Unions & Labor Law Reform Blog : Unions Lawyer & Attorney : Jackson Lewis Law Firm : Employee Free Choice Act, Collective Bargaining

When Change to Win left the AFL-CIO in 2005, 35% of the labor federation’s revenue left with it. Despite this, Labor provided massive, unprecedented support for political purposes in the last two election cycles. The investments have resulted in a “worker friendly” Congress and White House.

But there are negative results for Labor as well. The Machinists union issued a report in June showing the AFL-CIO’s net assets have fallen to a negative $2.3 million in June 2008 from a positive $66 million in July 2000. Do not count on this uncomfortable fact being discussed openly in Pittsburgh.

In addition, Greg Junemann, President of the IFPTE, decided in July not to run for Secretary-Treasurer of the AFL-CIO, in the name of “unity.” After meeting with Richard Trumka, Mr. Junemann’s goal of returning the AFL-CIO to financial stability would now be achieved with a membership in the AFL-CIO finance committee.

So how will the AFL-CIO help itself financially? Like any other business, it must reduce costs, increase revenues, or both.

Which brings us back to EFCA. To increase revenues, unions must increase membership. To do that, they must find an easier and faster way to organize and get first contracts with mandatory union dues payments as a condition of employees maintaining their jobs.

Failing that, unions will not be able to support their favored politicians in 2010 and 2012. And this is why EFCA is not dead. It is just lurking in ambush. The financial interdependence of Labor and legislators creates a compelling environment for a deal.
 

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The Legal Services Corp., a congressionally chartered, taxpayer entity, is being subjected to a union organizing drive.  Presented with a demand for recognition through a card check, the organization has declined insisting on the right to a secret ballot election.

The exercise of this right – under the law – is drawing fire. Supporters of EFCA say this situation is a prime example of why EFCA should be enacted.

Senator Harkin, the new Chairman of the Senate HELP Committee not only is critical of the LSC’s right to insist on a secret vote but also finds it “…troubling to learn that LSC is now using hard fought-for-taxpayer funds to retain a law firm and engage in a campaign to potentially frustrate employee’s desire to exercise their right to join a union.” (See link to - EXCLUSIVE: Federal program rejects 'card check' effort). 

Imagine that … the LSC has hired a law firm in connection with the compliance of their employee’s right to join or not to join a union. Should LSC not hire legal counsel and take the chance of violating the law?

Senator Harkin is the key Senator seeking an EFCA compromise. Many labor leaders praised his selection as Chairman of the HELP Committee. Senator Harkin said to the press when his selection was announced that “EFCA is still on the burner…EFCA is still cooking.” (DLR, 9-10-09). 

Senator Harkin is the son of a coal miner.  Richard Trumka, expected to be elected AFL-CIO President next week, was a former President of the United Mine Workers. Do not be surprised to see Senator Harkin at the convention being held in Pittsburgh. Employers should expect coal in their Christmas stockings this year.

We congratulate Senator Harkin and wish him well on behalf of everyone vitally interested in workplace issues.  

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As we mentioned yesterday Senator Dodd had a key decision to make. He made it and is staying at banking. This means Senator Harkin, the primary negotiator for the so called EFCA compromise, is likely to chair the Senate committee responsible for the legislation. We will follow this situation closely and keep you updated.

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