Order Code RL32930
CRS Report for Congress
Received through the CRS Web
Labor Union Recognition Procedures:
Use of Secret Ballots and Card Checks
Updated April 2, 2007
Gerald Mayer
Analyst in Public Finance
Domestic Social Policy Division
Congressional Research Service ˜ The Library of Congress
Labor Union Recognition Procedures:
Use of Secret Ballots and Card Checks
Summary
The National Labor Relations Act of 1935 (NLRA) gives private sector workers
the right to join or form a labor union and to bargain collectively over wages, hours,
and other working conditions. An issue before Congress is whether to change the
procedures under which workers choose to join, or not to join, a union.
Under current law, the National Labor Relations Board (NLRB) conducts a
secret ballot election when a petition is filed requesting one. A petition can be filed
by any union, worker, or employer. Workers or a union may request an election if
at least 30% of workers have signed a petition or authorization cards (i.e., cards
authorizing a union to represent them). The NLRA does not require secret ballot
elections. An employer may voluntarily recognize a union if a majority of workers
have signed authorization cards.
Legislation introduced in the 110th Congress would, if enacted, change current
union recognition procedures. The Employee Free Choice Act of 2007, H.R. 800 and
S. 1041, would require the NLRB to certify a union if a majority of employees sign
authorization cards. The Secret Ballot Protection Act, H.R. 866, would require secret
ballot elections for union certification.
Proponents of both measures sometimes use similar language to support their
positions. Employers argue that, under card check recognition, workers may be
pressured or coerced into signing authorization cards and may only hear the union’s
point of view. Unions argue that, during an election campaign, employers may
pressure or coerce workers into voting against a union. Supporters of secret ballot
elections argue that casting a secret ballot is private and confidential. Unions argue
that, during an election campaign, employers have greater access to workers. Unions
argue that card check recognition is less costly than a secret ballot election.
Employers maintain that unionization may be more costly to workers, because union
members must pay dues and higher union wages may result in fewer union jobs.
Mandatory card check recognition may increase the level of unionization, while
mandatory secret ballot elections may decrease it. Research suggests that the union
success rate is greater with automatic card check recognition than with secret ballots,
that unions undertake more union drives under automatic card check recognition, and
that the union success rate under card check recognition is greater when a card check
campaign is combined with a neutrality agreement (i.e., an agreement where the
employer agrees to remain neutral during a union organizing campaign).
To the extent that mandatory secret ballot election or mandatory card check
recognition would affect the level of unionization, the economic effects may depend
on how well labor markets fit the model of perfect competition. Mandatory card
check recognition may improve worker benefits and reduce earnings inequality —
if more workers are unionized. Mandatory secret ballot elections may increase
inequality in compensation — if fewer workers are unionized. This report will be
updated as issues warrant.
Contents
Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
The National Labor Relations Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Organizing Campaign Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Union Organizers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Unfair Labor Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Unions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Remedies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
National Labor Relations Board (NLRB) . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Union Recognition and Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Secret Ballot Elections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Number of NLRB Elections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Voluntary Card Check Recognition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Neutrality Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Corporate Campaigns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Number of Voluntary Recognitions . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Bargaining Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
NLRB Review of Card Check Recognition . . . . . . . . . . . . . . . . . . . . . . . . . 15
Impact of Changes in Recognition Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Research Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Is There an Economic Rationale for Protecting the Rights of Workers to
Organize and Bargain Collectively? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Government Intervention in Labor Markets . . . . . . . . . . . . . . . . . . . . . . . . 21
Distribution of Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Collective Voice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
List of Figures
Figure 1. Unfair Labor Practice Charges, Fiscal Years 1970-2005 . . . . . . . . . . . 7
List of Tables
Table 1. Number of Representation Elections Conducted by the NLRB,
FY1994-FY2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Table 2. Number of Voluntary Recognitions in Which the Federal Mediation
and Conciliation Service (FMCS) Provided
Assistance for Initial Contracts, FY1996-FY2004 . . . . . . . . . . . . . . . . . . . . 13
Table 3. Common Arguments Made by Proponents of Mandatory Card
Check Recognition and Mandatory Secret Ballots . . . . . . . . . . . . . . . . . . . 17
Labor Union Recognition Procedures:
Use of Secret Ballots and Card Checks
The National Labor Relations Act of 1935 (NLRA), as amended, gives private
sector workers the right to join or form a labor union and to bargain collectively over
wages, hours, and other conditions of employment.1 An issue before Congress is
whether to change the procedures under which workers choose to join, or not to join,
a union.
This report begins with a summary of legislation that would, if enacted, change
existing union recognition procedures. The report then reviews the rights and
responsibilities of workers and employers under the NLRA and the different ways
that workers may form or join a union. The report then examines the potential
impact of changes in union recognition procedures. Finally, the report considers
whether there is an economic rationale for protecting the rights of workers to
organize and bargain collectively.
Legislation
Legislation has been introduced in the 110th Congress that would, if enacted,
change current union recognition procedures.2
H.R. 800, the Employee Free Choice Act of 2007, would require the National
Labor Relations Board (NLRB) to certify a union if a majority of employees in a
bargaining unit sign authorization cards designating the union as their bargaining
representative.3 The bill would also establish procedures for reaching an initial
1 The NLRA is also known as the Wagner Act, after Senator Robert Wagner of New York
who sponsored the bill in the Senate. Representative William Connery of Massachusetts
sponsored the bill in the House of Representatives.
2 This section uses terms — e.g., recognition, certification, unfair labor practices, NLRB,
and Federal Mediation and Conciliation Service (FMCS) — that are described later in this
report.
3 A bargaining unit is a group of employees represented, or seeking representation, by a
union. A bargaining unit is generally determined on the basis of a “community of interest”
of the employees involved. Employees who have the same or similar interests with respect
to wages, hours, and other working conditions may be grouped together into a bargaining
unit. A bargaining unit may include the employees of one employer, one establishment, or
one occupation or craft. A bargaining unit may include both professional and
nonprofessional employees, provided a majority of professional employees vote to be
members of the unit. Guards cannot be included in the same bargaining unit as other
(continued...)
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contract agreement. If a union and employer cannot reach an initial agreement within
90 days after bargaining has begun (or a longer period if agreed to by both the union
and employer), either party could request mediation by the Federal Mediation and
Conciliation Service (FMCS). If an agreement cannot be reached within 30 days
through mediation (or a longer period if agreed to by both parties), the dispute would
be subject to binding arbitration. The legislation would increase penalties for
employer violations of certain unfair labor practices committed during a union
organizing campaign or during negotiation of a first contract. H.R. 800 was
introduced by Representative George Miller on February 5, 2007, and referred to the
House Committee on Education and Labor.4 A hearing on the measure was held on
February 8, 2007, by the House Subcommittee on Health, Employment, Labor, and
Pensions.5 The Committee on Education and Labor approved the bill on February
14, 2007, by a vote of 26 to 19.6 The full House approved the measure on March 1,
2007, by a vote of 241 to 185.
S. 1041, the Employee Free Choice Act of 2007, was introduced in the Senate
on March 29, 2007, by Senator Edward Kennedy. The bill was referred to the
3 (...continued)
employees. A union and employer may agree on the appropriate bargaining unit. If not, the
issue is settled by the NLRB. National Labor Relations Board, Basic Guide to the National
Labor Relations Act (Washington: U.S. Govt. Print. Off., 1997), p. 7, available at
[http://www.nlrb.gov]. (Hereafter cited as NLRB, Basic Guide to the NLRA.) Bruce S.
Feldacker, Labor Guide to Labor Law, 3rd ed. (Englewood Cliffs, N.J.: Prentice Hall, 1990),
pp. 39-44. (Hereafter cited as Feldacker, Labor Guide to Labor Law.)
A secret ballot election may be held if less than 50%, but at least 30%, of employees
sign authorization cards. See the section on “Secret Ballot Elections” later in this report.
4 Representative George Miller, “Introduction of H.R. 800, The Employee Free Choice Act,”
Congressional Record, vol. 153, Feb. 5, 2007, p. E260.
