STATEMENT: New DOL Disclosure Regulations Provide Much-Needed Transparency for Employees During Union Election Process, Says CAP Action’s Karla Walter
Washington, D.C. — Today, the U.S. Department of Labor released its final regulation to improve the disclosures provided by management consultants hired by companies when workers come together to form a union. The Department of Labor’s new so-called persuader rule will close an existing regulatory loophole that has allowed consultants who create anti-union materials to avoid public reporting if they do not have direct contact with workers and instead pass information through the employer. Karla Walter, Director of the American Worker Project at the Center for American Progress Action Fund, issued the following statement in response:
Unions improve workers’ pay and benefits and give them a stronger voice on the job, but due to a broken labor law system, the deck is stacked against workers who want to join together to bargain collectively. For nearly 60 years, the Labor-Management Reporting and Disclosure Act has sought to promote transparency in the union election process by requiring disclosures from companies, unions, and outside consultants. Studies show that approximately three-quarters of employers hire outside consultants during the union election process. All too often, these consultants use a regulatory loophole to avoid reporting on their work, despite providing materials to employers aimed at influencing workers during the process. This new rule is a small but commonsense reform that will allow employees to know when a third party is weighing in on the election process and help workers make well-informed decisions.
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