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The NLRB’s Unlawful Rule
Congress never authorized the NLRB to require workplace notices.

By Peter Schaumber


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The National Labor Relations Board’s recent rule requiring virtually every employer in America to post a notice describing its employees’ rights under the National Labor Relations Act (NLRA) is reflective of two disturbing trends at the NLRB: first, a myopic and partisan focus on increasing unionization by whatever means, including bold exercises of authority not within the agency’s statutory mandate; and second, a concomitant disregard of protected employee rights to refrain from union activity.

Under the new rule — enacted just a few weeks after the NLRB proposed to radically shorten the time it takes to conduct secret-ballot elections for union representation, so as to limit employers’ right to express their views about unionization to their employees — an estimated 6 million employers will be required to post a notice in every workplace. Further, if the board finds that an employer’s failure to post the notice was “knowing and willful,” this fact may be deemed presumptive evidence of an “unfair labor practice,” or violation of the NLRA.

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To see how this could play out in practice, take for example an employer who disciplines a worker for repeatedly violating a rule. If the worker claims the discipline was imposed because he or she is a union member, and if the employer failed to post the notice, the board can find a discriminatory motive for the discipline. In effect, this would require the employer to prove its innocence, rather than the agency to prove the discipline was actually discriminatory.

In addition, an employer’s failure to post the notice could stop the clock on the statute of limitations for employees to file charges under the NLRA, even though the law imposes a six-month limitation period.

The fundamental problem with the new rule is that the board lacks the statutory authority to impose it. As the lone Republican board member, Brian Hayes, wrote in his dissent, quoting from an eloquent Supreme Court decision: “Agencies may play the sorcerer’s apprentice but not the sorcerer himself.”

The simple truth is that the NLRA, unlike a number of other federal employment statutes, does not require the posting of a workplace notice. And it explicitly defines the conduct that constitutes an unfair labor practice. Yet despite the fact that Congress clearly knows how to include an express notice-posting requirement when it wants one, the NLRB majority concluded that the absence of such a provision means that their power to do so was implied. Moreover, the express listing of unfair labor practices Congress deemed unlawful does not preclude them from inventing new ones. Now that truly is sorcerer’s alchemy of the first order.

Further, the contents of the proposed notice reflect an outdated and biased view of the workplace. Most, though not all, contemporary employers look on their employees as valued participants in a worthwhile enterprise — not as faceless numbers to be exploited.

Into this relationship now steps the NLRB with a notice telling employees they have the right to “organize a union . . . take action . . . rais[e] work-related complaints . . . strike and picket.” While employees may have those rights, those rights are not unlimited and can carry serious consequences if exercised in the wrong way or at the wrong time. The NLRB’s notice says nothing about that, or about the equally important rights of employees to refrain from union activities and to oust incumbent unions. As one friend of mine suggested, it’s a bit like requiring every married couple to post a notice in the hallway that each one has the right to fight bitterly, walk out, separate, and divorce. True, yes, but the listing is inflammatory, decidedly incomplete, and probably not the best message to send to parties hoping to build a successful long-term relationship.

I have no qualms about educating employees about their rights under the law, and the board, under both Democratic and Republican administrations, has engaged in many outreach and education efforts. But until now, the board has done so within the scope of the authority delegated to it by Congress. If the board had truly believed that workplace notices were critical to its mission, despite 75 years of functioning without one, the proper course would have been to petition Congress to amend the NLRA to include such a provision. Further, if the board truly had been concerned about educating employees about their rights and fostering stable labor relations, it would have issued a more balanced and complete notice, one that referenced both rights and obligations and was expressed in a manner that promoted harmony.

The board received 7,034 comments to the rule, most of which addressed the contents of the proposed workplace notice. Many asked for revisions to achieve balance between the right to organize and a worker’s freedom of association; some suggested changes that would have made the notice more easily understood by high-school graduates and immigrants, whom the board identified as unfamiliar with the law necessitating the notice.

The board effectively rejected all but a handful of these comments. The statement of employee rights remains parsed in the legalese of the original 1935 statute and focuses exclusively on unionization and collective action. Despite multiple requests, the board declined to emphasize that employees have the right to refrain from union organizing and other concerted activity. Similarly, the board dismissed the idea of informing employees of their statutory right to organize opposition to and decertify a union, or of their right not to pay for a union’s political expenditures. Clearly, to this board, the only rights that matter are those they deem likely to increase unionization.

In short, the board’s new notice-posting rule represents an unwarranted usurpation of congressional authority to achieve through partisan rulemaking what organized labor could not accomplish through the democratic legislative process. Moreover, the rule undermines the very purpose it purportedly serves: educating employees about their rights under the National Labor Relations Act. Such regulatory sorcery diminishes the agency in the eyes of the public and the reviewing courts.

Peter Schaumber is a former chairman of the National Labor Relations Board.

