Compliance & Consequence: The NLRB’s Stern Warning To Employers: LRI INK

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Subject: Compliance & Consequence: The NLRB’s Stern Warning To Employers: LRI INK

September 21, 2023

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Compliance & Consequence: The NLRB’s Stern Warning To Employers

by Kimberly Ricci

The NLRB recently opened a can of “Fool Around, Find Out!” on the non-compliant owners of a salon.

The National Labor Relations Board is a quasi-judicial body. Still, if any company loosely interprets the “quasi” as an excuse to defy orders, this will not end well if that company is also tempted to disregard a court’s enforcement of the Board’s orders rather than proceed with proper review procedures; oh boy.

That’s practically an invitation for the Board to make an example of the defiance, and the results will not be glamorous. In this case, the owners of a company opened their doors to find the U.S. Marshal Service with handcuffs in tow.

Surprising? Of course. Dramatic? Indeed, and that’s by design.

It’s the sort of case that eventually inspires the NLRB to issue a triumphant Sept. 13, 2023, statement with flashy quotes from General Counsel Jennifer Abruzzo:

“This case demonstrates the Agency’s vigorous pursuit of justice. Employers should be on notice that they can face steep consequences if they continue to skirt the law, including being taken into custody until they comply. Violators of the Act should promptly comply with Board orders to quickly remedy their unlawful activities and dissipate the adverse effects they had upon workers.”

Two Wisconsin salon/spa owners found this out the hard way after deciding not to comply with a 2021 order to reinstate a worker who the Board determined was wrongfully fired. The worker had criticized the company’s 2020 policies about COVID-19 with an email blast to other workers. That surely put everyone in an awkward situation, but when the Board’s directive came down, the owners ignored the reinstatement order. They also disregarded the order to deliver back pay and an apology to the worker, scrub termination references from her file, and provide workers with a notice of employee rights.

The initial orders themselves aren’t shocking. The NLRB regularly issues remedial orders of reinstatement and back pay in cases like these. It feels like an almost monthly occurrence for the Board to use this procedure to order Starbucks to rehire union activists.

Granted, it would be understandable in 2023 for business owners to feel tempted to push back against a politically motivated Board. Biden’s agendas have resulted in recent sweeping changes that portend drastic effects on workplace practices and threaten management’s right to run their businesses.

Yet these salon owners seemingly went through a great deal of effort to achieve years of non-compliance. The Board asserted that they evaded process servers, which led to contempt charges and $30,000 in fines and attorney fees. An exaggerated display of defiance triggered a theatrical display of the Board’s hardline stance.

Following the arrest, the salon’s owners vowed to comply with the NLRB’s original orders and were released by a judge, albeit with an expensive mistake on their hands. It’s a lesson to all to be prepared for strenuous enforcement of the NLRB’s orders and respond accordingly.

Blog Post

When Workers Lose Trust In Employers, White-Collar Union Contagion Spreads

by Kimberly Ricci

Blue-collar unions are currently seizing the spotlight through the tangled web of the United Autoworkers strike against the Big Three automakers. Demands for 32-hour work weeks and 40% raises will do that, yet over in another industry, white-collar organizing efforts persist by the Communication Workers of America (CWA).

Through the Committee for Better Banks-CWA initiative, the union made it one of their missions – and they have plenty of them – to organize “frontline” bank workers in call centers, banking branches, and corporate headquarters. The initiative’s perpetual big fish is the first major bank to face a CWA union drive: Wells Fargo.

This would ordinarily be a formidable challenge. Fewer than 1% of bank workers are unionized in the U.S., and until recently, banks enjoyed a four-decade union-free streak. New exceptions include small institutions like Beneficial State Bank, which saw CWA unionize 100 workers in 2021. Workers at credit unions like Lake Michigan Credit Union and Genesee Co-op Federal Credit Union also organized with CWA.

The timing and the influence of this drive: Wells Fargo has been a CWA target for several years, even before the company’s most infamous scandal broke in 2016. That fiasco led to a revolving door of CEOs and Federal Reserve oversight after CWA-credited whistleblowers exposed a widespread fake account scandal. Although only 1000 workers out of 200,000+ people employed by Wells Fargo are part of the drive, the effort is widespread enough to stretch across 29 different locations.

