OPINIONWorkforce

Here's what last week's change in union regulations could mean for all restaurants

Working Lunch: "This fundamentally changes labor relations in the U.S," says host Franklin Coley.

How’s a restaurant supposed to remain union-free when organizing procedures have been changed to make the process a snap for labor? This week’s Working Lunch podcast offers a few suggestions, along with a review of the do’s and don’ts employers now face because of last week’s monumental regulatory update.

Those modifications are “unbelievable and unprecedented,” Joe Kefauver, co-host of the government-issues-focused podcast, said of the procedural changes that were issued by the National Labor Relations Board, the federal agency that regulates union organizing. “We woke up this morning to a world that’s different from the one we knew last week.”

Co-host Franklin Coley used similar language in his characterization of the regulatory changes.

“This fundamentally changes labor relations in the U.S.,” said Coley, a principal along with Kefauver in the Orlando-based government-affairs consultancy Align Public Strategies.

As the pair explained, the NLRB changed the process for determining if the staff of a business should be recognized as a collective bargaining entity represented by a union. That determination has historically been decided by a secret ballot open to the employees.

Under the changes announced Friday by the NLRB, an election isn’t necessary. If a majority of employees demonstrate their desire to unionize, that should be enough to require that the employer negotiate in good faith with the worker group, as if it was a union.  

“Once a majority of workers signal their support for a union, the employer must immediately start working with the union,” said Coley.

If the business opts not to negotiate with the workers, it can call for a vote on unionizing. But if regulators find the employer did not show good faith leading up to the vote, they can declare the balloting unnecessary and announce the union as the winner.

Employers used to wait until an election was scheduled before they could make their pitch for the staff remaining non-union. “Now they won’t have that time to make their case,” said Coley. The NLRB could recognize a union as the workers’ legitimate representative before a vote is even near.

If an employer wants to talk up the benefits of being un-unionized, such as not being required to pay 1.8% of each paycheck to the labor group, “You’re going to be addressing this at the onboarding stage,” Coley said.

For an understanding of what the new NLRB procedures portend for all employers, download this episode of Working Lunch from wherever you get your podcasts.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Food

Inside Chili's quest to craft a value-priced burger that could take on McDonald's

Behind the Menu: How the casual-dining chain smashes expectations with a winning combination of familiarity and price with its new Big Smasher burger.

Financing

Here's the big problem with all these $5 meal deals

The Bottom Line: With McDonald’s planning a $5 value meal of its own, more brands are already jumping onto the bandwagon. But not everybody will pay $5.

Financing

What did the Starbucks CEO expect?

The Bottom Line: Howard Schultz needed just one bad quarter to make public his displeasure with the coffee shop chain. But the stage was set for that two years ago.

Trending

More from our partners