WARREN BUFFETT IS AGAINST CARD CHECKS

In a recent interview on CNBC, Warren Buffet categorically came out against card checks. He said that he is in favor of secret ballot elections, for it has been a traditional aspect of our American democracy.

Now, Berkshire Hathaway, Mr. Buffet’s multifaceted enterprise, owns many companies that are unionized. Though he claims that unions play an important role in Corporate America, a position with which I have serious disagreements, Mr. Buffet nevertheless understands the damage that would occur if the Employee Free Choice Act  (EFCA) becomes law.

Indeed, the EFCA would result in significantly increased labor costs, thus reducing corporate profitability, which would be reflected in the diminished value of the stocks of companies unionized under the undemocratic rules imposed by the EFCA.

UNIONS EXPECT EMPLOYEE FREE CHOICE ACT

TO BECOME LAW THIS SUMMER

Andrew Stern, president of the country’s largest union, says he believes that the Employee Free Choice Act (EFCA) will become law by this summer. He believes that here are sufficient votes in both houses of Congress to pass EFCA, also known as Card Checks.

The balance of power between unions and management that has been in force since 1935 as a result of secret ballot elections will have been eliminated.

And if Stern is correct, and we believe that he is, then Corporate America will find itself facing numerous new organizing efforts, driving up labor costs and driving down profits. In fact, some companies may be driven out of business, thus adding to an already dire recession.

Corporate America must learn new and effective techniques for dealing with Card Checks. Such techniques include new strategic communications plans that result in ending the adversarial relationship that often exists between management and workers.