5 U.S. Congress, House Committee on Education and Labor, Subcommittee on Health,
Employment, Labor and Pensions, Strengthening America’s Middle Class Through the
E m p l o y e e F r e e C h o i c e A c t , F e b . 8 , 2 0 0 7 , a v a i l a b l e a t
[http://edworkforce.house.gov/hearings/help020807.shtml].
6 For more information on the “Employee Free Choice Act,” see CRS Report RS21887, The
Employee Free Choice Act, by Jon O. Shimabukuro.
Legislation that would require card check recognition was introduced in Congress as
early as the 95th Congress (1977-1978). Early in the 95th Congress, Representative Frank
Thompson Jr. introduced H.R. 77, the Labor Reform Act of 1977. H.R. 77 would have
made card check recognition mandatory if 55% of employees signed authorization cards.
No hearings were held and no action was taken on the bill. Later in the 95th Congress,
President Jimmy Carter sent Congress proposals for amending the NLRA. H.R. 8440/S.
1883, which was also called the Labor Reform Act of 1977, was introduced in the House
by Representative Frank Thompson Jr. and in the Senate by Senators Harrison Williams Jr.
and Jacob Javits. H.R. 8440/S. 1883 would have created timetables for holding
representation elections. The bill passed the House. In the Senate, the Senate Human
Resources Committee reported a bill (renumbered as S. 2467). The measure was
filibustered on the Senate floor. After six cloture votes, the bill was returned to committee
for changes. The committee did not report another bill.
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Committee on Health, Education, Labor, and Pensions (HELP). Hearings were held
in the Senate on the Employee Free Choice Act on March 27, 2007.7
H.R. 866, the Secret Ballot Protection Act, would require a secret ballot election
for union certification. The bill would make it an unfair labor practice for an
employer to recognize or bargain with a union that has not been selected by a
majority of employees in a secret ballot election conducted by the NLRB. It would
also be an unfair labor practice for a union to cause or attempt to cause an employer
to recognize or bargain with a union that has not been chosen by a majority of
employees in a secret ballot election. H.R. 866 was introduced by the late
Representative Charlie Norwood on February 7, 2007, and was referred to the House
Committee on Education and Labor.8 On March 1, 2007, during floor debate on H.R.
800, Representative Howard “Buck” McKeon offered an amendment that would have
substituted H.R. 866 for H.R. 800. The amendment failed by a vote of 173 to 256.
Senator Jim DeMint said, on March 27, 2007, that he plans to introduce the
Secret Ballot Protection Act in the Senate.9
The National Labor Relations Act
The NLRA, as amended, provides the basic framework governing labor-
management relations in the private sector.10 The act begins by stating that the
purpose of the law is to improve the bargaining power of workers:
The inequality of bargaining power between employees ... and employers ...
substantially burdens and affects the flow of commerce, and tends to aggravate
recurrent business depressions by depressing wage rates and the purchasing
power of wage earners ... and by preventing the stabilization of competitive wage
rates and working conditions within and between industries....
It is hereby declared to be the policy of the United States to eliminate the causes
of certain substantial obstructions to the free flow of commerce and to mitigate
and eliminate these obstructions when they have occurred by encouraging the
practice and procedure of collective bargaining....11
7 U.S. Congress, Senate Committee on Health, Education, Labor, and Pensions, The
Employee Free Choice Act: Restoring Economic Opportunity for Working Families, hearing
on the Employee Free Choice Act, 110th Cong., 1st sess., Mar. 27, 2007, available at
[help.senate.gov].
8 Representative Charlie Norwood died on Feb. 13, 2007.
9 Senator Jim DeMint, DeMint to Introduce Bill to Guarantee Secret Ballot Union Elections,
press release, Mar. 27, 2007, available at [demint.senate.gov].
10 More specifically, the NLRA applies to employers engaged in interstate commerce. 29
U.S.C. § 152(6).
11 29 U.S.C. § 151. Many economists argue that there is not an inequality of bargaining
power between employers and employees. For example, see Morgan O. Reynolds, Power
and Privilege: Labor Unions in America, New York: Universe Books, 1984, pp. 59-62; and
(continued...)
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The NLRA gives workers the right to join or form a labor union and to bargain
collectively over wages, hours, and other conditions of employment through a
representative of their choosing. Under the act, workers also have the right not to
join a union. To protect the rights of employers and employees, the act defines
certain activities as unfair labor practices.12
The NLRA does not apply to railroads; airlines; federal, state, and local
governments; agricultural laborers; family domestic workers; supervisors;
independent contractors; and others.13
Organizing Campaign Rules
Campaign rules differ for employees, union organizers, and employers. Rules
also differ for soliciting union support (e.g., expressing support for a union or
distributing authorization cards) and for distributing literature. Because of
exceptions to the basic rules, the rules that apply to a specific union organizing
campaign may differ from the general rules described here.14
Employees. During work hours, employees can campaign for union support
from their coworkers in both work and nonwork areas (e.g., coffee rooms or the
company parking lot). But employees can only solicit support on their own time
11 (...continued)
Morgan O. Reynolds, “The Myth of Labor’s Inequality of Bargaining Power,” Journal of
Labor Research, vol. 12, spring 1991, pp. 168-183. The argument that workers and
employers have equal bargaining power is generally based on the premise that labor markets
fit the economic model of perfect competition. See the section later in this report on
whether there is an economic rationale for protecting the rights of workers to organize and
bargain collectively.
12 NLRB, Basic Guide to the NLRA, p. 1.
The Labor Management Relations Act of 1947 (P.L. 80-101, commonly called the
Taft-Hartley Act) amended the NLRA to add language that employees have the right to
refrain from joining a union, unless a collective bargaining agreement with a union security
agreement is in effect. A union security agreement may require bargaining unit employees
to join the union after being hired (i.e., a union shop) or, if the employee is not required to
join the union, to pay a representation fee to the union (i.e., an agency shop). Under Section
14(b) of the Taft-Hartley Act, states may enact right-to-work laws, which do not allow union
security agreements. Michael Ballot, Laurie Lichter-Heath, Thomas Kail, and Ruth Wang,
Labor-Management Relations in a Changing Environment, New York: John Wiley and
Sons, Inc., 1992, pp. 265-268.
13 NLRB, Basic Guide to the NLRA, p. 37.
14 Unless noted otherwise, this section is based on: Stephen I. Schlossberg and Judith A.
Scott, Organizing and the Law, 4th ed., Washington: Bureau of National Affairs, 1991, pp.
45-55. (Hereafter cited as Schlossberg and Scott, Organizing and the Law.) James J.
Brudney, Neutrality Agreements and Card Check Recognition: Prospects for Changing
Paradigms, Public Law and Legal Theory Working Paper Series No. 28, Nov. 2004, p. 8,
available at [http://www.law.bepress.com/osulwps]. (Hereafter cited as Brudney, Neutrality
Agreements and Card Check Recognition.) Feldacker, Labor Guide to Labor Law, pp. 74-
79.
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(e.g., lunchtime or breaks). If an employer does not allow the distribution of
literature in work areas, employees may only distribute union literature in nonwork
areas. If an employer allows the distribution of other kinds of literature in work
areas, employees may also distribute union literature in those areas.
Union Organizers. In general, union organizers cannot conduct an
organizing campaign on company property. Organizers may be allowed in the
workplace if the site is inaccessible (e.g., a logging camp or remote hotel) or if the
employer allows nonemployees to solicit on company property. Organizers may
meet with employees on union property. They may also meet with employees and
distribute literature in public areas on employer property (e.g., a cafeteria or parking
lot) or in public areas (e.g., sidewalks or parking areas). Organizers may also contact
employees at home by phone or mail or may visit employees at home.15 Under a
neutrality agreement (described later in this report), an employer may allow
organizers onto company property.
Employers. Employers may campaign on company property. Employers may
require employees to attend meetings during work hours where management can give
its position on unionization. These meetings are generally called “captive audience”
meetings. Employers cannot hold a captive audience meeting during the 24-hour
period before an election. Supervisors can give employees written information
(including memos and letters) and hold individual meetings with employees.
