EFCA In A Scott Brown World?

While most of the political world was focused on what Scott Brown’s win means for big-tickets items like healthcare or cap-and-trade, many of the back-burner issues will also be affected. This, of course, includes the Employee Free Choice Act.

With 41 seats in the Senate, Republicans can now filibuster EFCA (or any other bill) should they hold the entire caucus. EFCA was never an issue on the campaign, and Brown’s position is beyond me, although you would have to think he opposes it. Labor unions- both nationally and in Massachusetts- backed the Democratic nominee Martha Coakley, but interestingly Brown won about 46% of union members- a surprisingly high total for any Republican.

My first thought is that it is not the fact that Republicans have 41 votes, which may kill EFCA for 2010, but the fact that this should be a warning sign to Democrats that voters are not happy about the direction of the country and they need to modify their agenda. It is not whether Scott Brown supports or opposes EFCA, but that I don’t see how you get moderate Democrats from conservative states to vote on this bill in light of the Massachusetts special election.

Now, Obama has initially responded that he will not alter his agenda- but rather kick it up a notch. But morning-after statements from various Congressional Democrats have given me the impression that that will not be possible. After all, they are the ones up for re-election in 2010 who have to sell these unpopular plans to their constituents.

Labor unions have also taken a similar approach to Obama’s. SEIU President Andy Stern said the reason Democrats’ lost last night was because of “Washington's inability to deliver the change voters demanded in November 2008.” I wouldn’t expect labor to back down anytime soon considering the money they have invested in the president.

Labor leaders kept insisting that EFCA would come after healthcare. They have also made a point of saying that Democrats will need them to win in 2010. As long as big labor is still heavily involved in politics with a friendly White House and majorities in Congress, bills such as EFCA will still hang around. But as for right now, I would say the best labor can hope for is a weak compromise bill, hiding it in a jobs bill (and hoping no one finds out), or getting the NLRB to institute certain provisions of it.

So what is Projections' advice for companies wondering what to do now? It is the same as it ever was--take advantage of organized labor's current state of confusion (and the time it gives you) to communicate with your employees and train your supervisors and managers about your company's union free philosophy. Waiting for the EFCA to come to fruition or letting labor continue to devise other work arounds will be simply giving your advantage right back to the unions.