It’s easy to suspect that if CWA were to be victorious in unionizing this large bank, the resulting news headlines could inspire union contagion to spread to workers at other financial institutions. Yet this has already happened: Beneficial State Bank workers cited the Wells Fargo situation while calling unionizing a proactive move.

Erosion of the relationship between worker and employer: The deck seems loaded against Wells Fargo. A veteran call center employee recently went on record to detail her rationale for organizing, and she pointed toward the bank’s scandals as the overriding reason. Some workers believe that CWA can clean up a toxic working environment with sales metrics so unrealistic that workers say they felt compelled to fabricate fake credit card accounts.

A Wells Fargo shareholder group recently called for taking a union-neutrality stance. The bank has declined to do so, and an internal document revealed executives are highly concerned. Wells Fargo has added labor relations expertise to its roster, but the wheels of organizing activity are fully in motion.

Unfortunately, Wells Fargo left itself wide open to union infiltration through a lack of transparency. They have a lot of hard work ahead to repair that gao. When workers lose trust in management, unions are all too happy to try and fill that void. Understandably, other banks are nervous about these Wells Fargo developments and whether they might open the floodgates to an industry. It’s a cautionary tale to maintain trust and transparency with workers to prevent unions from putting down roots.

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CEMEX UPDATE WEBINAR RECORDING AND SLIDES NOW AVAILABLE

If you would like to view the LRI Cemex Update webinar given by Phil Wilson, you can request access to the slide deck and video recording by completing this form. We will need your name, a contact number, and your work email address in order to verify you are with a company. This webinar is for management-side labor and employee relations professionals only.

Click here

The UAW Strike: A Tangled Web of Labor, Law, And Logistics

by Michael VanDervort

Today, we're diving deep into the United Auto Workers (UAW) strike against the Detroit Big 3—Ford, General Motors, and Stellantis. Now, if you're thinking this is just another labor dispute, buckle up. This strike is a labyrinth of legalities, logistics, and, yes, labor issues that could have ripple effects far beyond the factory floors.

The Strike's Ground Zero

First off, let's set the stage. The UAW has initiated a strike against all three of the Big 3 automakers simultaneously for the first time in history. While the strike currently involves only one plant for each automaker, covering about 13,000 of the UAW’s 145,000 members, the union has hinted at expanding its scope.

The Stand-Up Strike

According to the UAW, the so-called “Stand Up Strike” is a new approach to striking. Traditionally, the UAW has chosen a single target company and taken them out on strike, using the resulting agreement as the benchmark for contracts with the other Detroit auto manufacturers. Under this new model, instead of striking all plants all at once, select locals will be called on to “Stand Up” and walk out on strike. The union claims that as time goes on, more locals may be called on to “Stand Up” and join the strike, providing maximum leverage and flexibility in their fight with the Big Three automakers.

The Domino Effect on Suppliers

Here's where it gets interesting. The strike isn't just a headache for the Big 3; it's a full-blown migraine for the nation's 5,600 automotive suppliers. Many of these suppliers are still recovering from the economic blows dealt by COVID-19. Now, they're staring down the barrel of a strike they hoped would never happen. Orders are being canceled, and cash flows are drying up faster than a puddle in the Sahara.

The Fine Print Matters

Legal Eagles have been advising suppliers for months to review their contracts and shore up liquidity. Why? Because the devil is in the details. Some contracts allow suppliers to suspend or limit orders without liability during a strike. Others might not be so forgiving, potentially leading to breaches of contract and a cascade of legal issues.

The Bankruptcy Scare

Ann Marie Uetz, a bankruptcy partner at Foley & Lardner, warns that a prolonged strike could push smaller Tier 2 and 3 suppliers into bankruptcy. These suppliers are already grappling with increased costs and dwindling profits. A strike lasting more than a few weeks could be the straw that breaks the camel's back.

The Human Element

Let's not forget the people at the heart of this. UAW President Sean Fain is pushing for nearly 40% raises, double what the Big 3 have offered. The union is also demanding 32-hour workweeks, an end to temporary workers, and a return to defined benefit pension plans. These are not just numbers on a balance sheet; they're issues that affect real lives.

