Talk to Your Employees About Unions

The Board recently mandated that practically every employer hang a new poster in the workplace by Jan. 31, 2012. This poster informs employees of their rights to unionize, provides the Board”s contact information, and supplies a list of illegal acts an employer (and union) can commit. The poster must be hung wherever the employer normally posts notices to employees. If an employer normally posts information to employees on an Internet or intranet site, the notice must be placed there as well.

Failure to post the notice is a violation of law. Such failure can also toll the statute of limitations for filing allegations of misconduct against employers (an unfair labor practice charge) during the time period the notice was not posted. Worse yet, if the Board finds the employer willfully failed to post the notice, the Board may use this as evidence of the employer”s bad faith in other contemporaneous union-related cases.

Beyond the legal requirement to post this notice, as a practical matter, the issue of unions is being thrust into your place of business, whether you like it or not. The question is how you and your supervisors will handle it.

Micro-Unions

Next, the Board paved the way for micro-unions, small unions that represent only a small subset of employees. This allows the union to gerrymander bargaining units (the group the union is trying to unionize) in order to win an election. For example, instead of organizing all restaurant staff, there could be one union representing servers, another for cooks, and yet another for hostesses. Statistically, the smaller the bargaining unit, the easier it is for a union to win an election. Having multiple union contracts could be a serious financial and administrative burden on employers; imagine negotiating three different union contracts in one small restaurant. And while micro-unions may be small, if the workers represented are key to the business, one small strike could shut down an entire company, and this is an important strategy unions can use.

Shorter Election Times

Finally, the Board recently proposed a rule that would shorten election times, giving employers less time to talk to their employees about the pros and cons of unionization. The Board”s proposed “quickie elections” would happen within 10 to 21 days after the election is requested. The new rules would limit the amount of litigation that could take place before the election. The rules also include measures that would make communication between unions and employees easier. Unions already win about two out of every three elections. These changes will make it dramatically harder for an employer to win a union election, especially if the employer is not prepared.

Talking to Your Employees About Unions

If open communication is your mantra ” and it should be for most employers ” start union-related dialogues now. Let your employees know where you stand regarding unions and why. Of course, you shouldn”t be seen as a hot-head who constantly berates unions. Rather, establish credibility by using facts to support your position.

There are several resources employers should use to support their views on unions. First, you can use current events as reported in local and industry-wide periodicals or on the Internet. If you want to maintain a union-free environment, recount stories about union bosses misusing union members” funds or a union strike that caused a company to shut down. Real-life examples drive home your point with amazing credibility.

Another great resource is the federal Department of Labor”s (DOL) various union-related forms. Those known as LM-1, LM-2, and LM-3 report on union assets, membership numbers, specific expenditures, salaries for officers, and much more. These will literally list all the stocks owned by a union, all the land and automobiles it owns, and the value of all its bank accounts. For the biggest national unions, this can amount to billions of dollars. Employees and employers are often surprised by what they find in these reports.

If you want to go deeper, look at the recently revised Form LM-30. The new version in fact decreases transparency, which is the opposite of the current governmental view, but there is still a lot to be learned here. The LM-30 requires certain employees and officers of unions to disclose any actual or potential conflict between their personal financial interests and their union obligations. It also discloses how much the union officials are being paid by the union, the various funds where they are Trustees, the benefits they are receiving, and more.

Union officers rarely make tremendous salaries from one union. However, they are often receiving salaries from multiple unions. They could be paid by both a national union and one or more local unions. They could be paid by one or more national and/or local health and welfare funds. As a result, their total salaries can be dramatic and their benefit packages amazing. On the other hand, there are unions that discourage of prohibit such unreasonable results. Both the employer and employees should know what they are getting into before it is too late.

Conclusion

Union organizing and unions themselves can often be described as the proverbial iceberg. While only a small chunk of ice floats above the water, underwater, the iceberg is hidden and huge. While some will argue this iceberg can help, most employers disagree. Either way, you and your employees need to know the facts. With all the changes pending before the Board, you and your employees could be faced with a choice to support or oppose a union with very little warning. Because of this, it is important that employers develop a strategy for talking to their employees about unions now. There is a wealth of resources employers can use for these discussions. Whether you think unions would be a good thing for your business or whether you think your business would be better off union-free, you need to educate your employees. That way, when the time comes, your employees will know where you stand, and they can make an educated decision based on all the facts.

Robert G. Brody, a member of this newsletter”s Board of Editors, is the founder of Brody and Associates, LLC, a firm that represents management in employment and labor law matters and has offices in Westport, CT, and New York City.

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An open discussion about unions with your employees is legal and a good idea, whether you want a union-free environment or not. Especially to those who want a union-free environment, this may seem counterproductive, but telling your employees where you stand is a crucial management tool and the best way to stay union-free. These conversations are particularly important ” and soon they may be hard to avoid ” given the significant changes made to the labor landscape in the past few months by the National Labor Relations Board (the Board).

