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VIII. THE NATIONAL LABOR RELATIONS ACT AFTER SEVENTY YEARS: AN ASSESSMENT. JOINT SESSION WITH AEA
Discussion
Jon Hiatt
AFL-CIO
I applaud Richard Freeman for spurring this discussion. There is
no question that the National Labor Relations Act (NLRA) is presently an utter
failure in serving its explicit mission of protecting and encouraging workers'
right to have unions and engage in collective bargaining. Indeed, as Richard
has noted previously, the Act has institutionalized a process that effectively
gives management veto power over whether or not workers become organized.
In addition, I agree with Richard that the federal labor preemption
doctrine operates as a block on creativity and experimentation that in some
instances might well benefit workers at the state and local levels.
The AFLCIO itself has in recent years supported numerous legislative efforts
that, while organizing-friendly, have been sufficiently outside the
scope of the NLRA to survive preemption challenges: worker retention laws,
labor peace ordinances, bans on use of public monies in state contractors'
employees' organizing campaigns, extension of bargaining rights to categories
of employers not covered by the Act, and project labor agreements, to name
a few. In other cases, however, such ordinances have been struck down. It
is always tempting, therefore, to speculate on how much better off workers
might be if there were no federal preemption constraints at all.
That said, I would raise three
sets of concerns about Richard's proposal relating to (1) its underlying political
assumptions, (2) its reliance on public sector experience as indicative of
what we might expect in the private sector, and (3) the unlikelihood of an
overall positive outcome.
Political Assumptions
First, there is simply no reason to believe that corporate employers would
not oppose this version of labor law reform every bit as strongly as they
oppose an NLRA overhaul. The management community is almost universally satisfied
with the present system—why would it not be given that it exercises
such complete control over workers' right to unionize and bargain collectively
under existing law? Furthermore, the uneven playing field aside, national
employers would surely resist the notion of adopting a different labor relations
paradigm in each of the fifty states. Thus, as a practical matter, if the
labor movement and its allies were able to muster sufficient political strength
to get the Freeman proposal through Congress and the White House, they would
surely have enough influence to effectuate the kind of comprehensive labor
law reform that we would like to see at the national level.
Second, again purely as a
practical matter, the proposal ignores the very real issue of resources. It
is expensive enough when labor has to defend one "paycheck deception" ballot
initiative in California, or push for one "labor peace" ordinance in Milwaukee.
Were we to have to start from scratch in fifty states in order to legislate
mini-NLRA's in each one—or even were we to write off the "red states" and
focus only on a dozen or so with the best prospects for passing sympathetic
state labor laws—the labor movement would find itself financially
outmatched virtually everywhere.
Reliance on Public Sector Experience
Richard relies heavily on
experience in states with developed public sector labor laws and points to
a correlation between those states and the ones with relatively high union
density. The reality, however, is that the public sector laws in those states
are typically patterned after the NLRA and—on paper—are rarely better in any
significant way than their federal counterpart. (Indeed, the main difference
normally is that public sector versions do not afford as full, if any, a right
to strike.) Further, of much more importance than Richard suggests, union
density is higher in states with "good" public sector labor laws mainly because
public employers rarely interfere with their workers' decision to unionize.
State legislative bans on captive-audience meetings, requirements to make
names and addresses of bargaining unit members available, or agreements to
stay neutral during a campaign are simply not as necessary. Finally, shutdowns,
closures, and moves offshore do not occur in the public sector, nor would
threats or predictions of such carry any weight.
Unlikelihood of a Positive Outcome
The bottom line question, of course, is whether under current circumstances
we would really be better off without federal labor preemption, with each
state free to enact its own superseding versions of the overall portions of
the NLRA if it chose to do so. And for the following reasons, as well as that
of inadequate resources described earlier, I think not.
First, I fear the risk of a race to the bottom would be significant.
Even before the presence of international and global competition entered the
mix, we have seen how labor costs have influenced companies' decisions
to relocate from union-friendly northern states to union-scarce states in
the south. The effects of globalization will only make those decisions more
likely in any industry with location flexibility.
Second, as courts have been reminding us, many of the protections
that workers need from employer interference cannot be extended for reasons
that go beyond federal labor preemption. Neutrality requirements, for example,
are arguably restraints on employer speech, constitutionally preempted, and
cannot be legislated by either the federal or state governments.
Labor's major efforts to improve matters, therefore, would probably
focus on card-check recognition provisions, which may bring more loss than
gain. After all, under the NLRA, at present, card check is not unlawful, even
though not mandatory. Under the state-by-state approach, states would presumably
be free to ban voluntary recognition agreements altogether; for that matter,
they could ban private sector collective bargaining completely if they wished—as
a few already do in the public sector. Would labor have any real opportunity
to achieve a meaningful card-check recognition system in more states than
in those in which it would lose it entirely?
Finally, at best the outcome
would result in a pronounced ghettoization of union-friendly states, one that
would undoubtedly reduce the labor move-ment's national political strength
considerately. Even if union density increased considerably in a handful of
states, as Richard predicts, its impact in presidential and congressional
elections, for example, would be reduced overall if its density declines in
an even larger number of other states.
Alternatives
This unreceptive a critique would be somewhat unfair without suggesting
some possible alternatives. After all, as Richard suggests, with the state
of worker protections under current federal law as bad as it is, we really
cannot afford to be too critical of any proposal that might encourage experimentation
with new legal structures.
I would start with a variation on Richard's theme, one that he
also alludes to: the NLRA as a minimum standard. Under this proposal, the
NLRA could be preempted but only in one direction; states would be permitted
to pass their own legislation that strengthened worker protections of the right to organize and
bargain collectively, but not legislation that weakened such rights. This
would be analogous to the authority that states have to be more but not less
protective with other national labor and employment standards, for example,
minimum wage and overtime protections under the Fair Labor Standards Act,
or health and safety protections under the Occupational Safety and Health
Administration.
A problem with applying this same approach with the NLRA is definitional,
however, since it may be somewhat more difficult to define what
a minimum standard is when it comes to recognition procedures. Nonetheless,
this should be a challenge worth confronting, as the NLRA already contains
an explicit, one-way, non-preemption provision in one area of the law: union
security provisions. Balancing that with another one-way non-preemptive arrangement
allowing states to regulate more protectively when it comes to selection of
representatives would provide a logical balance.
Finally, one might also consider looking at preemption from the
other direction, that is, should at least some aspects of the NLRA be considered
preempted by international labor law? Numerous United Nations and International
Labor Organization (ILO) conventions and declarations have long held the right
to organize and the right to bargain collectively to be basic human rights.
Most recently, the ILO's 1998 Declaration on Fundamental Principles and Rights
at Work reaffirmed that these both are among a handful of universal worker
rights that must be respected. Considerable ILO jurisprudence has evolved
over the years as to both the right to organize and the right to bargain collectively.
No less an independent authority than Human Rights Watch conducted a lengthy
study in 2000 and found the United States significantly failing to conform
with international norms on freedom of association at work and the right to
bargain collectively. There is little doubt that American workers today would
be better off were their rights measured by international ILO standards than
they are under the NLRA. Perhaps a topic for next year's conference should
be preemption of the NLRA, rather than by the NLRA.
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