New Report Raises Concerns About Expanded Union and Arbitration Powers Under Faster Labor Contracts Act 

FOR IMMEDIATE RELEASE

Contact: Kara Zupkus (224) 456-0257

WASHINGTON, D.C. – Today, the Taxpayers Protection Alliance (TPA) praised Americans for Limited Government’s (ALG) new report exposing how a union-backed bill, the Faster Labor Contracts Act, could give federal arbitrators sweeping new power over first union contracts. The Faster Labor Contracts Act (FLCA)—H.R. 5408 in the House and S. 844 in the Senate—would allow a three-person government panel to dictate the terms of a private company’s first union contract, including wages, benefits, and work rules, without a vote by the workers bound by it.

David Williams, President of the Taxpayers Protection Alliance, offered the following statement:

“Taxpayers and consumers should be thankful for ALG exposing the dangers of the FLCA.  The legislation would harm millions of Americans by increasing union leverage, weakening worker choice, and increasing costs on consumers and families. This reckless legislation creates a fast lane for unions to secure—by government order—terms they would otherwise have to earn at the bargaining table. It replaces good-faith negotiation with a government-mandated deadline. The U.S. Chamber of Commerce has rightly warned that there is no cap on the topics an arbitration panel can dictate and no guarantee that the outcome is affordable for the business paying for it.

“When a government panel imposes wage, benefit, and staffing terms with no regard for the impact on businesses, their workers, and their customers, the consequences are far-reaching. They show up as higher prices, thinner margins that delay hiring and expansion, and layoffs and closures. At a time when Americans are already worried about affording groceries, rent, insurance, and everyday goods, giving unelected arbitrators power to impose binding costs on employers is a recipe for disaster.

“Lawmakers who want to speed up first contracts should go back to the drawing board. The Faster Labor Contracts Act will harm the very businesses, workers, and consumers it claims to protect. It trades worker choice and small-business stability for bureaucrat-imposed outcomes and more power for union bosses. Congress should reject this legislation and champion free market solutions that put workers first.”

###

The Taxpayers Protection Alliance (TPA) is a non-profit, non-partisan organization dedicated to educating the public through the research, analysis, and dissemination of information on the government’s impact on the economy.