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House Passes Union-Backed Faster Labor Contracts Act

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As expected, the House passed the Faster Labor Contracts Act (FLCA), H.R. 5408, on Tuesday. The vote was 230-193, with 20 Republicans joining Democrats to pass the bill.  See the roll call vote here.

This legislation is harmful to both workers and employers for reasons that include:

  • Eliminates Worker Choice: The legislation allows outside arbitrators to impose contract terms that workers have not voted on or approved, effectively stripping them of their right to ratify their own contracts.
  • Federal Overreach and Imposed Mandates: It shifts decision-making power from employers, employees, and local unions to government-appointed arbitrators who may not understand the specific operational and financial needs of individual businesses.
  • Bad-Faith Bargaining: By creating a strict shot clock, the bill incentivizes unions to stall negotiations and be unreasonable during the 90-day bargaining window so that the dispute goes to an arbitrator.
  • Unconstitutional Interference: Forces both parties into a binding contract without their mutual agreement violating foundational principles of freedom of contract and infringes on Constitutional rights.

The bill now moves over to the Senate where it will be referred to the Senate HELP Committee for consideration.  Although Committee Chair Cassidy (R-LA) is not expected to prioritize advancing the bill out of his committee, it is important to note that Senator Josh Hawley (R-MO), the lead sponsor of the Senate companion bill, as well as co-sponsor Roger Marshall (R-KS), are members of the Committee.

Argentum will continue to actively oppose this legislation together with like-minded businesses and organizations aligned with the Coalition for a Democratic Workplace.