Unions Gain Organizing Rights
On June 21, 2010, new regulations took effect as result of an Executive Order issued by President Obama and final ruling issued by the Department of Labor’s Office of Labor Management Standards (“OLMS”). Executive Order 13496 now requires federal agencies to include contract language in agreements requiring certain contractors and subcontractors to:
- Post a notice informing employees of their rights under the National Labor Relations Act
- Include similar requirements in their subcontracts
The new required notice informs employees of their rights to form, join, or assist a union, and to bargain collectively with respect to wages, hours and other working conditions. This notice also lists examples of illegal employer and union activities that impede these rights, and provides contact information for the National Labor Relations Board. Beyond physical postings, federal contractors or subcontractors who electronically post employee notices on company intranet or internet sites also must post this new notice on such sites.
The Office of Federal Contract Compliance Programs (“OFCCP”) and the OLMS will share enforcement responsibility for the new regulations. Penalties for violating the regulations include suspension or termination of existing contracts and ineligibility for future government contracts.
A copy of the required posting, the Executive Order, and the regulations may be found on the OLMS website:
http://www.dol.gov/olms/regs/compliance/EO13496.htm.
Significance
Given the current economic climate and continued sluggish rebound in job creation by employers, it is difficult to understand the advantages of this of pro-labor Order. This Executive Order is indicative of other pro-labor regulations to come, and will likely result in more (and easier) union organizing activity. Employers address the new posting requirements, and consider this a wake-up call regarding an increasingly favorable climate for organized labor. Vulnerable employers should consider training managers on how best to lawfully and effectively respond to union organizing. For further information, contact our offices.
The SharedHR Management Bulletin is written by the staff of SharedHR, a strategic management advisory and human resources consulting firm founded in 1980. Some information contained herein has been abridged from numerous sources and should not be construed as legal advice or opinion. The Bulletin is edited by Paul Finkle, SPHR, Certified Management Consultant.