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NFIB Battles Big Labor's Influence
05/ 30/ 2007


Passing card-check legislation is No. 1 on Big Labor's agenda this year, but it's not the only union-backed bill harmful to small business. Intent on expanding their influence, activists will be pressuring federal and state lawmakers to support other anti-business proposals. The biggest battles include:

Living Wage
Living-wage legislation targets businesses contracting with state or local governments, requiring them to pay employees this wage to win contracts. Based on the cost of moving wages above the poverty level for a four-person family, a living wage typically amounts to about $10.50 to $11. Maryland recently became the first state to pass a living-wage law, and other proposals are cropping up across the country. NFIB opposes this unfunded mandate because it harms small businesses struggling with insurance, utility and transportation cost hikes and hurts minimum-wage employees, who are often the first to go when businesses cut costs.

Minimum Wage
This year Congress approved an increase in the minimum wage from $5.15 to $7.25 an hour and a $4.8 billion tax-relief package for small businesses, which NFIB helped push for. The package, however, was part of the Iraq spending bill that President Bush vetoed May 1. Congress is expected to revisit the legislation. Several Southern and Midwestern states are considering minimum-wage increases—some even higher than any new federal minimum. NFIB opposes any wage increase that burdens small businesses, most of which already pay above the minimum to attract and retain quality workers.

Family and Medical Leave Act
Congress will debate expanding the Family and Medical Leave Act of 1993, which requires companies to offer 12 unpaid weeks of leave for employees when family issues and unexpected medical emergencies arise. Currently, companies with fewer than 50 employees are exempt from this mandate, but lawmakers are considering lowering the threshold to 25 or 15 employees and expanding options for leave. NFIB will fight any new mandate limiting employers' and employees' freedom to negotiate mutually beneficial compensation packages, especially since most small businesses already allow employees to take time off for family or medical purposes.

Paid Sick Leave
Legislation that would require businesses to cover paid-sick-leave costs for employees is expected to be considered soon. The leading proposal is the "Healthy Families Act," sponsored by Massachusetts Sen. Edward Kennedy and Connecticut Rep. Rosa DeLauro, which would require employers with 15 or more workers to provide paid sick leave. Paid leave, which places a massive mandate on small businesses, is already law in California, and several states are battling similar proposals. NFIB will fight mandates that force small businesses to implement policies that may not be in the best interest of their workers.

OSHA Reform
With the House and Senate holding hearings on OSHA reform, unions are pushing legislation to enhance organizing efforts in small businesses by allowing unannounced OSHA inspections, increased fines for violations and criminal penalties on small employers. Employee participation in establishing health and safety policies has blossomed recently—and NFIB continues to stress that safety is achieved when employers and employees mutually establish cooperative policies.


Your Bill of Rights
If you've ever experienced a union-organizing campaign, you know the strain it can cause on your business. That's why it's important to remember your rights when union advocates launch an organizing effort at your company. Knowing what you can and can't say is crucial to walking the fine line between free speech and unfair labor practice charges. Here's a quick guide, based on tips from the NFIB Legal Foundation.

You can:

  • Correct inaccurate statements made by union organizers.
  • Remind employees of their rights, especially when signing authorization cards that could bind them contractually.
  • Express personal opinions about a specific union and its policies or process, as long as statements aren't threatening or coercive.
  • Describe how unionization might affect your company, based onprobable scenarios beyond your control.
  • Discuss how unions operate and the financial and job-related disadvantages of membership.
  • Express your views on working conditions, salaries or benefits and explain how bargaining with unions could result in no changes in these areas.

You can't:

  • Threaten to shut down the company, terminate or discipline pro-union employees or reduce compensation if workers unionize.
  • Promise benefits to sway workers' decisions about joining a union.
  • Make coercive statements, such as asking an employee to dissuade or spy on pro-union coworkers.
  • Disparage employees for expressing pro-union sentiments or inquire about the status of a union effort or their position on it.

This guide is intended to provide general information for reference only and should not be considered legal advice.


Join the Fight

Want to learn more about how "The Employee Free Choice Act" (H.R. 800) will affect your business, and how to keep it from becoming law? Visit NFIB's site, www.StoptheUnionAgenda.com, to get the latest on the legislation as it moves through the Senate, learn your legislators' position and make your voice heard. Protect employees' right to a private-ballot election by signing an online petition and spread the word about this harmful bill by downloading a letter to send to your local newspaper editor.

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