In recent months, news about unions and union organizing efforts has been steadily creeping up above the fold. A large part of the discussion—especially within the private club industry—has centered on the National Labor Relations Board (NLRB or Board). The NLRB is a five-member agency charged with overseeing union organizing elections and resolving disputes between unions and management. It also has the power to create regulations and to adjudicate lawsuits regarding workers’ rights.
Throughout 2011, a majority of the Board strongly supported unions and enacted new regulations that simplify the union organizing process. At the end of last year, the Board lost one member and, with only two remaining, could no longer legally function.
Though the president usually appoints individuals to the Board after a confirmation vote by the Senate, President Obama recently appointed three new members with a recess appointment. Though many presidents have commonly used recess appointments, this is the first time it has been done while the Senate may not have been actually in recess.
With these December 2011 recess appointments, the NLRB now has a total of three pro-union members, which means union-friendly rules and regulations will continue to be handed down throughout 2012. As such, the club industry is likely to see a litany of new regulations and case law precedents that broaden the scope and activities of unions.
In order to gain a better perspective on the issues relating to unions and private clubs, NCA interviewed a variety of types of private clubs, both union and non- union. This article examines the impact of the NLRB’s actions and provides examples of union organizing activities, club-union relationships, and union tactics implemented at private clubs.
The NLRB’s Recent Impact on Clubs
In 2011, the NLRB established two key regulations and one judicial ruling that impact private clubs. First, the NLRB’s “Poster” Regulation or “Notification of Employee Rights Rule,” effective on April 30, 2012, requires all private clubs to display a new poster outlining an employee’s right to form a union and describing what constitutes unfair labor practices by management during a union organizing campaign.
To comply with this new rule, clubs must display an 11-by-17 inch poster with the appropriate information alongside other government-mandated posters. The NLRB will provide clubs with copies of the required notice upon request and at no cost, or clubs may download the notice from the NLRB’s website (www.nlrb.gov) and print it on 11-by-17 inch paper.
Clubs at which at least 20 percent of the employees are not proficient in English must also post a translated version of the notice. Additionally, if a club customarily posts personnel rules and policies on an Internet or intranet site,
then this notice must also be posted there. Clubs should be aware that this notice could provide disgruntled employees with an opportunity to file unfounded claims against a club or to bring union representation discussions into the club. If either of these situations occurs, clubs should immediately contact their legal counsel to ensure they do not unwittingly commit an unfair labor practice when responding to their employees.
The NLRB’s “Ambush Election Rule”
Another regulation handed down by the NLRB, issued on December 21, 2011, will greatly impact the way clubs deal with union organizing campaigns. This new regulation, to take effect on April 30, 2012, establishes quicker time frames for conducting union organizing elections in businesses—including clubs.
Under the NLRB’s proposed regulation, union representation elections will be held within 21–30 days of a union petition being filed. For employees, this “quickie election” may prevent workers from receiving complete information about the proposed union. For employers, this proposed rule will limit the time they have to explain to employees the costs of unionizing. Without adequate information, employees can’t make an informed decision.
For employers, the most troubling aspect of this rule is that it does not prevent unions from engaging in a stealth campaign before a formal petition for an election is submitted. Having already laid the groundwork, the union will gain an unfair advantage while clubs will have to come up with a response in no more than 30 days. This also affects the clubs ability to bring legal challenges to proposed representation elections.
NCA and our allies on the Coalition for a Democratic Workforce (CDW) filed a federal lawsuit against the NLRB to challenge the “ambush election rule,” stating that the rule violates the National Labor Relations Act, the Administrative Procedure Act, the Regulatory Flexibility Act, and free speech and due process constitutional rights.
CDW chairman Geoffrey Burr said, “Instead of putting fairness first, the NLRB bowed to special interests by abandoning longstanding rules governing union-representation elections for this new rigged system where employees have less information and employers have fewer legal rights and a diminished due process. Big Labor’s paid union organizers seeking more dues-paying members spend months making their pitch. Employees deserve to hear from employers too—employees deserve the full story.” Burr concluded, “Unfortunately, taking legal action was the only way to block the rogue agency’s unfair rule.”
As of publication of this article, a final ruling has yet to be issued by the court.
