The U.S. House passed a labor-backed bill on Tuesday that would make it easier for new unions to get their first contracts as 20 Republicans broke from their party to support the measure.
The Faster Labor Contracts Act passed by a 230-193 vote with all 210 Democrats voting in favor and 192 Republicans voting against. The bill now goes to the Republican-controlled Senate.
Rep. Chris Smith (R-N.J.) released a statement after he voted for the bill.
“Regrettably, after a vote is held and a union is formed, some unscrupulous employers drag out or stall talks as an insidious tactic to erode worker morale, weaken support for their elected union, and undermine efforts for better work environments and wages,” Smith said.
“To close this gaping loophole, HR 5408 sets up an orderly and timely negotiation process, establishes deadlines and provides an effective means for mediation and arbitration to secure a first contract in a reasonable amount of time.”
The U.S. Chamber of Commerce opposed the bill, saying it would undermine the rights of employers, employees, and unions by allowing a government-appointed arbitration panel to impose labor contracts when negotiations fail.
The chamber warned that arbitrators would not be required to consider whether contract provisions are financially sustainable for employers, potentially resulting in unaffordable labor agreements that could lead to layoffs, job losses, or even business closures.
The chamber also noted that the bill places few limits on the issues arbitrators may address, allowing them to impose broad workplace requirements. Because a federal political appointee could select an arbitrator if the parties cannot agree, the chamber contends the process risks politically motivated outcomes rather than balanced labor-management agreements.
The bill would amend federal labor law to speed up negotiations for first union contracts, according to a fact sheet put out by Rep. Donald Norcross (D-N.J.) and Rep. Pete Stauber (R-Minn).
Under the bill, employers would be required to begin bargaining with a newly certified union within 10 days. If the parties fail to reach an agreement after 90 days, the dispute would move to mediation. If mediation is unsuccessful after 30 days, or a longer period agreed to by both sides, the dispute would be referred to a binding three-person arbitration panel to establish an initial contract.
Supporters say the legislation is needed to prevent employers from delaying negotiations and denying workers the benefits of union representation after a successful unionization vote.
The example cited by Norcross and Stauber was Starbucks in Buffalo, New York, where workers voted to unionize in December 2021. More than 12,000 workers at about 500 Starbucks stores have voted to unionize. More than three years later, they are still waiting on their first contract, according to the fact sheet.
