Business leaders gather to formally oppose Card Check

Arkansas business leaders gathered Thursday (Mar. 12)  at the Little Rock Chamber of Commerce to discuss the economic impact and their opposition to the Employee Free Choice Act.

The Employee Free Choice Act was filed Mar. 10 by U.S. Sen. Tom Harkin, D-Iowa. The act seeks to make it easier for unions to organize. The most controversial part of the Act would allow the designation of a union if a majority of employees sign pro-union authorization cards. Once the National Labor Relations Board validates the signatures, a union is created and collective bargaining with the employer begins.

A press release following the business gathering noted: “Arkansas’ Senators Blanche Lincoln and Mark Pryor have not committed to support or oppose the 2009 EFCA legislation. It is widely accepted that EFCA’s fate could be determined by one Senate vote – possibly that of Senator Lincoln or Senator Pryor.”

U.S. Sen. Mark Pryor, D-Arkansas, issued this statement: “This legislation is not perfect, and while I have been supportive in the past, I will consider amendments to make it better if and when it is considered by the Senate. The open legislative process is what makes laws better, including committee consideration.  Labor and the business community can find common ground on this issue, but so far, neither side is currently open to compromise.”
 
(The City Wire also has requested comment from Sen. Lincoln, and will update this post when comment is received.)

Following the Thursday gathering, several members of the Arkansas business community issued statements.

• Randy Zook, president of the Arkansas State Chamber/Associated Industries of Arkansas
“Our beef is not with organized labor – our beef is with the authors and promoters of this particular piece of legislation.  We think this bill would have a detrimental impact on the business climate and economic development in Arkansas.  The current system is working – more than 60% of union elections are won by the unions. What need is there to overthrow 75 years of precedent that works on behalf of employees? … We think this bill is ill-advised and ill-conceived and implore our Senators to vote against it and vote against cloture.”

• Herren Hickingbotham, chairman of the Little Rock Chamber of Commerce
“I believe the gentlemen who wrote this bill do not understand the impact that this legislation would have on the civil rights of both businesses and workers.”

• Phil Matthews, president and CEO of the Arkansas Hospital Association
“The biggest concerns to us are the loss of the secret ballot and the binding arbitration provisions. Hospitals, like all businesses, need flexibility. Hospitals across the country are hemorrhaging red ink for a number of reasons. If we don’t have the ability to be flexible with our staff because of binding arbitration, we could see an impact on our quality and efficiency.”

• Montine McNulty, executive director of the Arkansas Hospitality Association
“The hospitality industry is made up of small businesses and built on relationships. The rigidity of a union organization would be the death of the hospitality industry. In our industry, people don’t worry about whose job a specific task is — it’s their job to take care of the customers. Our workforce operates like a team. A system like we would see under EFCA would absolutely devastate small businesses. We see this as a real threat to jobs and success.”

The Fort Smith Regional Chamber of Commerce also is on record opposing EFCA.

CARD CHECK SUPPORTERS
Union officials and other Act supporters push basic reasons in their call for adoption of the Employee Free Choice Act. (See www.aflcio.org for more about the union perspective on the Act.)

Proponents say it is needed to prevent management threats during union activities, and to reverse declines in workers’ wages and benefits. The AFL-CIO claims that union workers earn 30 percent more than non-union workers. Also, according to the labor group, union workers are 63 percent more likely to have medical and health insurance through their jobs.

Union talking points also contend that the Employer Free Choice Act merely balances the ability of workers to form a union with the options an employer has to decertify a union. Union officials say the same majority card check needed to form a union can also be used by employees to decertify a union.

Previous stories on The City Wire about this issue:
Former Whirlpool union president opposes card check legislation.

The Obama Presidency could make unionization easier.