5:15 PM Eastern - Tuesday, June 16, 2009

Big Business' Two-Faced Approach to Arbitration

The "first contract arbitration" portion of the Employee Free Choice Act seeks to stop employers from using endless foot-dragging against workers who have voted for a union, but have yet to secure a contract. The legislation says that if employers and workers can't reach an agreement in a reasonable amount of time--120 days--either side can bring in a neutral, private-sector arbitrator to settle the dispute.

In March of this year, the Chamber of Commerce called Consumer Arbitration, "Fair, Inexpensive, and Unbiased."

Many corporations--like the Chamber-- are happy to support arbitration when it's in their best interest, and put arbitration provisions into 75 percent of consumer contracts.

ARAW_Arbitration_Ad_best interests.jpgBut when it comes to creating a contract that works for workers, companies often refuse to negotiate a first agreement, or use stall tactics and gimmicks to delay the process for years. They praise arbitration when it favors them, but oppose it in settling first contracts--and will use any tactic they can to avoid paying their employees better wages and benefits.

Under the NLRA, 44 percent of new unions still don't have contracts two years after they are certified because companies refuse to even negotiate in good faith. Our current labor system for workers trying to form a union has proven its inability to defend workers' rights in a timely manner time and time again. Supporters of the freedom to form unions are fed up with delays that favor employees, and American Rights at Work has launched a campaign to point out the hypocrisy of Big Business on arbitration.

American Rights at Work launched their first print ad last week demonstrating how corporations are attacking the idea of arbitration when it involves their employees--while supporting arbitration in a variety of areas where it benefits them. Today, the second print ad in their series is out. Here's a preview of the ad that is running in Politico, CQ, Roll Call & The Hill:

ARAWad2_arbitration_twofaced.jpg

Ad text:

Big Business is happy to support arbitration when it's in their best interest. But when it comes to negotiating contracts with their workers, Big Business would rather use delay tactics to avoid paying better wages and benefits. It's only fair that corporations agree to arbitration for workers who are trying to negotiate a first contract after forming a union. Arbitration is a key part of the Employee Free Choice Act that will let both sides reach a fair agreement.
Check out the newest arbitration ad here. ARAW also has a great fact sheet on arbitration here.

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