Subject: The Faster Labor Contracts Act: A Catastrophic Overreach: LRI INK

March 21, 2025

To visit the blog post, click on the link below the article.

Note from the Editor:


The INK newsletter is a day late this week because we were in Dallas running the 29th LaborVision Forum, our semi-annual gathering of some of the brightest minds in the employee and labor relations space.


Our labor relations forum in the empowER™ community has grown to more than 100 members.


empowER™ is a community of over 6,500 members, designed to foster collaboration, share strategies and tackle workplace challenges.


Ready to join the conversation? Sign up for free here.


The Faster Labor Contracts Act: A Catastrophic Overreach

by Michael VanDervort

Senator Josh Hawley’s Faster Labor Contracts Act (FLCA) purports to expedite union contract negotiations, but it poses significant constitutional, logistical, and economic risks to businesses. This bill would guarantee union wins, strip employers of bargaining power, and hand unprecedented control to government arbitrators.


Constitutional Violations: A Government Power Grab

The FLCA would allow government arbitrators to impose a binding labor contract if negotiations don’t conclude in time. This directly contradicts long-standing U.S. labor law principles and raises significant constitutional concerns:

Logistical Nightmare: Unrealistic Timelines

FLCA mandates an impossibly short timeline for first-contract negotiations:

  • Bargaining must begin within 10 days of a union election win.

  • If no agreement is reached within 90 days, the dispute moves to mandatory government mediation.

  • If mediation fails after 30 days, a government-appointed arbitrator will impose a binding contract for a period of two years.

This arbitrary, one-size-fits-all deadline is wildly unrealistic. First, contracts are complex, requiring negotiations on wages, benefits, scheduling, and work conditions. Forcing rushed agreements will only lead to bad contracts or send most cases into arbitration—where the government decides everything.


FLCA Encourages Bad-Faith Bargaining

FLCA may be intended to help workers, but employers argue it would backfire by poisoning the negotiating process. How will that affect bargaining behavior if both sides know that binding arbitration is waiting at day 120? The concern is that it will encourage bad-faith tactics, especially from union negotiators. Instead of working toward a fair compromise, unions might see an advantage in stalling talks, avoiding concessions, and running out the 90-day clock — betting that an arbitrator could award them a better deal than they could secure at the table.


ABC raised concerns that the FLCA "would encourage unions to prolong negotiations in hopes of securing a more favorable deal from arbitrators." This creates an unfair imbalance, undercutting the very idea of good-faith bargaining, as it shifts the leverage away from meaningful dialogue and discourages unions from reaching an agreement before arbitration steps in. The bill also sets arbitrary and unrealistic deadlines, forcing employers to finalize first contracts with newly elected unions or face "binding interest arbitration," thereby wholly dismantling the concept of a voluntary agreement, which is a cornerstone of U.S. labor law. Under this system, contracts would be imposed on everyone—workers, employers, and unions—without the opportunity for a final vote.


“Giving bureaucrats the authority to force two parties into an agreement is a serious overreach,” said ABC CEO Michael Bellaman. “This has never been done in the private sector, and it should never be. The parties involved should be the ones to set the terms and conditions of employment.”


Guaranteed Union Win: Why Wouldn’t Everyone Unionize?

The FLCA guarantees workers a contract, regardless of whether the employer agrees or not. That means:

  • Vote for a union and get a contract.

  • The government sets wages, benefits, and work rules.

  • Unions have no incentive to negotiate fairly—just run out the clock.

This isn’t bargaining; it’s a government-mandated wealth transfer. Businesses will foot the bill for contracts written by bureaucrats who lack an understanding of industry realities or financial sustainability.


Final Thoughts: A Disaster for Businesses and Workers

The Faster Labor Contracts Act isn’t just a bad idea—it’s an assault on free enterprise and the fundamentals of labor relations. It eliminates true bargaining, encourages bad-faith negotiations, and forces businesses into government-dictated contracts with no recourse. If passed, it would lead to higher costs, fewer jobs, and increased uncertainty.

DriveThruHR Podcast: A Conversation with Phil Wilson on Leadership, Culture, and High-Performing Teams

by Michael VanDervort

What does it really take to build a high-performing team? Leadership isn’t just about making decisions—it’s about mindset, culture, and the ability to adapt.


In the latest episode of the DriveThruHR podcast, Phillip B. Wilson joins host Robin Schooling for a deep dive into The Leader Shift Playbook and the leadership lessons he has learned while running LRI Consulting Services.


Phil shares:

✅ The biggest leadership mistakes—and how to avoid them

✅ How mindset shifts can make or break a workplace

✅ Why culture isn’t just a buzzword—it’s the foundation of success

✅ The hard-earned lessons from years in the trenches of labor relations


If you’re leading a team (or planning to), this episode is packed with insights you can apply immediately.


🎧 Listen now: The Leader Shift Playbook – Transforming Leadership


Want more leadership insights? Connect with Phil Wilson on LinkedIn or explore The Leader Shift Playbook to take your leadership game to the next level.


Pre-Order the Leader-Shift Playbook Today for April 1st

A Healthcare Checkup: The Ongoing AI Experiment And Union Response

by Kimberly Ricci

It’s been a few minutes since we checked in on the healthcare industry’s fledgling use of AI. Last time around, we discussed how tech leader NVIDIA joined forces with startup Hippocratic AI to develop nurse-like “agents” that they claimed would cost only “$9 per hour” for health-based chat sessions. To do so, hospital systems must invest in expensive NVIDIA chips, so it’s an endeavor not without financial risk. How is that going?


