THE PRO ACT—BAD NEWS FOR EMPLOYERS

On March 9th, the U.S. House of Representatives passed H.R. 842, the Protecting the Right to Organize (referred to as “PRO”) Act.  The PRO Act is by far the most pro-labor union legislation in many decades.

It reflects the pledge made by then candidate Joe Biden to be “the strongest labor president you have ever had”.

  • This Act is viewed as a huge reward to labor unions across the country for their financial and voter support for Biden’s election.
  • Unionization in the private sector has declined steadily and substantially over the past 50 years.
  • Today, only 6.3% of private sector employees are unionized, whereas in 1971 the percentage was 28.2%.
  • This legislation is intended to reverse this trend by making it significantly easier for unions to organize your employees.

If passed by the Senate, this sweeping legislation would make major anti-employer changes to the National Labor Relations Act (NLRA) that extend well beyond union organization. IT WOULD ADVERSELY AFFECT ALL PRIVATE EMPLOYERS, REGARDLESS OF THEIR WORK PLACE BE UNIONIZED AND NON-UNIONIZED.

  • That’s because employees in both unionized & non-unionized work places are covered by the NLRA.

The PRO Act encompasses more than 50 significant changes to current law and seeks to overhaul the NLRA for the first time in more than 70 years. Below are some of the most noteworthy aspects of the PRO Act:

  • Redefines the definition of “supervisor” to include more frontline leaders & thus their not being able to be considered to be part of management
  • Expands the definition of “employee” to all but eliminate the concept on an independent contractor by deeming them as employees covered by the NLRA
  • Greatly weakens “right to work” laws in the 27 states that have such laws
  • Restricts the ability of employers to obtain labor relations advice & to counteract unionization
  • For example, holding mandatory employee meetings to dissuade employees from unionizing would not be permitted.
  • Limits the ability of employers to contest union election petitions and allow unions to engage in coercive tactics long held to be unlawful
  • Denies employers having a voice on such important issues as who should be eligible to vote, what unit is appropriate for bargaining, where and how the ballots will be counted, and many other issues
  • Gives employees the right to utilize employer electronic systems (use an employer’s email and other technology) to organize unions or engage in other protected concerted activity
  • Expands penalties and other remedies on employers for unfair labor practices

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In order for the PRO Act to become the law of the land, it requires passage by the U.S. Senate. In 2020, a version of this Act was voted down in the Republican controlled Senate.

  • However, in 2021, the Senate is split 50-50, with Democratic VP Harris being the tie breaker.

RECOMMENDATIONS TO EMPLOYERS TO CONSIDER

  1. If you belong to an organization (examples: the Chamber of Commerce, the National Association of Manufacturers or the Society for Human Resources Management), find out what they are doing & encourage them to speak out against passage.
  2. Contact the 2 U.S. Senators in any state where you have employees & let them know you oppose this Act.
  3. Be proactive
    • CONDUCT AN OBJECTIVE, comprehensive assessment of your organization’s UNIONIZATION vulnerability

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Posted in Employee & Labor Relations, HR Legal & Compliance