The House has passed legislation that would authorize third-party panels to set initial contract terms when negotiations fail between an employer and a new union. The Faster Labor Contracts Act (H.R. 5408), approved June 9 by all House Democrats and 20 House Republicans, would allow an arbitration panel to impose a two-year first contract on an employer and newly recognized union that fail to reach an agreement after 90 days of bargaining and 30 days of mediation.
Although most Republican Senators have tended to oppose legislation that expands union leverage in first-contract negotiations, the bipartisan House vote and growing Republican interest in labor-friendly policies suggest that the bill has a chance of passage in the Senate. If the bill becomes law, employers would face compressed timelines and less ability to leverage economic pressure during union bargaining.
The Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, has prepared a summary of the bill. CWC members can read more here.
Concerned employers should engage lawmakers now. CWC members can discuss this issue at CWC’s Conversation Corners or our upcoming Member Briefing.