Thursday, October 29, 2009

Is Organized Labor A Decaying Business Model?: Is Organized Labor A Decaying Business Model?: QUESTION: "Is Organized Labor A Decaying Business Model?"

Is QUESTION: "Is Organized Labor A Decaying Business Model?"

http://www.outskirtspress.com/chrismosquera

EMPLOYEE FREE CHOICE ACT

Please download and read the EFCA from the House and/or Senate web sites. The Senate is S.560 and the House version is HR 1409.

I am not anti-union, but rather maintain an objective and academic view point on the subject of organized labor and labor unions. In fact I want the EFCA to pass...it will be excellent for businesses--both pro labor and anti-labor.

Technical it is true the labor union that is organizing the campaign does have the choice to request a secret ballot election, but in practical terms, it may never happen. There is no point for the union to chance a secret ballot, when card check recognition, that is 50% plus one, is all that is required to bring management to the bargaining table.

You also must bear in mind that organized labor is a very large industry into itself. Union dues are the economic engine that pays for labor unions operating expenses, overhead, salaries and profit. Union membership dues also pay for lobbying and political influence. Politics is an expensive business.

Organized labor as a group or industry, spent close to a billion dollars in cash and services electing the Democratic Party on all levels during this election cycle. The financing comes from union membership dues, contributions and time spent by union officials door knocking all over the country. So YES, the EFCA is organized labors reward for the money spent and for putting boots on the ground to elect the various Democrats, from President to local officials.

Also bear in mind that labor unions have been in a steady decline for years. One has only to look at the U.S. heavy industries, such as auto, manufacturing and steel, to see that it is a decaying business model. As a business model, organized labor has failed to evolve with the changing economic climate, just as dinosaurs became extinct because they failed to evolve with the climatic changes. Labor unions have failed to realize that outsourcing, downsizing, business closures are all a result of a changing business climate.

Corporate America is mandated to produce the best product for the least cost, and thus increase profit. If companies can move a facility overseas, or to a lower wage state within the US, to save labor and production costs, it is required to do so by its stakeholders. Labor is a very expensive component of producing goods or services.

The EFCA is widely regarded as a legally mandated method for labor unions to grow quickly and become more profitable. It is the same profit driven business model that drives corporate America. The EFCA is a vital tool for union growth. Andy Stern, the head of SEIU, admits that with the passage of the EFCA, he will be able to organize a million new members per year, as opposed to the current average of one hundred thousand.

That is like any decaying industry that desperate needs a revival and an infusion of business. The passage of the EFCA will be organized labors infusion, and may contribute to labor unions sustainability. The more members, the more membership dues income, the greater political and economic power labor unions will enjoy. It is a business, just like any other industry.

For more information about organized labor, I invite you to read a new book just published on the subject: "Is Organized Labor A Decaying Business Model?"

The book examines the organized labor business model from the perspectives of the economic and political influences or organized labor, relative to the domestic and global economy.

Please refer to: www.outskirtspress.com/chrismosquera.

It is available on line through Amazon.com and Barnes and Noble.com and in electronic form through Kindle.

Let us keep the lively conversation going.
I invite others to participate in the exchange of ideas.

Thank you,
Chris Mosquera

Is Organized Labor A Decaying Business Model?: Is Organized Labor A Decaying Business Model?: QUESTION: "Is Organized Labor A Decaying Business Model?"

Is Organized Labor A Decaying Business Model?: Is Organized Labor A Decaying Business Model?: QUESTION: "Is Organized Labor A Decaying Business Model?"

"Is Organized Labor a Decaying Business Model?”

I have just published a book "Is Organized Labor a Decaying Business Model?” which is based on a PhD dissertation in Business Administration-Labor Relations. The book is based on six years of labor union research and extensive direct union experience in various capacities.

I understand how unions operate and the modus operandi of labor unions, having been on the inside as a union organizer and union shop steward. I also understand and respect the needs of both sides of the labor-management equation.

Given the current global and domestic economic, business, and social climate, including, technology, the internet, downsizing, outsourcing and corporate consolidations, organized labor needs to become less "us" (labor) versus "them" (management) mindset.

Organized labor must become a value added component to business. A failed or closed business does not need employees, and therefore organized labors reason for being is under attack.

Simply put: No Employer - No Employees - No Union.

One needs look no further than the current situation with the auto and related industries, to see a business model and industry in trouble. It is bad not only for the workers, and the economy, but also bad for the union, whose job it is (or was) to represent and protect the employees who are the unions membership.

