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Does your learning make a
difference?®
Strengthening
Employee
Relations™
EFCA: Just One More Reason
for…
STEPHEN PASKOFF, ESQ.
President and CEO, ELI®
© Copyright July 2009 • Employment Learning Innovations, Inc. • All rights reserved • Atlanta, Georgia
Presentation Summary• An overview of the issues
• A behavioral approach
• The employee’s point of view
• Impact of unions on today’s
workplace
• Overview of the Employee Free
Choice Act (to be updated as the
proposed law changes)
• The solution: Strengthening
Employee Relations™
STRENGTHENING EMPLOYEE RELATIONS™
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© Copyright July 2009 • Employment Learning Innovations, Inc. • All rights reserved • Atlanta, Georgia
The Behavioral Approach• Business success depends on the
behavior of leaders.
• Leader behavior increases employee
satisfaction, which ultimately
impacts the business mission.
• Leader behavior decreases
the risks associated with
employee dissatisfaction,
including legal risks.
STRENGTHENING EMPLOYEE RELATIONS™
© Copyright July 2009 • Employment Learning Innovations, Inc. • All rights reserved • Atlanta, Georgia
Critical Leadership
Behaviors• Understand their role
• Act as a role model prior to claims
arising
• Welcome and listen to concerns
• Respond to concerns
• Follow up with employees
• Be able to explain legitimate,
business-related criteria for
decisions
• Avoid behavior that leads to
perception of unfair treatment
STRENGTHENING EMPLOYEE RELATIONS™
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© Copyright July 2009 • Employment Learning Innovations, Inc. • All rights reserved • Atlanta, Georgia
The Employee Point of
View• Mistrust of management
• Feeling that they can’t raise concerns
or that concerns aren’t heard or
addressed
• Lack of clearly defined rules
• Lack of consistency
• Desire for increased wages and
benefits
• Desire for increased job security
STRENGTHENING EMPLOYEE RELATIONS™
© Copyright July 2009 • Employment Learning Innovations, Inc. • All rights reserved • Atlanta, Georgia
Impact of Unionization
• Third-party review of business
decisions
• Decrease in managerial autonomy and
authority
• Less ability to work with employees on
an individual basis
• Polarization between management and
non-management
• Increased operating costs
• Decreased loyalty to company
STRENGTHENING EMPLOYEE RELATIONS™
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© Copyright July 2009 • Employment Learning Innovations, Inc. • All rights reserved • Atlanta, Georgia
Proposed EFCA Overview
• Changes how
unions are
certified
• Mandatory binding
arbitration to
settle
negotiation
disputes
• Increased
penalties
and fines
STRENGTHENING EMPLOYEE RELATIONS™
© Copyright July 2009 • Employment Learning Innovations, Inc. • All rights reserved • Atlanta, Georgia
Proposed EFCA Overview
• Changes how
unions are
certified
• Mandatory binding
arbitration to
settle
negotiation
disputes
• Increased
penalties
and fines
STRENGTHENING EMPLOYEE RELATIONS™
NEWS FLASH!
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© Copyright July 2009 • Employment Learning Innovations, Inc. • All rights reserved • Atlanta, Georgia
• As of late July, the news from Capitol
Hill is:
– Card check will be scrapped
– Elections will be expedited
– Arbitration imposed when negotiations
fail
– Penalties under review
– More to follow
EFCA News Flash
© Copyright July 2009 • Employment Learning Innovations, Inc. • All rights reserved • Atlanta, Georgia
Current Certification
Process• Union collects signatures from 30% of
employees on authorization cards
• Union petitions for an election
• Campaign period where union and
employer can present information to
employees and answer questions
• Secret-ballot election monitored by
NLRB
• Union certified if more
than 50% vote “yes” to union
STRENGTHENING EMPLOYEE RELATIONS™
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© Copyright July 2009 • Employment Learning Innovations, Inc. • All rights reserved • Atlanta, Georgia
New Certification Process
Under EFCA• As of late July, this has been removed
from the proposed legislation.
• But as originally proposed, the
process would be the following:
• Union collects cards signed by 50% plus 1 of
the bargaining unit employees
• Union is certified
• No prior notice to employer necessary
• No open campaign period
• No secret-ballot election
STRENGTHENING EMPLOYEE RELATIONS™
© Copyright July 2009 • Employment Learning Innovations, Inc. • All rights reserved • Atlanta, Georgia
New Negotiation Process
Under EFCA
• Negotiations must begin 10
days after certification
• Mediation can be requested
by either party only 90 days
after negotiations begin
• If mediator cannot resolve
after 30 days, all disputes
must go to arbitration panel
• Decisions by panel are
binding for 2 years
STRENGTHENING EMPLOYEE RELATIONS™
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© Copyright July 2009 • Employment Learning Innovations, Inc. • All rights reserved • Atlanta, Georgia
Increased Penalties Under
EFCA• Fines of up to
$20,000 for certain
unfair labor
practices
• Triple back pay
damages for
employees
discharged in
retaliation for an
employee’s
organizing
activities
STRENGTHENING EMPLOYEE RELATIONS™
© Copyright July 2009 • Employment Learning Innovations, Inc. • All rights reserved • Atlanta, Georgia
The Bottom Line
• EFCA increases risks
• Managers need behavioral skills and
baseline knowledge as to why these
skills matter
• Start educating managers
NOW
STRENGTHENING EMPLOYEE RELATIONS™
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© Copyright July 2009 • Employment Learning Innovations, Inc. • All rights reserved • Atlanta, Georgia
Critical Foundation for
Managers• Understand their role as leaders
• Act as a role model prior to problems
arising
• Understand what to do when problems
happen
• Appreciate key legal
liabilities
STRENGTHENING EMPLOYEE RELATIONS™
© Copyright July 2009 • Employment Learning Innovations, Inc. • All rights reserved • Atlanta, Georgia
STRENGTHENING EMPLOYEE RELATIONS™
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© Copyright July 2009 • Employment Learning Innovations, Inc. • All rights reserved • Atlanta, Georgia
Values, Behavior, Culture
STRENGTHENING EMPLOYEE RELATIONS™
© Copyright July 2009 • Employment Learning Innovations, Inc. • All rights reserved • Atlanta, Georgia
Values, Behavior, Culture
STRENGTHENING EMPLOYEE RELATIONS™
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© Copyright July 2009 • Employment Learning Innovations, Inc. • All rights reserved • Atlanta, Georgia
Contact ELI®
• Call (770) 319-7999 or (800) 497-7654
• E-mail [email protected]
STRENGTHENING EMPLOYEE RELATIONS™
STEPHEN PASKOFF, ESQ.
PRESIDENT & CEO, ELI®