The National Association of Manufacturers (NAM) applauds Congressman Francis Rooney (R-FL) for introducing the Current Employee Representation Act, H.R. 4327, which would give employees the choice to reconsider union representation should less than 50 percent of the current unit members are employed. Under current law, an employer has to file a petition when it is believed the current union does not have support from the majority of the employees in the bargaining unit. The employees then have to file for a decertification of the union. Rooney’s bill will put the power in the hands of the current employees by giving them the choice to be represented by the union who was chosen by a different group of employees. Employees will no longer have to live with the decisions made by their predecessors. Employees also want to continue with the union representation, but again, this will be of their choosing under Rooney’s bill. The NAM looks forward to this legislation moving forward and welcomes the change the bill will bring to union representation and empowering the current employee base.
In 2015, the National Labor Relations Board, in the Browning-Ferris Industries case decision, overturned 30 years of case precedent by redefining a joint employer. Previously, businesses could meet the definition of an “employer” if they had “direct and immediate” control over another’s work. Now, a business owner who has “potential” or even “reserved control” over the practices of another business and its employees could be considered a “joint employer.” This change means businesses may now be liable for the contents of a collective-bargaining agreement they did not negotiate, employee overtime issues they did not cause and other employment practices.
This new definition affects more than 770,000 employers nationwide across multiple sectors and impacts every manufacturer that contracts for performed work with an outside entity. Manufacturers that contract out for any product or service with another company could find themselves mired in unexpected issues that arise from that company’s conduct.
The decision has already had a chilling effect on manufacturers’ ability and willingness to hire outside entities they would normally hire for specific expertise and services in differing fields. This hampers productivity and leads to increased overall costs. It also injects risk into the use of innovative and flexible workforce designs that manufacturers may use to cope with uneven production levels or market uncertainties.
The House will take up H.R. 3441, the Save Local Business Act, a bipartisan bill introduced by Congressman Bradley Byrne (R-AL), which will restore the previous standard by amending the National Labor Relations Act to define that a person may be considered a joint employer in relation to an employee only if such person directly, actually and immediately exercises significant control over the essential terms and conditions of employment. Due to the importance of this legislation to manufacturers, the NAM will be key-voting this measure. We are hopeful the Senate will do its part next and take up this important measure so that manufacturers and others can focus on job creation and running businesses, rather than trying to navigate the complicated labor policy landscape.
“The NAM applauds Congresswoman Walters for taking this positive step forward for employees and their work-life responsibilities.”
“A tall order ahead of him given the negative culture manufacturers received from the agency over the past several years…”
Last week, employees at Nissan in Canton, Mississippi, sent a strong message by overwhelmingly deciding not to unionize. The campaign to unionize the Nissan employees lasted for months, but at the end of the day, the vote was clear and demonstrates that the positive culture and collaboration between employees and employers at Nissan should continue.
Nissan’s support of Mississippi’s manufacturing workers has helped the industry and the state’s economy grow again. Manufacturing in Mississippi now accounts for more than 143,000 jobs, with an annual compensation of more than $58,000. Manufacturing workers at the Nissan plant in Canton enjoy some of the highest wages, best benefits and most stable jobs in the state.
Nissan gives back to the community, donating more than $13.6 million to local charities and contributing more than 8,000 volunteer hours to more than 200 local organizations. Their investment in the facility has strengthened the county and state. The unemployment rate in Madison County is among the lowest in the state at 3.7 percent, while the region’s unemployment rate (5.3 percent) is less than the state average (6.6 percent) and the national average (5.5 percent).
The campaign is over, the vote has taken place, and now the decision of the employees should be respected so the employees and Nissan can continue on this path of success and good work for the Canton community.
Today, we applaud the House Education and Workforce Subcommittee Chairman Bradley Byrne (R-AL), along with Chairwoman Virginia Foxx (R-NC) and Congressmen Henry Cuellar (D-TX) and Luis Correa (D-CA) for introducing the Save Local Business Act, which undoes the National Labor Relations Board’s (NLRB) 2015 unfavorable case decision in Browning-Ferris Industries (BFI). The Board, in BFI, overturned decades of case precedent on what constitutes a joint employer and significantly expanded the joint-employer standard to employers who exercise “indirect, potential or unexercised control” over another entity, overturning the old standard of “direct control.” The repercussion of this new standard has resulted in nearly two years of uncertainty among manufacturers as to whether or not their business relationships were at risk to new liabilities. The Save Local Business Act restores the 1984 standard and codifies it into the National Labor Relations Act and the Fair Labor Standards Act to prevent any future reversals.
The BFI case is just another example of uncertainty, which is unfortunately commonplace within today’s labor policy. Not only have stable and well-established policies been upset by new regulations, but the NLRB has also taken it upon itself to overturn decades of labor law precedent without any provocation or change that would necessitate it. Manufacturers are left, once again, in a state of the unknown, and rather than running their businesses and creating more jobs, employers are left with having to shift resources to deciphering the impact of these new policies.
As evidenced by the bipartisan bill introduced today, this is not a Republican or Democrat issue, but rather an employer issue that spans across the country to all industry sectors and impacts companies of all sizes. We thank Chairman Byrne and Chairwoman Foxx for their leadership on this and other labor issues and for their continued commitment to U.S. business owners to fix the problems created by misguided labor policies of the past eight years.
Manufacturing workers at the Nissan plant in Canton, Mississippi, enjoy some of the highest wages, best benefits and most stable jobs in the state. Nissan gives back to the community—donating more than $13.6 million to local charities—and its investment in the facility has strengthened the city and state.
Now, outside interests want to disrupt this positive work environment and community relationship. The United Auto Workers (UAW) is pushing for dramatic changes at the plant—encouraging workers to cast votes on unionization without any real benefit and many downsides.
The National Association of Manufacturers’ partner organization in Mississippi, the Mississippi Manufacturers Association, lays out the details here. The future of manufacturing workers in Canton could be negatively impacted by the UAW’s actions. Everyone involved, especially the local community, should be concerned. If something isn’t broken, why is an outside group trying to fix it?
Today, the House Small Business Subcommittee on Investigations, Oversight and Regulations held a hearing looking at the joint-employer standard and its impact on businesses. For months, the NAM has been at the forefront of efforts to push back against the National Labor Relations Board’s (NLRB) decision in Browning-Ferris Industries, which created a new joint-employer standard in federal labor law.
This new standard turned 30 years of precedent on its head by stating that two companies are joint employers if the host employer has any indirect or potential control of the contracted entity’s employees. Previously, a company had to have actual or direct control over these employees. Read More
This week, the administration hit federal contractors with a mandate it failed to achieve through congressional action—paid sick leave. This, unfortunately, seems to be the pattern, with a minimum wage mandate as well as the anticipated blacklisting regulation and guidance due out in April. When the administration is unsuccessful with Congress, it turns to the broad authority over federal contractors and pushes mandates onto the backs of those companies that produce essential products and services for the federal government.
For many years, the Healthy Families Act has come up as a proposal when both Democrats and Republicans have controlled Congress and has been repeatedly rejected. The concept has not, as the other side would have you think, been rejected because employers do not want to give their employees time off to care for themselves or their family. Read More