House of Labor

In a sign of the tidal shift in DC politics, the Democratic House of Representatives will today debate and vote on the Employee Free Choice Act (EFCA). For years, Republicans had denied this legislation even a look in Committee.

EFCA is needed to overcome the inherent inequality in organizing campaigns to make it less onerous to join a union.

What's the problem?
Nationally, one in five union activists is fired. 78% of private employers require supervisors to deliver anti-union messages and over half threatened to shut down operations if employees join together in a union.

An employee can't decide for him/herself when supervisors are repeatedly pulling them aside to admonish them on the risk to their job if workers vote for the union.

For these violations of labor law, employers face only a slap on the wrist or reinstatement of the employee with back pay. There are no penalties strong enough to compel the employer to abide by the law. Even when employees have managed to overcome these hurdles and have certified their new union, employers routinely refuse to negotiate a first contract in good faith.

To help remedy this mess, EFCA has three equally important effects:

1. Strengthens penalties against employers who are found to engage in unfair labor practices;
   
   
2. Recognizes a union as the designated bargaining unit after a majority of employees have signed up;
   
   
3. Establishes a mediation and binding arbitration system if the employer and union cannot agree on a first contract.
   

What's so great about unions?
First off, as Americans we are endowed with the right to form unions thanks to the foresight of the First Amendment:

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

What's more, unions are good for the individual employee and the economy as a whole. Unionized employees earn 30% higher wages than their nonunion counterparts, receive better benefits, and negotiate jointly for improved safety and working conditions.

In order to maximize their own profits, employers and the employees' unions must maximize total profits when negotiating for wages and benefits. Each side knows that if they take too much, they will eventually be hurt.

For instance, if employers withhold large profits, the employees will be less motivated and productive, reducing future profits. Conversely, the employees realize that employers must retain profits to invest in research and newer machinery.

Lastly, a union provides a framework to manage tensions between workers and firms, reducing lawsuits and improving morale. Employees are happier and stay longer, keeping employers' training and recruitment costs lower.

I'll leave you with a list of just a few of organized labor's achievements over the past century:

• 40 hour work week;
  
• Weekends;
  
• Workers' Compensation;
  
• Employer-provided health insurance;
  
• Safety standards (OSHA/MSHA);
  
• Disability insurance;
  
• Overtime
  

Remember to say thanks when you're throwing back your beer on Friday!

(Hat tip to the AFL-CIO)