Despite the fact that job creation is vital to the economic recovery, recent regulatory action by the National Labor Relations Board (NLRB) and the Department of Labor (DOL) could have a chilling effect on the nation’s businesses and discourage job creation. As The Wall Street Journal editorialized on July 28, the inability to rein in the NLRB would have a calamitous effect on the business environment in this country.

Recognizing the potentially disastrous economic consequences of the actions by an activist NLRB, the IFA-supported Protecting Jobs from Government Interference Act is being considered in Congress this week would guarantee entrepreneurs have the ability to decide where to conduct their business and encourage investment in our nation and its workforce.

Regulators at NLRB and DOL have promoted these rules as essential measures to secure workers’ rights, but in reality they will only empower big labor while crushing job creation and sustaining high unemployment.  Changes made by the NLRB to card-check union rules would allow for “ambush elections” that would give employers little time to secure legal counsel or provide information to employees leading up to the election of new labor union representation.  In another proposal, a “gag rule” proposed by the DOL would overturn 50 years of established law by revising the “advice exemption”, requiring employers to disclose confidential information or counsel received from lawyers or consultants in regards to union elections.

Even though the Obama Administration has told agencies not to adopt regulations that stifle job creation, the new NLRB and DOL rules will have a chilling effect on the hiring practices of American businesses.   Recognizing that there are over 14 million unemployed American workers, the Protecting Jobs from Government Interference Act will prevent the NLRB from imposing “card check” by regulation and hurting the ability of businesses to hire and drive the economic recovery.

Posted by IFA Government Relations Staff

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