Crucial Policy Changes By the Board

New Mandatory Poster

The Board recently mandated that practically every employer hang a new poster in the workplace by Jan. 31, 2012. This poster informs employees of their rights to unionize, provides the Board”s contact information, and supplies a list of illegal acts an employer (and union) can commit. The poster must be hung wherever the employer normally posts notices to employees. If an employer normally posts information to employees on an Internet or intranet site, the notice must be placed there as well.

Failure to post the notice is a violation of law. Such failure can also toll the statute of limitations for filing allegations of misconduct against employers (an unfair labor practice charge) during the time period the notice was not posted. Worse yet, if the Board finds the employer willfully failed to post the notice, the Board may use this as evidence of the employer”s bad faith in other contemporaneous union-related cases.

Beyond the legal requirement to post this notice, as a practical matter, the issue of unions is being thrust into your place of business, whether you like it or not. The question is how you and your supervisors will handle it.

Micro-Unions

Next, the Board paved the way for micro-unions, small unions that represent only a small subset of employees. This allows the union to gerrymander bargaining units (the group the union is trying to unionize) in order to win an election. For example, instead of organizing all restaurant staff, there could be one union representing servers, another for cooks, and yet another for hostesses. Statistically, the smaller the bargaining unit, the easier it is for a union to win an election. Having multiple union contracts could be a serious financial and administrative burden on employers; imagine negotiating three different union contracts in one small restaurant. And while micro-unions may be small, if the workers represented are key to the business, one small strike could shut down an entire company, and this is an important strategy unions can use.

Shorter Election Times

Finally, the Board recently proposed a rule that would shorten election times, giving employers less time to talk to their employees about the pros and cons of unionization. The Board”s proposed “quickie elections” would happen within 10 to 21 days after the election is requested. The new rules would limit the amount of litigation that could take place before the election. The rules also include measures that would make communication between unions and employees easier. Unions already win about two out of every three elections. These changes will make it dramatically harder for an employer to win a union election, especially if the employer is not prepared.

Talking to Your Employees About Unions

If open communication is your mantra ” and it should be for most employers ” start union-related dialogues now. Let your employees know where you stand regarding unions and why. Of course, you shouldn”t be seen as a hot-head who constantly berates unions. Rather, establish credibility by using facts to support your position.

There are several resources employers should use to support their views on unions. First, you can use current events as reported in local and industry-wide periodicals or on the Internet. If you want to maintain a union-free environment, recount stories about union bosses misusing union members” funds or a union strike that caused a company to shut down. Real-life examples drive home your point with amazing credibility.

Another great resource is the federal Department of Labor”s (DOL) various union-related forms. Those known as LM-1, LM-2, and LM-3 report on union assets, membership numbers, specific expenditures, salaries for officers, and much more. These will literally list all the stocks owned by a union, all the land and automobiles it owns, and the value of all its bank accounts. For the biggest national unions, this can amount to billions of dollars. Employees and employers are often surprised by what they find in these reports.

If you want to go deeper, look at the recently revised Form LM-30. The new version in fact decreases transparency, which is the opposite of the current governmental view, but there is still a lot to be learned here. The LM-30 requires certain employees and officers of unions to disclose any actual or potential conflict between their personal financial interests and their union obligations. It also discloses how much the union officials are being paid by the union, the various funds where they are Trustees, the benefits they are receiving, and more.

Union officers rarely make tremendous salaries from one union. However, they are often receiving salaries from multiple unions. They could be paid by both a national union and one or more local unions. They could be paid by one or more national and/or local health and welfare funds. As a result, their total salaries can be dramatic and their benefit packages amazing. On the other hand, there are unions that discourage of prohibit such unreasonable results. Both the employer and employees should know what they are getting into before it is too late.

Conclusion

Union organizing and unions themselves can often be described as the proverbial iceberg. While only a small chunk of ice floats above the water, underwater, the iceberg is hidden and huge. While some will argue this iceberg can help, most employers disagree. Either way, you and your employees need to know the facts. With all the changes pending before the Board, you and your employees could be faced with a choice to support or oppose a union with very little warning. Because of this, it is important that employers develop a strategy for talking to their employees about unions now. There is a wealth of resources employers can use for these discussions. Whether you think unions would be a good thing for your business or whether you think your business would be better off union-free, you need to educate your employees. That way, when the time comes, your employees will know where you stand, and they can make an educated decision based on all the facts.

Robert G. Brody, a member of this newsletter”s Board of Editors, is the founder of Brody and Associates, LLC, a firm that represents management in employment and labor law matters and has offices in Westport, CT, and New York City.

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