Last week, Senators Murray (D-WA), Schumer (D-NY) and 33 other Democratic cosponsors introduced S. 3064, the “Workers’ Freedom to Negotiate Act.” Contrary to what the title suggests, this bill erodes many of the laws and freedoms that allow the employer and employee to engage in a consensual agreement. In fact, this bill contains several of the pernicious stipulations included in the Workplace for Democracy Act sponsored by Senator Sanders. This bill, if enacted, would radically shift power away from employers and employees into the hands of unions and have more broad implications to the stability of our economy.
The bill starts off by allowing unions in dispute to bypass the National Labor Relations Board (NLRB) and go directly to court. Moreover, this bill not only allows unions to issue harsher penalties against employees and simplifies the process of obtaining an injunction ensuring an employee’s job security if there is a claim of discrimination attributed towards the employer, but also imposes personal liability on corporate directors and officers who oversee the business. Additionally, this bill would impose the ABC test on independent contractors and supervisors. Furthermore, this bill reverses NLRB V. Murphy Oil by requiring arbitration to settle disputes when negotiating first contracts between companies and newly certified unions. This measure of government control over private contracts is particularly concerning because it confers too much authority to the arbitrators that often lack the expertise necessary about the business formation of a particular company to determine fair terms on contracts. Beyond that, all of these proposals substantially raise the economic cost for employers.
The Workers’ Freedom to Negotiate Act also actively works against interests of consumers. This bill would embolden workers to strike against their employers by stifling the employer’s capacity to replace the striker. This measure would only induce more strikes which manifests in higher prices and inconveniences for consumers.
Lastly, this bill would mandate employees, both members and nonmembers, to pay bargaining and representation fees to the predominant union. While this measure does not officially violate right to work laws, it effectively forces employees to be beholden to unions through mandatory fees.
While The Workers’ Freedom to Negotiate Act encompasses seemingly benign proposals, if enacted, this bill would manifest in an offsetting of economic growth and actually hurt the workers that its purportedly trying to help. These proposals would radically increase the natural rate of unemployment by increasing the cost of labor, creating structural implications on employment. The Workers’ Freedom to Negotiate Act is just another attempt of a union power-grab masquerading as worker empowerment and we urge Congress to strike it down.