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The Lombardi Viewpoint   




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Employee Free Choice Act is anything but


June 13, 2008

Many of you know about the proposed "card check" legislation.  The bill, known as The Employee Free Choice Act, is anything but that.

In an effort to boost lagging union membership, organizers are going after foodservice. They are asking foodservice employees to contemplate why they do not make as much an hour as their co-workers in manufacturing.  The argument is that foodservice workers work as hard as people in manufacturing jobs, so why aren't they paid the same? 

Now, just think about the impact on your business if your average hourly wage rate was somewhere in excess of $18 per hour. Frightening enough?

If passed, this bill will allow Union representation in your restaurant if they can get a mere 50% of your workers to sign a card stating they want it. Employees lose the right to a confidential ballot election.

To make matters worse, once they get the signatures, operators must reach an agreement with the Union in a relatively short period of time.  If not, a Union mediator comes in. 

Here’s a good summary from Stroock & Stroock & Lavan LLP. The hotel and retail industries are very concerned about this bill, as is foodservice. (This piece has a hotel industry slant but most of it is applicable to restaurants. Disregard the part that talks about management contracts because it does not apply.)

Concern is not action, and action is what is needed now.  This bill already passed the House and got 54 of the 60 votes needed in the Senate.  With a new Congress, they will likely have the votes, and Barack Obama has stated that he would sign the bill if elected.

Congress needs to know that we don't want union representation without the right to a secret ballot.

Posted by Dennis Lombardi on June 13, 2008 | Comments (15)


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Reader Comments



at 6/20/2008 12:10:28 PM, John G commented:
And people are already complaining about the high cost of food.



at 6/20/2008 12:21:04 PM, George Bizball commented:
This is about time, most employees don't have any benefits and are paid a very low wage.



at 6/20/2008 1:10:08 PM, Tom Storey commented:
I am certainly not pro union. I would always fight union control of my shop. I do not see the issue with any kitchen or counter staff starting at $12 hour and topping at $19. Same with supervisors. Why is it a crime to pay something resembling a living wage in our industry? If your business cannot support a decent wage, If your business needs the employee's parents to support them while they work for you...how is your business design successful? You need to hire people who live in subsidized housing and use food stamps? So your business needs the federal government to support it? If I submit that plan to investors, I would get laughed out of the room. Every unit my company opens will take the best kitchen and counter staff from every fast food operator in their area, simply because we pay a living wage. No union problems here and staff turn over will be a fraction of the industry norm. McDonald's has more supervisors on shifts than ever before. They are already on their way to paying a living wage. Money talks.



at 6/20/2008 7:40:23 PM, HS CHEF commented:
THE RESTAURANT BUSINESS IS ALREADY SUFFERING WITH HIGH FOOD COSTS.WHO WILL BE ABLE TO GO OUT TO EAT,WHEN WE HAVE TO MAKE UP THE DIFFERENCE TO THE CUSTOMERS.THINK ABOUT THIS MR OBAMA WHEN THE RESTAURANT ASSOCIATION MEMBERS HAVE TO VOTE FOR YOU IN NOVEMBER.THIS WILL DESTROY ALL SMALL OPERATORS AND NEW BUSINESSES.i THOUGHT ABOUT VOTING FOR YOU BUT NOT IF YOU HELP PASS THIS DEATH BILL ON A LOT OF RESTAURANTS



at 6/20/2008 9:12:11 PM, Chris Talamo commented:
What ever happened to the notion that a server worked for tips? They are paid based on their performance, not what the employer "owes" them. No one owes me anything. If you don't like your job, or employer, get a new one.



at 6/22/2008 12:34:21 AM, Lauren Sergi commented:
Exactly - isn't a tip supposed be a way to say "Thanks, great job!" It is pretty hard to find good service these days. Everyone just assumes they will get the tip that the think they deserve instead of the tip that they actually earned.



at 6/23/2008 7:55:06 AM, Karen F. commented:
I do not believe any employee wages or union membership should be legislated. However, if the industry wants to avoid that, it might be time to eliminate the tip structure, and reallocate that 15% to wages & benifits. I suspect that a great deal of employee time and effort is devoted to 'tip' functions and would be better served by just doing their job. They would be protected on slow days, and the customer would be released from that extra tax. Instead, they would be paying the true cost of their meal up front. I live near Canada, and while their system is generally much worse than ours, when they come across the border to dine, they do not follow our guidelines. When a server hears that typical 'eh', they know there will not be a tip forthcoming.



at 6/27/2008 11:33:21 AM, nobby commented:
Once again, a pro-union, anti-business approach by Democrats. Can anyone make decisions for themselves any more. Why do we need government involvement in dictating fair wages in the restaurant sector? If you want good loyal people to work for you, set the bar yourself and offer higher wages. Certainly this would hold not only the employee accountable for their work, but also attract better employees.



at 7/22/2008 6:42:33 PM, SeersVere commented:
this topic for tests cars



at 12/9/2008 9:55:28 AM, rwalter commented:
You have incorrectly stated several things here, not the least of which is that a union mediator would step in. It would be a Government mediator. Business has long ago subverted the present secret ballot system with bribes and promotions, threats and firings, till it is now a complete sham, in most cases. Unions are going to be a vital force to bring the middle and lower classes back from the edge of the abyss they now find themselves on. You are anti American Worker. These businesses had better figure out that if they want consumers to buy their products, they have to pay a living wage, so that they can. I do agree with nobby up there on the fact that if you treat your workers fairly, you have no fear of unions in the first place. Unfortunately, many do not, and this is why this act is vital.



at 1/21/2009 9:32:35 PM, Michael commented:
How is signing a union card in front of the union representative(s) that you are accepting or rejecting a free choice? Who holds these signed cards during the signing process? The union representatives? Where are these signatures obtained? In the back of the store…in the back seat of the union represenatives car…in front of my house? That doesn't sound very free to me...



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at 2/14/2009 12:50:13 PM, Stormfish commented:
The days of the necessity of a union in the United Staes of America are long gone. I would say the state of today's unions make them as anti American as you can get. The goal of todays union appears to be this: get the most for their members while doing the least amount of work possible and to hell with management. Just look at the state of the American automobile industry. If Obama's mission is to turn the United Sates into a socialist country, signing this bill is the first step. Children in preschool learn that you shouldn't tell secrets, it breaks down trust, creates ill will, builds walls and breeds contempt. A secret ballot is just what the union wants. It appears as though the leaders of organized labor could learn something from America's children. They just have to ask.



at 3/11/2009 5:59:49 PM, socialismsucks commented:
EFCA is yet another step towards socialism. Unions have already crippled too many American businesses. Restaurant workers are for the most part unskilled labor that receive OJT from their employers. If they prove to be quality help they are rewarded and/or promoted into a higher paying position with more responsibility than putting together hamburgers. Question for Tom Storey: What kind of restaurant do you own that pays those kind of wages? If you can pay the wages that you stated ($12-$19 per hour?) you are ripping off your customers. Not all restaurants are catering to the $20-$30 plate customers. Many are value oriented to some degree and rely on volume of traffic to pay their bills. Who would pay $8 for a Big Mac or $25 for a pizza? If Obama wants to be responsible for huge inflation and higher unemployment due to the number of restaurant operators going out of business (which by the way have loans that will be defaulted on which would further damage the banking system) then by all means EFCA to your demise! GM (UAW workers) spends $81 per man hour used, Toyota spends $48 (non-union). You don't hear Toyota workers whining about making a "


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