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COMMENTS   13

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   09/02/11 09:38

".. usurpation of congressional authority to achieve through partisan rulemaking what organized labor could not accomplish through the democratic legislative process."

The above sentence, less the phrase "organized labor" aptly characterizes the general approach employed by this Administration.

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   09/02/11 16:09

Sir,

I don't know what you are smoking, but you couldn't be more wrong with this statement:

"Further, the contents of the proposed notice reflect an outdated and biased view of the workplace. Most, though not all, contemporary employers look on their employees as valued participants in a worthwhile enterprise — not as faceless numbers to be exploited."

The only way 98% of management looks at workers are as a resource, at aboput the same level as CARBON PAPER, and with the respect.

Management's biggest concern right now are their GOLDEN PARACHUTES.

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econ oneoone
   09/02/11 17:43

What an absolutely ridiculous contention. Please cite ANY references you might have for your OPINION, misinformed and delusional though it may be.

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 Tom
   09/02/11 22:34

Well, to be fair did the author cite any reference for his OPINION? All three of you are expressing opinions without any support whatsoever.

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   09/03/11 23:36

Fair? Oh, puh-leez!! The author is former head of the NLRB. He is speaking of matters of which he has both direct experience and expertise. He need not footnote every opinion, just as NYT editorials do not footnote theirs.

You Tom, OTOH, offer up a completely unsubstantiated and tendentious aside, which you refuse to support. What's your expertise on this matter?

If your position were true, private-sector unions should be holding their ground against evil management, rather than declining from 20% of the labor force in the 1980's to 7% today.

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 Tom
   09/05/11 18:15

"Fair? Oh, puh-leez!! The author is former head of the NLRB. He is speaking of matters of which he has both direct experience and expertise. He need not footnote every opinion, just as NYT editorials do not footnote theirs."

Are you willing to give the same courtesy to Mr. Pearce, the current Chairman, as you do Mr. Schaumber? Because frankly, their views are diametrically opposed? Argument by credential is franky no argument at all.

The NYT quotes and cites research all the time. You might not agree with the research or the interpretation but the fact still stands.

"You Tom, OTOH, offer up a completely unsubstantiated and tendentious aside, which you refuse to support. What's your expertise on this matter? "

Actually, I offer up no opinion. I simply pointed out Mr. Schaumber made a statement with no substance. It was unsupported by any facts presented.

My expertise? I have an MBA. My undergrad work was in human resource management. I do not admit to have the vast expertise and experience of Mr. Schaumber, because I don't, but frankly that is hardly relevant. I made no statement of implied fact that needed to be cited. Nor did I think either Mr. Schaumber or the OP need to cite anything. This is a news blog not an academic forum.

"If your position were true, private-sector unions should be holding their ground against evil management, rather than declining from 20% of the labor force in the 1980's to 7% today."

What position do I have Jim? I took no position on whether unions are good are bad. And your argument that since union membership is decling is rather weak. That could represent many things other than people's satisfaction with their jobs, or how they are treated by management. If you really want to make the argument that employees are not treated badly by management I'd suggest you look at historical trends in job satisfaction. It would actually make your point better.

My personal view on unions is that they have served their historical purpose and for the most part are at best meaningless and at worst a significant drag on the economy. But that really was not the point, was it?

I do find it extremely funny that if I makes any least criticism of an author on NRO that the automatic assumption is I a democrat/liberal/socialist. I thought only left wingers were that reflexive and narrow-minded.

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Vin
   09/05/11 13:00

I'm missing your point. Labor IS an input resource. How else would you account for it?

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   09/02/11 18:15

Marrken - "Management's biggest concern right now are their GOLDEN PARACHUTES."

Managements biggest concern is producing a product that is salable, at a (gasp) profit, so they can pay the employees a salary and pay dividends to the people who thought enough to buy the company stock.

I can't wait for a Republican President, Senate and House to over turn this pitiful NLRB and their incessant push for Unions. When you are only 12% of the population, Unions are about themselves - screw the rest of the world.

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Anton Philidor
   09/03/11 23:03

You're right that management's biggest concern now is not golden parachutes. Those are the bonanzas executives receive for leaving, and why should they leave now?

No, companies are run to produce the largest possible bonuses for management, of course. If that requires offshoring, okay. If that requires layoffs of people developing future products, okay. If that requires buying other companies in order to have someone else's employees to lay off, okay.

Whatever it takes.

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   09/04/11 06:55

Is anyone challenging the legality of the rule in court? Or do we have to wait until an employer is punished for failing to comply?

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Vin
   09/05/11 13:03

Is anyone challenging the entire existence of the Dept of Labor?

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old white guy
   09/04/11 08:35

time for a challenge at the scotus.

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Vin
   09/05/11 12:58

Does anyone know under what provision of the Constitution the Fed Govt is permitted to control/regulate labor? Is this one of those "interstate commerce" imaginary powers?

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