EFCA Resurrected: Pennsylvania Senator Specter switches Political Parties

Veteran Republican Senator Arlen Specter disclosed plans Tuesday to switch parties, a defection that will move Democrats closer to total control of the U.S. Senate. The switch may also revive EFCA in its original form despite Senator Specter's withdraw of support for the pro-union legislation last month. Senator Specter faces a difficult primary in Pennsylvania

Senator Specter was a co-sponsor of EFCA last year but withdrew his support.  In an announcement made on March 24, 2009, he proposed alternative amendments to the NLRA addressing his perceived issues in delays and problems with the unionization process.  His floor comments on his change of heart about EFCA will require some political backtracking, if he is now to support the measure consistent with his new party's position:

On the merits, the issue which has emerged at the top of the list for me is the elimination of the secret ballot which is the cornerstone of how contests are decided in a democratic society. The bill’s requirement for compulsory arbitration if an agreement is not reached within 120 days may subject the employer to a deal he or she cannot live with. Such arbitration runs contrary to the basic tenet of the Wagner Act for collective bargaining which makes the employer liable only for a deal he or she agrees to. The arbitration provision could be substantially improved by the last best offer procedure which would limit the arbitrator’s discretion and prompt the parties to move to more reasonable positions. 

For now, EFCA in its original form, may have been given new life in the Senate.

Union Leader Predicts EFCA passage by August 2009

Andy Stern, President of the Service Employees International Union (SEIU), was recently interviewed by USA Today where he predicted the passage of the Employee Free Choice Act (EFCA) by August. 

Unions have substantial political clout and this prediction should be respected. According to Department of Labor filings, the SEIU has almost 1.7 million members and spent $32.9 million on political activities and lobbying in 2007. The SEIU's 2008 report will likely show an increase in its political spending on the Presidential Election. Mr. Stern has also expressed his sentiments on organized labor's role in the election and its expectations in a Wall Street Journal Interview as follows:

"We just won an election. It's no secret." By "we," Andy Stern means "American workers." He also means Big Labor. Speaking on behalf of the fastest growing trade group in America, the Service Employees International Union -- and as one of labor's most powerful figures today -- Mr. Stern sets this simple bar for the Obama presidency: "I expect nothing less than what he said he was going to do, and we should hold him accountable."

Labor has its sights on EFCA and this pending legislation has enormous potential consequences for employers. Currently, employers cannot make significant workplace policy or other changes once a union files a petition for election. Under EFCA, there may not be an election, only a card check.  Employers may not be aware of organizing efforts or have insufficient time to react. Employers should be putting into place union avoidance programs before EFCA becomes law. Developing an action plan should include the following items:

  • Assessing union eligibility of working supervisors under RESPECT Act.
  • Educating supervisors on authorization cards and the Nuts and Bolts of EFCA.
  • Adopting union-free policies on solicitation, bulletin boards, and use of e-mail.
  • Initiating engagement surveys.

More information is contained in our prior posts as follows:

Nuts and Bolts of the Employee Free Choice Act (EFCA) and RESPECT

Bosses do not Deserve RESPECT

Why not Educate Employees on the Significance of Union Authorization Cards?

Employee Engagement Surveys may be Critical to Combating Union Organizing Efforts

NOW is the Time for Employers to Gear up for the Employee Free Choice Act (Unions Are)

Employee Engagement Surveys may be Critical to Combating Union Organizing Efforts

The Employee Free Choice Act stands to shortcut the process for certifying a union depriving an employer of its chance to conduct a campaign to educate its workforce on the downside of unionization, squelch union promises, and redress employee perceptions. The employer’s campaign occurs between the filing of a union petition and the schedule NLRB-supervised secret ballot election - a period of 30 to 45 days.

Elimination of the secret ballot and allowing union certification upon a card showing of greater that 50% will force employers to conduct employee education and assess vulnerabilities in advance of union organizing actions. Some businesses mistakenly believe that employee interest in unions revolves around promises of higher pay and better benefits. Quite to the contrary, most studies on employee motivation for union membership conclude that non-economic concerns are the chief motivators for union membership. Most workers think that unions can get them "a greater say in the workplace." The attitude translates to issues like job security, effectiveness of supervisors, and involvement in workplace decisions. Unionization is not all about the money; it is about workers being "engaged." Disengagement can mean unionization.

Employee Surveys are one of the better ways to conduct systematic and regular assessment of employee attitudes about a whole host of important workplace matters.   Business may be skeptical about the benefits of Employee Surveys and what they can find out about a workplace. Today's Employee Survey are customized to the employer. They can assess an employee's attitudes on various subjects and correlate data by department. business location, etc. Often the survey can identify an issue or supervisory relationship that needs management attention. Survey results can also be benchmarked with comparable businesses.

Designing an effective survey requires collaboration with an expert to tailor the survey to the business and assistance in interpreting the survey data. Success Performance Solutions designs, conducts and evaluates employee surveys for companies in a wide variety of industries. I asked Dr. Ira S. Wolfe, for his thoughts on the EFCA and employee surveys. His comments are as follows:

 

At this point it is important to differentiate between employee satisfaction surveys and engagement surveys. The terms “employee engagement” and “employee satisfaction” means different things to different people. In its simplest form, satisfaction means employers are not doing anything to anger employees. That’s good information to know but not nearly enough to retain employees, no less head off any attempt to unionize employees.

