Court Rejects Employer Challenge to ‘Ambush Election’ Rule, Rewards Unions

The Obama-era National Labor Relations Board, with its built-in pro-union majority, gave organized labor plenty of organizing and bargaining advantages, but none perhaps as far-reaching as the “quickie” or “ambush” election rule. Now an appeals court has upheld it. On April 19, a three-judge panel for the District of Columbia federal circuit court, in UPS Ground Freight Inc. v. NLRB, rejected an employer challenge to the rule, which, when put in place in April 2015, dramatically shortened the time available for employers to convey to employees their objections to potential union representation. Plaintiffs’ lawyers argued that the board’s directive to UPS to bargain with a Teamsters local lay outside the scope of its authority and that the rule “values speed at all costs.” And they were right.

Unions, like all organizations, seek to maximize membership. And that requires on some level persuading workers at nonunion sites to see the … Read More ➡

Labor Department Seeks to Prevent Managers From Playing Politics With Pension Funds

By law, managers of employer-sponsored pension plans must act in the best interests of investors. Unfortunately, many such fiduciaries are applying an unusually broad definition. That’s why the U.S. Department of Labor has clarified the issue. On April 23, the DOL released a guidance statement intended to discourage benefit managers from applying the principle known as Environmental, Social and Governance to investment decisions. Such a practice might seem worthy, noted the department, but it may place safety and soundness in harm’s way. The action is especially a rebuke to those who see issues advocacy as a top business priority.

Environmental, Social and Governance (ESG), alternately known as Corporate Social Responsibility, is a philosophy holding that a corporation is not only a business enterprise, but also a steward of the public good. A company, in this view, can and should be at once profitable and morally conscious. A company must … Read More ➡