Senator Arlen Specter (R- Pennsylvania) has ostensibly spoken out against the passage of the Employee Free Choice Act (EFCA); yet, one can infer from his words, that a compromise might be acceptable.

Senator Specter started out by saying that “the bill’s requirement for compulsory arbitration if an agreement is not reached within 120 days may subject the employer to a deal he or she cannot live with. Such arbitration runs contrary to the basic tenet of the Wagner Act for collective bargaining, which makes the employer liable only for a deal he or she agrees to.” He added that “the problems of the recession make this a particularly bad time to enact [the] Employees’ Free Choice legislation. If [however] efforts are unsuccessful to give labor sufficient bargaining power through amendments to the NLRA, then I would be willing to reconsider [the] Employees’ Free Choice legislation when the economy returns to normalcy.”

The Senator emphasized that his decision was “a close call” and that “labor has a valid point that they have suffered greatly from outsourcing of jobs to foreign countries and losses in pension and health benefits.” Again, he suggested revisions to the National Labor Relations Act, which further indicates that a compromise may be in the offing

The make-up of the Senate, which would be 59 to 40 if Al Franken is seated, would make Senator Specter’s vote the one that could deicide passage of the EFCA, which at this point will sail through a Democratically controlled House of Representatives.

At this time, Corporate America must not only keep up the pressure on its elected representatives to defeat the probable passage of even a watered-down EFCA, but it must also prepare for its possible passage by initiating effective pro-management strategies.

Senator Arlen Specter (R- Pennsylvania) has ostensibly spoken out against the passage of the Employee Free Choice Act (EFCA); yet, one can infer from his words, that a compromise might be acceptable.

Senator Specter started out by saying that “the bill’s requirement for compulsory arbitration if an agreement is not reached within 120 days may subject the employer to a deal he or she cannot live with. Such arbitration runs contrary to the basic tenet of the Wagner Act for collective bargaining, which makes the employer liable only for a deal he or she agrees to.” He added that “the problems of the recession make this a particularly bad time to enact [the] Employees’ Free Choice legislation. If [however] efforts are unsuccessful to give labor sufficient bargaining power through amendments to the NLRA, then I would be willing to reconsider [the] Employees’ Free Choice legislation when the economy returns to normalcy.”

The Senator emphasized that his decision was “a close call” and that “labor has a valid point that they have suffered greatly from outsourcing of jobs to foreign countries and losses in pension and health benefits.” Again, he suggested revisions to the National Labor Relations Act, which further indicates that a compromise may be in the offing

The make-up of the Senate, which would be 59 to 40 if Al Franken is seated, would make Senator Specter’s vote the one that could deicide passage of the EFCA, which at this point will sail through a Democratically controlled House of Representatives.

At this time, Corporate America must not only keep up the pressure on its elected representatives to defeat the probable passage of even a watered-down EFCA, but it must also prepare for its possible passage by initiating effective pro-management strategies.

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.