Unions set sights on e-commerce and manufacturing firms after NLRB ruling

Fri Aug 28, 2015 6:30pm EDT
 
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By Nathan Layne and Mica Rosenberg

(Reuters) - U.S. union leaders said on Friday that a landmark U.S. labor board ruling on companies' obligations toward contract and franchise workers would help them organize manufacturers and e-commerce companies as well as fast food chains.

On Thursday the National Labor Relations Board (NLRB) ruled the owner of a California recycling plant was a "joint employer" with the contractor that hired workers at the plant, essentially forcing both to bargain with the union together or risk violating U.S. labor law.

Business groups, arguing that the ruling could lead to higher costs and hurt the economy, are pushing the Republican-led Congress to overturn it, in part it because the company named in the decision - Browning-Ferris - cannot challenge it in a federal court without overcoming a number of procedural hurdles.

Unions see the decision as a breakthrough not just in efforts to help employees organizes at franchisees of McDonald's Corp (MCD.N: Quote) and other chains but also as a tool to counter the proliferation of subcontracting in other industries in which workers are one or two steps removed from the companies indirectly controlling them.

Manufacturers including auto workers, food processors, steelmakers and aerospace companies are potential targets for union campaigns, said Elizabeth Bunn, director of the AFL-CIO's organizing department, noting that plant workers are often not directly employed by the parent firm.

"You literally can walk into almost any non-union manufacturing plant in the United States and you’ll see workers working on a line and not be able to distinguish who is temp from an agency and who is a direct employee of the company,” she said.

Big labor has focused much of its resources over the past few years on pushing for higher wages in the fast-food industry, and the Browning-Ferris ruling could have implications for an ongoing NLRB case seeking to hold McDonald accountable as a "joint employer" for alleged violations at franchisees.

  Continued...

 
A UPS worker carries an Amazon box to be delivered in New York July 24, 2015. REUTERS/Eduardo Munoz