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Techniques
What Cost $500,000 in 1959 and the Same Today?
What could you could get for $500,000 in 1959 that you can still get in 2010 for half a million bucks? The answer….your workforce unionized. That is, if the Employee Free Choice Act is passed. Small business owners need to learn about it ASAP.
That's right. In 1959, the qualifying threshold of annual gross revenue for a retail business to qualify/become a target for unionization was $500,000. That same figure is the threshold for potential unionization in 2010 if the Employee Free Choice Act is passed into law.
Based on the cost of living rate increases since 1959, you would think that the number should be elevated significantly (value of $500,000 in 1959 = $3.7 million today), thus eliminating a substantial number of retail businesses that may be targeted by union organizers should the Employee Free Choice Act, commonly referred to as "Card Check," be voted into law as organized labor, many politicians and even the President of the United States are championing.
Worse yet is the lower thresholds for other small businesses. Depending on the type of small business you may own and operate, the qualifying threshold drops all the way down to just $50,000 in annual revenue. Now, you may be thinking to yourself, it won't impact my business; I have only a handful of employees. Well, that simply is not the case; in fact, it only takes as few as two employees to form a union. Which means that if the EFCA is passed into law, the Heritage Foundation estimates that it may impact over 4 million small businesses employing nearly 39 million workers.
This means that all small businesses meeting the threshold criteria would be eligible for becoming possible targets for union organizers. It could take away the rights of workers for a secret ballot vote on whether or not to unionize should the majority of employees (50% plus 1) sign a union inquiry card.
In other words, union organizers can choose to bypass the secret ballot voting system and impose a non-secret ballot system, which provides co-workers, union organizers and, yes, even employers the ability to influence how employees vote. Going a step further, if 70% or more employees sign the union inquiry card, union organizers can require that the employees be immediately recognized as unionized without any type of vote by the employees, thus not giving the employer a chance to educate the employee population of the advantages and disadvantages of organized labor and taking away the rights of the remaining employees to cast a vote in the decision-making process.
So, what does all this mean? Newly unionized businesses will likely incur significant increases in labor costs in the form of higher wages, additional benefits costs and possible forced retention of poor performing workers protected by union representation. It also means that, based on various survey data, many small business owners will not be able to create the number of jobs that today's economy and society needs. In fact, the impact of increased labor costs will likely put many small firms out of business.
In addition to the potential financial ramifications of this act, it could also include providing the government with the authority to establish in your business such things as employment levels, health care and retirement plans, promotion procedures, work assignments and even changes in your business's day-to-day operations.
How so? Section 3 of the act provides that, after a union organizes a business, the company has just 10 days to meet with union representatives to begin the collective bargaining process. If, after 90 days of collective bargaining, the two parties have not arrived at a contract, either party may request mediation by the Federal Mediation and Conciliation Service (FMCS). If, after 30 days of mediation, there is still no agreed upon labor contract or the two parties have not agreed to extend negotiations, the FMCS can refer the dispute to an arbitration board (government officials). The arbitration panel (government officials) will render a decision settling the dispute and such decision shall be binding upon both the employer and the unionized employees for a period of two years, unless amended during the contract period by written consent of both parties.
As you can see, much is at stake here. I encourage all small business owners and thus taxpayers to reach out and learn more about the Employee Free Choice Act (Card Check). I also suggest that you look at this act from both sides of the political aisle. After all, your business is serving customers with ties to either political party as well as independents. Something else to consider is that your employee population is quite likely made up of a mixture of both political parties' interests along with independent viewpoints, thus you want to understand all different perspectives. Lastly, all readers, regardless of personal political affiliations, should reach out to local political representatives and let their voices be heard.
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