EFCA and the Stock Market

I'm in Phoenix this week meeting with hundreds of CEO's of mostly small to mid-size companies and am once again stunned to learn what they know or don't know about the Employee Free Choice Act. Many have no idea what the EFCA is and that is easy enough to address, so more on that in a minute. An equal number have heard about it and do realize what a disaster it means for their company, their employees and now for the entire U.S. economy's recovery. The CEOs that frighten me the most are the ones that answer "Yes, I am familiar with the EFCA...that trade union thing...we don't feel that it will effect our company that much."

So now I realize that I'm talking to 3 kinds of CEOs. The "EFCA-educated" CEO, the "EFCA-uneducated" CEO and the "Holy Crap I should slap you" CEO.

Educated and proactive CEOs, HR personnel and managers, I applaud your efforts. Stay on top of it as the target is always evolving.

The uneducated or "(EFCA) just not quite on your radar yet" CEOs, HR personnel and managers... well, one of the three of you needs to educate the other two before its too late. By now, the EFCA topic should be coming at you from all directions: information from sources in Labor Relations, HR organizations, CEO forums, competitors, vendors and in news Headlines. Start paying attention, read up on the EFCA and share the information with the right people in your organization. It is your responsibility and is really no different than having a Disaster Preparedness Plan for your company. Run the what if scenarios and if you are unsure about what to do, contact a labor relations attorney or an employee communication specialist that is an expert in labor relations. I happen to know one with 30 years experience...

As for the Holy Crap I should slap you CEO. Perhaps you should cancel your subscriptions to USA Today, Wall Street Journal, Newsweek and Time and save your money because you are going to need it.  Headline News today:  "Citigroup downgraded Walmart Stores to "hold" from "buy" saying the proposed card check (EFCA) legislation would increase labor costs and could be a significant drag to earnings for the world's largest retailer."  Read it again, except insert your company name for Walmart.  If you don't think this can affect your company, you couldn't be more wrong.  Walmart's stock was just altered based on PENDING legislation not PASSED legislation.  This legislation could be months from being passed, so can you imagine your company being in this position and whose to say your company's stock in not going to be altered?  For anyone that questions what effect the EFCA will have on jobs and the economy have to ask why would Citigroup or brokers in general downgrade a stock over the pending EFCA unless it were really bad.  If there was any debate, no broker would venture down this path.  The EFCA is a disaster for all American companies and will seriously delay any economic recovery in the U.S. 

Many pro-EFCA pundits will spin that this is a move on Walmart's part to rattle the political players in both the House and Senate.  Take a stock hit to make a point? Maybe.  And if so, again to me it shows just how important the battle is against the EFCA.  Take a proactive stance before you simply can't.