Unfair Labor Practices
To protect the rights of both employees and employers, the NLRA defines
certain activities as unfair labor practices.
Employers. Employers have the right to campaign against a union. But an
employer cannot restrain or coerce employees in their right to form or join a union.
An employer cannot threaten employees with the loss of their jobs or benefits if they
vote for a union or join a union. An employer cannot threaten to close a plant should
employees choose to be represented by a union. An employer cannot raise wages to
discourage workers from joining or forming a union. An employer cannot
discriminate against employees with respect to the conditions of employment (e.g,
fire, demote, or give unfavorable work assignments) because of union activities. An
15 Under what is known as the “Excelsior” rule, within seven days after the NLRB has
directed that a representation election be held or after a union and employer have agreed to
hold an election, an employer must provide the regional director of the NLRB a list of the
names and addresses of employees eligible to vote in the election. This list is made
available to all parties. National Labor Relations Board, Office of the General Counsel, An
Outline of Law and Procedures in Representation Cases, Washington: U.S. Govt. Print.
Off., Apr. 2002, p. 251. U.S. Departments of Labor and Commerce, Fact Finding Report:
Commission on the Future of Worker-Management Relations, May 1994, p. 68. The latter
report is popularly called the “Dunlop report,” after former Secretary of Labor John T.
Dunlop, who chaired the commission.
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employer must bargain in good faith with respect to wages, hours, and other working
conditions.16
Unions. Employees have the right to organize and bargain collectively. But
a union cannot restrain or coerce employees to join or not join a union. A union
cannot threaten employees with the loss of their jobs if they do not support
unionization. A union cannot cause an employer to discriminate against employees
with respect to the conditions of employment. A union must bargain in good faith
with respect to wages, hours, and other working conditions. A union cannot boycott
or strike an employer that is a customer of or supplier to an employer that the union
is trying to organize.17
An unfair labor practice may be filed by an employee, employer, labor union,
or any other person. After an unfair labor practice charge is filed, regional staff of
the NLRB investigate to determine whether there is reason to believe that the act has
been violated. If no violation is found, the charge is dismissed or withdrawn. If a
charge has merit, the regional director first seeks a voluntary settlement. If this effort
fails, the case is heard by an NLRB administrative law judge. Decisions by
administrative law judges can be appealed to the five-member Board.18
Remedies. The NLRA attempts to prevent and remedy unfair labor practices.
The purpose of the act is not to punish employers, unions, or individuals who commit
unfair labor practices. The act allows the NLRB to issue cease-and-desist orders to
stop unfair labor practices and to order remedies for violations of unfair labor
practices. If an employer improperly fires an employee for engaging in union
activities, the employer may be required to reinstate the employee (to their prior or
equivalent job) with back pay. If a union causes a worker to be fired, the union may
be responsible for the worker’s back pay.19 In FY2005, 31,497 employees were
16 NLRB, Basic Guide to the NLRA, pp. 14-22.
17 Ibid., pp. 23-32.
18 National Labor Relations Board, Annual Report of the National Labor Relations Board,
for the Fiscal Year Ended September 30, 2005 (Washington: U.S. Govt. Print. Off., May 1,
2006), p. 5, available at [http://www.nlrb.gov]. (Hereafter cited as NLRB, Annual Report,
Fiscal Year 2005.) NLRB, Basic Guide to the NLRA, p. 36.
19 29 U.S.C. § 160(c). NLRB, Basic Guide to the NLRA, p. 38.
The amount of back pay awarded is “net back pay” plus interest. Net back pay is the
amount of compensation (i.e., wages plus benefits) that a worker would have received if he
or she had not been unlawfully fired less the amount of compensation received (less the
expenses from looking for work) from other work during the back pay period. If a
discharged employee is able to work but does not look for work, compensation that he or she
could have received from work may be deducted from gross back pay. Interest on net back
pay is simple interest (i.e., not compounded). National Labor Relations Board, NLRB
Casehandling Manual, Part 3, Compliance Proceedings, available at
[http://www.nlrb.gov/Publications/Manuals], §§ 10536 and 10566.
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awarded $83.8 million in back pay. Employers paid $83.4 million to 31,358
employees; unions paid $0.4 million to 139 employees.20
Figure 1 shows the trend in the number of unfair labor practice charges filed for
FY1970 to FY2005. During this period, the number of charges filed peaked at
44,063 in FY1980. The number stood at 24,720 in FY2005.21 In FY2005, 38.5% of
the charges filed were found to have merit.22 In FY2005, 74.2% of charges were filed
against employers (by unions or individuals) and 25.8% were filed against unions (by
employers or individuals).23
Figure 1. Unfair Labor Practice Charges,
FY1970-FY2005
20 NLRB, Annual Report, Fiscal Year 2005, Table 4.
21 NLRB, Annual Report, Fiscal Year 2005, p. 5.
22 NLRB, Annual Report, Fiscal Year 2005, p. 11. From FY1970 to FY2005, the percent
of unfair labor practice charges found to have merit ranged from about 30% to 40%. NLRB,
Annual Report, various years.
23 The percentage calculations do not include charges alleging a “hot cargo” agreement or
charges that a union did not give at least a 10-day notice before picketing or striking a health
care institution. (A “hot cargo” agreement is where an employer and union agree that the
employer will not do business with another employer.) NLRB, Annual Report, Fiscal Year
2005, Table 2. NLRB, Basic Guide to the NLRA, pp. 21, 32.
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National Labor Relations Board (NLRB)
The NLRA is administered and enforced by the NLRB, which is an independent
federal agency that consists of a five-member Board and a General Counsel. The
Board resolves objections and challenges to secret ballot elections. It also hears
appeals of unfair labor practices and resolves questions about the composition of
bargaining units. The General Counsel’s office conducts secret ballot elections,
investigates complaints of unfair labor practices, and supervises the NLRB’s regional
and other field offices.24
Union Recognition and Certification
Section 9(a) of NLRA states that a union may be “designated or selected for the
purposes of collective bargaining by the majority of the employees” (italics added).
A union must be recognized before collective bargaining can begin. Currently, there
are three ways for employees to join or form a union. First, a majority of employees
voting in a secret ballot election may choose to be represented by a union. Second,
an employer may voluntarily recognize a union if a majority of employees in a
bargaining unit have signed authorization cards. Finally, the NLRB may order an
employer to recognize and bargain with a union if a majority of employees have
signed authorization cards and the employer has engaged in unfair labor practices that
make a fair election unlikely.
Secret Ballot Elections
The NLRB conducts a secret ballot election when a petition is filed requesting
one. A petition can be filed by any union, worker, or employer. Employees or a
union may petition the NLRB for an election if at least 30% of employees have
signed a petition or authorization cards. An employer may request an election if a
union has claimed to represent a majority of its employees and has asked to bargain
with the employer (and the union itself has not requested an election). An employer
is not required to give a reason for insisting on an election.25 If a majority of
employees voting (i.e., not a majority of employees in the bargaining unit) in an
NLRB-conducted election choose to be represented by a union, the union is certified
24 NLRB, Basic Guide to the NLRA, p. 33. William N. Cooke, Union Organizing and Public
Policy: Failure to Secure First Contracts (Kalamazoo, MI: W.E. Upjohn Institute, 1985),
p. 85.
25 U.S. Supreme Court, “National Labor Relations Board v. Gissel Packing Co., Inc.,”
United States Reports, vol. 395 (Washington: U.S. Govt. Print. Off., 1969), pp. 593-594,
609. (Hereafter cited as U.S. Supreme Court, NLRB v. Gissel Packing.) In NLRB v. Gissel
Packing, the U.S. Supreme Court consolidated four NLRB cases. In each case, a majority
of employees signed authorization cards. The employer refused to bargain, arguing that
authorization cards are inherently unreliable. The NLRB concluded that the employers
committed unfair labor practices that made a fair election unlikely and ordered the
employers to bargain with the unions. U.S. Supreme Court, NLRB v. Gissel Packing, pp.
575-595.
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by the NLRB as the employees’ bargaining representative.26 The NLRA does not
provide a timetable for holding an election.
