NLRB Nomination of Craig Becker Stumbles in Senate at Close of Session

Craig Becker’s NLRB nomination may not have been thrown under the bus, but it certainly seems to have been thrown off of it. 

Just prior to adjournment on December 24, the Senate unanimously refused to carry over Mr. Becker’s nomination for consideration in the next Session of Congress.  It was returned to the President.  As a result of the adjournment and a Senate standing rule, Mr. Becker’s nomination is ended unless the President resubmits it to the Senate in the next Session, beginning in January.

That the Senate excluded Becker’s nomination from a general agreement to carry forward most pending nominations at the NLRB and other agencies — those of fellow Board nominees Mark Pearce and Brian Hayes are among the nominations postponed — appears to send a message to the White House that the Senate is in no mood for a fight over the controversial candidate.  Whether anyone at the White House is listening is another story. 

Following the Becker nomination’s approval in October by a Senate Committee vote, generally split along party lines, Senator John McCain (R-AZ) put a “hold” on the nomination.  The move would have required a supermajority of 60 votes for Mr. Becker when his nomination came before the full Senate for a vote. 

The same reception could await a renewed Becker nomination in 2010.  In fact, next time the HELP Committee might actually have to hold hearings on the nomination, a step that was avoided in October.  In the meantime, the other two Board nominations also are likely to be held up despite their inclusion in the carry-over, since Democrats do not want a Labor Board equally divided between Democrats and Republicans.

President Obama could make a recess appointment of Mr. Becker or someone else.  He would not need Senate approval for this step.  But that would be only a stopgap.  Eventually, a regular nominee would have to be submitted to the Senate, and there is little chance opposition to Mr. Becker will abate with the passage of a few months.  A less controversial choice might be the best option for the Administration.

Of course, this Administration setback raises a larger question: where is EFCA?  The Board nominations were viewed by some as a backstop to the proposed legislation; if EFCA ran into trouble, advocates of labor law change at least could take solace in a pro-Labor NLRB that could overturn unfavorable agency decisions.  But for now, it seems, the nominations have become unstuck. 

And EFCA is yet to be taken up.  Can Big Labor push through this hotly debated bill if the Senate won’t confirm the Administration’s nominee whose views most closely conform to the overhaul sought by EFCA, delaying action on all NLRB nominees?  Maybe not.  Perhaps that is why unions have begun to focus on changing state laws. (See With EFCA “Reform” on Hold in Congress, Unions Turn to State Legislatures for Labor Law Change.)  One such effort, for example, in Oregon, resulted in a law that would bar employers from holding group meetings with employees to discuss unionization.  Jackson Lewis is representing employers in a challenge to that enactment.  

Congressional Democrats, however, also could try to push through EFCA wrapped up in a broader jobs bill, which reportedly is “on deck” after health care legislation is settled. This could speed consideration of EFCA and make opposition to the proposed NLRA amendments more difficult for lawmakers.  Employers and their allies in Congress must be on guard that any EFCA measure is considered separately from a general employment bill.

Meanwhile, a cloud hangs over the NLRB’s many decisions issued during the past two years as the U.S. Supreme Court prepares to take up whether the agency has been authorized to act with only two members.  (See U.S. Supreme Court to Decide Appeals Court Conflict Over NLRB Quorum.) A Board joined by three new members would resolve this problem for future cases.  At this writing, however, the chances seem to be dimming that Craig Becker will be part of any long-term solution to this issue.  

Jackson Lewis Submits Detailed Comments to Proposed Federal Contractor Posting Rules

In response to the United States Department of Labor’s request for public comments on its proposed rulemaking implementing President Barack Obama’s Executive Order No. 13496, Jackson Lewis LLP, on behalf of its clients and other employers, has provided the Department with detailed comments and suggestions for improvements to the proposed rule. The Executive Order, signed January 30, 2009, requires covered federal contractors and subcontractors post a notice apprising employees of the right to unionize and to engage in certain protected activities under federal labor laws. It and the proposed rule could have a profound effect on federal contractors since a failure to comply with the posting requirement or with the terms of the notice could result in the loss of Federal contracts or debarment. (For more information on the Executive Order, see President Signs Three Pro-Union Executive Orders and DOL Proposes Regulations Clarifying Contractors' Obligation to Notify Employees of Right to Organize.) 

