Small-Business Owners Shouldn't Wait For Employee Free Choice Act To Think About Unions And Strikes

July 8, 2009 RSS Feed Print

The debate over the Employee Free Choice Act (read more here) has made many business owners think about the complicated issue of unionization. But what they are probably not thinking about are the numerous federal rules that govern labor relations for business owners regardless of whether or not their businesses are unionized.

"You non-union employers probably don't think about the National Labor Relations Act, because you don't think it applies to you. That's a myth," says Karen Harned, executive director of the Small Business Legal Center at the National Foundation of Independent Business.  Today she hosted a webinar for small-business owners about labor laws, and I listened in.

The NLRA applies to any business that "affects commerce"--so pretty much any business, regardless of number of employees, can be construed to fall under the law. Any activites that would "intimidate," "coerce," or "discourage" an employee from forming or joining a union (or similarly coerce them into joining a union) are deemed "unfair labor practices" under the NLRA, according to Harned. An example of how an employer could intimidate his or her employees is through a broad "anti-loitering" rule that would seek to prevent workers from planning to organize. Anti-loitering rules can be done, but they must be narrowly tailored to avoid running into the NLRA. To continue this example, if you have anti-loitering rules in place at your business, they must only apply to the interior of the working areas, they must be clearly communicated, and must apply to all off-duty employees seeking access to the working area.

What are these "unfair" practices more specifically? It gets a bit hazy. Employees have four broad categories of rights under the law: the right to strike, the right to conduct policitcal activities (like demonstrating outside a plant, something that overly broad anti-loitering rules could be meant to restrict), the right to complain, and a category called "Weingarten rights"--the right for unionized employees to have a witness in disciplinary interviews.

That first right--the right to strike--is the one that matters probably the most to owners of non-unionized small businesses. That's because employees can strike regardless of whether or not they belong to a union. Strikes by non-unionized workers are dubbed "wildcat strikes."

Harned cautions that if you're a business owner and such a strike happens, "do NOT take action.  Call a labor attorney first."

With how complicated the federal labor laws are, you're probably going to need to call a lawyer if any practice is in doubt.

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Every employee should have the right to unionize if they choose but it's always better to have harmonious relationship between the employer and the employees.

Tracy, Status Now

Tracy9999 of CA 8:06PM January 14, 2010

I have worked with Union help in many contracts. I had only one bad exsperience. I never gave or witnessed three breaks in one day. They start 6:30 AM every morning and go home every night at 3:00 PM,. They receive one break in the moring and get 1 hour lunch. They come to work fully trained for the work at hand. You do not need to train them. There are many rules. However, in the end, I found them equal to non-union labor. Plus the mark-up on their wage is better than non-union. It is higher. Exsample, non-union wage of say $15.00 to 18.00 per hour where the mark-up on the hour of work is less than on a wage of say $30.00 or $40.00 per hour worker. However, unions will not work in gas stations, fast food or other low mark-up companies. Here is why, the business margins are less and this is how you get low cost food. Most unions understand this. Also, what makes a man a slaker if he sweeps a floor? Further, if you follow union rules he do's a lot more in a day than that. Employers have a very bad time when relations between them are bad to start with. They do not fit all business models. However, they have given this country a better on the job safety rules, with less accidents. High wages, which in turn give the employee more money to spend in low margin stores. Better retirements and health benefits and pay higher taxes for better schools. Meny companies with good standings with the unions do very well.

Owner of NJ 7:48AM October 23, 2009

no america wasnt built by slackers but buisness owners who mistreated the workers thats why there are unions but buisness has 2 weapons under there belts go to a forein sic country or hire the mexicans to do the blue collar jobs lets face it small buisness suck to work for there always looking to cut this or that while maintaining there way of life not the employee lets face facts its much easier to hire a mexican than to give to a citezen no benefits no workmans comp no anything the american worker needs these things to just survive unions are not tearing this country apart its the buisness owners and ceo's that are for example did you check out the new and improved dial soap it looks like it got a chunk taken out of it smaller but more money hey if thats all it takes why not to be in any buisness means being a cheap ass plain and simple forget buisness school all ya gotta be is cheap period forgive the spelling

joe of NY 9:39PM September 12, 2009

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Matt Bandyk, a reporter for U.S. News, explores capitalism from where it all begins, with the entrepreneur, whose risk taking and experimentation provide the roots from which the rest of the economy grows. As much courage as it takes to create one's own business, even the entrepreneur needs some help, and this blog will look at news, trends, and practical advice for starting and running a small business.

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