Corporate America gears up labour battle

By Jonathan Birchall and Justin Baer in New York

Published: November 6 2008 20:36 | Last updated: November 6 2008 20:36

Corporate America is preparing for a landmark political battle with the new Obama administration and a Democratic Congress over proposed labour union reforms, while expressing concerns about the direction of trade policy, healthcare and a range of other issues.

The business community has stepped up its oppositon to the union-backed Employee Free Choice Act, which Mr Obama has said he supports. It could revitalise the US labour movement by enhancing the ability of unions to organise.

The bill, a version of which was blocked in the Senate last year, would grant workplace union recognition if a majority of workers sign union cards, rather than allowing employers to request a secret ballot.

The unions argue that the secret ballot has been regularly used as a tactic to slow and obstruct workplace recognition.

Earlier this year, the lobby group Workplace Freedom Institute began campaigning against the bill, launching a website called savetheelection.com. The group says it is funded by gbusiness owners who enjoy good working relationships with their employeesh and that it seeks to educate Americans about the proposals.

gThe business community is very concerned about the so-called Employee Free Choice Act,h said John Castellani, president of the Business Roundtable, which represents the interest of more than 100 large US companies in Washington.

gThe law would really change the dynamics of how companies will be able to compensate employees in a way that also preserves the interests of shareholders.h

Wal-Mart, the largest private employer in the US, which has a staunch anti- union record, has already made its opposition clear. Lee Scott, Wal-Martfs chief executive, told analysts last week that the change would result in gmaking this country less competitiveh and gbringing coercion and force into the workplaceh.

Should the act become law, transport and trucking companies such as FedEx and Con-Way could see more of their parcel and freight employees organise.

During the campaign, US business also expressed concerns over Mr Obamafs position on free trade, which included suggesting a renegotiation of the North American Free Trade Agreement.

Jeff Immelt, chief executive of General Electric, warned that the US risks ceding high-paying industrial jobs if it failed to keep its borders open to foreign trade.

gYou canft have it both ways,h he said yesterday during a speech at the Business for Social Responsibility conference in New York. gYou canft aim high and not have open borders.h

On healthcare, Mr Obamafs platform included setting a minimum contribution level for businesses to their employeesf healthcare plans, an approach that has been opposed at state level by big non-unionised retailers, including Wal-Mart.

The retailer, with more than 1.3m staff, has said it wants to work on healthcare reform with a new administration. It is also part of an alliance with the SEIU and telecom workers unions that has been seeking to develop a political consensus on the direction of healthcare reform.

Additional reporting by Francesco Guerrera