Jackson Lewis, one of the nation’s largest labor and employment law firms counseling federal contractors and others, submitted its comments on September 2, 2009. The full text of the comments may be accessed here (pdf). A summary of our comments follows:   

     NLRA Preemption - The Firm maintained the Executive Order is preempted by the National Labor Relations Act (“NLRA”), the nation’s principal labor relations law, to the extent it seeks to impose obligations and penalties on contractors and subcontractors beyond those already established by the NLRA.  

     Scope of Rule – The Firm objected to the Department’s attempt to make primary contractors responsible for compliance by their subcontractors. The Department should clarify that primary contractors have no obligation to police subcontractors, other than to adhere to specific enforcement directives of the Secretary. With respect to the obligation of primary contractors to place in subcontracts language requiring subcontractors to post the required notice, the Firm suggested the Department impose this requirement only on subcontracts valued in excess of $100,000. This amount is consistent with the minimum threshold applicable to primary contracts under the Executive Order. It would exclude subcontractors who perform minimal work from being subject to the Order’s obligations. 

     Limitations on Posting Obligation – The Firm recommended that the Department limit the posting obligation to cover only employees who perform work directly related to the performance of the contract. Further, the Firm suggested the Department expressly permit employers who post notices electronically and physically to post the required notice only physically. Electronic posting would cause the notice to be sent to the vast majority of employees who do not perform work related to the contract. Additionally, the Firm suggested the Department permit the required notice to be consolidated into commercially available “all-in-one” posters employers already use to comply with other federal and state law posting requirements.  

     Exemption for Employees Working on Contracts Outside the United States - The Firm suggested that the Department add an exemption to the proposed rule for employees working on contracts and subcontracts in foreign countries who are not subject to the NLRA. This exemption is modeled on a similar exclusion made by the Office of Federal Contract Compliance Programs (“OFCCP”) in the affirmative action context. 

     A More Reasonable Notice - The Firm urged the Department to adopt a shorter, more balanced notice. The Executive Order’s purpose is to enable employees to make informed choices regarding their right to unionize (or not unionize) and the proposed longer, more detailed notice may frustrate this objective by confusing and intimidating the reader. The Firm also pointed out specific concerns with the contents of the proposed notice. 

     Adjudication of Unfair Labor Practices - The Firm recommended the Department make clear in the final rule that the National Labor Relations Board will have exclusive jurisdiction to adjudicate disputes arising from alleged violations of the substantive notice. Such disputes would involve rights conferred by the NLRA, which the Board administers.  The Firm pointed out the possibility of conflicting decisions and wasted government resources. 

     Reinstatement After Debarment - Finally, the Firm recommended improvement of the debarred-contractor reinstatement process.  To promote transparency, we suggested the Department incorporate the reinstatement guidelines contained in other laws regulating federal contracts that call for written decisions explaining why a reinstatement request was granted or denied.

 

No date has been set for the issuance of the final rule.

Introduction to the Blog

Hello and welcome to the EFCA & Labor Law Reform Blog!

Our firm, Jackson Lewis LLP, has represented management for more than 51 years in virtually every type of labor law matter… at the Labor Board, across the table from a union negotiator, and in front of the U.S. Supreme Court. Recently, we have seen an incredible uptick in discussions related to labor law reform. To be sure, some proposed reforms, such as the Employee Free Choice Act (H.R. 1409/S. 560), represent what only could be characterized as the most radical and drastic changes to federal labor law since the Taft-Hartley Act.

Not long ago, President Barack Obama met with the leaders of a dozen of the nation’s largest unions for about 45 minutes in the White House. Rumor has it that Andy Stern of the SEIU meets with the President weekly. Many Senators and members of the House have been elected with the help of labor, and these elected officials generally support and lobby for pro-labor legislation. Perhaps most importantly, President Obama, who has repeatedly voiced his support for EFCA, is on the side of organized labor. The President has nominated to the Labor Board two pro-labor attorneys, one of whom has written extensively about expanding the rights of unions even under the current statute.

Many people wonder how EFCA and other proposed reforms could affect their businesses. Our clients and friends not only ask for updates on proposed labor law reform bills and advice on how to prepare for such potential changes, but also to discuss their thoughts about such changes. They want facts and honest analysis. We wanted to respond to their needs.

We have decided to create the EFCA & Labor Law Reform Blog as a forum for individuals to access critical information, such as updates on EFCA and other forms of labor law reform to share their thoughts, and to discuss these issues more fully. We are happy to have you visit here and hope you will find this site informative and stimulating.

We look forward to reading your comments!