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The Employee Free Choice Act – What Will Your Employees Choose?
by Arte Nathan, President and COO
SDW Companies, LLC

The Employee Free Choice Act Is On The Horizon

The Employee Free Choice Act is one of several labor related legislative initiatives currently proposed in Congress. These are supported by all of the major unions in the US and have the potential to significantly change the way unions organize and recruit new members. All business leaders and HR professionals need to be aware of these proposals and their potential effects so that they can determine what’s best for their business and begin to act well in advance of passage.

A Change In the Way Unions Organize

The Employee Free Choice Act is a cleverly named piece of legislation that will amend the National Labor Relations Act (NLRA). The NLRA was adopted in 1935 and set the rules for union organizing: if at least 30% of employees in a group sign cards asking that a union be authorized to represent them then the agency that enforces the NLRA (the National Labor Relations Board) will sanction a secret-ballot election. It at least 50% of the employees who vote in that election chose to be represented by that union then management will be required to bargain in good faith with them for up to a year. If no contract is signed by that time then the company can impose its last offer or the employees can choose to withdraw their petition for union representation. This playing field has been the same for over 70 years and now organized labor wants to change it because they feel management has too much power to intimidate employees and dissuade them from supporting a union.

Under the new proposals, the secret-ballot election would be replaced by what is referred to as a ‘card check’ – this would mean that if more than 50% of the employees sign authorization cards the union would be certified by the Board without an election.

Another proposed change would speed up the negotiating process – if after 90 days no agreement is reached then an arbitrator would independently impose a first contract. These and other components of the bill are being debated and compromise legislation may be adopted – but no matter what is contained in the final bill there will be changes in the way unions organize employees.

Unions Are Already Winning More Elections

In the last 5 years unions have won more than 60% of the organizing elections held in the US. Employees are increasingly concerned about the rapidly rising cost of living and benefits, and the loss of jobs brought on by the current economic downturn. With this uncertainty comes a growing worker interest in unions and their ability to bring some stability and security into the workplace.

Leading Companies Are Actively Addressing This Uncertainty

Managers need to be aware of the issues that are concerning their employees. Don Zillioux, Chairman of local consulting and management advisory firm Strategic Development Worldwide (SDW) has been coaching executives for more than 20 years and says that effective communication is more important today than ever. This economic downturn has forced organizations to refocus their strategies and energies to remain competitive. Zillioux notes that companies today are returning to basics and finding out what their employees are thinking and concerned about. Companies that he works with are conducting employee surveys, assessing the competencies of managers and using this information to reset training agendas. Unemployment figures show that companies today are running leaner and meaner than in the past. While this adjustment makes sound economic sense, it also means that remaining employees are doing more with less, and this can negatively impact employee morale. SDW has seen an increase in calls for assistance on improving communications to employees and their families. Zillioux advises clients to over-communicate during these uncertain times. Says Zillioux: “It’s a well known maxim that employees are more likely not to care so much about what you ask them to do as long as they know you care.”

Understand These Potential Changes

Companies today need to educate their managers and employees about unions. Every organization is different and unions may be good for some and not others. They should study and understand what are the competitive wages, benefits and working conditions that exist in the market. Management also needs to know what unions offer and what protections are provided under existing federal and state laws. Many industries are unionized and the record of cooperation between labor and management has been positive in many cases. In other businesses, unions may hinder the flexibility and competitiveness that is needed to be successful. Leading companies today approach this subject with the same strategic planning process that goes into deciding other marketing, branding and operating decisions. Zillioux notes that recent executive retreats that his company has facilitated now include this topic.

In the end, it’s a matter of employee relations, and recognizing the link between good management practices and employee satisfaction. Employees want to be treated respectfully and fairly, and that’s the key to good employee relations. There are many best-practice examples that companies can utilize that will improve a company’s employee relations – these can be easily adopted by all companies and produce improvement in employee satisfaction, productivity and profitability.

National University and SDW are partnering to present a workshop on these proposed legislative initiatives and the best practices that should be considered when operating a business in these times. Led by SDW’s President – Arte Nathan, Steve Wynn’s HR and Labor Relations lead for over 20 years, this workshop will be informative and entertaining and help determine what the choices should be. For more information, go to http://sdwnet.com/Contact-Us.php or call 619 269-7338.

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The SDW Peak Performance Annual Physical

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The Arte of Motivation:

““Failure is only the opportunity to begin again more intelligently.””
-Henry Ford

Most people wouldn’t associate failure and opportunity together, and yet when one of the leading capitalists of the 20th century uses both in the same sentence it challenges us to better understand their relationship to each other. Ford thought he would produce the Model T forever; when its sales lagged and other car makers started to eclipse his market, he used that as an opportunity to develop a whole new type of car –the Model A.

To fail is to be unsuccessful; an opportunity is a chance to improve. Think about your life and all the successes and failures you’ve had. You can improve your chances of success by preparing and working hard, paying attention to all of the details, being thoughtful and open, and keeping an eye out for obstacles and competition. You limit the chance of failure the same way. So does failure mean you’re bad? No, it most likely means you overlooked or underestimated something. And therein is your opportunity – to re-look more closely, estimate more clearly and think more creatively. This certainly worked for Henry Ford and it can work for you too.

In their upcoming book, The Art of the Turnaround, Don Zillioux and Darrell Luery talk about businesses that were in distress and then successfully reversed their fortunes. Running a successful business today is more complicated than ever and leaders need to fully understand their failures and opportunities in order to make the most of what they have. Fully understanding the business itself and what your customers want is so important – it’s easy to think that there are no more customers or that they don’t want any more of what you’re selling, but that’s the wrong perspective. If you stop and analyze the possibilities – many of which may not have been apparent to you before – then you will start to see the opportunities. And once you do it’s imperative that you communicate your new direction to customers, employees, backers and the world in the most effective way.

Google Henry Ford and see the stops and starts of his career – we only think of him as the successful entrepreneur who dreamed up the assembly line. He came close to complete failure several times before getting it right, and for the past 100 years his name has been synonymous with the biggest industry in America. And yet today Ford Motors is again experiencing difficult times – like the rest of us. Keep an eye on what they do in this economy and find courage for your business.

SDW can help you navigate through this recession with fresh perspectives and advice. We want to be your trusted advisors and help find the possibilities and opportunities that exist in your business. Contact us today and let us find your Model A.