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Employee Free Choice Act

– Pluses and Pitfalls

by David Bernt  / April 2009

 

The trade-union movement leadership, in both the AFL-CIO and the Change to Win Federations, has been engaged in one of the largest lobbying efforts in recent memory aimed at pressuring Congress to pass the Employee Free Choice Act (EFCA). EFCA would reform labor law in order to make it easier for workers to join a union.

 

Under EFCA, workers would win union representation when a majority of the workers sign cards stating they want a union. Employers would be bound to arbitration for a first contract, and penalties for labor law violations would be increased.

 

The AFL-CIO and Change to Win Coalitions have poured tens of millions of dollars in direct lobbying, advertisements, and local rallies in efforts to pass EFCA. In addition, the unions spent hundreds of millions to elect candidates who declared support for EFCA, including President Obama, in the last election. The legislation has passed in the U.S. House and is now being introduced in the Senate, where it faces an uphill battle to get 60 votes to overcome a filibuster.

 

Union leaders have declared that EFCA is central to the future of trade unions in the United States. As the traditional industrial base of unions has eroded, several unions have attempted to organize in traditionally non-union sectors, such as retail and health care. These organizing efforts have been met with viscous union-busting campaigns from employers.

 

Under present law, workers must file cards and then employers have the right to demand an election administered by the National Labor Relations Board (NLRB), even if 100 percent of the workers sign cards stating they support the union. During election periods, employers routinely harass and fire union supporters, threaten workers with plant closings, and file frivolous legal objections to delay elections—sometimes for years.

 

According to a report by The Economic Policy Institute, a worker who is involved in an organizing drive has a one in five chance of being fired for union activity. A report by the NLRB found that 50% of employers illegally threaten to close plants during unionization drives, and 91% of employers faced with unionization campaigns hold "captive audience" meetings where workers are forced to hear anti-union propaganda.

 

Meanwhile, union organizers are forced to campaign off company property. Employers are only obligated to give the union the mailing addresses of employees two weeks prior to an election.

 

These obstacles have made organizing workers an expensive and often unsuccessful process. While only 12% of the U.S. workforce is unionized, 7% in the private sector, a recent poll showed 58% of non-managerial workers indicated they would join a union if given the opportunity.

 

The national Chamber of Commerce and several leading corporations have funded aggressive lobbying and advertising campaigns to discredit the EFCA. In October, Bank of America hosted a conference call of corporate executives led by Home Depot founder Bernie Marcus, who appealed for money to defeat EFCA—which he said would cause "the demise of a civilization."

 

The anti-EFCA campaign has already claimed the support from the one Republican senator who had supported it in the previous Congress, Arlen Specter of Pennsylvania. In addition, several senators in the "friends of labor" Democratic Party have indicated they would vote against EFCA as well, citing the poor economy as "not the right time" to change labor law. This has put in doubt the passage of EFCA in this Congress.

 

In reality, the labor tops’ strategy of relying on the Democrats for help in passing a progressive labor reform was illusionary given that the Democrats are entirely beholden to the interests of the very same corporate executives who are funding the campaign against it. Obama and the Democrats talk pro-labor and throw us a few crumbs, but when it comes to decisive conflicts between labor and capital, the Democrats take their marching orders from their corporate sponsors.

 

While the entire Democratic Caucus in the Senate voted for and claimed support for EFCA in 2007, they did so with the understanding that they did not have enough votes to overcome the inevitable Republican filibuster or President Bush’s veto. The very introduction of EFCA at that time was an election stunt to prove their pro-labor credentials.

 

Now, with strong Democratic majorities in both chambers of Congress and a Democrat in the White House, key senators are "rethinking" their previous support, including the liberal Democrat from California, Diane Feinstein. Now, executives from Home Depot, Starbucks, and Costco have floated a "compromise" bill that would greatly weaken the pro-labor provisions.

 

Indeed, the labor leaders’ strategy of sinking all of their resources into the passage of a quite modest reform of labor law raises important questions as to how the labor movement can rebuild itself.

 

The government is not a neutral arbitrator; it is steadfastly on the side of the corporations. Under current law, it is illegal to fire workers for union activity, yet as mentioned before, it is common practice for companies to do so. Most illegal firings are rarely investigated, and when they are, they often take years to resolve—by which time the intended effect of intimidating the workforce has already been accomplished. In the cases in which workers do win, employers are only obligated to give them their back pay, minus the wages workers have earned since the firing.

 

The U.S. Labor Department was recently exposed in an investigation by the Government Accountability Office that found that nine out of 10 cases had been mishandled by Labor Department investigators. While any improvement in labor law would be an advance, and the trade-union movement certainly should utilize the courts when it is beneficial for them, working people can’t depend on the government to defend them any more then a farmer can depend on a fox to guard the hen house.

 

A troubling part of EFCA is the provision that would force unions into binding arbitration if the union and company cannot come to agreement on a first contract. This provision would place limits on the right of workers to strike if such an action were necessary to force the bosses to agree to workers’ demands.

 

The working class can only make improvements in its living and working condition through collective struggle that confronts the boss class, and its representatives in the Democratic and Republican parties.

 

The recent victory of the Republic Windows and Doors factory illustrates the only way forward for workers. When Republic Windows and Doors shut down last December without notifying its employees, the company was in violation of federal law. The WARN act requires companies to give workers 60 days notice before a plant closing, or pay workers 2 months pay. Instead, Republic gave workers a few days notice, immediately suspended health-care coverage, and refused to pay out accrued vacations.

 

The workers and their union, the United Electrical Workers (UE), could have filed charges with the NLRB, a process that could take years and due to loopholes employers often are let off the hook or at best pay a reduced settlement. Instead, the Republic workers decided to take their fate into their own hands. They occupied the factory, and built a solidarity campaign that inspired working people around the country and the world.

 

The militant action and the solidarity of their fellow workers forced the banking giant Bank of America, who had refused a line of credit to the company, to pay nearly $2 million to cover two months’ pay and health insurance coverage, as well as to pay out the workers vacation time. 

 

These workers won through struggle what would be impossible to win in the courts. If these 250 workers, in a small union working for a small employer, could accomplish what they did, imagine what the million-plus-member unions such as SEIU and the Teamsters, which have workers organized in core industries, could accomplish if they used the same tactics.

 

Whether or not EFCA is passed, the trade-union movement needs to build a fightback movement to effectively counter the current offensive of the bosses and the Obama administration—in which they are attempting to roll back the gains of autoworkers and other workers. In seeking ways to fight back, working people can look to the examples of the great labor battles of the 1930s and ’40s, as well as to the Republic Windows struggle of today.

 

A militant fightback against the pressures facing working people would be enhanced by the passage of EFCA, but it is not dependent on it. The only thing that can advance workers’ interests is their own struggle, which, if backed by the full resources of the AFL and CTW, could have a profound impact and could replicate the results of the Republic workers’ victory on a grand scale. No law on the books can substitute for this kind of struggle.

 

Human Needs, Not Profits!