After a petition is filed requesting an election, the employer and union may
agree on the time and place for the election and on the composition of the bargaining
unit. If an agreement is not reached between the employer and union, a hearing may
be held in the regional office of the NLRB. The regional director may then direct that
an election be held. The regional director’s decision may be appealed to the Board.27
In a secret ballot election, employees choose whether to be represented by a
labor union. If an election has more than one union on the ballot and no choice
receives a majority of the vote, the two unions with the most votes face each other
in a runoff election.28
The right of an individual to vote in an NLRB election may be challenged by
either the employer or union. If the number of challenged ballots could affect the
outcome of an election, the regional director determines whether the ballots should
be counted. Either the employer or union may file objections to an election, claiming
that the election or the conduct of one of the parties did not meet NLRB standards.
A regional director’s decision on challenges or objections may be appealed to the
Board.29
A union and employer may also agree to a secret ballot election conducted by
a third party, such as an arbitrator, clergyman, or mediation board.30
The NLRB also conducts elections to decertify unions that have previously been
recognized. A decertification petition may be filed by employees or a union acting
on behalf of employees. A decertification petition must be signed by at least 30% of
26 29 U.S.C. § 159(c). NLRB, Annual Report, Fiscal Year 2005, p. 35. National Labor
Relations Board, The NLRB: What it is, What it Does, National Labor Relations Board, p.
3, available at [http://www.nlrb.gov]. U.S. Supreme Court, NLRB v. Gissel Packing, pp.
593-594, 609. NLRB, Basic Guide to the NLRA, p. 8.
An authorization card may serve more than one purpose. A single-purpose card either
designates a union as the bargaining representative or authorizes the union to seek an
election. A dual-purpose card authorizes an election and designates the union as the
bargaining representative. Commerce Clearing House, Labor Law Reporter: Labor
Relations (Chicago: CCH Inc., 2005), p. 7279. Howard Lesnick, “Establishment of
Bargaining Rights Without an NLRB Election,” Michigan Law Review, vol. 65, Mar. 1967,
p. 855.
27 NLRB, Basic Guide to the NLRA, pp. 8-9. National Labor Relations Board, NLRB Rules
and Regulations, available at [http://www.nlrb.gov/nlrb/], Sec. 102.67.
28 NLRB, Basic Guide to the NLRA, p. 36.
29 NLRB, Annual Report, Fiscal Year 2005, pp. 5, 88, 91.
30 Schlossberg and Scott, Organizing and the Law, p. 176.
CRS-10
the employees in the bargaining unit represented by the union. A secret ballot
election is required for decertification.31
Number of NLRB Elections. Table 1 shows the number of secret ballot
elections conducted by the NLRB from FY1994 to FY2005. In FY2005, the NLRB
conducted 2,745 elections.32 Unions won 54.8% of these elections, which was up
from 44.4% in FY1994. Certification of a union by the NLRB does not require that
a union and employer reach an initial contract agreement.33
Table 1. Number of Representation Elections Conducted
by the NLRB, FY1994-FY2005
Number of
Number of
Percentage of
Fiscal Year
Elections
Elections Won
Elections Won
Conducted
by Unions
by Unions
2005
2,745
1,504
54.8%
2004
2,826
1,447
51.2%
2003
3,077
1,579
51.3%
2002
3,151
1,606
51.0%
2001
3,975
1,591
40.0%
2000
3,467
1,685
48.6%
1999
3,743
1,811
48.4%
1998
4,001
1,856
46.4%
1997
3,687
1,677
45.5%
1996
3,470
1,469
42.3%
1995
3,632
1,611
44.4%
1994
3,752
1,665
44.4%
Sources: National Labor Relations Board, Annual Report of the National Labor Relations Board, for
the Fiscal Year Ended September 30, 2005 (Washington: U.S. Govt. Print. Off., May 1, 2006), p. 20,
available at [http://www.nlrb.gov],. National Labor Relations Board, Annual Report of the National
Labor Relations Board, for the Fiscal Year Ended September 30, 2003 (Washington: U.S. Govt.
Print. Off., Apr. 20, 2004), p. 18, available at [http://www.nlrb.gov].
Note: The number of elections conducted includes elections that resulted in a runoff or rerun.
31 NLRB, Annual Report, Fiscal Year 2005, p. 35. National Labor Relations Board, The
National Labor Relations Board and YOU: Representation Cases, p. 2, available at
[http://www.nlrb.gov], House, Committee on Education and the Workforce, Subcommittee
on Employer-Employee Relations, H.R. 4343, Secret Ballot Protection Act of 2004,
hearings, 108th Congress, second session, Serial No. 108-70, Sept. 2004, Washington: U.S.
Govt. Print. Off., p. 11. (Hereafter cited as House Education and the Workforce, H.R. 4343,
Secret Ballot Protection Act of 2004.)
32 NLRB, Annual Report, Fiscal Year 2005, p. 20.
33 Some evidence indicates that within three years of winning an election, approximately
one-fourth of unions have not reached a first contract with the employer. Thomas F. Reed,
“Union Attainment of First Contracts: Do Service Unions Possess a Competitive
Advantage?” Journal of Labor Research, vol. 11, fall 1990, pp., 426, 430. William N.
Cooke, “The Failure to Negotiate First Contacts: Determinants and Policy Implications,”
Industrial and Labor Relations Review, vol. 38, January 1985, p. 170.
CRS-11
In most elections conducted by the NLRB, the employer and union agree on the
composition of the bargaining unit and on the time and place for an election. In
FY2005, of the 2,745 elections conducted, 2,320 (or 84.5%) were based on
agreements between the two parties.34
Although the NLRA does not provide a specific timetable for holding an
election, most elections are held within two months of the filing of a petition. In
FY2006, 94.2% of initial representation elections were conducted within 56 days of
filing a petition.35 As of September 30, 2005, representation cases awaiting a Board
decision had been pending for a median of 802 days from the date that an election
petition was filed.36
In FY2005, objections were filed in 237, or 8.6%, of the 2,745 elections
conducted. Most (63.7%) of the objections were filed by unions. The remainder
were filed by employers (33.3%) or by both parties.37
For decisions reached in FY2005, it took a median of 153 days between a
regional hearing on a contested election and a decision from the Board.38
Voluntary Card Check Recognition
The NLRA does not require secret ballot elections. An employer may
voluntarily recognize a union when presented with authorization cards signed by a
majority of employees in a bargaining unit. An employer may also enter into a card
check agreement with a union before union organizers begin to collect signatures.
A card check agreement between a union and employer may require the union to
collect signatures from more than a majority (sometimes called a supermajority) of
bargaining unit employees.39 A neutral third party often checks, or validates,
signatures on authorization cards. A collective bargaining contract may include a
34 NLRB, Annual Report, Fiscal Year 2005, Table 11A.
35 National Labor Relations Board, General Counsel, Summary of Operations: Fiscal Year
2006, Memorandum GC 07-03 Revised, Jan. 3, 2007, p. 1, at [http://www.nlrb.gov].
36 NLRB, Annual Report, Fiscal Year 2005, Table 23.
37 Ibid., Table 11C.
38 Ibid., Table 23.
An analysis by the General Accounting Office (GAO) of cases appealed to the Board
found that among cases closed between 1984 and 1989 the median time from the date of
regional action on an appeal to a decision by the Board was between 190 and 256 days. U.S.
General Accounting Office, National Labor Relations Board: Action Needed to Improve
Case-Processing Time at Headquarters, Report HRD-91-29, January 1991, pp. 21-22. The
General Accounting Office is now called the Government Accountability Office.
39 One study of card check agreements found that, under some agreements, a union needed
signatures from at least 65% of bargaining unit employees. Adrienne E. Eaton and Jill
Kriesky, “Union Organizing Under Neutrality and Card Check Agreements,” Industrial and
Labor Relations Review, vol. 55, October 2001, p. 48. (Hereafter cited as Eaton and
Kriesky, Union Organizing Under Neutrality and Card Check Agreements.)
CRS-12
card check arrangement for unorganized (including new) branches, stores, or
divisions of a company.
