Employee Free Choice Act Would Boost Economy, Supporters Claim

By David Farkas, Senior Editor --Chain Leader,12/18/2008

“I don’t think it is something employers should fear,” declared Frank Snyder, an AFL-CIO official from Pennsylvania, just ahead of a December 17 gathering in Cleveland. Snyder is talking about the Employee Free Choice Act (EFCA), the bipartisan legislation that passed the U.S. House of Representatives in March 2007 but was blocked by a Republican filibuster the following June.

Cleveland AFL-CIO official Harriet Applegate (at podium) introduces speakers (from l.) Rev. Marvin McMickle, Amy Hanauer and Mark Ettlinger, who offered arguments for the Employee Free Choice Act.

EFCA’s enactment would permit union representation in workplaces after a majority of employees signed cards (“valid authorizations”) agreeing to unionization, without an election by secret ballot among the workers.

EFCA has picked up the support of President-elect Barack Obama, who has pledged to help pass the union-backed measure this year. “That’s why we are trying to dispel myths,” Snyder said. Fliers titled “Employee Free Choice Act: Myth vs. Fact” were piled on a nearby table.

Those myths center on arguments that the so-called “card-check” bill will bring about union intimidation, coercing workers to organize. The AFL-CIO and supporters deny this.

In Chain Leader’s December issue, lobbyist Rick Berman of Washington, D.C.-based Berman and Company warned operators that unions likely would target restaurants, including franchisees.

Compelling Arguments

Yet speakers at the Cleveland gathering hosted by the North Shore AFL-CIO seemed less interested in dispelling myths than in offering practical arguments for EFCA’s passage, expected later this year. Those arguments could prove persuasive among the financially strapped middle class as job losses mount and wages stall.

“The Employee Free Choice Act was designed to solve existing problems then,” offered Michael Ettlinger, vice president for economic policy at the Center for American Progress, a Washington, D.C.-based liberal think tank. “The current financial crisis makes it even more important today.”

Ettlinger argued that access to collective bargaining is not merely a benefit to workers but to the economy as a whole. “The act makes sense from a general economic perspective by making people better off and producing an upward spiral and greater economic growth,” he said.

The labor movement is in fact largely responsible for middle-class prosperity, insisted Amy Hanauer, executive director of Ohio Policy Matters, a liberal-leaning research group based in Cleveland. She ticked off social security, occupational safety, health benefits, vacations and unemployment insurance as proof. The audience, comprised of union members and community leaders, chuckled when Hanauer reminded them of bumper sticker that says, “The Labor Movement: The folks that brought you the weekend.”

Better Pay, More Security

Like Ettlinger, Hanauer drove home the point that EFCA would help restore the benefits unions bring to the economy, which includes better paying jobs and debt relief. Higher wages, she added, would help relieve consumer debt, now totaling $2.6 billion, according to the Federal Reserve. “Research shows that union members earn 15 percent more than nonunion workers,” she said.

Speaker Rev. Marvin McMickle of Antioch Baptist Church recalled that World War II was won because of America’s work force that “put together heavy and light items that made this country great.” Today, he added, many union manufacturing jobs have been shipped abroad, posing a security risk to this country. “Do you think we could fight another world war?” he asked.

He blamed the government and corporations for “turning their back to manufacturing jobs” and “allowing Russia, Brazil, India and China to catch up with us.”

Local union official Gary Johnson said he felt sure most workers would respond favorably to EFCA once they understood the measure. “Ninety percent of people are in the same boat,” he said. “Only a small percentage of people are benefiting from what’s taking place in the economy.”

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Submitted by:	Robert W. 1/4/2009 7:08:54 PM PT
Location:	Tokyo, Japan
Occupation:	Ass't Director of Food and Beverage

Here is what this would accomplish -
1- Help shelter bad, non-performing employees that previously would have quit due to a lack of gratuities.
2- Eliminate the motivation for superior service. Staff makes the same whether exceeding expectations OR for giving customers 3rd degree coffee burns. Forget tips when people know you make more an hour than they do.
3- Eliminate promotion of superior employees. Time in will trump ace performance for selection of shifts, vacations and promotion.
What else does this type of negotiation lead to? Look at the auto industry and their bail-out... and remember the foreign companies in the US w/o unions are not being impacted.

