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Labor Issues Dominate Legislative Agendas
04/ 02/ 2007

by NFIB President and CEO Todd Stottlemyer

NFIB battles union-backed proposals at federal and state levels

As powerful and influential as our grassroots network of active NFIB members is, we face a much tougher political and policy environment.

In the last election, the top 10 labor groups' political action committees gave more than $20 million directly to federal candidates—the vast majority to candidates who are not supportive of small-business issues. In addition, one union, the Service Employee International Union, spent nearly $23 million in “soft” money to support their issues. Now these unions want payback, and labor issues are dominating Congress and many state legislatures.

Labor organizers are eager to make it easier for unions to be certified and represent employees in businesses of all sizes. The process they favor, known as card check agreements, is an attempt to bypass the long-held principle of the secret ballot. The method is at the centerpiece of federal legislation misnamed the “Employee Free Choice Act.” This act would allow unions to choose a card-check campaign, rather than a secret-ballot election, effectively shutting employers out of the process. Further, a small business could find itself unionized in as little as a month. As many of you know, it's good business to foster good labor-management relationships. This bill would have the opposite effect.

In addition, labor groups and their allies are gearing up to expand the 1993 Family and Medical Leave Act to both increase mandated benefits and lower the number of employees required to force a business to comply with the act.

Currently, businesses with 50 or more employees are subject to FMLA. The act requires employers to provide up to 12 weeks of unpaid leave for reasons including family illness and maternity leave. However, we expect to see legislation that requires companies with just 15 or more employees to comply with the FMLA and to provide seven paid sick days a year. Additional leave could be required for victims of domestic abuse and for parents attending school activities. This law clearly would interfere with the flexibility of benefits that small-business owners offer—a critical factor when competing for employees.

We also can't forget that states are frequently where the action is when it comes to legislation that affects you and your business. NFIB members in New Jersey are fighting mandatory paid-leave legislation right now, while in trendsetting California and Illinois, our members are gearing up to oppose proposals that would mandate a payroll tax on all businesses that don't offer health care to employees, regardless of their ability to find affordable, quality coverage.

All the threats I've outlined are just the tip of what likely will be a very large iceberg before the labor interests are satisfied. And while this is an off year for federal elections, voters in five states will be choosing either governors or legislatures. Therefore, we must ensure that our representatives at all levels of government remain aware of our issues, and know that we will support candidates who support small business. That's one reason NFIB created our PAC, Save America's Free Enterprise—SAFE Trust.

We remain devoted to supporting candidates who understand the importance of small business to America. Your membership and participation in NFIB help make it possible for us to be strong and forceful advocates on your behalf. Additionally, in order to impact public policy, it is critical that we actively support political candidates who support small-business issues.

We all need to keep that in mind now more than ever.

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