The Risk of Increased Labor Unions in the Private Sector Workplace: Employee Free Choice Act (EFCA)

MBanes October 30, 2008 4 Comments »

A critical analysis of the Employee Free Choice Act (EFCA) was provided to me from the Ford & Harrison LLP. The analysis illustrated that the percentage of American workers who belonged to private sector (non-government) labor unions reached its peak in 1954, when 34.8% of the private sector workforce belonged to a labor union. By 2007, only 7.3% of the private sector workers were union members. The ultimate goal of the EFCA is to make it easier to increase union membership and improve its fading relevance to the American workplace.

The EFCA would essentially eliminate the secret-ballot elections process to determine whether employees wanted to be represented by a union. The secret-ballot elections would be replaced by simply securing majority of employee signatures on authorization cards designating the union as the collective bargaining representative, also called the Card-Check Recognition.

Employers can expect organized labor to intensify its efforts to secure passage of the EFCA, particularly with a Democratic-controlled Congress. The obvious overarching implication of the EFCA is that the law would make it much easier for unions to organize employers.

Human Resources will need to focus extreme attention on traditional labor issues more than ever. In light of the more aggressive labor movement, unprepared employers will find themselves increasingly more vulnerable to union organizing if they fail to take action.

Some Reasons Why Employees Support Unionization 

1. Poor Supervision. Poor supervision can completely undermine employee relations and morale.
2. Poor Organization Structure. Employers should clearly define the chain of command and reporting responsibilities. Supervisors should understand that they are part of the management team and are co-responsible for management decisions rather than blaming upper management for unpopular decisions. Employees who feel they have been treated harshly or unfairly by supervisors may want to “get even” with management by seeking unionization.
3. Failure to Communicate. Improper responses to employee suggestions and ideas can create or add to employee dissatisfaction.
4. Failure of Management to Keep Employees Informed. When appropriate, employees should be informed about how the company is doing, changes in operations, etc.
5. Retention of Poor Employees. Poor employees may be unqualified, marginal, or overqualified and their retention may cause resentment among their co-workers.
6. Job Security. Employees who perceive they lack job security may be more likely to unionize.
7. Failure to Provide Advance Opportunities.
8. Failure to Recognize and Reward Employee Successes and Contributions.

Some Strategic Preventive Measures for Human Resources to Implement 

1. Make Unions Unnecessary. Recognizing individual achievement and merit and responding to employee issues and concerns before employees look outside the company for resolution of their concerns. Conduct a comprehensive Employee Relation Audit by conducting a survey assessment from a third party. The key is to capture the true concerns of employees. Management should then prepare an immediate action plan designed to provide solutions to problems uncovered.
2. Respond to Employee Issues and Concerns. An effective employee relations audit should identify the major issues and concerns particular to the employer’s workforce and proactive measures to deal with those issues.
3. Develop Workplace Leadership. Cultivating leadership requires at least two critical components: leadership training and accountability.
4. Adopt a Union-Free Culture. Clearly state that the company wants to remain union-free, emphasize the employer’s commitment to communication, indicate the company recognizes and rewards individual achievement, and highlight company efforts to promote dignity and respect.
5. Develop Effective Communication Mechanisms. Direct communication to employees, input from employees to management, and cross-communication between management.
6. Adopt Mechanisms to Resolve Employee Disputes
7. Establish a “Don’t Sign the Card” Education Plan. Discuss the disadvantages of unionization and the potential risks associated with signing union authorization cards.

The Human Resources team needs to devote significant attention to traditional labor and employee relations issues. A proactive approach to positive employee relations is essential. Employers must take steps now to help ensure that their workplaces remain union-free.

Posted in Human Resources Analytics 4 Comments »

To all the candidates out there, Career advice in a down economy

Bradley Savoy October 8, 2008 No Comments »

With the stock market continuing to decline and unemployment continuing to rise, this is a time when the inbox of many recruiters are filled with more applicants then they can manage. I’m working on some senior level positions within our company and I’m frankly suprised that some of the basic elements I see missing from some of the applicant resumes and their conduct.

Here’s some advice I’ll give from being a recruiter and HR person for my entire career. These are just the top 3 I’ve seen in the last few weeks. While some of this may seem basic, there’s still a suprising lack of these in the market.

1. Put months of employment on your resume, not just years. We’ve been in a recession for the past year, and the employment market has been struggling for the last couple of years. Companies are downsizing, being bailed out, or merging every day. No recruiter is going to be suprised that a strong employee was affected by any of these events, and that your employment may have been less than a year in length. When you don’t put months on your resume it leaves us wondering how many months you were there? Was it a year, 3 months, 6 months. This matters especially if your last role was an intriguing one that built on some experience you’ve had, or gave you new skills. If you entire resume is nothing but years listed and not months of those years, then it becomes more suspect.

2. Be responsive, courteous, and flexible, even if employers are not. I know you’re thinking wait a minute, recruiters won’t call me back, they can be rude, so why should I be. Look at it as taking the higher road to ignite courteous referrals based on your reputation. If you’re treated poorly as a candidate by a prospective employer, then you’re going to tell your network about your negative experience. This adverse affect on their candidate pool will be fealt over time, and you don’t want the same thing to happen to you. If you take the high road, the least that will happen is that if you’re declined the recruiter may remember your attitude and refer you to a colleague at another company, or move you to the top of their potential candidate pool for other positions.

3. Do your homework on the company, and ask intelligent questions. In every screen I do I ask candidates to tell me what they’ve learned about the company they’ve applied to. 85% of the time they have not even looked at our website and done research on us, and if they have they haven’t garnered enough information to ask thought provoking questions about our environment, culture, career paths, etc. When a candidate has done research and asks good questions it’s a strong sign that they will approach their work in the same diligent manner in which they prepared for a simple phone screen.

Perhaps my next post will flip the script onto the recruiters desk, and look at gaps in service levels and conduct there, stay tuned.

Posted in Recruiting, Workforce Management No Comments »

Declining Worker Productivity during Economic Distress

MBanes October 3, 2008 No Comments »

I recently read an article in Business Wire entitled Economic Worries Plague Workers. This article revealed how the average American employee is impacted by the recent economic distress. Workplace Options conducted a survey which reflects how stress is taking a toll in the workplace productivity due to anxiety over finances from a troubled economic climate. This national survey was conducted by
North Carolina firm of Public Policy Polling in which 711 adults were polled. Workers are stressed from ongoing housing crisis, retirement savings, gas prices, credit problems, and managing budgets. Dean Debnam, CEO for WPO states that “Financial problems affect emotional and physical health, and ultimately trickle down to the workplace.”

Survey data from the respondents list how the economy is affecting them:

• 50% of the respondents are stress because of financial concerns.
• 48% of the respondents revealed that stress makes it hard for them to perform well on the job.
• 33% of the respondents said that their retirement plans have been altered because of the economic troubles.
• 23% of the respondents admitted that the economy has changed their mind about buying a new home.
• 55% of the respondents will travel less for vacation this year.

Financial consultation services as a part of the work/life benefits programs will help employees manage their financial concerns. Employers need to recognize the value of financial consultation services to protect their bottom line. I believe that these types of services will reduce worker anxiety and maintain a high productivity in the workplace.

Posted in Human Resources Analytics No Comments »