By Paul Diamond, Web Editor, Vistage International

The Employee Free Choice Act (EFCA) is the most sweeping legislation on labor relations in America in more than 50 years. The Act makes it easier for employees to form and join unions and eliminates the right of an employer to demand secret-ballot elections. This bill--introduced to congress in March 2009, though not yet voted on--will make it more difficult for employers to counter unionization efforts.

Mark G. Gardner, a consultant who helps companies avoid unionization, thinks the bill is likely to become law by September 2009. Gardner cautions that many major unions are waiting to act with lightning speed to assist employees in “self-organizing” unions once this bill passes. If previous entry barriers are lifted by this legislation, Gardner predicts that a new wave of unionization will sweep across the nation.

Gardner, a Vistage member and CEO of Avatar Management Services, a human-performance improvement company, has both an appreciation of and distaste for unions. He credits unions, in their formative years, for helping to eradicate unsafe working conditions, low wages and other forms of worker exploitation. But, says Gardner, “Today most of the deplorable working conditions have been legislated away and fair treatment is commonplace. Meanwhile, the unions have become bloated, inefficient and self-serving . . . they fail to provide much value to America’s modern day workers.”
 
While many U.S. business owners see unions as a factor that makes their business less competitive, employees see them as a way to get better wages. According to the Bureau of Labor Statistics, union members in 1999 earned roughly 30 percent more than non-union workers--$34,944 vs. $26,832 per year, respectively.  Additionally, workers often perceive union benefits and terms of employment (to which management can’t make unilateral changes) as better than the nonunion alternative.  

Cost and consequences of unionization
Unionization, says Gardner, comes with serious costs and consequences to employers. Here are possible ramifications:

• Higher cost of doing business. Employers incur expenses with unions through additional meetings, paying stewards to be present during many routine interactions, legal fees during negotiations, payment of grievances (very often eight hours of free pay) every time a supervisor makes a mistake, administrative and managerial time frittered away when threatened with strikes or slowdowns, etc. These additional expenses don’t make it to the workers paychecks.
• Onerous work rules.  Union work rules limit certain employees to perform certain functions (job-specificity), require greater stringency regarding the honoring of seniority, create salary visibility to all employees, limit flexibility when scheduling employees or calling them in on off-hours and a host of other factors that hinder management discretion and a company’s agility.
• Rigid rules for discipline and termination. In many industries, discipline or terminating union-represented employees is expensive, time-consuming and demoralizing to other employees.

It’s not just the employers who feel the restrictions, it’s also the employees, who under unionization, are be required to pay dues, initiation fees and other payroll deductions. Additionally, some non-union employees who benefit from unionized activities at their company often have payroll deductions taken even if they are not a union member. Lastly, employees are restricted to several tasks and not allowed to expand their work horizons or negotiate their own pay. And they typically are not eligible for performance or incentive pay.

How to avoid unionization in your company
“Unions will promise your employees the very things you should already be providing,” says Gardner. “Maybe you are already providing them, but you’re not effectively promoting them.” According to Gardner, employers can avoid unions by proactively offering their employees the very things they want and that unions attempt to get when bargaining, such as:

• Better pay
• Benefits, or better benefits
• Greater job security
• More compassionate work rules
• Better working environment
• Safety and security
• Respect, affiliation and camaraderie

Meeting these above-listed worker needs and managing the workforce with “best in class” practices are the most effective ways to prevent unionization.

But first, says Gardner, “Employers should at least conduct some kind of vulnerability study of their employees. Feel their pulse, find out what’s going on — it’s folly not to know if your employees are happy or unhappy.”

Gardner has written a white paper on this vital subject. The white paper offers detailed steps in proactively managing your workforce, to give them an outstanding work experience that unionization cannot improve upon. Download the white paper here: You Have a Choice: Prepare now for the Employee Free Choice Act

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