Regions

Business groups disappointed over new Federal labor ruling that gives contract workers more bargaining power

August 31
9:23 AM 2015

Business groups criticized the decision of the National Labor Relations Board on Thursday for companies and subcontractors to unionize low-wage service sector employees.

"This unnecessary change to a decades-old law is legally wrong and disappointing, and could have an unwarranted impact on existing business relationships across many industries," Republican Services, the company who owned Browning-Ferris said in a statement.

On Thursday, the National Labor Relations Board redefined a new standard that will unionize low-wageearners. This time, companies could be legally responsible for their subcontractors' violation, giving authorities to labor unions to deal with their concerns for employees under a subcontractor or a franchise, the Chicago Tribune reported.

The decision involves the waste management company, Browning-Ferris, and its employees under its subcontractor Leadpoint. The Teamsters union filed a petition in 2013 urging that Republican Services must join in managing the working conditions and wages for its employees under the Leadpoint.

The NLRB found out that Leadpoint and Browning-Ferris were not joint employers as they don't take full control over managing their staff.

The deliberation of NLRB indicates that workers under the subcontractor have two employers, the subcontractor and the company that hired the manpower service.

While this becomes a moment of triumph for the Teamsters union, business groups criticized the rule, blurting out this could change major businesses in America.

Business entities said this will drive up labor costs given that unions would negotiate contracts for prestigious companies charging them the accountability when the second employers violate employees' rights.

U.S. Chamber of Commerce Vice President Glenn Spencer said, "The NLRB's actions today will subject employers to increased uncertainty, liability for workplaces that they don't actually control, and ramped up pressure tactics to ease union organizing," CNN detailed the issue.

Despite the outraged companies, Teamsters union is very pleased with NLRB's consideration. For them, the decision will make a marvelous change in the minimum wage labor force battling their rights in the workplace.

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