Employee Free Choice Act Introduced in Congress The Employee Free Choice Act was introduced in Congress last week. The bill would allow unions to be certified without a secret ballot election if a majority of workers signed authorization cards. It also would impose mandatory arbitration on employers and employees if an agreement is not reached in 120 days. The proposed legislation would make it much easier to organize your clients' work force and your temporary employees. The bill introduced last week is identical to the bill that passed the U.S. House of Representatives in 2007. Organized labor contends that this legislation is needed to curb worker intimidation and give employees more leverage in negotiations. The business community says the measure is undemocratic and would hit employers with added costs at the worst possible time. Although the bill is the same as the 2007 version, support for the legislation seems to be wavering. Several of the Democratic senators and representatives who co-sponsored the legislation in 2007 have steered clear of this year's version. In order to bring this legislation to the Senate floor for a vote, the Democratic leadership will have to hold every Democratic vote, seat Democrat Al Franken as the new senator from Minnesota, and keep the vote of Sen. Arlen Specter (R-PA). Specter is one of at least six senators who voted in favor of this legislation in 2007 but now say they are opposed to the bill or are not sure they can support it in its current form. Sen. Tom Harkin (D-IA), one of the bill's sponsors, had said the bill could come to the floor next month after the Easter recess, but leaders of both parties suggest the bill may be delayed for months. Senate majority leader Harry Reid (D-NV) conceded that, even with Republican support, it was unlikely that the bill could get through the Senate before the August recess. It could be pushed into 2010, a midterm election year. Although many Senators acknowledge that there will have to be some compromises made to the bill to gain the 60 votes needed for approval, labor and business leaders say they don't see a reason to compromise. To learn more about the current trends in union activity and other legal issues that affect the staffing industry, come to the ASA staffing law conference, March 30-April 1 in Washington, DC. For more information and to register, visit americanstaffing.net/lawconference
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Unemployment Insurance Costs Likely to Rise The American Recovery and Reinvestment Act of 2009 includes provisions that will increase unemployment benefit payments and provide incentives for states to expand the number of individuals eligible for unemployment benefits. ARRA extends the current emergency unemployment insurance program through the end of May 2010. Unlike the existing program, however, the ARRA extension is financed through federal general revenue, not through unemployment tax revenue. Because it adds 33 weeks of benefits in all states, it could greatly increase the number of people who file for benefits and who stay on unemployment for the maximum period allowed under state law. That would result in significantly higher state UI payouts and higher unemployment tax rates. ARRA also adds $25 to weekly UI benefit payments. The increase will continue through the end of June 2010. ARRA would transfer $7 billion in unemployment tax funds to the states that have certain provisions in their UI laws designed to expand benefits. One-third of the $7 billion is contingent on whether the state has adopted an "alternative base period" rule requiring the state to include the most recently completed calendar quarter in determining an individual's UI eligibility in cases where the use of a base period that doesn't include the most recent calendar quarter would render the person ineligible. The provision is designed to protect seasonal and short-term employees. Washington, DC, and 18 states currently have alternative base period rules that meet the criteria: Connecticut, Georgia, Hawaii, Illinois, Massachusetts, Michigan, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Rhode Island, Vermont, Virginia, Washington, Wisconsin. Legislatures in four states-California, Minnesota, Oklahoma, and Pennsylvania-are considering changing their laws to qualify. Some states may elect not to receive the money because the long-term effect of such provisions on their administrative costs, benefit payouts, and employer tax rates outweighs the short-term benefits. To be eligible for the remaining two-thirds of the transfer payments, the state UI law must contain at least two of the following provisions: * A provision that UI benefits can't be denied to individuals seeking only part-time work if they worked primarily part-time during the base period For further information regarding the effect of the stimulus law on their UI rates, staffing firms should contact their state UI department.
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Tempering Timid Hiring With Temporary Employees Even in-or, perhaps, because of-the dismal economy, chief financial officers say there are many reasons to engage temporary employees. A recent article on cfo.com provided insight into why. The reasons offered by reporter David McCann are varied: flexibility to increase work forces as spikes in demand dictate; desire to test an employer-employee relationship before hiring; response to structural changes or special circumstances driven by the recession; the need to get expertise for special projects quickly. One CFO, whose company brings in temporary employees to handle specific ad hoc projects, explained: "I've got pressure on everybody right now not to increase fixed costs, but there's stuff that has to get done." McCann cited another CFO-himself placed initially on an interim basis- who said using temporary employees gives him "comfort that he's not going to end up making an unwise hire when he can least afford it." Staffing professionals interviewed made clear that there "has been no surge" in temporary employment during the recession. But the pool of talented temporary candidates is "tremendous," according to one staffing professional, who added, "right now, there are so many candidates out there as a result of the downsizing and hiring freezes." CFOs interviewed are happy about that. "With the employment market what it is, there's an opportunity to find better [temporary employees] than would typically be the case." As for the future of temporary employment, McCann wrote that staffing professionals are hopeful the government's economic stimulus package and bailout funding will increase demand, particularly for finance and accounting workers. You can read the article at cfo.com
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Learn What New Laws Mean for Your Firm The introduction of the Employee Free Choice Act in Congress, as reported in this issue of Staffing Week, is just one of many labor and employment law changes that have been proposed or enacted already this year. These changes will have a major impact on staffing companies and their clients. With the potential for penalties and litigation-related expenses, it's critical that you are well informed and in a position to protect your business. Attend the ASA staffing law conference, March 30-April 1 in Washington, DC, to learn how you can defend against a union organizing campaign, what to do in case of a U.S. Department of Labor wage and hour audit, and more. Register by March 20 to receive a $100 discount. Visit americanstaffing.net/lawconference
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The ASA staffing operations survey provides the most comprehensive sector-specific benchmarking data for the staffing industry. Whether yours is a local firm or national company, you can enhance margins and improve efficiency by comparing your company with the industry benchmark. The survey results provide sector-specific financial, business, and personnel performance measures. Use the data to gauge your business's efficiency. When you participate in the survey for fiscal year 2008, you'll get a free executive summary of the findings, a 50% discount on the full report, and the option to receive a customized survey report that aligns your company's data with aggregate industry and similar-size firm results. The survey is a Web-based questionnaire developed by ASA and the Inavero Institute for Service Research, an ASA corporate partner and market research firm. The survey comprises two modules: temporary and contract staffing operations, and placement and recruiting operations. To take the survey, visit inavero.com If you have any questions about the survey, contact Jessica Lautz, director of research, at 703-253-2848 or jlautz@americanstaffing.net.
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