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Tuesday, 07 September 2010
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The Inadequate Costs of Labor Law Violations
Wednesday, 08 July 2009
Employers have little reason to abide by the National Labor Relations Act (NLRA), as the financial disincentives of violating the law are minimal. From firing, demoting, or retaliating against workers for their support of a union to ignoring their duty to negotiate a contract, many employers blatantly violate the NLRA. Other major federal employment laws impose fines or damages on employers who break the law. Yet the NLRA’s nominal deterrents do little to prevent employer lawlessness compared to the costs of violating minimum wage, discrimination, and health and safety protections.

If passed, the Employee Free Choice Act will address the insufficient law by increasing penalties on those who break the law and giving workers the just compensation they deserve.

Small businesses are the backbone of our economy, employing almost half of the American workforce. Yet, labor law is not ensuring a level playing field for responsible businesses, large and small.  Businesses that comply with the law face unfair competition from companies who refuse to respect the rights of their employees to join unions. The Employee Free Choice Act will give back to small businesses the freedom to compete based on innovation and quality instead of who can afford the most expensive anti-union consultants.

Small and large businesses across the nation who have respected their employees’ choice to form a union have reported that the sky did not fall – far from it.  In fact, one report found that a higher percentage of unionized workers in a state significantly reduced the probability of small business failures.  More generally, a large body of research demonstrates that firms that become unionized are no more likely to fail than comparable firms that remain non-union. 

Increased union membership rates will help small businesses by boosting consumer spending, increasing access to training resources, and reducing healthcare costs through plans that pool many unionized workers and small businesses together.

 
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