Neutrality Agreements. A card check arrangement may be combined with
a neutrality agreement. Not all neutrality agreements are the same. In general, under
a neutrality agreement, an employer agrees to remain neutral during a union
organizing campaign. The employer may agree not to attack or criticize the union,
while the union may agree not to attack or criticize the employer. The agreement
may allow managers to answer questions or provide factual information to
employees. A neutrality agreement may give a union access to company property to
meet with employees and distribute literature. An employer may also agree to give
the union a list of employee names and addresses. A neutrality agreement may cover
organizing drives at new branches of a company.40
Corporate Campaigns. To gain an agreement from an employer for a card
check campaign — possibly combined with a neutrality agreement — unions
sometimes engage in “corporate campaigns.” A corporate campaign may include a
call for consumers to boycott the employer; rallies and picketing; a public relations
campaign (e.g., press releases, Internet postings, news conferences, or newspaper and
television ads); charges that the employer has violated labor or other laws; public
support from political, civic, and religious leaders; and other strategies.41
Number of Voluntary Recognitions. The NLRB does not collect data on
voluntary recognitions. The FMCS, however, is involved in voluntary recognitions.
The FMCS was created by the Labor Management Relations Act of 1947 (the Taft-
Hartley Act). The main purpose of the FMCS is to mediate collective bargaining
agreements. FMCS mediators act as a neutral third-party to help settle issues during
40 Eaton and Kriesky, Union Organizing Under Neutrality and Card Check Agreements, pp.
47-48. Charles I. Cohen, “Neutrality Agreements: Will the NRLB Sanction Its Own
Obsolescence?” The Labor Lawyer, vol. 16, fall 2000, pp. 203-204. Brudney, Neutrality
Agreements and Card Check Recognition, pp. 5-6.
It has been argued that, under the NLRA, neutrality and card check agreements, may
be unlawful. See Arch Stokes, Robert L. Murphy, Paul E. Wagner, and David S. Sherwyn,
“Neutrality Agreements: How Unions Organize New Hotels Without an Employee Ballot,”
Cornell Hotel and Restaurant Administration Quarterly, vol. 42, Oct.-Nov. 2001, pp. 91-94.
A counter argument can be found in Brudney, Neutrality Agreements and Card Check
Recognition, pp. 28-53.
41 A union may engage in a corporate campaign to achieve other objectives, e.g., a contract
agreement. Charles R. Perry, Union Corporate Campaigns (Philadelphia: Industrial
Research Unit, Wharton School, University of Pennsylvania, 1987), pp. 1-8, 37-53.
For different views on corporate campaigns, see U.S. Congress, House Committee on
Education and the Workforce, Subcommittee on Workforce Protections, Compulsory Union
Dues and Corporate Campaigns, hearings, 107th Cong., 2nd sess., July 23, 2002, Serial No.
107-74 (Washington: GPO, 2002). For a discussion of corporate campaigns published by
the U.S. Chamber of Commerce, see Jarol B. Manheim, Trends in Union Corporate
Campaigns: A Briefing Book (Washington: U.S. Chamber of Commerce, 2005), available
at [http://www.uschamber.com/publications/reports/06union_campaigns.htm].
CRS-13
the bargaining process.42 Some of the requests received by the FMCS are for
mediation where an employer has voluntarily agreed to negotiate with a union.
Table 2 shows the number of voluntary recognitions, for FY1996 to FY2004, where
the FMCS helped mediate a first contract. Cases where an employer voluntarily
recognized a union and reached a first contract without FMCS assistance are not
included in these numbers. Therefore, the actual number of voluntary recognitions
is probably greater than the numbers shown in Table 2.
Table 2. Number of Voluntary Recognitions in Which the
Federal Mediation and Conciliation Service (FMCS) Provided
Assistance for Initial Contracts, FY1996-FY2004
Fiscal Year
Number of Voluntary Recognitions
2004
258
2003
240
2002
273
2001
420
2000
381
1999
260
1998
227
1997
249
1996
173
Source: Federal Mediation and Conciliation Service, Annual Report, Fiscal Year 2004, p. 18,
available at [http://www.fmcs.gov]. Federal Mediation and Conciliation Service, Annual Report,
Fiscal Year 2000, p. 39, available at [http://www.fmcs.gov].
Bargaining Orders
The final way that a union may be recognized by an employer is through a
bargaining order. The NLRB may order an employer to recognize and bargain with
a union if a majority of employees have signed authorization cards and the employer
has committed unfair labor practices that make it unlikely that a fair election can be
held.
According to Feldacker, “[h]ard and fast rules are not possible in determining
the situations in which the Board will issue a bargaining order. Each case is based
on the specific facts of the employer’s violations.43
Bargaining orders may be appealed.44
42 Federal Mediation and Conciliation Service, Annual Report, Fiscal Year 2004, p. 29,
available at [http://www.fmcs.gov].
43 Feldacker, Labor Guide to Labor Law, pp. 90-91.
44 Daniel Quinn Mills, Labor-Management Relations, 5th ed., New York: McGraw-Hill,
Inc., 1994, pp. 213-217.
CRS-14
Certification
A union that wins a secret ballot election is certified by the NLRB as the
bargaining representative of employees in that bargaining unit. Voluntary
recognition or a bargaining order do not result in certification by the NLRB. The
Taft-Hartley Act of 1947 (P.L. 80-101) eliminated certification through any method
other than an election conducted by the NLRB.45
Certification gives a union certain advantages. For instance, under what is
called a “certification bar,” a union that is certified after winning a secret ballot
election is protected for a year from a decertification petition and from an election
petition filed by another union. Under a voluntary card check recognition (or
bargaining order), a “recognition bar” protects a union from an election petition for
“a reasonable period of time.”46
The duration of an employer’s duty to bargain also depends on whether a union
has been certified by the Board or has been recognized voluntarily by the employer.
If a union wins an NLRB election (or under a bargaining order), the employer is
required to bargain in good faith for a year. Under a voluntary card check
recognition, the employer is required to bargain with the union for “a reasonable
period of time.”47
45 When enacted in 1935, Section 9(c) of the NLRA (P.L. 74-198) stated that whenever a
question of employee representation arises the NLRB “may take a secret ballot of
employees, or utilize any other suitable method to ascertain such representatives.”
Alternative methods of selection could include authorization cards, petitions, employee
testimony, affidavits of union membership, participation in a strike, or acceptance of strike
benefits. If employees chose to be represented by a union, the union would be certified by
the NLRB. During the five years after the NLRA was enacted, the NLRB issued 897
certifications after an election and 272 certifications (or 23.3% of the total) without an
election. (These numbers do not include cases where the union and employer agreed to hold
an election.) By 1939, the NLRB only certified unions that had been chosen by a secret
ballot election. This approach was written into law by the Taft-Hartley Act. The act
amended Section 9(c) to say that the Board “shall direct an election by secret ballot and
shall certify the results thereof.” The words “or utilize any other suitable method to
ascertain such representatives” were removed. National Labor Relations Board, Legislative
History of the National Labor Relations Act of 1935 (Washington: U.S. Govt. Print. Off.,
1949), p. 3274. National Labor Relations Board, Legislative History of the Labor
Management Relations Act, 1947 (Washington: U.S. Govt. Print. Off., 1985), p. 1670. Craig
Becker, “Democracy in the Workplace: Union Representation Elections and Federal Labor
Law,” Minnesota Law Review, vol. 77, 1992, pp. 507-510. Alan Roberts McFarland and
Wayne S. Bishop, Union Authorization Cards and the NLRB: A Study of Congressional
Intent, Administrative Policy, and Judicial Review (Philadelphia: University of
Pennsylvania, 1969), pp. 12-14, 50. William B. Gould IV, A Primer on American Labor
Law, 4th ed. (Cambridge, MA: MIT Press, 2004), p. 89.
46 U.S. Supreme Court, NLRB v. Gissel Packing, p. 599fn. Feldacker, Labor Guide to Labor
Law, p. 57.
47 Feldacker, Labor Guide to Labor Law, pp. 57, 139-140. Once a union and employer enter
into a first contract, election petitions are subject to a “contract bar.” A contract of three
(continued...)
