Obamas Potential Labor Union Woes

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Transition officials were divided on how aggressively and quickly Obama should move on the bill, but sources close to the campaign tell me he will push ahead. I’ve often been a critic of unions, but on this issue, I support them and think Obama is right to move forward.

The central argument in favor of the bill is that it puts workers on a more level playing field when it comes to organizing unions. Right now, under federal law, a union can be certified to represent workers in two ways. The first is if a majority of workers sign cards saying they favor joining a union. The second is if, in a secret-ballot election, a majority of workers vote to organize. Under current law, an employer can demand a secret-ballot election even if a majority of workers sign cards. Under the E.F.C.A.—also known as “card-check” legislation—employers wouldn’t be able to demand an election. They would have to recognize the union after the cards were signed. Thus, the bill would take the choice out of management’s hands and give it to the workers. If workers wanted a secret-ballot election, they could have one. If they wanted to just go with card check, they could do that.

Passing the card-check bill will surely help unions be certified more easily. But boosting union membership won’t be a slam dunk. Corporations, which have had the upper hand in keeping unions out of their shops, will still have many tools at their disposal to thwart them. They can hold meetings on company time advising against union membership and launch full-scale campaigns to prevent workers from joining.

If card check becomes law, it won’t restore unions to their glory days—today only 7.5 percent of workers in the private sector belong to unions, less than half the number 25 years ago—but it might arrest the decline, which isn’t bad for business in the long run. No less of an authority than Ben Bernanke has said that the drop in union membership explains a good 10 to 20 percent of the increase in income inequality in the United States. If businesses want people to be able to afford their products, union membership itself serves as an economic-stimulus package—a surefire way to put more money into workers’ pockets.

In the end, no one knows what the exact effects of card check would be. Union membership would surely rise, but the economic dislocation could be minimal. Most of the job losses in the United States fall disproportionately in industries with unions. If the bill becomes law, it will certainly lead to a flurry of organizing, but it won’t be easy for labor to hold on to even its meager 7.5 percent of jobs.

God knows it’s easy to bash unions. The American auto industry is on its knees in no small part because of legacy costs brought on by the demands of the United Auto Workers, which agreed in December to a package of givebacks. But being anti-union is as boneheaded as being anti-corporation—a knee-jerk reaction when nuance is required.

After all, unions are found not only in dying industries but in growth industries like aerospace, energy, and entertainment.

Private equity giants, already struggling during the economic crisis, will face further challenges should the E.F.C.A. pass. When private equity firms bought such businesses as Toys R Us, Hilton Hotels, Dunkin’ Donuts, and Hertz, they surely didn’t plan on having to face substantial unionization drives, but shortsightedness has been in no short supply in boardrooms around the country. While the Private Equity Council, the Washington lobby for the big private equity firms, hasn’t taken a position on the E.F.C.A., individual members have. The Carlyle Group has been in a big fight with the S.E.I.U., which is trying to organize workers at HCR ManorCare, a company with nearly 60,000 employees in 32 states running more than 500 long-term-care facilities. Carlyle closed its $6.3 billion purchase of the company in December after overcoming concerns from regulators and efforts by the S.E.I.U. to delay the sale. There’s no reason workers should have to get the short end of the stick just to save the private equity guys from being inconvenienced.

The legislation doesn’t apply to small businesses, so the corner grocery probably won’t face an organizing drive. And as for larger companies, it’s worth noting that many corporations have chosen not to fight card check and have honored union expansion without calling for elections, which are often bitterly fought. These include Harley-Davidson, Aetna, and AT&T. Some Republicans have recognized this. Indeed, a Republican, George Pataki of New York, became the first governor of either party to sign a card-check bill, hailing it later as “an important step toward eliminating unnecessary hurdles while also ensuring fairness.’’ Sounds right to me.

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