Business Weekly
Business Weekly

March 16 – 20, 2009

Employee Free Choice Act Update

Arkansas Groups Join National Fight over Union Legislation
By Matthew S.L. Cate

Arkansas Democrat-Gazette

Hoping to whip up opposition to a congressional bill that would make it easier for workers to unionize, Arkansas business groups warn the legislation would make a “devastating impact” on the state and national economy.

The Employee Free Choice Act, according to the collective speaking against it last Thursday afternoon, would “flip the table” and “absolutely devastate small business.”

Sylvester Smith, director of the National Federation of Independent Business’ state chapter, called it “the worst thing we can do against the American worker.”

Such claims, pro-labor groups counter, “smack of desperation” and are part of a “multi-million-dollar misinformation campaign.”

“I think it’s shameful,” Mary Beth Maxwell, the executive director of American Rights at Work, said during a morning conference call. “It’s very clear that 2009 is the year that we will pass the Employee Free Choice Act and restore fairness to workers.”

Two Democrats, Sen. Ted Kennedy of Massachusetts and Rep. George Miller of California , introduced the bill in their respective chambers last Tuesday. The legislation is expected to be the focus of one of the year’s toughest political bouts.

Pro-labor groups are lobbying congressional representatives by phone, by e-mail and by direct office visits. Business groups are using similar pressure tactics. Both sides are running expensive TV ads. This Monday, the Arkansas AFL-CIO hosted a candlelight vigil at the state Capitol.

“There’s a lot going on across the country on this effort,” Bill Samuel, chief lobbyist for the AFL-CIO, chipped in during the conference call.

Senate Republicans have vowed to filibuster the legislation, and it’s unknown whether Democrats can overcome them. Both sides are pressing publicly uncommitted senators hard, especially in Arkansas .

Sens. Blanche Lincoln and Mark Pryor, both Democrats, have sponsored the bill in previous years, when it had no chance of passage. Now, Lincoln says only that she’d rather consider the bill in different economic circumstances. Pryor, without offering details, says that lawmakers should compromise on the bill’s divisive provisions.

Last Thursday, a coalition spearheaded by the Arkansas State Chamber of Commerce held a forum against the legislation, sometimes known as the “card-check bill.” Arkansans for the Secret Ballot included members of building, hospitality and hospital associations. Billed as a “frank conversation,” unions weren’t invited.

“We didn’t want to turn it into a debate,” said Chamber CEO Randy Zook, drawing a round of chuckles when he added: “I can tell you what they’d say.”

While saying several times that the group is not opposed to organized labor, members simultaneously contended that increased unionization “just kills productivity” and, as Montine McNulty said on behalf of the hospitality industry, “would be the death.”

In Arkansas , a right-to-work state, less than 6 percent of the labor force is unionized. The business groups on Thursday said they feared any increase in that level would push businesses already struggling with the recession over the brink. They also professed a worry over workers’ ability to vote for or against unionization in secret and said that bill’s process guiding contract negotiations would be unfair.

“The current system works,” Zook said.

Currently, workers can try to organize after signing up at least 30 percent of their colleagues. But employers usually demand government-run elections before accepting new unions.

The bill would largely shift the decision into the hands of employees: If a majority of them sign pro-union cards, the employer could not force a vote.

No Choice In Free Choice Act
By Glenn Garvin

Mcclatchy Newspapers

If consistency is really the hobgoblin of little minds, then Hilda Solis and George Miller must be America ’s top ghostbusters. They think the secret ballot is the cornerstone of democracy, except for American workers deciding whether to join a labor union.

Miller is the U.S. House’s chief sponsor of the Orwellianly named Employee Free Choice Act, a bill much-coveted by labor unions that would do away with secret-ballot voting when they’re trying to organize a company workforce. And Solis, a former congresswoman from Southern California who is President Barack Obama’s newly confirmed labor secretary, is EFCA’s chief cheerleader.

Oddly enough, Miller and Solis used to think secret ballots were the very lifeblood of democracy. In 2001, introducing himself as someone “deeply concerned with international labor standards,” Miller wrote Mexican officials urging them to allow workers to vote on unionization with secret ballots.

“The secret ballot is absolutely necessary in order to ensure that workers are not intimidated into voting for a union they might not otherwise choose,” Miller wrote, adding that the practice “will help bring real democracy to the Mexican workplace.” (The American workplace, I guess, is quite another matter.)

