Big Business Likes Arbitration—If It Can Control the Process

Opponents of the Employee Free Choice Act, desperate in their efforts to kill the proposed legislation that would level the playing field for workers seeking to form unions, have come up with another line of attack. They are making a lot of noise over the bill’s arbitration provision. The argument is just another straw-man attempt at gutting legislation that would enable more workers to have a voice on the job. (And one more sign of desperation—to wit, the trotting out of widely loathed figures like Dick Cheney and Karl Rove to attack the Employee Free Choice Act.)
Here’s the deal. Even after employees select a union to represent them, they need to bargain a first contract. But there’s no incentive for management to bargain in good faith. The longer contract negotiations are dragged out, the less likely one will ever be settled. In fact, nearly half of workers are denied a first contract, even when they’ve won their union.
Know-Nothing Newt
Grandstanding is a favorite pastime of the former speaker of the House, Republican Newt Gingrich. Truth, however, has never played a big role in his self-trumpeting.
In a recent Politico column, Gingrich advances a laundry list of falsehoods about the Employee Free Choice Act. It’s the latest grab at public attention in his angling for a place in the 2012 elections.
First, he pushes the lie that the Employee Free Choice Act takes away the secret ballot process for workers deciding whether to form a union. The Employee Free Choice Act does not take away the secret ballot. It gives to workers the right to use an already legal process for deciding on unionization—a streamlined process called majority sign-up, or card check.
The bill adds choice for workers, who will decide which process to use. The Employee Free Choice Act is an amendment to existing federal labor law that makes no change whatsoever in the current election procedures.
Contracts Can’t Be Broken—Unless They Involve Union Workers
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Contracts can’t be broken. We learned that lesson well over the past few days when AIG honchos swore that despite being bailed out by $173 billion in taxpayer funds, they couldn’t break the sacrosanct contractual bond that guaranteed billions in bonuses to the same top executives who brought the insurance giant to its knees.
But we also were taught another lesson in these months of financial chaos: Contacts can’t be changed—unless they involve unionized autoworkers.
Tim Rutten at the Los Angeles Times really hits the mark today when he writes:
What we’re essentially being asked to believe is that employment contracts involving hardworking men and women on Detroit’s assembly lines are somehow less legally binding—less “sacred” in the current rhetorical argot—than those protecting a bunch of cowboy securities traders living in Connecticut. [snip]
For years, the smart guys on Wall Street have convinced a growing number of Americans that organized labor is an impediment to economic progress, an unacceptable “cost” in a globalized system of production, a quaint social fossil from the era of mills and smokestacks. If there’s a lesson to be gleaned from the current crisis, however, it’s that when the chips are down, organized labor is a far more responsible social actor than the snatch-and-run characters who fancy themselves financiers.












