The Employee Free Choice Act: Elections do not always equal democracy
This week the Senate will decide whether to consider the Employee Free Choice Act (EFCA), perhaps the most important bill for organized labor in decades. The bill would allow workers to form a union after a majority of them sign a card expressing a desire to do so—thus replacing the current system that often requires a subsequent secret-ballot election to confirm this demonstrated intent. Opponents of the legislation have mounted an aggressive public relations campaign that characterizes the elimination of the secret-ballot election as anti-democratic. These critics have it backwards.
The business and employer groups attacking the EFCA argue that unions intimidate employees into signing authorization cards and a secret-ballot election is therefore necessary to protect workers’ right to make this choice freely. One such group – without providing a source – reports that 18% of employees who sign cards do not actually want the union. However, this argument reflects a failure to understand the actual power-dynamics and political realities that exist in the workplace and govern these elections.
During such an election process, it is the employers, not the unions, who have unlimited opportunities to persuade workers and control the levers to intimidate them—and most employers do exactly that. A Cornell scholar’s study of private-sector employers who faced employees desiring to join a union showed that 92% of them will require workers to attend anti-union meetings (almost always scheduled during work hours). Half of employers threaten to shut down the business if the employees unionize. Over three-quarters require anti-union training for supervisors, who often then intimidate and threaten workers in one-on-one meetings. The vast majority of employers even hired outside consultants to aid their union-busting efforts. By contrast, unions are often banned from even entering the workplace. They must be creative just to find chances to talk with the workers.
Most important, however, is that employers have the power to fire a worker for supporting the union. If this happens, the worker is left unemployed and struggling to find a new job in order to provide for her family. She can hope that months or years later the National Labor Relations Board will award her backpay for the time spent out of work, but this cannot include compensatory or punitive damages. Thus, supporting the union can be extremely risky and costly for a worker. For an employer though, the cost of illegally firing a worker is minimal. The best evidence of this fact is that one quarter of employers that face a unionization drive will (illegally) fire at least one worker.
Moreover, this low-cost illegal conduct by employers is very effective at scaring workers and thwarting an organizing effort. Thomas Kochan and John Ferguson of MIT performed a study of 22,000 organizing drives which revealed that cases in which a charge of illegal conduct was filed against the employer were 36% less likely to even reach the election phase. Moreover, even if the election does occur and the majority of workers support the union, litigation and stalling tactics can result in many months of delays before the union is recognized, let alone a contract signed. Kochan and Ferguson found that of the cases where a substantial likelihood of majority support for unionization was demonstrated and an election petition was filed only 20% actually resulted in a contract between the union and employer.
So it seems clear that if workers’ right to unionize is to have any real meaning in this country then something must change. The card-signing system proposed by the EFCA would limit employers’ opportunities to intimidate workers and delay unionization by recognizing the union once a majority of workers show their support for it. Workers would no longer be forced to then “re-prove” their desire to unionize through an election. The bill also increases the penalties on employers who violate the law since the current ones have proven useless in deterring them from engaging in highly effective albeit illegal behavior.
Given the rampant coercion practiced by employers during unionization elections – in which workers are often asked, essentially, to choose between their job and the union – it seems quite ironic that the opponents of the EFCA champion the current system for preserving workers’ right to choose freely. As Kochan and Ferguson point out, it is also quite contradictory to exalt elections as the bulwark of democracy and then support a system in which it is so difficult for workers to even have an election take place. In light of these facts, one cannot help but think that John Sweeney’s observation in the New York Times might be right: “All those folks who are talking about democracy…are really folks concerned with keeping the labor movement from growing and becoming stronger.”














threats to close up shop are not hollow. Wal Mart has done it to any store that tries to organize, and other companies have done so as well, or they move their business out of the country.
Organized labor hasn't adapted to the global marketplace, and that is why they're losing influence.
