Franchisees Unconcerned about Unionization?
The most significant franchisee-specific issue in this election has attracted no comment on Blue MauMau. Why is that?
In March, Janet Sparks wrote about the "card check" bill in Congress. Not a single person has commented on this.
To me, this willful ignorance epitomizes the illogic and stupidity of franchisees, which has resulted in the current regulatory environment in which franchisees customarily get the short end of the stick.
The card check bill passed the House on a party-line vote of 241-185. The Democrats control the House, and are likely to pick up seats in the new Congress. The Senate co-sponsor of the card check bill is Joe Biden. While Biden will likely leave the Senate to become Vice President, the current polls indicate that the Senate will likely have a filibuster-proof Democrat majority.
The polls indicate that the House, Senate, and the Executive branch will all be Democrat come January 2009.
Hence, the likelihood is that card check is going to pass in some form, barring aggressive action by franchisees.
The reality is that this will result in a unionized workforce for many franchise operators. The peer pressure that will be exerted make it unlikely that many employees are going to oppose unionization, given that their opposition will be public (card check does away with the secret ballot).
Not only will this result in significant upward pressure on direct wages, unionization will impact benefit costs and limit the ability of the employer to hire, fire, and discipline their workers. Anyone who has worked in a unionized environment knows the power wielded by the shop steward can be more than that of the supervisor, and sometimes even the employer.
It is incomprehensible to me why we have seen no discussion of this on BMM.
People put gibberish rants about ideology, but no one is remotely interested in a scenario which could send them into bankruptcy.
Franchisees are just like any interest group. You get the government you deserve.
UPDATE: See also Jim Coen discussion of former Sen McGovern's opposition to the card check bill, as reported on an influential DC website.
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It may behoove those whom do emply others to take the time to explore the employment practices of ALDI foods. I believe there are clear reasons why they have been so successfu and add that ALDI employees have routinely sided against unionization.
FuwaFuwaUsagi
FuwaFuwaUsagi
"Never underestimate the power of stupid people in large numbers."
In Ontario, we have a mix of union cards and secret ballot. If 40% of the workforce signs a union card, then a secret ballot is held and there needs to be 50% +1 who vote for the union.
It is a nice solution, for more about this mix of cards and ballot read this.
Of course the irony here is that militant franchisees would love a check card system, no open ballot, and check-off dues for the formation of their own Independent Franchisee Association.
Michael Webster PhD LLB
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
This is an instance where the IFA, CFA, AAFD, franchisors and franchisees can all agree. This is a bad piece of legislation that could have some rather unsavory consequences. For a great many franchisees, they won't meet minimum employee requirements for inclusion in this recipe for disaster, but certainly large multi-unit operators need beware. Strong lobbying efforts are ongoing on both sides of the equation, but union money and influence in the political arena should never be underestimated. It has often been argued that if every franchisee out there was willing to invest even a modest amount into an effective and organized PAC, the voice of the franchisee would ring loud and clear on Capitol Hill. Even with the substantial resources of the IFA, this is one legislative battle that is being fought uphill, and on a slope that is about to become extremely steep come November 4th.
In America, we have the right to vote on a secret ballot.
My grandmother would never tell me who she voted for. She would say, "god bless America, who I vote for, is my secret."
Under the EFCA (Card Check) workers would lose the right of a secret ballot, the right so dear to my grandmother, the right to make a decision without anyone peering over their shoulder, free from intimidation or fear of reprisal.
See George McGoverns Op-ed in the New York Times:
My Party Should Respect Secret Union BallotsJim Coen
877-469-3002
Blog: Lets Talk Franchising
Executive Director of the New England Franchise Association
Director & Clerk, Dunkin Donuts Independent Franchise Owners (DDIFO) Board of Directors
Jim Coen
877-469-3002
Blog: Lets Talk Franchising
Executive Director of the New England Franchise Association
President, Dunkin Donuts Independent Franchise Owners (DDIFO, Inc.)
As Paul points out, the "card check" bill has the potential of bringing unions to small business, although unions typically focus efforts on big business and large trades.
An Obama campaign memo issued on Labor Day says “as president, [Obama] will sign it [the Employee Free Choice Act] into law, because workers who want to unionize should be able to.”
Card check is still used today among workers who want to unionize since the National Relations Labor Board approved it in its Joy Silk doctrine of 1949. It is currently lawful.
However, in 1966 the Board ruled that an employer has a right to insist on secret ballot and to not just rely on the card check method.
If the Employee Free Choice Act is passed, it would return policy back to pre-1966 days, where employers could challenge card check elections only when illegal coercion is charged.
On the opposite side is Republican candidate McCain, who in 2007 sponsored a bill, the Secret Ballot Protection Act, to eliminate the currently used and legal card check option altogether.