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Submitted by:	Jeffrey Summers (Jeffrey@RestaurantCoachingSolutions.com) 1/2/2009 2:39:03 PM PT
Location:	Fort Worth, Texas
Occupation:	Restaurant Consultant

This and Obama names a VC to head the SBA as well as Tom Friedman telling us we need a $2.58 tax hike on each gallon of gas. I really can't wait to see what's next! It's getting really lonely out here.

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Submitted by:	M. Cassel 12/30/2008 8:32:23 PM PT
Location:	www.restaurantproz.com
Occupation:	Business Coach

Gentlemen

You are all correct. Union jobs are diminishing because of the unions. Average GM wage $78.00 per hour average Toyota Wage $35.00. Help me to understand how this is creating jobs. Help me to understand how this is the corporations fault for manufacturing overseas to be able to sell a competitive product? How about the teachers union in California donating over $1 mil in tax payer money for prop 8, are now telling teachers they need to take a pay cut. How about this, 86 the unions the states keep the tax payer money for the schools.

You are correct they are fighting for their jobs. Have they helped the 10,000 employees in Las Vegas this year that were layed off? No!

Yes Unions were necessary at the turn of the century, but when my grandfather had to manage his steel hauling company and 5 unions in the 70's what do we expect to be the end results. No steel, no steel hauling.

My favorite line from the movie "Tommy Boy" is this "you can put a piece of c*** in a box and mark it guaranteed, but it is still a piece of c***"

Union promises are guaranteed to close businesses, increase costs, increase unemployment (ala minimum wage increases)decrease service I believe the rest is obvious. I thought the people of Ohio would have figured this out by now. When are we going to educate ourselves and our neighbor hoods. Invite and teach the spirit of entrepreneurship, getting off of our back sides like small business owners and pull ourselves up by our bootstraps and go to work. That is the American way!

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Submitted by:

Dan M 12/22/2008 1:14:08 PM PT

I teach my kids to tell the truth, why cant adults do the same this process would do nothing but cost the number of jobs - raise prices out of reach of the bottom third of americans - cause struggling companies including start up restaurant companies to close the door's - Give Me A Break - stop thinking unions work everywhere they DONT - the restaurant industry is already hurting from minimume wage and that cost jobs and slowed the number of promotions to middle class!!!

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Submitted by:

Dick Rivera (drivera@rubiconenterprises.net) 12/19/2008 5:22:49 PM PT

One need only look to the auto industry to see what unions have "done for" manufacturing companies and jobs. Passage of this bill would eliminate secret ballot elections, impose binding arbitration after 120 days and dramatically increase penalties for failing to "bargain in good faith". The leader of the service employees union said that there is no reason why service jobs can't be the "manufacturing jobs" of the future, paying $20-$25 per hour. The restaurant industry is an industry of opportunity, both for careers and ownership. Let's keep it that way. Tell your senators "no" to EFCA.

And to you, David Farkas, you have taught me to expect a more balanced approach from your writing! This could have disastrous consequences for our industry and I'm surprised you only discussed the one side.

For readers of this comment: if you would like to join the fight against this legislation please contact me.

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Submitted by:	David S 12/19/2008 12:38:36 PM PT
Occupation:	Director of Ops

This will force the closure of many small businesses in the HVAC industry. If my employees try it, I'll get rid of all of them and start over. No way will the restauront industry pays union rates and no way the company absorb the cost.
The Dems deal another blow to small business.

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Submitted by:	Mick Verheyen 12/19/2008 12:03:20 PM PT
Location:	Chicago
Occupation:	Executive Chef

Maybe somebody could explain to me in simple terms how, in times where costs in every aspect of the restaurant business are rising and owners are struggling to compete, Unions that demand higher wages and more benefits could help the economy. In an industry that will see flat sales and higher overhead costs, I don't see how this is good for anybody but the union.

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Submitted by:	Ken Reichart 12/19/2008 12:02:54 PM PT
Location:	Texas
Occupation:	Human Resource professional

The union folks are correct. They were responsible for many of the benefits setup for workers... a long time ago. Today, the department of labor and OSHA protect all workers, union and nonunion alike. The union leaders need to expand for one very important reason... their jobs. No wonder they are fighting so hard.

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