Business / Tax

Employee Free Choice Act

Issue
Under the National Labor Relations Act (NLRA), employees generally decide whether or not they want to be represented by a union by participating in a secret ballot election. The election is overseen by the National Labor Relations Board (NLRB). The NLRB holds 94 percent of elections within 60 days of a petition, and unions win over 50 percent of these elections.

Despite this success, union leaders are promoting legislation called the Employee Free Choice Act (EFCA), which would replace secret ballot elections with a process under which employees must sign union authorization cards in front of union representatives. In addition, EFCA would require arbitration if an employer and a union cannot reach agreement on an initial collective bargaining agreement within 120 days after a union has been certified through the card check procedure. The legislation also adds new penalties against employers that violate the NLRA.

Secret ballot voting ensures fair elections, but card check procedures can lead to coercion. The NLRB and the Supreme Court have stated that secret ballot elections are superior to card check procedures in terms of discerning the true wishes of employees.

In addition, current law already protects against employer interference with union elections. The NLRA prohibits employers from making threats against employees that support the establishment of a union. If employers engage in this conduct and undermine the opportunity for a fair election, the NLRB can require the employer to bargain with the union, even if the union loses the election.

ACEC Position
Members of Congress are urged to oppose the Employee Free Choice Act.