March 09 - 15, 2007

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Law and Small Business
Labor secretary slams union card-check bill
By Stephanie Tavares / Staff Writer

Labor Secretary Elaine Chao speaks to members of the International Franchise Association at Caesars Palace on Feb. 27.
Photo by Steve Marcus

The U.S. House of Representatives last week passed a bill that would make it easier for labor unions to attain certification by eliminating the open election system.

The bill, known as the "Employee Free Choice Act," would make it possible for a union to be certified after a majority of employees in a business sign cards stating they support joining a union. Supporters say it will level the playing field between employers and workers and take away the employers' ability to stall unionization by appealing union election results.

The bill is opposed by many small business groups as well as the Bush Administration. President George W. Bush has vowed to veto the bill if it passes the Senate. The bill has been introduced twice to Congress prior to this year but has never passed.

U.S. Secretary of Labor Elaine Chao , speaking at an International Franchise Association convention breakfast at Caesars Palace Feb. 27, said the bill is one of the gravest concerns faced by small businesses in America, alongside the lack of affordable health care, a shortage of skilled workers and illegal immigration.

She criticized the bill because it would take away voters' anonymity in unionization efforts.

"This proposed bill would effectively deny a worker the right to have a private ballot election, without outside pressures or public disclosure, when deciding whether or not to be represented by a union," she said. "This bill would severely restrict workers' rights to freely bargain over their working terms and conditions of employment. Plus, substantial penalties for violations of the new law would be levied on employers but not on unions."

She said that the right to a secret ballot is an intrinsic right and should not be taken away by management, unions or at the behest of special interest groups.

The Las Vegas Chamber of Commerce has come out against the bill because it believes it would allow unions to prey on small businesses. It would also do away with secret ballot elections administered by the National Labor Relations Board in favor of the open-ended sign-up system administered by the unions themselves.

"If passed, this bill will make union organizing easier and cheaper than ever before, allowing unions to target even the smallest of businesses," a statement from the chamber said.

Critics, including the chamber, say the system opens the door to intimidation by union representatives seeking signatures.

"This act is simply bad for business," Chamber President Kara Kelley said. "It will create a system where unions hold all of the cards and prevent businesses from offering any type of increase in salary or benefits during the open-ended election period."

But supporters contend all the bill does is even the playing field. Employers regularly use intimidation tactics to keep employees from unionizing, said Rob Rovere, an organizer for the stagehands union, IATSE Local 720.

Rovere is involved in unionization efforts on the part of technical workers for entertainment company The Blue Man Group in Las Vegas. The workers voted to unionize in May , but their employer has refused to accept the results and has appealed the certification in courts all the way to the U.S. 9th Circuit Court of Appeals. He scoffed at claims that the proposed law could take away workers' rights and said the current laws restrict true electoral freedom because they give employers too much power over the unionization process.

"It's like playing dodge ball and you never get the ball," he said. "What we're saying is all the advantages are in the employer's court. All we want is an equal playing field. If all it takes to register as a Republican is to sign a card, you ought to be able to do the same thing for unionization."

  • U.S. Sen. Mary L. Landrieu, D-La., introduced a bill Feb. 28 that would give small businesses increased access to short-term loans following natural disasters.
  • The Small Business Disaster Recover Improvement Act would allow the Small Business Administration to make immediate short-term loans to allow businesses to make payroll, begin repairs and continue operating until they can receive regular SBA disaster loans or insurance payments. The loans would not last longer than 180 days after the disaster and would have no prepayment penalties. They could also be refinanced as part of subsequent SBA disaster loans.

    The bill was also included in a larger SBA disaster reform bill introduced earlier this year.

    "After major disasters, small businesses cannot afford to wait for SBA Disaster Loans to be processed," Landrieu said. "Hurricanes Katrina and Rita forced many of Louisiana's businesses to shut down because they could not get the immediate assistance they needed. This legislation will give the SBA the flexibility it needs to grant short-term low interest loans to keep ailing small businesses afloat until they are able to get a longer-term disaster loan."

  • The Henderson Chamber of Commerce has announced the launch of a new Web site advertising campaign for members.
  • The Spotlight Program allows chamber members to display an advertisement for their businesses on the chamber's home page, free of cost. The ads will go through a rotation and each ad is guaranteed four facings every day for a year. Members can also upgrade to the Deluxe Spotlight Program for $250 a year. The Deluxe program allows participants to upload their logos and a direct link to their company Web sites.

    The launch of the Spotlight programs follows the success of the Discount Program, which allows members to post coupons for their products or services on a special page within the Chamber web site.

    For more information, contact the Chamber at 565-8951.

  • The Feds are making life a little easier for small businesses.
  • At least their new Web site is.

    A survey conducted by the operators of Business.gov, a Web site devoted to federal business compliance, forms and contacts, found that 72 percent of users saved hours worth of research time by using the site.

    The site is operated by the Small Business Administration in conjunction with 21 other federal agencies and caters mostly to small businesses. The site was first launched in 2004, but re-launched with a focus on compliance information in October 2006 after feedback from test groups indicated a need for it.

    The site has received close to 11,000 visits since the relaunch last fall and the agencies hope the survey results will prompt more small businesspeople to visit.

  • The Latin Chamber of Commerce is taking registrations and sponsorships for its fifth-annual La Oportunidad Business Conference and Consumer Expo to be held April 20 through April 21 at the Monte Carlo and the Cashman Center. Booth and sponsorship costs range from $500 to $15,000.
  • For more information call the Latin Chamber at 385-7367.

    Stephanie Tavares covers small business and law for In Business Las Vegas and its sister publication, the Las Vegas Sun. She can be reached at (702) 259-4059 or at stephanie.tavares@lasvegassun.com.

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