Business Groups Oppose Bill Expanding Federal Role in Union Contract Negotiations

A bipartisan bill that would give employers and unions only 90 days to negotiate an initial contract before the federal government steps in could soon come to a vote in the House of Representatives.

On May 20, the Faster Labor Contracts Act (FLCA), H.R. 5408, reached the required 218 signatures needed on a discharge petition to force a vote on the bill. FEDA has joined other business advocacy groups and trade associations in urging House members to reject the legislation, which would amend the National Labor Relations Act (NLRA) for the first time in more than 50 years. The bill would require employers to begin negotiating with a newly formed union within 10 days of certification. If no agreement is reached within 90 days, either party could invoke mediation through the Federal Mediation and Conciliation Service, a federal agency that provides conflict resolution services to public- and private-sector workers and employers. If there is still no agreement after another 30 days, a binding, three-person arbitration panel would be appointed to secure an initial contract.

There is no timeline for the current contract negotiation process. The FLCA would change that by creating a process that can result in a binding contract that neither employers nor employees agreed upon. Federally appointed arbitrators would gain the power to dictate wages, benefits, safety procedures, leave policies, and nearly every other condition of employment for newly organized workers. The bill would also limit the ability of unions and employers to negotiate terms tailored to a specific workplace.

In a letter to legislators, business groups said the bill raises serious constitutional concerns, including that mandatory arbitration would deprive employers and employees of property rights without due process. It also eviscerates the voluntary-agreement principle that underpins federal labor relations policy by making the federal government an active participant in contract negotiations rather than a supervisor of the procedure alone.

The NLRA already requires both parties to bargain in good faith on mandatory subjects, meet at reasonable times, refrain from surface or piecemeal bargaining, and provide relevant information. The National Labor Relations Board enforces these obligations and assesses penalties for violations.