Final Thoughts

So, what's the takeaway? Open communication is key. Suppliers should be transparent with both their customers and sub-suppliers to navigate this storm. And let's not underestimate the strike's potential to send shockwaves through the industry, affecting nearly 871,000 workers in the supply chain.

This UAW strike is more than a labor dispute; it's a complex web that could ensnare a wide range of stakeholders. As always, the devil is in the details, and those details could make or break companies, contracts, and careers.

Blog Post

‘I Know Too Many Peers Who’ve Been Subjected to Ageism’

by Vadim Liberman, ERE

Our own Michael VanDervort was recently profiled on the ERE website.

Meet ERE member Michael VanDervort, who opens up about shiny-objectism and ageism.

Welcome to the latest installment of a new series in which we spotlight talent acquisition professionals within the ERE community. The series’ aim is to showcase individuals not so much for what they do but for who they are. In other words, the focus is less on what people are doing in their roles and more on how they view work and life.

Meet Michael VanDervort. Michael works as a consultant at the Labor Relations Institute. An HR practitioner with over 35 years of experience, he is also the co-host of the well-known and long-running podcast DriveThruHR. Additionally, Michael is a former labor relations specialist at Publix.

Given Michael’s background in employee relations, he often comes at recruiting issues from a fresh angle, and he consistently shares his opinions widely on social media and in the ERE Facebook Group. I recently spoke to Michael about his fears in the workplace, what he values in team members, the pros and cons of being a curious person, and more.

ERE: What is your best personality trait?

Michael VanDervort: My curiosity. It drives a lot of my personal interests and professional interests in that I do a lot of research and trend-following, and so I’m always the shiny-object guy. I enjoy that. I managed to craft a career to indulge that trait.

What is your worst personality trait?

I’m a shiny-object guy! It becomes too easy to indulge my curiosity and get distracted. It becomes easy to procrastinate when I get caught up in something that interests me and drags me away from other life and work things.

What is the biggest assumption people tend to make about you — be it wrong or right?

People look at me and see a 66-year-old who is either scowling or smiling. When I’m deep in thought or contemplative, I look angry, so people assume that I’m that grumpy person.

What do you love most about working in talent?

My passion has always been making the workplace great, and I get to do that in my work.

What is your greatest fear in the workplace?

I have been fortunate in my career in that I’ve worked in different types of industries where I was able to sidestep ageism. But for 50+ people, especially in a tight labor market, ageism is clearly a factor. I’m very fortunate that I’ve never had to be subjected to that, but many of my peers have horror stories. My greatest fear is that I’ll be the subject of ageism, that I’ll be the old person out of the room.

What do you most value in team members?

Curiosity and tenacity. I value people who ask questions and speak their thoughts. I like a collaborative environment, but I also like people willing to challenge the status quo because that’s what ultimately makes the team work well when people are pushing boundaries to learn what is wrong and how to make it better.

What is the most overused or overrated thing that recruiting pros believe about themselves?

There are some recruiters who place themselves at the center of the recruiting universe, and that attitude and belief are carried through throughout their work in often arrogant ways. You’ll have recruiters not providing feedback or communicating with candidates, and that drives me crazy.

How do you define success?

It’s not just doing something and meeting goals. It’s asking, Was it successful? I look beyond deadlines and milestones toward the quality of work and the outcome.

What’s your biggest failure?

I used to fear failure as a parent, but all my kids are doing great things. That was my biggest fear in life for a long time. I went through that again with my parents as they suffered near the end of their lives. I was always afraid of not doing enough of the right things for them in the face of impossible circumstances. Did I give enough? My fear is that I didn’t, couldn’t, or wouldn’t. And maybe there was some truth to that.

What is your current state of mind as it relates to the current state of recruiting?

I am confused as to what kind of environment it is out there right now. There are plenty of jobs available. There are seemingly plenty of candidates saying, I can’t find a job. So is there a mismatch of skills vs. available talent? I don’t know.

Name one TA person besides yourself who people need to know?

Craig Fisher. He’s given me ideas that I was able to apply in my workplace. Craig always has great insights and tips on tools. He is so great and smart.

The most important question: What’s your go-to karaoke song?

The only one I’ve ever sung was “Old Time Rock and Roll.” Otherwise, I hate karaoke.

