Card Check's Dirty Little Secret

Posted by: Staff in Card Check on Print PDF

By now, you probably know that Big Labor's card check bill strips workers of their fundamental right to vote by secret ballot in union organizing elections. But it's card check's dirty little secret that is predicted to have a much bigger impact -- binding arbitration.

In fact, binding arbitration is so important to Big Labor that the head of the SEIU is willing to keep the secret ballot in union elections to get this new government mandate:

"I think everybody now agrees that there needs to be binding arbitration; not everyone, I'd say there's an overwhelming majority that agrees there needs to be binding arbitration."

So what is binding arbitration? Former Democrat Senator George McGovern answers:

This feature would give the government the power to step into labor disputes where employers and labor leaders cannot reach an agreement and compel both sides to accept a contract. Compulsory arbitration is bound to trigger the law of unintended consequences.

Basically, the federal government would be able to impose a contract on the employer and employees without either side getting a chance to approve or improve the deal. McGovern continues:

Currently, labor law maintains a careful balance between the rights of businesses, unions and individual employees. While bargaining power differs depending on individual circumstances, the rights of the parties are well balanced. When a union and a business enter negotiations, current law requires that both sides bargain "in good faith."

In a contract negotiation, each party typically perceives the other as too demanding. But no one loses their right to contract willingly or suffers being forced to agree to anything. Employees can strike if they feel that they have been dealt with unfairly, but it is a costly option. Employers are free to reject labor demands they find to be too difficult to accept, but running a business without experienced employees is itself difficult. Both sides have an incentive to press their demands, but they also have compelling reasons not to press their demands too far. EFCA would disrupt that balance by enabling government-appointed lawyers to decide what they believe is fair or reasonable.

A federally appointed arbitrator cannot be expected to understand the nuances specific to each business dispute, the competitive market position of the business, or the plethora of other factors unique to each case. Yet fundamental decisions on wages and benefit costs, rules for promotions, or even rules for exiting an unprofitable line of business could fall to federal arbitrators under EFCA.

Many labor contracts can run over 100 pages with their requirements of each party. Compulsory arbitration is, in one sense, government dictating to employees what they will win or lose in the deal, with no opportunity to approve the "agreement." Why should employees pay union dues to get such a contract?

Help Senator Ensign stop the Employee "No" Choice Act by joining the Protect The Secret Ballot Facebook group.

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