Solis was in Miami last week promising labor leaders her full support for EFCA. Poor Solis felt quite differently in 2007 when she and her allies were losing a campaign for control of the congressional Hispanic Caucus. Back then, she was bitterly demanding a secret ballot. “It is important that the integrity of the caucus be unquestioned and above reproach,” she wrote.

Under U.S. law stretching back to the 1930s, workers decide if they want to join a union by casting a secret ballot in a government-monitored election. Organized labor and its

Democratic Party vassals want to change that to a so-called Card Check procedure; a union would simply present signed cards from more than half the affected workers, and poof! The union is in charge, no election muss or fuss.

Labor leaders say they need a new law governing elections because they’re losing membership. Unionization of private-sector employees, which peaked at 35 percent in the mid-1950s, has dropped to less than a quarter of that. But the decline hasn’t come because unions are losing elections—they won two-thirds of them in the first six months of 2008. Union membership is falling because unionized industries are dying, automating or fleeing overseas. That’s not coincidental. When the average UAW worker makes $73 an hour in wages and benefits, when UAW contracts impose more than 5,000 pages of rules on how factories can operate, both capital and consumers migrate toward nonunion Japanese carmakers.

That’s the bitter irony of EFCA: It won’t save jobs, but destroy them. Ordinarily, when you make such radical changes in an economic model, you can only make guesses about the outcome. But in the case of EFCA, we know exactly what will happen because Canada has graciously—for us, anyway—turned its workers into lab rats to test the effects.

Most American labor law is made at the federal level. But Canadian workers are largely regulated by the country’s provincial governments, which for the past three decades have been moving back and forth between card-checks and secret-ballot elections to certify unions.

So we can say two things with certainty about EFCA: More unions will be certified, and more workers will be laid off. A study of Canada ’s experience unveiled last week by the international consulting company LECG says that union membership increased by as much as 20 percent when a province changed from elections to card-check.

That’s pretty good news if you’re a union boss, pretty bad news if you’re a worker, because unemployment jumps right along with unionization. According to the study, for every three percentage-point increase in organized workers, the unemployment rate goes up one percentage point. So if the AFL-CIO prediction that EFCA will increase unionization by five percentage points is correct, 2.7 million American workers will lose their jobs.

If you find that worrisome at a time when the American economy is already shedding 600,000 jobs a month, you must have a bad case of the hobgoblins.

(Glenn Garvin is a columnist for the Miami Herald.)

Beware, Americans the End of Freedom
Arkansas Democrat-Gazette Editorial

IT’S IN the works, the bill’s in the hopper, the rails are greased. Last week the Democratic leadership in Congress introduced its master plan to unionize American workers—a plan that would do away with the bothersome little detail of having the workers actually vote on that decision. Vote, shmote. This ain’t about democracy, it’s about power. And how to seize it.

Ah, yes, the right to vote. Just a minor detail, though it used to be of some importance in a free country. We remember it well. But after this session of Congress, the secret ballot may be only a quaint relic of a past time when it comes to labor-management relations under our new president and New Order.

Will the actual vote in Congress be just a formality? Has the deck been stacked? Is it all over but the shoutin’? Or is the debate just warming up?

Speak up now or forever hold your peace—because once this new system goes into effect, some precious rights will be lost. The secret ballot would be only the first of them, replaced by a card-check system that allows union organizers to browbeat workers into joining up. Those who declined would have to take a lonely stand in public, risking harassment. The worker’s privacy—his right to be left alone to make his decision—would be gone.

But that’s just for starters. Once the right to vote has been lost, the union installed under a new card-check system, and a contract being negotiated, both labor and management would lose their right to bargain with each other once an arbitrary deadline had passed—specifically, 120 days. After that, their differences would have to be submitted to arbitration.

This new, disimproved system would change the whole tempo, tone and substance of the negotiations as one side or the other tried to manipulate the new rules. This would be a whole new ballgame, and—after 120 days—the umpire would become one of the players.

In their native American ingenuity, no doubt both sides would come up with new and clever ways to avoid bargaining with each other freely. Those quaint days would be gone. For the clock would be running on their freedom to negotiate. And one side or the other would be tempted to run the clock out, or use the impending deadline to press the other to accept its terms. Take it or leave it—to arbitration.

In a free society, neither labor nor management should be subject to such coercion. But this bill, with its 120-day deadline to reach an agreement or else, makes the old Taft-Hartley Act, with its 80-day cooling-off period before a major strike is called, seem almost mild.

