal issues
 Best ways to remain union free
 Common early warning signs
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Supervisor’s Do’s/Don’ts
 S
 P
 I
 T
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 Avenues of company communication
 Small groups
 Handouts
 Videos
 Posters
 One-on-one conversations
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 Management response to union propaganda
 Dues
 Strikes
 Negotiations
 Current wage/benefit status
 Company philosophy
 Union fines/assessments
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 Audit discipline procedures
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The only way to guarantee a company victory in a union election is
NOT TO HAVE AN
ELECTION