Employee engagement, on the other hand, is a complex equation that reflects each individual’s unique, personal relationship with work. BlessingWhite, in its 2008 State of Employee Engagement study, describes the engaged employee as not just committed, not just passionate or proud, but having a line-of-sight on their own future AND on the organization’s mission and goals. “They are ‘enthused’ and ‘in gear’ using their talents and discretionary effort to make a difference in their employer’s quest for sustainable business success (The State of Employee Engagement 2008, p.1).

Unfortunately for North American employees, fewer than 1 in 3 employees (29%) are fully engaged. Nineteen percent are actually disengaged. Many managers think “yea, yea, yea. What’s the big deal?”

The big deal – and the payoff – is that there is a clear correlation between engagement and retention, with 85% of engaged employees indicating that they plan to stay with their employees. Disengaged employees on the other hand are opportunists, staying for what they get (favorable job conditions, growth opportunities, and job security).

 

The BlessingWhite results are consistent with the Gallup Management Journal’s Employee Engagement Index where 29% of employees are actively engaged in their jobs, 54% are not-engaged, and 17% are actively disengaged.

The statistics on workforce engagement are surprising. No, I take that back…they are appalling and a huge risk factor for any organization that has any ambition of remaining union-free. With almost two third of workers either moderately engaged or not engaged, it is hard to ignore this wake up call.

Properly constructed and executed engagement surveys unravel the complexity by targeting three focus areas:

  • Are the employees emotionally attached to your organization to endure tough times?
  • Are you (the employer) doing anything to incent the employee to become more productive on your behalf?
  • Are you doing anything to make the employees angry?

In a tight economy, the threat of disengagement exposes business to more than just a threat of turnover and potential unionization. Engaged employees say they stay because they like their work, while disengaged employees stay for reasons like job security, favorable work conditions, and growth opportunities. The threats of layoffs – perceived or real, increasing demands for more productivity, and a freeze on promotions – attacks the very attachment that keeps disengaged employees on the payroll.   Laying off employees and cutting benefits demoralizes a workforce and makes it a natural environment to cultivate union activity. The Employee Free Choice Act the process a whole lot easier, making an employer extremely vulnerability to unionization.

The BlessingWhite study also revealed that the sectors most vulnerable to a lack of employee engagement are information technology, media, retail, hospitality, and healthcare.  The current downturn provides firms in these industries some time to improve the engagement of their employees.  But, if they fail to take advantage of this opportunity, they will become victims of significant turnover, particularly among younger workers.

Employee engagement surveys are sophisticated measures of employee attitudes on what I refer to as the four A's: Accountability, Alignment, Attitude, and Approachability. These four factors reveal if employees feel they are being treated fairly and with respect, are aligned with your business goals and values, and feel a connection through their direct supervisors and co-workers. More specifically this is uncovered by focusing on up to 16 different organizational competencies such as compensation and benefits, culture and climate, my manager/supervisor, recognition, safety and working environment, team dynamics, senior management, workplace ethics and more.

In addition to evaluating the general attitude, organizations can detect “hot spots” by querying the data by location, department, teams and even factors like commute time and demographics. An employee engagement survey allows management to respond proactively and not react in haste to a unionization attempt. By aiming for full engagement, the majority of employees will feel an alignment with the goals of the organization and their personal values, goals and aspirations.

Obama Victory may give rise to Unprecedented Unionization of the American Workplace

Union membership and the public perception of the role of labor unions are relatively unchanged in recent years. Union membership was up only slightly in 2007 based on a report by the Bureau of Labor Statistics of the Department of Labor, which published the following statistics on union membership:

     Percentage of unionized workforce
     Total - 12.5%
     Public sector - 36.5%

     Private sector - 7.8%

Public perceptions of unions is also remained constant. An annually conducted Gallop Poll shows a relatively constant union approval rating hovering around 60%, with only 22% of those polled feeling that unions would be “stronger” in the future.

The 2008 Election may dramatically change the landscape of U.S. labor relations with a reinvigoration of organized labor. The following influence could align to compel unprecedented unionization:

  • Payback to Union Supporters: Democratic candidates received substantial support from organized labor both financially and in getting out the vote. This support will garner political power, which will likely translate into a pro-union legislative agenda.
  • Uncontested Legislative Agenda: Senator Obama is the cosponsor of the EFCA and RESPECT Act both of which are strongly supported by unions. A Democratic majority in the House and Senate will pave the way for an uncontested legislative agenda that will likely include these laws. Republicans could be unable to slow the process down using a “filibuster” if the Democrats secure a 60-seat majority in the Senate to invoke cloture on floor debates.
  • Economic Woes: The economy downturn will continue to hurt businesses making necessary reductions in force, smaller paychecks and other cuts in benefits. The promises of job security and better wages are typical union themes. Nervous workers may turn to unions for help.  Traditionally, unions were forced to the bargaining table where strikes were their primary weapon to put economic pressure on an employer. The historic economic balance between unions and employers will be upset by passage of the EFCA, which mandates arbitrator-crafted contracts within 120 days after initial union recognition.
  • Unprepared Employers: Passage or the RESPECT Act and the EFCA would be a one-two punch for which many employers will be grossly unprepared. RESPECT would make many working supervisors eligible to unionize and to assist a union in collecting cards and other organizing activities. Employers would be unable to use these working supervisors as advocates for their union-free message or to collect intelligence on organizing activities. The EFCA would eliminate the secret ballot and mandate first contracts through arbitration.