ABC: House-Passed Faster Labor Contracts Act Is a Disgrace to Free Enterprise

WASHINGTON, June 9-Associated Builders and Contractors today blasted passage of the Faster Labor Contracts Act in the U.S. House of Representatives with the following statement:

"Setting a dangerous precedent, House Democrats and a few unprincipled Republicans today voted to pass the Faster Labor Contracts Act," said ABC President and CEO Michael Bellaman. "The FLCA imposes arbitrary and unrealistic deadlines on employers to finalize negotiations with newly elected unions or face 'binding interest arbitration of first contracts.' In practice, this means, for the first time in American history, a federal government bureaucrat will appoint an individual to dictate exactly what is included in a contract between two private negotiating parties.

"The consequences of this misguided bill include destroying voluntary agreement and good-faith labor-management negotiations and could expand to disputes over wages, benefits and working conditions to include social or political issues unrelated to the day-to-day needs of workers and employers," said Bellaman. "ABC supports legislation that upholds the intent of the National Labor Relations Act and protects freedom of association. Unfortunately, the FLCA would undermine the bargaining process and counter the freedoms the NLRA was designed to protect."

Key provisions of the FLCA:

• Within 10 days of receiving a request to collectively bargain with a newly recognized union, the parties must begin bargaining. If the employer and union do not reach an agreement on a first contract within 90 days of the beginning of bargaining-regardless of whether they are negotiating in good faith, and for any reason at all-the parties must participate in mediation. This would be an unprecedented expansion of federal government authority into the private sector.
• If mediation is also unsuccessful within mere weeks, a three-person arbitration panel chosen by the parties will be required to settle the dispute by a majority vote and the decision will be binding. If the parties fail to identify individuals to join the arbitration panel within two weeks, an arbitrator chosen by federal government bureaucrats will impose a collective bargaining agreement on the workers, employer and union.