THE CARD-CHECK bill was bad enough before, when it just deprived workers of their right to vote. But these additional provisions may be even worse: Once the union’s installed, no negotiations after 120 days! After that, collective bargaining would be replaced by government-decreed arbitration. Even before the 120 days had passed, the threat of arbitration would hover over both sides, limiting their freedom.

The principle at the heart of collective bargaining—the ability to negotiate free of pressure—would be gone with the secret ballot.

This new system would drastically change the way labor and management relate to one another when it comes to settling their differences. Before, management could continue to negotiate until it had a deal it could live with, and the same went for the labor union. Now government would step in if it didn’t think the company and the union were moving fast enough.

If and when this radical change becomes law, and the 120 days are past, it’ll be up to government-appointed arbitrators to decide any disagreements between labor and management—even though the arbitrators won’t be the ones who have to live with their decision. That burden would fall on workers and managers.

In Italy in an earlier decade, this general approach to labor-management relations, which gives the state the final say, was part of a larger system. That system had a name: fascism. Somewhere, Benito Mussolini is smiling. 

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50th Annual Washington Fly-In and Congressional Dinner Set for April 18-21

The State Chamber/AIA recently e-mailed and sent by regular mail information to our members on the Washington Fly-In and Congressional Dinner including a Registration Form and Sponsorship Opportunities. All sponsorship opportunities include recognition in the printed materials for the event. If you would like to register and have not done so yet or need another copy of the Registration Form and Sponsorship Opportunities, click here.

We meet and greet our senators, representatives and their staffs at their offices, at luncheons and breakfasts and at the reception and dinner. The Fly-In is organized to afford maximum opportunity to discuss not only federal issues that affect our state, but also those of local importance.

If you have not participated in this event in the past, this is a perfect opportunity for you to do so. Given the extraordinary level of business issues ranging from the Employee Free Choice Act to economic stimulus bill provisions to all sorts of other mischief, it’s imperative that we have a large crowd for this event.

In addition to encouraging you to register to participate in this event—as a repeat attendee or as a first-timer—we are seeking sponsors to partner with us as hosts. This governmental affairs activity provides an excellent opportunity for productive contact with our senators, representatives and their staffs.

Sponsors to date for the Washington Fly-In and Congressional Dinner include: The Work Place, Presenting; The Harriet and Warren Stephens, Stephens Inc. Charitable Contributions Committee, Patron; Cox Communications and The Alliance of Jefferson County, Dessert; Acxiom, America’s Car Mart, Central Moloney, Global Strategy Group, LLC, Kimberly-Clark Corp., Little Rock Regional Chamber of Commerce, Nabholz Construction Corp., Tyson Foods and Windstream Corp., Gold; AEP/SWEPCO and Langston Companies Inc., Silver, CardinalHealth, CenturyTel, Rogers-Lowell Chamber of Commerce, Russellville Area Chamber of Commerce and Securitas Security Services, Bronze; and Oce/Copy Systems and Troutman Sanders Public Affairs, Contributor.    

If you have questions on the Fly-In and Congressional Dinner, call Deb Mathis at (501) 210-4212 or email her at dmathis@arkansasstatechamber.com. 

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Leadership Arkansas to Hold Economic Development Session in Fort Smith

Leadership Arkansas Class III will hold its next session covering Economic Development on Thursday and Friday, February 26-27 in Fort Smith .

Sponsors for the Session include Golden Living, AOG, Baldor, CenterPoint Energy, Chesapeake Energy Corp., Fort Smith Regional Chamber of Commerce, Fort Chaffee Redevelopment Authority, OG+E, Sparks Health System and Hiram Walker.

The Session agenda will include a presentation on the “Marriage of Economic Development and Education by Dr. Ray Wallace, Provost of the University of Arkansas at Fort Smith; a Manufacturing Overview and Prospect Development Process presentation by Sandy Sanders, Interim President and CEO and Cheryl Garner, Vice President of Economic Development for the Fort Smith Regional Chamber of Commerce; a class lunch; a tour of Baldor; a reception and dinner at Golden Living; a presentation on the “Impact and Issues of the Natural Gas Industry” by Robert Zeiler, Community Affairs Manager for Chesapeake Energy; a presentation on the History of Fort Chaffee by Ivy Owen, Executive Director, and a Class Manufacturing Project.

Additional sessions planned for the coming months throughout the state include:

  • Session VI – Northeast Arkansas Economy, May 21-22, 2009, Jonesboro ;  
  • Session VII – Northwest Arkansas Economy, June 25-26, 2009, Fayetteville .
  • Leadership Class III Graduation will be held June 26, 2009 in Fayetteville .

