HRPA Opposes Bill Granting Government Control Over Labor Deals

HR Policy Association sent a letter to the U.S. Senate in firm opposition to the newly introduced Faster Labor Contracts Act, which would allow the federal government to impose contractual terms in collective bargaining agreements. 

The bill: The Faster Labor Contracts Act (“FLCA”) would require employers and unions to allow government arbitrators to write initial collective bargaining agreements if the two parties are unable to come to an agreement themselves. Specifically, the law would: 

• Require employers and unions to begin bargaining within 10 days of the union’s election certification. 

• Require both parties to submit to government mediation if no agreement is reached within 90 days. 

• Require the parties to submit to government-imposed binding arbitration that would dictate the terms of the first contract if mediation does not produce an agreement within 30 days.

  • The arbitration panel would consist of one employer-nominated arbitrator, one union-nominated arbitrator, and one “neutral” arbitrator. 

  • The terms would be binding for up to 2 years. 

The bottom line: The bill would allow the federal government to impose contractual terms on parties if they are unable to reach an agreement within 120 days. 

Our letter: HRPA submitted a letter to Senate HELP Committee Chair Cassidy (R-LA), Majority Leader Thune (R-SD), and the rest of the Senate, urging them to oppose the legislation. The letter highlighted several significant practical and legal concerns, including:

• Employers, workers, and unions have the best understanding of what is most effective for their respective workplaces - not government arbitrators. 

• Allowing the government to impose contractual terms on private parties violates the Fifth Amendment’s takings clause and is contrary to federal labor law’s foundational right to voluntary agreement. 

What’s next: Although Sen. Hawley secured a fellow Senate Republican as a co-sponsor (Sen. Moreno (R-OH) amongst some Democrats, it is still unlikely that the proposal will gain enough Republican votes (and even Democrat votes) to reach the 60 votes needed for passage in the Senate.

Yes, but, more to come: The FLCA is the first of several expected bills from Sen. Josh Hawley’s (R-MO) as part of his “Pro-Worker Framework” for labor law reform. Expect more bills focused on condensing union election timelines, creating harsher penalties for unfair labor practices, and prohibiting warehouse quotas.