Bound by EFCA

Mar 13, 2009

Two former NLRB officials have an op-ed in The Wall Street Journal today criticizing the binding mandatory arbitration clause of card check legislation.

Less publicized and arguably even worse, the EFCA injects government into collective bargaining. If a union and an employer cannot agree to their first contract in 120 days, the government will appoint a panel of arbitrators who will. Mandatory arbitration is devastatingly bad policy -- it throws a monkey wrench into the collective bargaining process.
...
Collective bargaining strikes a balance between the normal desires of management to keep costs down and retain flexibility, and the union's desire to deliver on promises made to employees. Current law provides that bargaining parties are not required to make concessions. Thus, resolving these differences takes time, since sometimes their goals are unrealistic.
...
Despite what union leaders would have us believe, the system of collective bargaining in place since 1935 is not broken. Nor is the mechanism for determining union representation: In fact, unions currently win well over 50% of certification elections. (In the first half of 2008, they won 67% of the time.)

There is simply no basis for depriving employees of free choice, and employers and unions of meaningful opportunities to shape their own private bargains without government interference. The proper role for government is to bring parties to the table for good-faith bargaining after employees have freely chosen union representation; it is not to dictate terms of employment.

Subscribe today for Free Enterprise Updates

  • Latest business trends and best practices
  • News about legislation and regulation impacting business
  • Business how-to articles from industry experts
  • Commentary and interviews with newsmakers in business and politics