Leadership Arkansas is a program designed to take a statewide view of the economic and political challenges that face Arkansas . The program offers leadership opportunities that expand the impact of community leaders across the state. Created by the State Chamber/AIA, Leadership Arkansas builds a sense of statewide community by identifying and training individuals with the passion and commitment to become personally engaged in issues, programs and activities aimed at building a better Arkansas .

The Chairman for this year’s Leadership Arkansas class is program founder Paul H. Harvel. Curriculum Chairman is Michele Bond. Leadership Arkansas Class III is sponsored by Southern Bancorp of Arkadelphia.

If you would like to be a session sponsor or need further information about Leadership Arkansas, please call Susie Marks at 501-210-4206 or e-mail her at smarks@arkansasstatechamber.com.

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State Chamber/AIA Leadership Conference – Revived, Refocused, Inspired

The Arkansas State Chamber of Commerce Leadership Arkansas program will present its first Leadership Conference – Revived, Refocused, Inspired on Friday, May 8 at the Statehouse Convention Center in Little Rock .

Featured speakers for this exciting event include golfing legend Jack Nicklaus, former Prime Minister of Great Britain and Northern Ireland Tony Blair and Liz Murray, whose true-life story inspired the Lifetime movie “Homeless to Harvard”. Ernie Johnson, professional sports announcer and host of TNT’s Inside the NBA, will serve as master of ceremonies for the event.

This event will be live simulcast broadcast from Atlanta to more than 60,000 business and community leaders. It will serve as a resource to empower local leaders and become a hub for leadership development. In these hard economic times, strong leadership is vital for successful organizations.

You will leave this Leadership Conference refreshed and enlightened - and you will offer your team a renewed sense of hope and vision as you take your learning experiences back to them.

Leadership Arkansas ’s mission is to build a strong, diverse, statewide network of leaders with a shared commitment to connect our communities and to make Arkansas a better place in which to live and prosper.

Tickets are $75 each and a limited number are available, so act fast. To order tickets or for further information, contact Susie Marks at (501) 210-4206 or smarks@arkansasstatechamber.com. 

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State Chamber to Host Procurement Conference

 

The Arkansas State Chamber is partnering with the U.S. Small Business Administration, the state congressional offices and the Arkansas Economic Development Commission (AEDC) to bring the Arkansas Procurement Opportunities Conference to Little Rock on June 2 at the Statehouse Convention Center in Little Rock .

The Procurement Opportunities Conference will include the Annual Small Business Awards Luncheon, networking, training and procurement opportunities. It will also feature a business exposition/matchmaking event, pairing small business owners with prime contractors, federal agencies and major corporations in a one-on-one setting.

Some 350 local and regional small business owners (SBEs, MBEs, WBEs and DBEs) will come together for a full day of procurement opportunities with 150 buyers from federal agencies, prime contractors and major corporations.

 

Sponsorship opportunities for this event are possible. For further information, please contact Susie Marks or Jeff Thatcher at 501-372-2222, or log onto www.arkansasprocurement.org.

 

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State Chamber/AIA to Publish Arkansas Manufacturers Directory

 

The State Chamber/AIA plans to publish the Arkansas Manufacturers Directory in June.  This publication will contain in-depth company profiles of more than 4,000 industrial businesses. Each Arkansas business will be profiled in detail, providing company facts essential to identifying and contacting Arkansas manufacturers and their decision makers.

The Arkansas Manufacturers Directory will also serve as a valuable resource if you are looking for suppliers here in the state. Copies of the Directory will be distributed to State Chamber/AIA members, membership prospects and manufacturers throughout Arkansas .

The Directory will have a one-year shelf life and be a good marketing vehicle for you to promote your services among our members, membership prospects and manufacturers throughout the state.

For information on ad rates and specifications, contact Jeff Thatcher at (501) 210-4205 or jthatcher@arkansasstatechamber.com or Susie Marks at (501) 210-4206 or smarks@arkansasstatechamber.com. 

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Welcome to Our New Members

 

Thanks to the following companies and organizations that have recently joined the State Chamber/AIA:

Arthritis Foundation, Arkansas Chapter

Benefit Administrators Group

Capitol Glass Co. Inc.

Career Solutions

CMT, Inc.