CRS-15
NLRB Review of Card Check Recognition
The NLRB is currently considering cases that may affect recognition procedures
under a card check agreement.
In June 2004, the Board voted 3-2 to review two cases where bargaining unit
employees filed a decertification petition within weeks after the employer recognized
a union under a card check agreement. In the first case, the United Auto Workers
(UAW) and Metaldyne Corporation entered into a card check and neutrality
agreement in September 2002. Metaldyne recognized the UAW as the bargaining
representative of production and maintenance workers at its St. Marys, Pennsylvania
plant in December 2003. In the second case, the UAW and Dana Corporation
entered into a card check and neutrality agreement in August 2003. The company
recognized the union at its Upper Sandusky, Ohio plant in December 2003.
In both the Dana and Metaldyne cases, the UAW and the employers entered into
card check and neutrality agreements before signatures on authorization cards were
collected. The signatures were validated by a neutral third party. In both cases,
employees filed decertification petitions after the UAW was recognized by the
employer, but before an agreement was reached on a contract. Regional NLRB
directors dismissed both decertification petitions, saying that a reasonable period of
time had not passed since the UAW was recognized as the workers’ bargaining
representative. Employees at both companies petitioned the NLRB to review the
dismissals. The employees are represented by the National Right to Work Legal
Defense Foundation. The NLRB granted the request, saying that the issue is whether
voluntary recognition should prevent employees from filing a decertification petition
within a reasonable time in cases where an employer and union enter into a card
check agreement.48
47 (...continued)
years or less bars an election (called the “contract bar”) for the period covered by the
contract. NLRB, Basic Guide to the NLRA, p. 10.
After one year, if an employer and certified union have not reached a contract
agreement, the employer may withdraw recognition of the union, but only if both parties
have engaged in good faith bargaining and the employer doubts, based on objective
information (e.g., a petition signed by a majority of employees and given to the employer),
that a majority of employees no longer support the union. Under a voluntary recognition,
if no contract agreement has been reached after a reasonable period of time the employer
may withdraw recognition if he has reasonable doubt based on objective information that
a majority of employees support the union. Feldacker, Labor Guide to Labor Law, p. 140.
48 National Labor Relations Board, Order Granting Review, June 7, 2004, Cases 8-RD-1976,
6-RD-1518, and 6-RD-1519, available at [http://www.nlrb.gov/nlrb/shared_files/decisions/
341/341-150.pdf].
In July 2004, Arthur Rosenberg, at the time General Counsel of the NLRB, proposed
that employees be allowed to file a decertification petition signed within 21 days after a
voluntary card check recognition. The petition must be signed by at least 50% of bargaining
unit employees and filed with the NLRB within 30 days of recognition. National Labor
(continued...)
CRS-16
In another case involving voluntary card check recognition, the NLRB agreed
to review a case where a union claimed that an employer had agreed to voluntary card
check recognition at newly acquired stores. In December 2004, the Board by a vote
of 2-1 agreed to review a case involving Shaw’s Supermarkets and the United Food
and Commercial Workers (UFCW).49 In August 2003, Shaw’s opened a new store
in Mansfield, Massachusetts. A majority of workers at the new store signed
authorization cards. The UFCW claimed that, under a clause in an existing
bargaining contract, Shaw’s had agreed to voluntary card check recognition at newly
acquired stores.50 Shaw’s filed a petition requesting a secret ballot election. In May
2004, an acting regional director of the NLRB dismissed Shaw’s petition without a
hearing. The Board agreed to review the case and returned the case to the regional
office for a hearing. In its decision, the Board said:
The issues in this case include (1) Whether the Employer clearly and
unmistakably waived the right to a Board election; (2) if so, whether public
policy reasons outweigh the Employer’s private agreement not to have an
election.
The Board went on to say: “We do not resolve these issues at this stage. We merely
hold that they are worthy of review.”51 After the hearing ordered by the Board, a
regional director, in March 2005, again dismissed Shaw’s petition for an election.52
In March 2006, the Board again agreed to review the case.53
Impact of Changes in Recognition Procedures
Changes in union recognition procedures may affect the level of unionization
in the United States.54 This section summarizes the most common arguments made
in favor of requiring secret ballot elections and the most common arguments made
in support of card check recognition if a majority of workers sign authorization cards.
48 (...continued)
Relations Board, Amicus Brief of the General Counsel, July 14, 2004, p. 2, available at
[http://www.nlrb.gov/nlrb/about/foia/DanaMetaldyne/NLRBGC.pdf].
49 The NLRA (Section 3(b)) allows the Board to delegate decisions to a group of three or
more members.
50 These clauses have been called “after-acquired stores” clauses, “additional stores” clauses,
and “Kroger” clauses (after NLRB and court decisions involving the Kroger Company).
51 National Labor Relations Board, Shaw’s Supermarkets and United Food and Commercial
Workers Union Local 791, AFL-CIO, Case 1-RM-1267, Dec. 8, 2004, pp. 1-3, available at
[http://www.nlrb.gov/nlrb/shared_files/decisions/343/343-105.pdf].
52 National Labor Relations Board, “Shaw’s Supermarkets and Local 791, United Food and
Commercial Workers Union, AFL-CIO, Case 1-RM-1267, [http://www.nlrb.gov/nlrb/
shared_files/decisions/dde/2005/1-RM-1267(3-22-05).pdf].
53 Bureau of National Affairs, “NLRB 2-1 Grants Shaw’s Request for Review in Case
Involving After-Acquired Store Clause,” Daily Labor Report, no. 55, Mar. 22, 2006, p. A-1.
54 For a discussion of union membership trends in the United States, see CRS Report
RL32553, Union Membership Trends in the United States, by Gerald Mayer.
CRS-17
The section also reviews research on the effect of different union recognition
procedures on union success rates.
The most common arguments made by the proponents of mandatory card check
recognition and the proponents of mandatory secret ballot elections are summarized
in Table 3.55
Table 3. Common Arguments Made by Proponents of
Mandatory Card Check Recognition and
Mandatory Secret Ballots
Proponents of Mandatory
Proponents of Mandatory
Card Check Recognition
Secret Ballot Elections
Card check recognition requires signatures Casting a secret ballot is private and
from more than 50% of bargaining unit
confidential. A secret ballot election is
employees. A secret ballot election is
conducted by the NLRB. Under card check
decided by a majority of workers voting.
recognition, authorization cards are
controlled by the union.
During a secret ballot campaign, the
Under card check recognition, employees
employer has greater access to employees.
may only hear the union’s point of view.
Because of potential employer pressure or
Because of potential union pressure or
intimidation during a secret ballot election, intimidation, some workers may feel
some workers may feel coerced into voting coerced into signing authorization cards.
against a union.
Employer objections can delay a secret
Most secret ballot elections are held soon
ballot election.
after a petition is filed.
Allegations against a union for unfair labor Allegations against an employer for unfair
practices can be addressed under existing
labor practices can be addressed under
law. Existing remedies do not deter
existing law. Existing remedies do not
employer violations of unfair labor
deter union violations of unfair labor
practices.
practices.
Card check recognition is less costly for
Union members must pay union dues.
both the union and employer. If secret
Unionization may result in fewer union
ballot elections were required, the NLRB
jobs.
would have to devote more resources to
conducting elections.
Card check and neutrality agreements may An employer may be pressured by a
lead to more cooperative labor-
corporate campaign into accepting a card
management relations.
check or neutrality agreement. If an
employer accepts a neutrality agreement,
employees who do not want a union may
hesitate to speak out.
Source: Table compiled by CRS.
55 The arguments for and against mandatory card check recognition and secret ballot
elections are considered in House, Committee on Education and the Workforce,
Subcommittee on Employer-Employee Relations H.R. 4343, Secret Ballot Protection Act
of 2004.
