NCPC is proud to be a part of the North Carolinians to Preserve Employee Choice coalition which is a group of business organizations that have organized to fight against the "card check" legislation that is being pushed by labor interests in Washington.

Passage of the "Employee Free Choice Act" is the top legislative priority of unions this year. The bill has passed in the US House of Representatives before and this year has a great chance of passing the US Senate now that the Democrats are in the majority.

Senator Kay Hagan is a critical vote on this bill. The unions are counting on her vote to swing the issue and they are lobbying hard for it. The business community needs to be heard on this issue and that is why we have formed the North Carolinians to Preserve Employee Choice coalition.

We are asking NCPC members to contact Senator Hagan's office today to let her know that as a business owner or as an employee, you are opposed to the "Employee Free Choice Act" because it's bad for NC.

Senator Hagan: (202) 224-6342

Over the weekend, Lew Ebert of the NC Chamber wrote a guest column that appeared in the Raleigh News and Observer. Take a moment to read this column.

EMPLOYEE FREE CHOICE ACT - "CARD CHECK" OVERVIEW

- The Employee Free Choice Act or "Card Check" would be the most sweeping change in labor law in sixty years and would hurt North Carolina economically to the benefit of more unionized Northeastern and Midwestern States.

-Card Check is comprised of two major components: 1) the process by which a workplace becomes unionized; and 2) how negotiations are conducted in a unionized workplace.

Unionization Process

- Under current federal law, the unionization process works like this:

a) Thirty percent of a workplace's employees signify that they would like to unionize the workplace;
b) The employer then has the right to either allow an election to take place or the employer may choose to request a secret ballot election overseen by a representative of the National Labor Relations Board;
c) If the employer exercises their right to conduct a secret ballot election, both the union representative and the employer may exercise their right to educate employees as the pros and cons of a unionized workplace.

- Under the Card Check proposal, once a majority of the employees of a workplace sign a "card" to unionize then the workplace is automatically unionized. In other words, there is no right for the employer to request a secret ballot election overseen by federal officials.

- The proposed Card Check election process is open-ended which means union organizing officials can continue to apply pressure to employees who have not signed the unionization card over a six or eight month period until the employee gives in and signs the card.

- No one disputes the rights of employees to unionize a workplace but the business owner should have the right to help educate their employees as to the pros and cons of unionization.

- Imagine the small business workplace of ten employees where the owner goes away from the office for two days and returns to their business to find that six employees have signed a card to unionize the workplace.

- If a company operates more than one workplace - i.e. multiple locations, the Card Check election will likely result in some locations being unionized and others not being unionized which results in tremendous inconsistencies and makes it more difficult to manage human resources.

Binding Arbitration

- Under current federal law, the employer of a unionized workplace and union representatives negotiate labor agreements with equal bargaining power - the employer needs employees to operate their business and the union represents the employees the employer needs. If a labor agreement cannot be reached, a strike occurs and continues until some point when the employer realizes it is necessary to get their employees back to work and the union representative recognizes the employees need to return to work. These work stoppages are usually the result of give and take by both the business and the union.

- Under the Card Check proposal, the business owner and the union representative would negotiate a labor agreement for a period of ninety days. If a labor agreement is not reached in this 90-day period then a federal arbitrator is called in to arbitrate the dispute. If no agreement can be reached within thirty days of arbitration, the federal arbitrator decides what the terms of the labor agreement between the business owner and the union will be. This would include wages, benefits, seniority, etc.

- If the binding arbitration provision in Card Check becomes law, union representatives know that they can simply run the clock for the ninety or one hundred and twenty days and wait for the federal arbitrator to decide what wages and benefits will be provided to employees. There is no incentive for union representatives to meet business owners in the middle or to work out an agreement early in the process.

- Additionally, a business owner knows exactly what they can and cannot afford to pay their workers in order to remain profitable and stay in business. The federal arbitrator has never run the business and could order wages and benefits to be paid that will drive a company out of business.

Ramifications of Card Check to North Carolina

- North Carolina is generally viewed as the best place to do business in the United States and the best place to site a business. One of the reasons businesses want to be in North Carolina is the tremendous business climate which is attributable to North Carolina having the lowest unionization rate in the United States and laws such as guaranteeing the Right-to-Work without joining a union.

- Of the 46 sponsors of the 2007 US Senate Version of Card Check - S.B. 1041 - the only Southern Sponsor was Senator Bill Nelson (D-Florida). Generally, the Senators that were the biggest proponents of Card Check in 2007 were from States - Massachusetts, New York, Ohio, Illinois - that were losing jobs to North Carolina. Senators from these states see Card Check as a way to level the playing field with the Southeastern United States including North Carolina and bring jobs back to their states.

- Card Check will result in an aggressive pursuit of unionizing North Carolina businesses. Once unionized, many of these businesses, such as the manufacturing sector, will find it too expensive to remain in North Carolina and move off-shore. Some industries such as health care, retail, small businesses and construction cannot be moved off-shore but will become unprofitable.

- Look at what unionization has done to the auto, airline and steel industry. North Carolina cannot afford to see its valued businesses follow the same path.

- While Card Check does not repeal or preempt North Carolina's Right-To-Work Law, the Card Check Method of unionizing a workplace does undermine this long-standing law. Employees will be pressured to sign a card to unionize a workplace or face being isolated at work.


The North Carolinians to Preserve Employee Choice Coalition

Alex Lee, Inc., American Home Furnishings Alliance, American Insurance Association, Cabarrus Regional Chamber of Commerce, Capital Associated Industries, Carolinas Associated General Contractors, Carolinas Electrical Contractors Association, Catawba County Chamber of Commerce, Charlotte Chamber of Commerce, Charlotte Pipe and Foundry, Duke Energy, Electricities, Employers Coalition of North Carolina, The Employers Association, Gaston Chamber of Commerce, Glen Raven, Inc., Greater Raleigh Chamber of Commerce, Greater Winston-Salem Chamber of Commerce, Greenville-Pitt County Chamber of Commerce, Henderson County Partnership for Economic Development, Manufacturers Chemical Industry Council, Mooresville-South Iredell Chamber of Commerce, National Federation of Independent Businesses (NFIB), NC Assisted Living Association, NC Association of County Commissioners, NC Association of Electric Cooperatives, NC Association of Electrical Contractors, NC Association of Realtors, NC Automobile Dealers Association, NC Chamber of Commerce, NC Economic Developers Association, NC Growers' Association, NC Health Care Facilities Association, NC Home Builders Association, NC Hospital Association, NC League of Municipalities, NC Pork Council, NC Poultry Federation, NC Restaurant and Lodging Association, NC Retail Merchants Association, NC School Boards Association, NC Sheriffs Association, NC Trucking Association, Progress Energy
Professional Educators of North Carolina, Power Curbers Inc., Rowan County Chamber of Commerce, Saab Barracuda LLC, Union County Chamber of Commerce, Wayne County Chamber of Commerce, Western Carolina Industries, Inc., Wilkes Chamber of Commerce.