First Arkansas Bank & Trust

Hewlett Packard

McGhee’s Moving & Storage

Oxford Graphics 

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Thanks to Our Pinnacle Members

 

We wish to express special thanks to all of our Pinnacle investors, the respected companies that support the State Chamber/AIA at the highest annual investment levels. We appreciate all that they do for us.

APEX

Alltel Corporation

Entergy Arkansas, Inc.

Wal-Mart Stores, Inc.

 

SUMMIT

Chesapeake Energy, Inc.

Cox Communications

Tyson Foods, Inc.

XTO Energy, Inc.

 

PEAK

Arkansas Blue Cross and Blue Shield

Arvest Bank

AT&T Arkansas

CenterPoint Energy Southern Gas

Electric Cooperatives of Arkansas

FedEx Freight - East

Georgia-Pacific Corporation

Kraft Foods

Oaklawn Jockey Club

SemGroup LP

Southern Bancorp, Inc.

Southland Park Gaming & Racing

Southwestern Energy Company

State Farm Insurance

Verizon Wireless

Windstream Corporation

 

CROWN

Acxiom Corporation

AEP Southwestern Electric Power

Albemarle Corporation

Alcoa Inc.

American Greetings Corporation

America 's Car-Mart, Inc.

Arkansas Employees Federal Credit Union

Arkansas Farm Bureau Federation

Arkansas Oklahoma Gas Corporation

Arkansas Western Gas a SourceGas Company

Bank of the Ozarks

BP America, Inc.

CardinalHealth

CenterPoint Energy Gas Transmission Company

Crossland Construction

Deltic Timber Corporation

Dynegy

Entegra Power Group LLC

Evergreen Packaging Company

Farm Bureau Mutual Insurance Company of Arkansas, Inc.

Forest Oil Corporation

Glad Manufacturing/A Clorox Company

Golden Living

International Paper Company

Kimberly-Clark Corporation

Lion Oil Company

McKee Foods Corporation

Metropolitan National Bank

Nabholz Construction Corporation

National Center for Toxicological Research (NCTR)

Nucor-Yamato Steel

OG+E

Petrohawk

Philander Smith College

Potlatch Forest Products Corporation

Rheem Air Conditioning Division

Riceland Foods, Inc.

Signature Bank of Arkansas

Stephens, Inc.

Storm Cat Energy

Suez Energy North America

The Clorox Company

The Trane Company

US Bank

Waste Management

Weyerhaeuser Company

Wright Lindsey & Jennings

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Calendar of Events

 

March 26-27                Leadership Arkansas Class III

                                    Economic Development Session

                                    Fort Smith

March 26                    Regional Board Member Meeting

                                    In Conjunction with Leadership Arkansas

                                    Class III Meeting, Fort Smith

April 20                        State Chamber/AIA Board Meeting

                                    Crystal Gateway Marriott Hotel

                                    Arlington , Virginia

April 20                        Washington Fly-In and Congressional Dinner

                                    Crystal Gateway Marriott Hotel

                                    Arlington , Virginia

May 6                           Small Business Council Meeting

                                    11:30 a.m. to 1 p.m.

                                    Conference Room

                                    State Chamber Building , Little Rock

May 8                           Maximum Impact Simulcast Leadership Conference

                                    7:30 a.m. to 3:30 p.m.

Statehouse Convention Center

                                    Little Rock

May 13                         State Chamber/AIA Board Meeting

                                    10 a.m.

State Chamber Conference Room

Little Rock

May 13                         New Member Luncheon

                                    11:30 a.m. to 1 p.m.

                                    State Chamber Conference Room

                                    Little Rock

May 21-22                   Leadership Arkansas Class III

                                    Northeast Arkansas Economy

                                    Jonesboro

June 2                         Arkansas Procurement Opportunities Conference

                                    Statehouse Convention Center

                                    Little Rock

June 2                         Nineteenth Annual Arkansas

                                    Small Business Awards Luncheon

                                    Statehouse Convention Center

                                    Little Rock

June 25-26                  Leadership Arkansas Class III

                                    Northwest Arkansas Economy

                                    Fayetteville

June 26                       Leadership Arkansas Class III

                                    Graduation

                                    Fayetteville

August 12                    State Chamber/AIA Board Meeting

                                    10 a.m.

State Chamber Conference Room

                                    Little Rock

August 12                    New Member Luncheon

                                    11:30 a.m. to 1 p.m.

                                    State Chamber Conference Room

                                    Little Rock

October 19                  State Chamber/AIA Annual Meeting

                                    State Chamber/AIA Board Meeting

                                    DoubleTree Hotel

                                    Little Rock

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