The AFL-CIO Split: Time for Employers to Get 'Organized'

On July 26, the Service Employees International Union (SEIU) and the International Brotherhood of Teamsters announced that they were ending their affiliation with the AFL-CIO, the national federation of labor organizations.

They were soon joined by the United Food and Commercial Workers Union (UFCW). In total, seven unions, representing nearly 6 million workers, broke ranks with the AFL-CIO and formed the new Change to Win Coalition.

The Coalition believes that the time has come for action, given the dramatic decline in union membership over the years. Presently, union membership in the private sector stands at about 8 percent, down from over 20 percent just two decades ago. The Coalition believes that labor’s primary focus must be on aggressively organizing new members, and it accuses the AFL-CIO of devoting too much money and energy to supporting labor-friendly politicians at the expense of organizing.

In the words of SEIU President Andrew L. Stern, “We believe we can and will succeed based on our own efforts – not a rescue by others.”

The disaffiliation move came as a surprise to many observers. There is disagreement over whether the rift will ultimately prove good or bad for labor, but this much is clear: Employers should expect more organizing activity.

Why? Well, for starters, the Coalition has in effect “thrown down the gauntlet” by officially making organizing its primary focus. Even before its split from the AFL-CIO, the SEIU was known for aggressive (and successful) organizing.

Between 1980 and 2005, SEIU membership jumped from just over 600,000 to almost 1.8 million. The Teamsters and UFCW have also been very active in organizing new members.

Indeed, between 2000 and 2005, the three most active unions in terms of representation petitions filed with the National Labor Relations Board were, in order, the Teamsters, the SEIU and the UFCW. Thus, these unions have the means, experience and motivation to make good on their promise of more organizing activity, and it is logical to expect that they will do so.

Further, given that these three unions were previously three of the four largest unions within the AFL-CIO, it would also be logical to expect that the remaining AFL-CIO members have “something to prove” (not to mention a need to replace 6 million lost members), and so more organizing should be expected from the AFL-CIO, as well.

What is a Union-Free Employer to do?

The first step is to “get organized.” Employers would do well to remember the adage: Employees don’t vote for a union, they vote against their employer.

Sophisticated companies understand this, and work hard to ensure that employees feel appreciated, informed, empowered, and, perhaps most of all, treated fairly. These companies don’t wait until a union organizer begins soliciting their employees.

The union-free infrastructure is already in place. Indeed, once organizing activity begins it may be too late to make desirable changes, because it is unlawful to change wages or terms and conditions of employment solely in response to union activity.

Specific Steps to Take

What specific steps should a union-free company be taking now?

Start with a “vulnerability assessment” by considering the following questions.

Compensation/Benefits

• How does the company’s pay and benefits package stack up against other employers in the industry?

• If there are unionized companies in the industry, what benefits do bargaining unit members enjoy that the company’s current employees do not?

Personnel

• What is the racial or ethnic make-up of workforce? A significant racial or ethnic disparity between labor and management can drive a wedge between the two groups and can be used against the company in a union campaign.

• What is the typical length of service? Short-term employees may have less loyalty towards the company.

• Are there a lot of new supervisors? If so, training or team-building efforts may be in order.

• Are employees promoted from within? Are jobs posted? It is a good idea to seek out and promote qualified internal candidates, but this may also result in the need for more manager training.

Management Credibility

• Does the company proactively communicate with employees about matters directly affecting them? Do employees view the company as a prompt and reliable source of information?

• Does the company develop and train managers to act, and be seen as, truthful and fair? For example, a front-line supervisor may be unaware that the way he distributes overtime is being perceived as “playing favorites.” A uniformly enforced written policy would help.

Communication Regarding Policies and Benefits

• Does the company make sure employees are aware of exactly what benefits they currently enjoy, and how to take advantage of them?

• Does the company use such communication techniques as a well-drafted handbook, comprehensive orientation, a company newsletter, personalized letters to employees’ homes when appropriate?

Soliciting Employee Feedback

Does the company hold regular employees meetings?

Does the company use other formal feedback mechanisms such as a written (anonymous) “Employee Survey” form?

Employee Appreciation

• Does the company acknowledge achievement, and let employees know that their work is appreciated? For example, does the company use regular performance appraisals, service awards, newsletter recognition, “employee-of-the-month” awards, personalized letters of appreciation from the President, birthday recognition, awards dinners, pizza parties or picnics, T-shirts or hats with company logo?

Policies

• Does the company expressly prohibit solicitations and distributions of materials during working time, and is this policy consistently enforced?

• Is there a policy expressly prohibiting off-duty employees and outsiders from distributing materials or soliciting in interior areas and exterior work areas? Is this policy consistently enforced?

• Do employees feel they have access to dispute resolution channels? For example, does the company have a formal grievance procedure, a meaningful open-door policy, a toll-free complaint hot-line, or a suggestion box? And does the company properly investigate and remedy complaints once they are raised?

Once you have done a thorough vulnerability assessment, you can take specific steps to address any deficiencies. Remember: it is often too late to make changes once a union organizing drive starts. The time to “get organized” is now.

Peter Moser is of counsel for Connecticut-based Robinson & Cole (www.rc.com) in the labor and employment group, where he concentrates his practice on defending discrimination claims, representing employers in union organizing campaigns and collective bargaining, drafting and reviewing company policies and forms, and providing counseling and training on most day-to-day employment issues. You can reach him at (617) 557-5923 or [email protected].