Finish this sentence: Michael VanDervort is…

Still learning and still growing despite his advanced years and despite the amount of wisdom he’s accumulated in those years. I’m still learning, and I still like what I do.

Blog Post

Lessons From A Coach’s Resignation In The Age Of Employee Empowerment

by Michael VanDervort

We don't typically write about labor relations in sports. Still, the recent incident involving Mike Babcock, the former coach of the Columbus Blue Jackets and the NHL Players' Association (NHLPA), offers several lessons for business leaders to consider in today's world of labor relations. This case study provides valuable insights into leadership, management styles, and organizational communication, especially considering current employee and labor union empowerment trends.

The Catalyst for Change:

Babcock resigned as the head coach of the Columbus Blue Jackets just 78 days after being announced as the new head coach. This decision came after much discussion and consideration by Babcock and the Blue Jackets organization. Privacy concerns were reported after his hiring, which likely contributed to his resignation.

The allegations first surfaced when the "Spittin' Chiclets" podcast reported that Babcock had asked Blue Jackets captain Boone Jenner to show him his camera roll, later displaying those photos via AirPlay on the coach's office wall.

This led to an outcry in the media and social media, an initial denial by the team, and finally, an investigation by the NHLPA, helmed by Marty Walsh, a former Secretary of Labor for Joe Biden.

The Importance of External Checks and Balances:

In an era where employee and labor union empowerment is on the rise, the NHLPA's investigation led to Babcock's resignation, serving as a lesson for business leaders on the importance of external checks and balances. The union's role in this case was not just traditional labor relations but also as an advocate for ethical behavior and employee well-being.

Leadership Selection and Vetting:

The Blue Jackets took a risk by hiring Babcock, who had a history of controversial coaching methods and incidents with players on past teams. This is a cautionary tale for businesses about thorough vetting during leadership selection, especially when employee voices are becoming more influential.

Open Channels of Communication:

In a time when employee voices are louder than ever, one of the most striking aspects of this case was that players felt more comfortable speaking to the NHLPA than their organization. This underscores the importance of open communication between employees and management for identifying and resolving issues.

Adaptability in Management Styles:

Babcock's traditional coaching methods came under scrutiny with the rise of employee empowerment, highlighting the need for adaptability in leadership styles. Leaders must be willing to evolve their management techniques to align with current social norms and employee expectations.

Employee Well-being:

Marty Walsh emphasized that the well-being of employees should be a top priority. This is particularly relevant in today's business environment, where a focus on employee well-being is increasingly becoming a cornerstone of good leadership.

Organizational Transparency and Accountability:

In an age where employees are more empowered to speak up, the incident raised questions about the Blue Jackets' decision-making process and transparency. Accountability and transparency are more crucial than ever for maintaining trust and integrity in the age of empowered employees.

Conclusions

The Babcock incident offers valuable lessons in leadership selection, management styles, and the importance of open communication and employee well-being. These lessons are particularly relevant today, as employees are more empowered than ever to influence organizational dynamics in unanticipated ways.

Blog Post

Weekly Hot Links

NLRB Chair Touts How New Test Boosts Free, Fair Union Choice

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SEIU 1199 refuses to put its money where its social-justice mouth is

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Amazon Says It’s Boosting Pay For Contract Delivery Drivers

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Starbucks' Former CEO Schultz To Retire From Board

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UAW will strike at additional U.S. auto plants if 'serious progress' isn't made by noon Friday

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About Labor Relations INK

Labor Relations INK is published weekly and is edited by Labor Relations Institute, Inc. Feel free to pass this newsletter on to anyone you think might enjoy it. New subscribers can sign up by visiting here.

If you use content from this newsletter, please attribute it to Labor Relations Institute and include our website: http://www.LRIonline.com

Contributing editors for this issue: Phillip Wilson, Greg Kittinger, Michael VanDervort, and Kimberly Ricci

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About Labor Relations Institute

LRI exists to help our clients thrive and become extraordinary workplaces. We improve the lives of working people by strengthening relationships with their leaders and each other. For over 41 years, LRI has led the labor and employee relations industry, driven by our core values and our proven process, the LRI Way.

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Subject: Compliance & Consequence: The NLRB’s Stern Warning To Employers: LRI INK