Union memberships pay dues, and are the "customers" of the labor union, and the economic engine, that enables the union to have political and economic strength. If the union looses dues paying membership, and therefore its "customer base" it is facing the same economic issues that the employer faces. In this case, the Organized Labor Business Model is under attack, and can become a decaying business model.

If organized labor (labor unions) do not change, and do not recognize that the nature of work has evolved, and if unions continue to operate as they have historically, then they will become less relevant to workers and employers. Organized labor will become the one century wonder.

Please refer to the website: www.outskirtspress.com/chrismosquera for more information.
The book is available through Amazon.com, and Barnes and Noble.com, or directly through the publisher.

Please keep the conversations flowing.

Thank you,

Saturday, October 24, 2009

WHAT THE EMPLOYEE FREE CHOICE ACT MEANS FOR EMPLOYEES AND EMPLOYERS

** WHAT THE EMPLOYEE FREE CHOICE ACT MEANS FOR EMPLOYEES AND EMPLOYERS **

A dark tempest is brewing over the employee and employer work relationship. That Perfect Storm is the Employee Free Choice Act (EFCA). The EFCA (H.R. 1409 and S. 560), is widely expected to pass in some form. The Democratic Party is heavily indebted to organized labor for their financial and political support.

Congress will feel the need to show populist support for labor unions. There is a very real possibility that the EFCA will become the labor law of the land!

What does this mean for both the Employees and the Employer?

The National Labor Relations Act, for over 70 years, has recognized a labor union as the official bargaining agent representing employees only after the union wins a secret ballot election. The Employee Free Choice Act will require an employer to recognize a union after the authorization cards (‘Card Check’) are signed by a simple majority of 50% or more of the eligible workers, with NO SECRET BALLOT ELECTIONS.

NO SECRET BALLOT ELECTIONS ARE REQUIRED!!

• There will be no opportunity for management to explain their reasons for opposing unionization!
• Even those employees who oppose unions will be required to become union members, against their free will!
• Co-workers and company management will know exactly how all the employees voted!
• As the employee, you will loose the right to the secret ballot election process!
• As the employer, you will loose control of your company!

Current labor laws allow a free exchange of ideas from both the employers and the union organizers. The employees are presented with facts, and opinions, from both the union and management. The employees have the time to understand their choices and options.

Under current National Labor Relations Board (NLRB) rules, the employees have the rights under a free democracy, to cast their secret ballots in privacy, and without coercion.

The basic rules of a democracy include secret ballot elections, only after the people have had an opportunity to understand the issues, and form an independent opinion free from peer pressure.

After all, how would you like it if you went to your polling place after a two-minute lecture from only one political party and only one viewpoint, and then forced to stand in a big room, in front of your co-workers, and family, waving a card voting YES or NO?

Yet, that is exactly what the EFCA expects workers to do!

Labor unions should adhere to the basic rules of democracy, which include a secret ballot election. We expect the privacy and security of a secret ballot election.

** THE EMPLOYEE FREE CHOICE ACT IS VITAL TO ORGANIZED LABOR SURVIVAL **

Organized labor considers the EFCA vital to the survival of the labor movement. Labor has pledged to spend over $300 million on securing passage of the Employee Free Choice Act. SEIU, the Service Employees International Union said the legislation would enable it to organize a million workers per year, up from its current pace of one hundred thousand workers per year.

Labor unions have experienced a steady decline in dues paying membership, industry saturation, and political power. Organized labor has made the “Employee Free Choice Act” (H.R. 1409 and S. 560) its highest legislative priority.

The Employee Free Choice Act would drastically increase the number of unionized workers, because it will simplify and speed labor’s ability to unionize companies.

The EFCA specifically bars the National Labor Relations Board from holding an election if a union turns in cards from a simple majority of employees!

Simply put, if 50% plus one of employees signs a card, the union is recognized as the legal bargaining agent for ALL the employees of your business unit.

** Corporate America wants less union influence. **
** Unions want more influence in corporate America. **

Instead, the Free Choice, or “card check” legislation would let unions form if more than 50% of workers simply sign a card saying they want to join. It is far easier for unions to get workers to sign cards because the union organizers can canvass workers repeatedly, over a period of weeks or months, until the union obtains the support needed.

The union organizers job is to recruit new dues-paying members to their union. They are trained to perform a four-part house call strategy that includes Introductions, Listening, Agitation, Union Solution, and Commitment.

The goals of the union organizer are to quickly establish a trust relationship with the worker, move from talking about what their job entails to what they would like to change about their job, agitate them by insisting that management will not fix their workplace issues without a union, and finally convincing the worker to join the union by signing a card.

The Major Items of the EFCA Include:

The Employee Free Choice Act, would provide injunctions for specified Unfair Labor Practices (known as ULP’s), during union organizing drives and prior to union certification.

