CEO DATELINE - NAM, trade groups sue to stop pro-union persuader rule
CEO DATELINE - NAM, trade groups sue to stop pro-union persuader rule
- March 31, 2016 |
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Walt Williams
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The National Association of Manufacturers is leading a coalition of business groups in a lawsuit seeking to prevent the federal government from requiring companies to disclose when they seek outside advice to counter union activities.
NAM announced Wednesday the lawsuit will seek to overturn U.S. Department of Labor's "persuader rule" by challenging it on free speech and due process grounds. The suit was filed in U.S. District Court for the Eastern District of Arkansas.
"This complicated, vague rule fails to give manufacturers fair notice on what actions are considered forbidden and what forms of communication and outreach are considered reportable," NAM Senior Vice President and General Counsel Linda Kelly said. "Criminal liability will now be thrust on manufacturers based on a rule that is confusing and open ended."
DOL issued the final rule March 23, saying it realigned the agency's regulations with a 1959 law governing disclosure in labor-management relations. Employers must now file reports whenever they hire consultants to manage their messaging when countering union organizing campaigns, even if those consultants never communicate with any employees.
A host of trade associations and professional societies have blasted the rule. Joining NAM in the lawsuit is Associated Builders and Contractors, which accused DOL of depriving employees of "their right to obtain balanced information about union representation."
"In narrowing this exemption, DOL is greatly limiting businesses' ability to obtain labor relations advice from attorneys, consultants and trade associations, including ABC, which will have a particularly onerous impact on any business without in-house counsel," ABC Vice President of Legislative and Political Affairs Kristen Swearingen said.
Other plaintiffs in the suit include the Arkansas State Chamber of Commerce and Coalition for Democratic Workplace, a collection of businesses and business groups that oppose union organizing efforts. http://bit.ly/1Y24kuO
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