Gene Scalia, partner Gibson, Dunn & Crutcher LLP, will testify today on behalf of the Retail Industry Leaders Association (RILA) at the House Labor, Health and Human Services, Education and Related Agencies (Labor-HHS) Appropriations Subcommittee’s oversight hearing, “Regulatory Approaches to Foster Economic Growth.” Scalia, former solicitor for the United States Department of Labor, will focus on the negative impacts micro-unions will have on retailers, and discuss ideas for how to free employers and allow them to build their businesses and create U.S. jobs.
In the last two years, NLRB has issued a series of case decisions, rules, proposed rules and enforcement actions that promotes organized labor at the expense of individual workers, job creators and the U.S. economy. One of the Board’s recent actions was in their 2011 decision Specialty Healthcare, which reversed decades of precedent and created micro-unions. The decision redefines what the NLRB views as a proper bargaining unit, abandoning the past bipartisan wall-to-wall standard in favor of one that allows union organizers to gerrymander a workplace by cherry-picking small groups of employees within a larger workforce to form a micro-union.
“Micro-unions cause division within the retail workforce leading to conflicts and complexities that will negatively affect employees and customers,” said Bill Hughes, senior vice president for government affairs. “The Specialty Healthcare decision has grave consequences for employees, job creators and U.S. productivity and Congress needs to take action now.”
NLRB officials have already begun to apply the new standard in a retail environment, recognizing a micro-bargaining unit made up of second and fifth floor contemporary women’s shoe department employees at a New York Bergdorf Goodman store, and a unit comprised of cosmetics and fragrance employees at a Massachusetts Macys.
RILA is the trade association of the world’s largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.