• When the NLRB certified the union, the parties would have 90 days to come to acceptable ‘First Contract’ terms, after which either party could ask the Federal Mediation and Conciliation Service (FMCS) to mediate the differences.
• If mediation fails after 30 days, the contract would be referred go binding arbitration. The decision of the arbitrator is final and a two-year contract is binding on all parties.
• The EFCA provide damages equal to twice-back pay, if the company violated certain Unfair Labor Practices, after recognition as the bargaining agent.

There are other civil penalties attached to the bill, designed to force employers to sign a ‘First Contract’ and to reduce intimidation and retribution for workers involved in unionizing attempts.

For example:

• Civil Penalties: Provides for civil fines of up to $20,000 per violation against employers, who have been found to willfully or repeatedly violate employees’ rights during an organizing campaign or first contract drive.
• Treble Back Pay: Increases the amount an employer is required to pay when an employee is discharged or discriminated against during an organizing campaign or first contract drive to three times back pay.
• Mandatory Applications for Injunctions: “…the NLRB must seek a federal court injunction against an employer whenever there is reasonable cause to believe the employer has discharged or discriminated against employees, threatened to discharge or discriminate against employees or engaged in conduct that significantly interferes with employee rights during an organizing or first contract drive. It authorizes the courts to grant temporary restraining orders or other appropriate injunctive relief.” (www.employeefreechoiceact.org).

** As an employer, you may never know a union has arrived at your front door,
until after the union becomes the official bargaining agent for your workers. **

Companies may not be aware of an organizing drive until after the union has collected the required authorization cards. The employer may be denied the opportunity to exercise their rights of free speech, and to present the companies side of the story.

Union Political Strength:

EFCA is another example of union political strength. It is a crucial piece of pro-labor legislation, and if enacted as labor wants, will help the labor movement regain the strength in numbers, and the political power it once had. Unions have flexed their political and lobbying muscle to push this bill. The Democratic Party needs to pay back the unions for their huge financial and political support.

** THE EFCA IS ORGANIZED LABORS REWARD **

Labor unions need to win pro labor legislation, to prove to their membership that they are viable and have the political muscle. Organized labor still wields strong political power, has the ability to bring out large voting blocks for candidates that support its goals, and can bring down opposing candidates.

Unions will be able to organize more workers, in more industries, easier, and thus grow stronger, faster, and more powerful.

Management organizations oppose the EFCA, for the reasons unions support it. It is considered in the best interest of corporate America to remain union free, and the Employee Free Choice Act would increase unionization.

LABOR UNION MEMEBERSHIP IS DOWN:

At the beginning of the twenty-first century, labor union membership and union density, a measurement of the percentage of unionized workers, had reduced to about 7% of private sector workers, and about 12% of all unionized workers, down from about 35% of all workers in the 1950’s. Unions have seen better days, and have experienced a rapid decline in saturation, as companies search for lower cost business models.

ORGANIZED LABOR IS VERY BIG BUSINESS:

Organized Labor is Big Business with “union income about $10 billion per year” (http://www.unionfreeamerica.com/duesforpolitics.htm). If labor unions were publicly traded companies, the balance sheets of the AFL-CIO and the larger unions are impressive, and would command high stock prices.

Organized labor desperately needs new industries and new members!

Increased union membership translates directly to increased dues income. The larger the base of dues paying unionized workers, equals stronger economic power, which buys greater political influence.

FOLLOW THE MONEY:

For labor unions to grow, they must organize and create more dues paying members. The basic business model for labor growth is “organize or perish.” Dues paying union membership are the lifeblood of the labor movement, and are the major income source and reason for being. For labor unions, the EFCA is all about increasing membership faster, and at a lower per capita cost, which will strengthen unions financially and politically.

*** FOR UNIONS IT IS A STRUGGLE FOR SURVIVAL***

The alternative is less relevance, irrelevance, or extinction. The nature of work has changed, and unions have failed to evolve with this change, just as dinosaurs became extinct because they were not able to evolve with the climatic changes.

** THE EMPLOYEE FREE CHOICE ACT IS ORGANIZED LABORS SALVATION FROM IRRELEVANCE **

For more information about the Employee Free Choice Act and Organized Labor, please read a new book called:
"IS ORGANIZED LABOR A DECAYING BUSINESS MODEL?"

The book is available from the publisher: http://www.outskirtspress.com/chrismosquera

It is also available on line from: www.amazon.com and www.barnesandnoble.com

© 2009 Chris Mosquera. All Rights Reserved.
Email: chrismosquera5@yahoo.com