The Protecting the Right to Organize Act (“The Pro Act”), would amend longstanding labor laws and give unions unprecedented power. Fortunately, the disastrous bill only passed the House and is unlikely to be voted on by the GOP-controlled Senate. However, depending on which party ends up taking control of the Senate the PRO Act may become a reality.
Why Businesses Should Care
Steep Fines
First, this bill would give the National Labor Relations Board (“NLRB”) the power to fine businesses up to $50,000. The National Labor Relations Act (“NLRA”) already provides wronged employees with reinstatement and back pay. But, adding the threat of harsh civil penalties could force businesses to settle meritless Unfair Labor Practice charges. Businesses could feel the pressure to settle or bring back unruly former employees to avoid significant fines.
Forced Contract Terms
After spending anywhere between $50,000 – $2,000,000, if a business loses its union election campaign, the PRO Act will throw salt on the wound. The PRO Act would force businesses into an initial collective bargaining agreement(“CBA”)-a contract-with union representatives. Under current law, businesses have to bargain in good faith to reach an agreement on an initial CBA. Employer’s do not have to reach any agreements that are not in the best interest of the business. The PRO Act eliminates this right to bargain for the best interest of the business and forces employers into mediation and if necessary, binding arbitration.
Why Employees Should Care
Fraudulent Elections
Just when you thought it couldn’t get worse, the PRO Act does just that. This bill allows unions to abolish worker’s rights to vote for or against a union by secret ballot. The bill authorizes “card check” whereby workers sign a card that authorizes union representation. Under “card check”, union representatives need only 50%+1 of workers to sign a card and the company becomes union. Meanwhile, the other 49% of workers have no say in the process and the business is unable to present its position on unionization.
Unfortunately, the card check system is unregulated, susceptible to fraud and corruption, and opens workers up to peer pressure, intimidation and coercion. Most importantly, card check would eliminate the current election campaign process allowing every employee an equal voice in the process. Businesses would lose on the opportunity to inform and engage workers in discussion on why a union may not be a good fit. In short, the PRO Act could result in union representation that is not the choice of the employees.
Right-To-Work Effect
Currently, right-to-work laws prevent employees from compulsory membership or payment to unions as a condition of continued employment. However, if passed, the PRO Act would subvert right-to-work laws in 28 states across the country. The Act forces workers to contribute to a union they do not support as a condition of employment. Simply put, the PRO Act results in fewer choices, fewer rights, and an inability of workers to speak for themselves.
How to Respond
Passage of the PRO Act would be a disastrous result for businesses and workers, alike. Currently, the bill has little chance of passing the GOP-controlled Senate. But, Georgia may change that! Even if the GOP maintains control of the Senate, the bill’s progress through Congress presents serious cause for concern. Going forward, businesses should immediately asses their union risk and work proactively to avoid union formation with or without the PRO Act.