June 26, 2007 8:14 PM | Reply | Permalink
A fellow entrepreneur of mine, a number of years ago, who owned a small elevator maintenance company told me of his struggles with the union trying to unionize his employees. Most of the employees were happy and didn't want the union. A minority of employees did. Those employees were successful at almost destroying his company by using the union leaders to force a hostile takeover of the company, and leaving the owner broke after working long hours for many, many years and risking everything he owns building it. The union leaders worked to intimidate the owner to encourage the employees to go union, and threatened to put him out of business if he didn't. The business owner tried to negotiate a win-win agreement, so that the union could unionize his employees, in a unionized industry, which would benefit everyone. Instead they insisted on terms that would eventually drive him out of business, and significantly lower the quality of maintenance work customer's received. Fortunately, he stuck to his guns and his employees stood behind him. They voted against the union, despite very intense employee intimidation, even some threats on employee's lives, and the life of the owner. It was a story that should be made into a documentary. The tactics were very much like the mob.
I don't think the benefit of unions counter balance the damage they do to our economy. At first, they were beneficial, but I think the government has created enough regulations now that they are no longer needed, and the union leaders are fighting for survival using power techniques that make no economic sense, and are clearly in their own self interests, not employees, businesses, industries, nor customers. Some of the labor friendly laws actually put the owners in a position to either put their company on a path to bankruptcy or violate the law. Not because they are trying to fight back, but because the money is simply not there to support the business under the union's terms. What happens is everybody loses in the end.
Jim Anderson
The Truth About Credit
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June 27, 2007 8:10 AM | Reply | Permalink
You hear these kinds of stories all the time. With 4% unemployment, employees have a wide range of choices where they can work, and employers are already taking creative steps to retain them. Unions only get in the way of good working relations these days.
June 28, 2007 8:01 AM | Reply | Permalink
This type of story is the problem with our political discourse now. It is anecdotal and tells only the side of the story from the point of view of the owner. I'm sure the organizers would have a different point of view about the situation. And there is no verifiable evidence to check out the reliability of the story.
That said, I don't doubt you Jim. You seem to be an honorable fellow from your other postings and website. But I do question making a judgment on unions and the proposed law based on this one episode.
I am a union member, in a highly unionized profession (the IAFF represents a fairly large percentage of the career firefighters in the US). But I do acknowledge that there are trade unions that do hold businesses hostage like this. but I wonder if that is the whole story or even a common story.
I have worked for other organizations, well respected and employee friendly organizations generally, that take unusually hard lines towards possible union activity, along the lines of the activities noted by the OP. And this is at times when I was unaware of union organizing activity within the organizations (disclosure: my wife is a manager with one of the organizations and she was unaware of any organizing efforts, too. But she does manage professional employees, a group much less prone to unionization in general.).
I think the legislation as written is open to the argument that unions can exert undue influence to get people to sign the card for a union. Therefore, I think the number should be at least 60% for a non-election based recognition of the union. This would answer the critics who claim that 18% of the people signing were signing against their will (assuming 60% signing and 18% of these reneging (assuming this despite the questionable source), then at least 49.2% of the employee's really do want a union - I think it is reasonable then that a majority of the employees would want a union. But to require an election after getting 50+% of the employee's signatures strikes me as redundant and expensive.
Marc
July 8, 2007 7:59 PM | Reply | Permalink
Aaron does an excellent job of illustrating the hypocrisy behind employers' claims that they are serving the interests of workplace democracy by pushing for union elections. This rhetoric on the part of cynical employers, who browbeat and intimidate their workers into declining union membership, then shout for a "democratic" election in the name of workers' autonomy, is doublespeak at its worst. The simple fact is that most employers oppose unions not because they're undemocratic, because they coerce their employees, because they raise unemployment or because they slow down the economy; they oppose them because union representation means that workers will be able to demand fair treatment, better benefits and higher wages, because unions limit the otherwise unlimited power of an employer to hire and fire as he pleases, because unions take money out of the pocket of a tight-fisted boss and put it in the pocket of his workers.
In my opinion Aaron's post accurately explores and parses some of the important questions surrounding the EFCA, and peels back the misleading language so frequently employed in the debate in order to address the real substance of workplace democracy and worker representation. The language of Jim's response is the language of an entrepreneur, the language of entitlement: how dare these unions put pressure on a decent businessman trying to make a living? The reality, of course, is that unions fight and organize to give workers a share of the wealth that they themselves, and not their bosses, produce. It is an employer's responsibility to treat employees decently and compensate them fairly for their labor, a matter of obligation, not "management style." Bankruptcy? It was FDR who famously said that any enterprise that refuses to pay its workers a living wage has "no right to continue in this country."
Great post Aaron, keep up the good work.
Kirill Penteshin, YLS '09
July 10, 2007 2:14 PM | Reply | Permalink