CRS-18
Proponents of each view sometimes use similar language in support of their
positions. Employers argue that, under card check recognition, employees may be
pressured or coerced into signing authorization cards and that employees may only
hear the union’s point of view. On the other hand, unions argue that, during an
election campaign, employers may pressure or coerce employees into voting against
a union. Proponents of secret ballot elections argue that, unlike signing an
authorization card, casting a secret ballot is private and confidential. Unions argue
that, during an election campaign, employers have greater access to employees (e.g.,
captive audience meetings and access to employees on company property). Unions
argue that card check recognition is less costly than a secret ballot election. But
employers maintain that unionization may be more costly to employees, because
union members must pay dues and higher union wages may result in fewer union
jobs.
Research Findings
Little research has been done comparing the effects of requiring card check
recognition versus the effects of requiring secret ballot elections. The research that
exists, however, suggests that changes in union recognition procedures could affect
the level of unionization in the United States. Research suggests that the union
success rate is greater with card check recognition than with secret ballots. Unions
also undertake more unionization drives under card check recognition. The union
success rate under card check recognition is greater when a card check campaign is
combined with a neutrality agreement.
Evidence from Canada suggests that the union success rate is higher under card
check recognition than under secret ballots. In Canada, each of the 10 provinces has
laws governing union recognition.56 In 1976, all 10 provinces allowed card check
recognition. Beginning with Nova Scotia in 1977, five provinces adopted mandatory
voting.57 Under mandatory voting a union must receive a majority of votes in a secret
ballot election to be recognized as the bargaining agent. Under card check
recognition, a union is automatically recognized if the number of employees who
sign authorization cards meets a minimum threshold. In general, a union is
automatically recognized if more than 50% to 55% of employees, depending on the
province, sign authorization cards.58
56 Gary N. Chaison and Joseph B. Rose, “The Canadian Perspective on Workers’ Rights to
Form a Union and Bargain Collectively,” Edited by Sheldon Friedman, Richard W. Hurd,
Rudolph A. Oswald, and Ronald L. Seeber, in Restoring the Promise of American Labor
Law (Ithaca, NY: ILR Press, 1994), p. 244.
57 The five Canadian provinces that currently require secret ballots are: Nova Scotia,
Alberta, Newfoundland, Ontario, and Manitoba. British Columbia adopted mandatary
voting in 1983 and reversed itself in 1993. Susan Johnson, “The Impact of Mandatory Votes
on the Canada-U.S. Union Density Gap: A Note,” Industrial Relations, vol. 43, Apr. 2004,
p. 357. (Hereafter cited as Johnson, The Impact of Mandatory Votes.) Chris Riddell, “Union
Suppression and Certification Success,” Canadian Journal of Economics, vol. 34, May
2001, p. 397. (Hereafter cited as Riddell, Union Suppression and Certification Process.)
58 Johnson, The Impact of Mandatory Votes, pp. 356-357.
CRS-19
A study of the union success rate under mandatory voting and automatic card
check recognition concluded that the union success rate in Canada is nine percentage
points higher under card check recognition than under secret ballots. The study
examined 171 union organizing campaigns between 1978 and 1996 in nine
provinces.59
In the province of British Columbia, union recognition based on card checks
was allowed until 1984. From 1984 through 1992, union certification required a
secret ballot election. Card checks were again allowed after 1992. During an 11-year
period when card checks were allowed, the union success rate was 91%. During the
period when voting was mandatory, the union success rate was 73%. In addition,
during the period when card checks were allowed, there were more attempts to
organize workers: an average of 531 organizing drives per year when card checks
were in effect versus an average of 242 a year when mandatory voting was in effect.60
Evidence also suggests that card check recognition may be more successful
under a neutrality agreement. A study of union organizing drives in the United States
concluded that union success rates are higher when a card check agreement is
combined with a neutrality agreement. The study examined 57 card check
agreements involving 294 organizing drives. Unions had a success rate of 78.2% in
drives where card check recognition was combined with a neutrality agreement and
a 62.5% success rate in cases where there was only a card check agreement.61
The union success rate may be higher under card check recognition because, in
part, employers have less of an opportunity to campaign against unionization.
Unions may initiate more organizing drives under card check recognition because a
card check campaign costs less than a secret ballot election. A secret ballot election
may take longer than a card check campaign and employer opposition may be greater
(requiring a union to expend more resources).62 Unions may have a higher success
rate when card check recognition is combined with a neutrality agreement because
there may be less employer opposition to unionization under a neutrality agreement.
59 Susan Johnson, “Card Check or Mandatory Representation Vote? How the Type of Union
Recognition Procedure Affects Union Certification Success,” Economic Journal, vol. 112,
pp. 355-359.
60 The data are for union drives in the private sector. The calculation of the union success
rate under card checks is for the five years before and the six years after voting was
mandatory. The calculations of the union success rate and the average annual number of
unionizing drives exclude 1984, when card checks were allowed for part of the year.
Because of incomplete data, the calculation of the average annual number of unionizing
drives also excludes 1998. Riddell, Union Suppression and Certification Success, p. 400.
61 The success rate was measured as the percentage of organizing campaigns that resulted
in union recognition. The results include some agreements in the public sector. Some of
the agreements were with employers where a union represented other workers. Some of the
agreements were with employers with whom the union had no existing bargaining
relationship. Eaton and Kriesky, Union Organizing Under Neutrality and Card Check
Agreements, pp. 45-48, 51-52.
62 Robert J. Flanagan, “Has Management Strangled U.S. Unions?,” Journal of Labor
Research, vol. 26, winter 2005, p. 51.
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(Some research has concluded that management opposition is a key factor affecting
union success rates in NLRB conducted elections.)63
Finally, two surveys provide added information about secret ballot elections and
card check recognition.64 According to a March 2006 survey conducted for the
Center for Union Facts (a business group), 75% of 1,000 persons surveyed said that
they believe that a secret ballot election is the most fair and democratic way for
employees to decide whether or not to join a union. By contrast, 12% of respondents
said that card check recognition is the most fair and democratic way to form a
union.65 According to a 2005 survey conducted by American Rights at Work (a labor
group), 22% of 430 workers who had gone through a union organizing campaign said
that they experienced a “great deal” of pressure from management. By contrast, 6%
of workers said that they experienced a great deal of union pressure. Among workers
who signed authorization cards in the presence of a union organizer, 5% said that the
presence of the organizer made them feel pressure to sign the cards.66
Requiring card check recognition if a majority of employees sign authorization
cards may increase the union success rate. Whether or not mandatory card check
recognition would reverse the decline in private sector unionization in the United
States is not certain. Shrinking employment in unionized firms and decertifications
may offset any increase in union membership due to mandatory card check
recognition. In addition, mandatory card check recognition may increase employer
opposition during the collection of authorization cards.
Is There an Economic Rationale for Protecting the
Rights of Workers to Organize and
Bargain Collectively?
The NLRA gives private sector workers the right to organize and bargain
collectively over wages, hours, and other working conditions. The act says that the
purpose of the law is to improve the bargaining power of workers. This section
considers whether there is an economic rationale for protecting the rights of workers
to organize and bargain collectively.
63 Richard B. Freeman and Morris M. Kleiner, “Employer Behavior in the Face of Union
Organizing Drives,” Industrial and Labor Relations Review, vol. 43, April 1990, p. 351.
64 For information on the two surveys, see Bureau of National Affairs, Two Surveys Reach
Different Conclusions on Benefits of Card Checks, NLRB Elections, no. 55, Mar. 22, 2006,
p. A-5.
65 The survey was conducted by the Opinion Research Corporation (a social and marketing
research firm). Center for Union Facts, Nationwide Poll: Americans Overwhelmingly
Prefer Secret Ballot Elections to Card Checks, Mar. 21, 2006, available at
[http://www.unionfacts.com/news.cfm?id=13].
66 The survey was prepared by two university professors and conducted by the Eagleton
Research Center at Rutgers University. American Rights at Work, Fact Over Fiction:
Opposition to Card Check Doesn’t Add Up, March 2006, available at
[http://www.americanrightsatwork.org].
