Understanding employee unionization will ensure that you avoid breaking California union laws. This article covers everything a small business owner needs to know about labor unions. 

What Are Labor Unions and What Do They Do?

Unsure About Employee Unionization? by BFC Funding

Labor unions (sometimes called trade unions, labor organizations, or employee unions) are workers’ associations that allow employees to collectively bargain and negotiate workplace employment terms such as working hours, salaries, and workplace conditions.

Labor unions are protected by The Constitution as well as California law and unionization should be taken seriously. That brings us to the big question:

What are my rights as an employer and small business owner when handling employee unionization?

While employers must make an effort to bargain with labor unions, the law doesn’t force you to reach an agreement or make concessions. As an employer, it’s your right to agree or disagree with the requests of a labor union. This ensures you only make concessions when you’ve reached a common ground. 

You also have the right to run your business as usual, even if it means hiring temporary workers during a strike. On top of that, you can discharge violent strikers who destroy property or those assaulting others in the workplace. 

That said, employees also have labor rights. According to California’s Department of Industrial Relations, all employees are protected by labor laws and have rights, including taking lawful action without punishment. 

The National Labor Relations Act (NLRA) says that employers must not interfere with the formation of labor unions or discriminate against employees who join the associations. This means that you cannot threaten to fire workers or get rid of their employment benefits for engaging in unionization. Neither can you “teach them a lesson” by assigning more complex tasks in the workplace. 

It is the employees’ legal right to form unions. Employers cannot force their employees to not unionize and they cannot take deliberate action to discourage workers from unionizing. Preventing unionization by force is in violation of the law according to the U.S. National Labor Relations Board (NLRB).

Employees have the following unionization rights under the NLRA : 

  • Discuss their salaries, working conditions, and benefits.
  • Share materials regarding unionization during non-working hours and areas (e.g., parking lots).
  • Circulate petitions about workplace issues.
  • Join together to speak to their employer about work-related issues.
  • Indicate work-place safety concerns at appropriate meetings.
  • Leaving the job to protest unsafe working conditions.
  • Collectively refusing to work overtime.
  • Wearing paraphernalia advocating for a particular cause.

How Do Unions Form & How Do Employees Unionize?

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Employees can form unions if the majority want to. First, organizers of the proposed union collect union authorization cards or any written statements from colleagues as proof that most employees are interested in representation. More than 50% of workers must show interest in being represented by a union.

Then, they ask the employer to recognize the union. The employer can agree or disagree with recognizing the union. Agreeing makes the union employees legal representative in collective bargaining. 

If the employer disagrees, labor regulations allow employees to strike for recognition or file a petition with the National Labor Relations Board (NLRB). The NLRB will conduct a union election among employees where 50% plus one vote will force the employer to recognize the labor union and negotiate workplace conditions.

What Does Unionization Mean for You & Your Small Business?

Unsure About Employee Unionization? by BFC Funding

The law forbids employers from enforcing policies solely meant to discourage legally acceptable actions in the workplace. However, the rules may be legally viable if they are for legitimate business reasons rather than for targeting unionization. 

The U.S. Department of Labor says that, in response to labor unions, employers cannot:

  • Demote or fire workers.
  • Require new qualifications for an employee to remain employed.
  • Transfer union workers to new worksites.
  • Reduce salaries and benefits or make business tasks more difficult for employees.

The rule of thumb is ensuring that your internal policies aren’t targeting unionization or interfering with employee rights. For example, workers have a right to discuss employment terms and salaries among themselves. Forcing them to stop doing so will be unlawful. 

Additionally, employers can openly express their perspectives about the perks and downsides of employee unionization.  However, be sure to avoid coercive language. Here are the DON’TS when addressing unionization in your small business: 

  • Don’t promise (or imply a promise) workers benefits to convince them not to form unions.
  • Don’t threaten employees.
  • Don’t interrogate workers about union activities.
  • Don’t withhold additional benefits that workers would have gotten before forming a union.

The National Labor Relations Board says employers should be open to negotiations with labor unions. If, after enough effort, the bargain hits a dead end, an employer can present the final offer to the labor union. If both parties don’t reach a collective bargaining agreement, the labor union can file a charge, and the NLRB will take over the situation. In an extreme scenario, the court may be involved.

What Resources Do You Need As a Small Business Owner? 

Unsure About Employee Unionization? by BFC Funding

If you are struggling with employee unionization in your business, you will need two vital things to fairly and lawfully control the situation. 

  1. Information: Understand your rights and those of your employees. This ensures your response to unionization is a fair practice and doesn’t violate California employee rights. For example, you can’t threaten workers, promise benefits if they forgo the unionization idea, or discriminate against them. 
  2. Lawyer: Labor unions are all about negotiating work conditions for employees. An attorney’s bargaining skills can help you quickly reach common ground with the labor union. The attorney will also handle all the negotiation paperwork and prevent loopholes in the collective bargaining agreement.

Additional Resources:

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