RILA Urges House Appropriations Subcommittee to Overturn NLRB Micro-Union Rule

Arlington, VA – Today the Retail Industry Leaders Association (RILA) urged members of the House Labor, Health and Human Services Appropriations Subcommittee to overturn a National Labor Relations Board (NLRB) decision that creates micro-unions. The Subcommittee is scheduled to consider the FY 2013 Labor, Health and Human Services Appropriations Bill on Wednesday.

Micro-unions are the result of the NLRB’s 2011 Specialty Healthcare decision.

“I write to urge you to support a provision in the FY 2013 Labor, Health and Human Services, Education and Related Agencies Appropriations Bill that will stop efforts by the National Labor Relations Board (NLRB) to fragment workplaces through creating micro unions by reversing the Specialty Healthcare case decision,” said Bill Hughes, senior vice president for government affairs, in a letter sent to the Subcommittee.

The micro-unions decision redefines what the NLRB views as a proper bargaining unit and allows union organizers to gerrymander a workplace by cherry-picking small groups of employees within a larger workforce to form a micro-union.

The NLRB and its regional directors have already begun clearing the way for micro-unions including a unit made up of the women’s shoe department at a New York Bergdorf Goodman store as well as maintenance employees at a Nestle-Dryer Ice Cream plant, and behind-the-counter employees at a DTG car rental location.

There are countless stories in the retail industry of current executives who started their careers working on the sales floor. Micro-unions would impede employees from developing their knowledge base and advancing their careers. Not only does internal growth benefit the employee, but employers find that it provides for better employee retention and a healthier connection between senior management and the employees in their stores,” said Hughes.

Last November, the U.S. House of Representatives passed by a vote of 235-188, legislation to address micro-unions, the Workforce Democracy and Fairness Act (HR 3094). More recently, the Senate Appropriations Committee voted 15-15 on an amendment to the Labor, Health and Human Services Appropriations Bill introduced by Senator Lindsey Graham that would have overturned the micro-union rule. While the vote failed, Sen. Graham’s amendment was the only one of its kind to receive bipartisan support.

“Understanding the devastating affects this will have on not only the retail industry, but the larger business community, the proposal has already received bipartisan support in both the House of Representatives and the Senate,” added Hughes.

Given the process by which the NLRB reached the micro-union decision, a representation case, those who stand to be negatively affected have little immediate recourse. Legislative action is the only way to halt widespread application of the decision while legal appeals progress.