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Government Intervention in Labor Markets
Governments may intervene in labor markets for a number of reasons. One of
these reasons is to improve competition.67 According to standard economic theory,
competitive markets generally result in the most efficient allocation of resources,
where resources consist of individuals with different skills, capital goods (i.e.,
buildings and equipment and associated technology), and natural resources. In turn,
an efficient allocation of resources generally results in greater total output and
consumer satisfaction.
In competitive labor markets workers are paid according to the value of their
contribution to output. Under perfect competition, wages include compensation for
unfavorable working conditions. The latter theory, called the “theory of
compensating wage differentials,” recognizes that individuals differ in their
preferences or tolerance for different working conditions — such as health and safety
conditions, hours worked, holidays and annual leave, and job security.68
If labor markets do not fit the model of perfect competition, increasing the
bargaining power of workers may raise wages, improve benefits (e.g., for health care
and retirement), and improve working conditions to levels that would exist under
competitive conditions. In labor markets where a firm is the only employer (called
a monopsony) unionization could, within limits, increase both wages and
employment.69
On the other hand, increasing the bargaining power of employees in competitive
labor markets may result in a misallocation of resources — and reduce total
economic output and consumer satisfaction. In competitive labor markets, higher
union wages may reduce employment for union workers below the levels that would
67 The following conditions are the general characteristics of a competitive labor market:
(1) There are many employers and many workers. Each employer is small relative to the
size of the market. (2) Employers and workers are free to enter or leave a labor market and
can move freely from one market to another. (3) Employers do not organize to lower wages
and workers do not organize to raise wages. Governments do not intervene in labor markets
to regulate wages. (4) Employers and workers have equal access to labor market
information. (5) Employers do not prefer one worker over another equally qualified worker.
Workers do not prefer one employer over another employer who pays the same wage for the
same kind of work. (6) Employers seek to maximize profits; workers seek to maximize
satisfaction. Lloyd G. Reynolds, Stanley H. Masters, and Colletta H. Moser, Labor
Economics and Labor Relations, 11th ed. (Englewood Cliffs, N.J.: Prentice-Hall, 1998), pp.
16-21.
68 Randall K. Filer, Daniel S. Hamermesh, and Albert E. Rees, The Economics of Work and
Pay, 6th ed., New York: Harper Collins, 1996, pp. 376-390. Ronald G. Ehrenberg and
Robert S. Smith, Modern Labor Economics: Theory and Public Policy, 7th ed. (Reading,
MA: Addison-Wesley, 2000), pp. 251-259. (Hereafter cited as Ehrenberg and Smith,
Modern Labor Economics.)
69 Bruce E. Kaufman, The Economics of Labor Markets, 4th ed. (Fort Worth: Dryden Press,
1994), pp. 277-280. (Hereafter cited as Kaufman, The Economics of Labor Markets.)
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exist in the absence of unionization.70 If unions lower employment in the unionized
sector, they may increase the supply of workers to employers in the nonunion sector,
lowering the relative wages of nonunion workers.71
It is difficult, however, to determine the competitiveness of labor markets. First,
identifying the appropriate geographic labor market may be difficult. Labor markets
can be local (e.g., for unskilled labor), regional, national, or international (e.g., for
managerial and professional workers). Second, measuring the competitiveness of
labor markets is difficult. Finally, labor markets may change over time because of
demographic, economic, technological, or other changes.72
Distribution of Earnings
A second reason governments may intervene in labor markets is to reduce
earnings inequality.73 Competitive labor markets may allocate resources efficiently,
but they may result in a distribution of earnings that some policymakers find
unacceptable. Unionization may be a means of reducing earnings inequality. Some
economists argue that, during a recession, greater earnings equality may increase
aggregate demand and, therefore, reduce unemployment.
Collective Voice
Finally, some economists maintain that unions give workers a “voice” in the
workplace. According to this argument, unions provide workers an additional way
to communicate with management. For instance, instead of expressing their
70 In competitive labor markets, unions can offset the employment effect of higher wages by
trying to persuade consumers to buy union-made goods (e.g., campaigns to “look for the
union label”), limiting competition from foreign made goods (e.g., though tariffs or import
quotas), or negotiating contracts that require more workers than would otherwise be needed.
Kaufman, The Economics of Labor Markets, pp. 276-277. Ehrenberg and Smith, Modern
Labor Economics, p. 493. Toke Aidt and Zafiris Tzannatos, Unions and Collective
Bargaining: Economic Effects in a Global Environment (Washington: The World Bank,
2002), p. 27.
71 If unions raise the wages of union workers and lower employment in the union sector, the
supply of workers available to nonunion employers may increase, resulting in greater
competition for jobs and lower wages for nonunion workers (the “spillover” effect). On the
other hand, nonunion employers, in order to discourage workers from unionizing, may pay
higher wages (the “threat” effect). Ehrenberg and Smith, Modern Labor Economics, pp.
504-508.
72 Kaufman argues that labor markets in the United States have become more competitive
since World War II. Bruce E. Kaufman, “Labor’s Inequality of Bargaining Power: Changes
over Time and Implications for Public Policy,” Journal of Labor Research, vol. 10, summer
1989, pp. 292-293.
73 Governments may also intervene in private markets to produce “public” goods (e.g.,
national defense) or correct instances where the market price of a good does not fully reflect
its social costs or benefits — called, respectively, negative and positive “externalities.” Air
and water pollution are frequently cited as examples of negative externalities; home
maintenance and improvements are often cited as examples of positive externalities.
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dissatisfaction with an employer by quitting, workers can use dispute resolution or
formal grievance procedures to resolve issues relating to pay, working conditions, or
other matters.74
Conclusion
The economic impact of mandatory card recognition or mandatory secret ballot
elections may rest on the desired objectives of policymakers.
By bargaining collectively, unionized workers may obtain higher wages,
improved benefits, and better working conditions than if each worker bargained
individually.75 But, depending on how well labor markets fit the model of perfect
competition, collective bargaining may improve or harm the allocation of resources
(i.e., economic efficiency). If labor markets are competitive, increasing the
bargaining power of workers may reduce economic output and consumer satisfaction,
but may increase equality. On the other hand, if labor markets are not competitive,
increasing the bargaining power of workers may improve the allocation of resources
as well as increase equality.76
Mandatory card check recognition may increase the number of organizing
campaigns and increase union success rates. Conversely, mandatory secret ballot
elections may reduce the number of organizing drives and reduce union success rates.
Thus, compared with existing recognition procedures, mandatory secret ballot
elections may lower the level of unionization, whereas mandatory card check
recognition may raise it. Accordingly, depending on the competitiveness of labor
markets, mandatory card check recognition may either improve or harm economic
efficiency. Similarly, mandatory secret ballots may either improve or harm
efficiency. If either change were enacted, it may be difficult, however, to predict or
measure the size of the effects.
Regardless of the competitiveness of labor markets, mandatory secret ballot
elections may increase earnings inequality — if fewer workers are unionized.
Mandatory card check recognition may reduce inequality — if more workers are
unionized. Again, the size of the effects may be difficult to predict or measure.
74 Richard B. Freeman and James L. Medoff, “The Two Faces of Unionism,” Public Interest,
no. 57, fall 1979, pp. 70-73. Richard B. Freeman, “The Exit-Voice Tradeoff in the Labor
Market: Unionism, Job Tenure, Quits, and Separations,” Quarterly Journal of Economics,
vol. 94, June 1980, pp. 644-645.
75 Bargaining between employers and workers includes the right of workers to strike (in the
private sector) and the right of employers to lock out employees.
76 The results of research on the wage differential between union and nonunion workers
vary. But, in general, most studies find that, after controlling for individual, job, and labor
market characteristics, the wages of union workers are in the range of 10% to 30% higher
than the wages of nonunion workers. Although the evidence is not conclusive, some studies
have concluded that unions reduce earnings inequality in the overall economy. CRS Report
RL32553, Union Membership Trends in the United States, by Gerald Mayer.
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In sum, if the policy objective of Congress is to increase total economic output
and consumer satisfaction, mandatory secret ballots or mandatory card check
recognition may either improve or harm economic efficiency, depending on the
competitiveness of labor markets. Mandatory card check recognition may reduce
earnings inequality; mandatory secret ballot elections may increase it.