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<< I hate "Scandals" | Main | Tale of Two Court Reviews >> October 06, 2003One Plus from Union Disclosure RulesReading through the detailed summary of how the DOL is implementing its union finance disclosure rules, there is one ideological gain from the decision-- that it will reinforce the idea that organizing is all part of representing existing members. Implementing Beck: Aside from screwing unions with heavy reporting costs, the other big goal of this proposal is to enforce the anti-union Beck Supreme Court decision. That decision stated that union members can demand refunds for any portion of their dues spent on activities that are "non-representational", ie. not relevant to negotiating a union contract. (In "right to work" states, members can opt-out completely from paying any dues, so this rule is relevant only in states which haven't banned "union security" clauses which require everyone benefitting from a contract to pay dues.) Now, everything from political organizing to organizing new workplaces is relevant to getting a strong contract in any particular firm, so the line between "representational" activites ends and "political" activities for which people can get a refund is highlight controversial. Court battles: Money spent on political lobbying is generally considered refundable under the Beck rules, but the really important debate has been on whether money spent on organizing new workers into the union was refundable under Beck. Last year in a 9th Circuit decision, a full en banc panel held that organizing costs are "representational" and not refundable. As I wrote last year about the decision: Citing extensive economic evidence developed by the National Labor Relations Board, the Court emphasized that organizing competing companies is crucial to winning good contracts for union workers. As the Court noted, "management is far more willing to negotiate higher wage rates when its competitors are subject to the same union costs."Organizing as Representation: Essentially, the Department of Labor de facto endorsed that argument in its rule-making on financial disclosure. See pages 90 to 98 of the explanation. Initially, it planned to require unions to categorize expenses into multiple categories, with "Contract Negotiation and Administration" and "Organizing" expenses as separate categories. This would have been administratively hard since the whole movement of unions is to combine organizing with contract negotiation, enlisting existing members in new organizing drives. Worse, it would have made it far easier for other courts to look over union financial statements and say that members could get a refund for everything not listed under "Contract Negotiation and Administration." Under a lot of pressure, the DOL agreed to combine the two categories into a single category labelled "Representational Activities." This will be good precedent for other courts in supporting the idea that organizing costs are for the benefit of all members of the union. The DOL did not quite endorse this legal point but they did note the arguments that "Some union commenters asserted that it is inconsistent with NLRB practice and precedent to separate organizing from the category for collective bargaining/contract administration. The NLRB, they stated, recognizes that the two activities are sometimes tightly intertwined." (p. 90) Amidst a horendously anti-union set of proposals (which I'll add some more commentary on later), this is one small concession that may actually help unions in some of their legal arguments in Beck-related cases. Posted by Nathan at October 6, 2003 11:40 AM Related posts:
Trackback PingsTrackBack URL for this entry: CommentsVery interesting comment, Nathan. And you're probably right to assume that the 9th Circuit's en banc decision from last year will not be the only word on this important subject. Posted by: Dean at October 6, 2003 12:51 PM Is there going to be a court challenge to this. I'm in the IBEW and my immediate rep. didn't know about it(although these shit bags did release it late Friday). Posted by: SteveC at October 6, 2003 11:41 PM So when does this shareholding union member (IATSE) get to demand a refund from the company of which I own a piece for their political activity of which I disapprove? (They are deep in the California Recall effort.) Posted by: pessimist at October 7, 2003 04:23 AM You've misstated the holding of the Beck case. It only applies to NON-union members. Although management and a union may, in a collective bargaining agreement, agree that non-union employees be required to contribute financially to the union, the Beck case held that this contribution may only include the proportionate cost of actual bargaining, and not include the cost of political activities of the union. Posted by: John at October 8, 2003 02:18 PM John- you're right, although explaining the difference between "union members" and those paying mandatory "agency fees" is always a bit tricky. But in the general public mind, everyone covered by a union contract paying fees to the union are seen as "union members." But I should have been clearer. Posted by: Nathan Newman at October 8, 2003 02:33 PM Stating Beck's holding correctly is important because the right (e.g. the Wall Street Journal editorial page) has consistently misled on this issue, claiming that union political activity violates union MEMBERS' rights and that "the Beck decision isn't being enforced." Posted by: John at October 8, 2003 07:53 PM Don't really buy it, John, since the common sense view of most people will be that if you are paying agency fees, you are essentially a member and, if they buy the NRTW line, it's oppressive to pay for political stuff out of those agency fees. That someone is paying the agency fees but loses the right to vote for union leadership doesn't suddenly make that big a difference. The whole agency fee versus membership fee distinction is just lost on most folks (rightly so, since it's a somewhat bizarre court-created contrivance.) Posted by: Nathan at October 9, 2003 01:47 AM I don't think the distinction between (1) agency fees paid by non-members and (2) union dues paid by members is just a "contrivance". Union members get to vote on their union leaders. If dues are spent contrary to their views, they can vote for new leaders. Non-union members don't have that leverage, so perhaps it's appropriate to put more scrutiny on what they have to pay for. And in any event, there is no law prohibiting political expenditures, by duly elected officers, of union DUES paid by voting union MEMBERS, despite the right's concerted effort to create this myth. After 8 years of false accusations that a Democratic administration was "not enforcing the Beck decision", a Republican Labor Department is now seeking to hamper unions' political activities. I expect the offered justification for this action will be that this is just an overdue enforcement of the law, but that's not true. Posted by: John at October 9, 2003 07:01 AM Post a comment
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