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The Franchise Memorandum

What the EFCA Would Do

Card Check Recognition Without Secret Balloting. The EFCA would amend the National Labor Relations Act in numerous significant respects. The most troublesome provision for employers and the one receiving a lot of media attention is the abolishment of the right to a “secret ballot” election process by which employees decide if they will be represented by a union. The EFCA seeks to change existing procedure by eliminating an employer’s right to a secret ballot election before requiring the employer to accept unionization of its workforce. The law would require employers to recognize a union upon being presented with “authorization” cards signed by a majority of its employees, presumably indicating that they desire union representation. 

The bill’s elimination of an employer’s right to a secret ballot election is problematic for several reasons. Most notably, an employer may not be aware that organizing activity is occurring and thus may not be able to present the employer’s position on unionization, creating a likelihood that the workers, who will not be able to vote in private, will be coerced by organizers.

In short, the EFCA would streamline the process of union organizing and weight the process much more heavily in favor of unions than it has ever been. Conversely, it would make it more difficult for employers to fight union organization efforts and would also limit employers’ bargaining power. 

Further Information. The text of the bill is available at: http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.1409. Contact information for members of Congress is available at www.usa.gov/Contact/Elected.shtml.

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The information contained in this post is provided to alert you to legal developments and should not be considered legal advice. It is not intended to and does not create an attorney-client relationship. Specific questions about how this information affects your particular situation should be addressed to one of the individuals listed. No representations or warranties are made with respect to this information, including, without limitation, as to its completeness, timeliness, or accuracy, and Lathrop GPM shall not be liable for any decision made in connection with the information. The choice of a lawyer is an important decision and should not be based solely on advertisements.

About this Publication

The Franchise Memorandum is a collection of postings on summaries of recent legal developments of interest to franchisors brought to you by Lathrop GPM LLP. 

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