Meat + Poultry - August 2007 - 100

LABOR

First contract talks at stake if EFCA passes
By Richard Alaniz
meatpoultry@sosland.com

he Employee Free Choice Act of
2007 is awaiting consideration
in the U.S. Senate. Positioned as
an initiative to help workers by many
Democrats, the AFL-CIO, the UAW and
similar groups, the reality is much different. Besides doing away with secret
ballot elections and replacing them
with a card-check system (see "Feeling the union push," June M&P, page
94), it may be just as meaningful that
the EFCA would also alter the way first
contracts are negotiated.
Negotiating that first contract with a
new union is a delicate, time-consuming
process: In fact, about half of all employers and unions have failed to reach
a first contract within two years of the
union's formation. Under the current
law, as long as both parties are acting in
good faith, it can take as long as necessary to hammer out an agreement.
But the process of patient, goodfaith negotiations would no longer be
the case under the EFCA. Under the
bill, if a union is certified and it cannot reach an agreement with the employer after only 90 days, either party
can call in the Federal Mediation and

Conciliation Service, the government
agency that acts as the mediator in labor disputes and contract negotiations.
If, with the assistance of a mediator, a
contract still hasn't been reached within 30 days, the matter can be sent into

"A Presidential veto has
already been promised,
but passage of the
law, even if only by the
House, is symbolic."
compulsory arbitration. The arbitration
panel or single arbitrator can impose a
collective bargaining agreement that
will be binding on both employer and
union for two years. These agreements
are much more likely to contain clauses that, under current rules, employers
are free to oppose in good faith, such
as mandatory union membership and
automatic dues collection.
The EFCA will likely cause unions
to start contract negotiations with a
broader agenda and a less flexible at-

titude. It is reasonable to expect most
first contract negotiations to end up in
the hands of arbitrators, who will be in
the unique position to choose language
from either party or create provisions
of their own. Moreover, arbitration decisions typically leave employers with
little recourse against a decision that
may ultimately have unfavorable consequences. Employers will most likely
find themselves with more expensive
and restrictive first contracts.
The battle over EFCA in the Senate,
where Democrats have a slight majority,
could be more intense than the House;
however Edward Kennedy, D-Mass.,
who authored the bill introduced in
the last Congress, has vowed to "play
offense" for it. A Presidential veto has
already been promised, but passage of
the law, even if only by the House, is
symbolic: It sets up labor's litmus test
for the 2008 elections.
The U.S. Chamber of Commerce's eAdvocates Action Center offers resources
to preserve the interests of employers as
EFCA legislation is being considered by
lawmakers. For more information or to
get involved in the lobbying efforts, go
to: www.voteforbusiness.com
Additionally, employers should be
on the lookout for new organizing
campaigns, which may start right away
in light of media attention around the
EFCA and unions' perceived strengths
in the new political climate. It may
be worth contacting counsel to ensure all measures are being taken to
defend against the union organizing
that is much more likely to come in
the future.
Richard Alaniz is senior partner at Alaniz and Schraeder, a Houston-based law firm representing management in all areas of labor and employment law. Legal
topics provide general information only, not specific
legal advice. Individual circumstances may limit or
modify this information.
We would like to hear from you - to comment on
this story or to request reprints, contact us by
e-mail at: meatpoultry@sosland.com.

108

MEAT&POULTRY

August 2007

www.MEATPOULTRY.com

http://www.voteforbusiness.com http://www.MEATPOULTRY.com

Meat + Poultry - August 2007

Table of Contents for the Digital Edition of Meat + Poultry - August 2007