Unions Get Proposed Rule From Labor Department

This week The Wall Street Journal reported on yet another pro labor announcement from the Obama administration. The latest comes from the U.S. Department of Labor and says employers should disclose more information about the consultants they hire to respond to union bargaining or organizing campaigns, a move long sought by organized labor and opposed by employers.

Currently, employers must report arrangements with third-party consultants hired to influence employees in connection with union bargaining or organizing issues.

The rules governing such reporting have an exception that allows employers and consultants not to file reports when consultants are giving “advice” to the employer. In effect, that means only consultants who communicated directly with workers have to file reports with the Labor Department.

Under the rule, employers would have to disclose arrangements with consultants that issue communications on behalf of an employer designed to “directly or indirectly persuade workers concerning their rights to organize or bargain collectively”, whether or not consultants contact employees directly.

The Labor Department proposal again sides with unions, who have argued for a decade that the advice exception needs to be narrowed.

“This is probably the most significant handout to organized labor that we’ve seen in this administration,” Michael Eastman, executive director of labor law policy for the U.S. Chamber of Commerce, said of the new proposal. “What they’re trying to do here is radically change employers’ behavior through disclosure requirements.”

The Labor Department said employers should disclose information about “union avoidance” seminars and conferences offered to employers by lawyers or labor consultants. Such seminars “involve reportable persuader activity”, the department proposal said, cautioning employers against classifying such seminars as “advice”.

The Labor Department’s action comes as unions are stepping up pressure on the Obama administration ahead of the 2012 election.

The proposed rule was published June 21 in the Federal Register and is available at
s.dol.gov/G9. The public can submit comments online at Regulations.gov. The deadline for comments is Aug. 22. After the period for public comment ends, the Labor Department will decide whether to make the new rule official, requiring companies to comply. ◆