The jury is still out: A year later, Hippocratic AI has further implemented a voice-chat AI, referred to as “Ana,” which performs over-the-phone tasks like setting appointments and vetting symptoms, and other companies have been tiptoeing into that pool. Current efforts include Israeli startup Xoltar teaming with the Mayo Clinic to use anthropomorphic avatars for managing chronic conditions over video calls. Biotech company Qventus deployed an AI assistant used by hospitals to summarize medical records and call patients with reminders about appointments.


Ideally, these bots could free up nurses to focus on more “human” tasks. Yet, nurses are worried that AI is inching too far into hospital settings and potentially leading to an unacceptable margin of error in saving money.


Health professionals remain skeptical: The Associated Press published an investigative report with observations on the use of AI in emergency rooms. One nurse recounted how this tech disregarded the co-morbidities of a dialysis patient when advising treatment for sepsis, a mistake that could have proven fatal if left unchecked. Nurses also pointed out that AI is unable to observe in-person symptoms or telltale signs of infection, such as body odor.


As with other industries, experts in that report believe that AI should augment care rather than replace human workers. At this stage, those benefits seem best positioned to help patients who are proactively seeking preventative care rather than those landing in the ER in crisis situations.


The National Nurses United (NNU) response: The largest U.S. union that represents registered nurses isn’t taking a wait-and-see approach to how this current wave of AI turns out. Instead, the union has taken a fighting stance ahead of bargaining sessions to renew contracts for around 100,000 nurses this year. NNU has already put nurses on picket lines in 20 states with signs reading, "Trust Nurses Not A.I." The union doesn’t even seem open to the benefits of AI in helping their workers. No surprises there!


All in perspective: From a patient’s perspective, let’s say that we’re not living in Star Trek: Voyager, where a hologram called “The Doctor” can deftly heal all that ails the crew. Anecdotally speaking, I encountered an AI medical “receptionist” who declined to transfer the line to a human because the AI’s “clock” was wrong by five hours, and therefore, it concluded that the office was closed. So, administrators will also want to check in with consumers when deciding which AI to implement.


Still, the undeniable U.S. registered nursing shortage puts employers in a tough spot as they deal with the shortage, which is poised to worsen as baby boomers leave the healthcare workforce and also require more medical care. Therefore, we can expect the AI experiments to continue.


Trump Labor Secretary Lori Chavez-DeRemer Has Already Upped Her Wild-Card Status On The PRO Act

by Kimberly Ricci

If there’s a current trend among D.C.-based politicians these days, it’s that labor policies will not be predictable down party lines. GOP Sen. Josh Hawley certainly raised eyebrows with his "pro-labor framework" heavily influenced by the Teamsters. Then there’s the attempted resurrection of the Protecting the Right to Organize (PRO) Act, which is set to be reintroduced by two Democrats with support from a few Republicans, including Hawley. If this legislation actually passes, then U.S. labor law could be further reshaped beyond the current chaos being felt by employers.


The PRO Act is seeing a further twist, too, months after news circulated of the pro-Big Labor legislation having a prominent ally in Trump Labor Secretary Lori Chavez-DeRemer. She was confirmed this week by the Senate in a 67-32 vote with bipartisan support, but a handful of senators from both parties declined to express confidence in her wavering stances. 


We recently profiled Chavez-DeRemer as a wild card after a single term as a GOP congresswoman and as the daughter of a Teamster member. She was heavily endorsed by unions, which might back away after she distanced herself from, you guessed it, the PRO Act. 


Previously, Chavez-DeRemer was one of the few GOP legislators to co-sponsor the legislation, but she appears to have changed her mind during a recent Senate confirmation hearing.


“I know there has been a lot of conversation about my support of the PRO Act,” Chavez-DeRemer told lawmakers. “I recognize that that bill was imperfect.” She further explained her belief that “[t]he right-to-work is a fundamental tenet of labor laws where states have a right to choose if they want to be a right-to-work state, and that should be protected.” 


The transcript continues with the following admittedly vague language:


Rand Paul: So you no longer support the aspect of the PRO Act that would've overturned state right-to-work laws?


Lori Chavez-DeRemer: Yeah. There were so many parts--


Rand Paul: That's a yes?


Lori Chavez-DeRemer: Yes. Yes, sir.


Naturally, some progressives are not thrilled about this shift or with Chavez-DeRemer’s stance against raising the national minimum wage, but regardless, she is now overseeing the federal department that administers laws on employment discrimination, overtime pay, minimum wage, and unemployment insurance. And like most federal agencies, the Labor Department is experiencing turmoil during DOGE’s push for heavy layoffs in the federal workforce. This week, the Labor Department saw personnel chief Troy Finnegan resign, and Chavez-DeRemer is entering the fray amid ongoing lawsuits concerning DOGE’s authority to direct layoffs. 


In the face of that upheaval, Chavez-DeRemer has issued a statement expressing her intent “[a]s a small businesswoman and the daughter of a Teamster … to work tirelessly to help President Trump” realize his vision. 


Granted, it’s fair to say that Trump's labor vision remains up in the air, at least from a public-facing standpoint, so we also can’t be sure of Chavez-DeRemer’s goals in her new position. Perhaps she can prove skeptics from both parties wrong, but currently, her wild-card status proves that she’s one to watch in the years to come.

_

Stories You May Have Missed:


US court split over Trump's powers to fire members of Democratic labor boards

Link


A Pathway Toward Union Density in the Cannabis Industry

Link


Unionizing UnitedHealthcare

Link


Volkswagen Chattanooga announces switch to 2-shift production model; UAW files charges

Link


About Labor Relations INK

Labor Relations INK is published weekly and is edited by LRI Consulting Services, 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: Greg Kittinger, Michael VanDervort, and Kimberly Ricci.


You are receiving this email because you subscribed to receive our labor relations newsletters and updates. You can manage your email preferences by clicking the link at the bottom of any of our email communications.


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.

 

Share