Corporate Campaigns

Public Policy Issue Statement, January 25, 2005

Background
Enacted in 1935, the National Labor Relations Act (NLRA) is the principle statute
governing collective bargaining activities in the private sector. The NLRA was enacted to
ensure the right of willing employees to assemble and collectively bargain with
employers on matters of workplace welfare, including wages, working conditions, and
benefits. The collective bargaining process in the state public sector is usually controlled
by state laws and regulations similar to the NLRA. As part of an organizing campaign to
gain union representation, employers and union representatives may engage in free
speech during a campaign as long as neither entity’s speech contains threats, is coercive,
or promises benefits.

Issue
Over the last several years as unions’ interest in using card check and neutrality
agreements has grown as part of their organizing efforts, the number of Corporate
Campaigns has also increased. A Corporate Campaign is typically a comprehensive effort
to pressure an organization into the collective bargaining process. It may involve a public
relations effort against the employer, a boycott of the company’s products or services, use
or threatened use of litigation, political or regulatory pressure and/or attempts to interfere
with customer relationships. Although many elements of Corporate Campaigns may
constitute legal, protected activity under the NLRA, Campaigns that are primarily
designed and implemented to pressure an organization by harming its business operations
(as opposed to representing the best interests of the employees), have raised concern
among human resource professionals, employers, and public policy decision-makers.

SHRM Proposed Position

The Society for Human Resource Management (SHRM) believes that every human
resource professional has a responsibility to understand, express support and champion
employment-related actions that are in the best interests of the organization and its
employees with regard to third-party representation. SHRM also believes that the use of
government-supervised secret ballot elections is the best process for representation and
decertification elections under the NLRA.
Corporate Campaigns that operate as a concerted effort to pressure an employer (through
whatever means necessary) to recognize a union as the bargaining representative of its
employees through card check or neutrality agreements are often not in the best interests
of organizations, their employees, or their customers. Furthermore, Corporate
Campaigns that are frequently coupled with neutrality and card check pressures, that
disseminate fraudulent, misleading or erroneous information, instigate unethical
behavior, and/or provoke illegal coercion should be subject to expedient judicial review
and prohibited where the Corporate Campaign is deemed unlawful.

SHRM’s proposed position supports the following key elements of this issue:

Corporate Campaigns: SHRM believes that any illegal activity used during a Campaign
should not be tolerated. In addition, SHRM believes that damaging, unethical and/or
corrupt behavior must be expeditiously reviewed and appropriately disposed by the
National Labor Relations Board (NLRB) within the scope of the NLRA. Finally,
Corporate Campaigns that are primarily designed and implemented to harm the business
operations of the organization as opposed to representing the best interests of the
employees should be opposed.

Informed Decision-Marking: SHRM believes that any selection of a collective

bargaining representative must be based on an open exchange of information within the
boundaries of the NLRA. Employees’ choice must be an informed choice.

Open Communication: SHRM believes an employee’s decision regarding whether to

join or refrain from joining a union should be based on information and free choice.