“Micro-Unions”
The third key action taken by the NLRB in 2011 involved a ruling that allows unions to organize smaller subsets of employees in a business. Since a union is formed when a majority of employees vote for it, it will be much easier for union organizers to get the 51 percent they need if they can focus on a smaller number of employees.
For example, 20 pool area servers may be an easier to organize than the entire group of 75 club servers. Once this group is unionized, the club will need to negotiate a contract with these 20 employees while dealing with the needs of the other servers separately.
Such a situation will increase administrative issues for the club and may cause dissension among other staff that may become aware of differences in pay, benefits and/or treatment by the club’s leadership.
This ruling also places the burden on employers to prove that excluded employees “share an overwhelming community of interest” with those in the pro- posed union group—meaning a club’s general manager will now have to fight to include more employees into a proposed union group to help dilute the chance the union will succeed.
Before Union Organizing Efforts Occur
Private clubs generally are excellent employers, offering good pay, benefits and a family-oriented mindset when it comes to its treatment of staff. Staff turnover is also generally less than at other hospitality businesses such as hotels and restaurants, suggesting that clubs offer a satisfying and secure workplace.
Unfortunately, the actions of the NLRB in 2011 and the expectation that the new Board will continue to ease the union organizing process may cause clubs to face more union activity—even with this family-oriented mindset. One of the ways that clubs can proactively keep organizers at bay is to understand what keeps their employees happy. One country club was able to dissuade employees from organizing simply by offering a salary increase in a year when one was not planned.
Another golf and country club hired a consultant to conduct an employee satisfaction survey before any complaints or grumblings surfaced. The survey measured softer, employee relations issues, such as working conditions, as well as harder, economic issues, such as salary and benefits. (See sample survey categories and issues on page 23.)
Employee opinions were solicited in the following areas: pay, benefits, immediate supervision, top management, safety and working conditions, equipment, quantity of work, communications, advancement and general satisfaction with the club.
The analysis of the survey findings took into account the employees’ job classifications as well as their length of service at the club. In addition, opportunities to provide open-ended comments allowed for greater examination of employee complaints and perceptions, both in specific areas as well as in a broader context.
The survey findings were helpful in determining not only what makes employees happy, but also whether employees trusted and respected management. For instance, if union organizing efforts begin at a club, then to what degree do employees trust and respect management and the message management conveys during this critical time?
Once the club reviewed the survey results, steps were taken to address employee concerns. Four team leaders were identified to represent various employee groups to help club leadership in developing enhanced employee pay and benefits. Overall, the club spent $500,000 on upgraded employee benefits, including a 20 percent raise for frontline staff, doubling the holiday bonus program, and providing employee meals for all categories of staff. This last benefit increased the club’s percentage of employee meals from 40 percent to 100 percent of staff, but the costs were small compared to the overall employee contentment created by treating all staff equally in this benefit offering.
Once Organizing Activities Begin
Clubs that have experienced union organizing efforts at their clubs have indicated that the following helped as they fought against the union organizers:
- Always involve your club counsel from the beginning. It is crucial that an attorney specializing in labor law handle representation.
- Prepare background information about club salaries and benefits. Often, clubs provide better medical coverage than union plans.
- Communicate with your staff and members. Openness about the issues is critical and often encourages employees to be just as straightforward.
- Ask employees if the union attempting to organize workers represents their primary trade.
- Often, all employees in similar classifications receive the same wage—whether they are paying union dues or not.
- Allow employees to vent. The process of bringing issues and complaints to light may be enough to satisfy employees without resorting to organizing a union.
The most common unions found in clubs are for staff working in food and beverage, housekeeping, grounds crew and industrial engineers. The percentage of union workers represented in the categories of hospitality and leisure workers (2.7%) and building and grounds cleaning and maintenance workers (10.6%) remained relatively unchanged from 2010, according to 2012 release from the U. S. Bureau of Labor Statistics. The Service Employees International Union (SEIU) is the most common union found at clubs, representing janitors and food service workers.
Unions negotiate and ensure compliance of working conditions for the employees they represent through a collective bargaining agreement (CBA). The CBA sets the parameters for union employees in the areas of wage scales, work hours, training, health and safety, overtime and grievance procedures.
In addition to negotiating the wage scales, unions generally provide its members with a benefits package—or “welfare plan.” Sometimes union workers are required to use a specific union health care provider for their services. However, there are also examples where the club provides union employees with health benefits—and pension plans—when its plan options are better and less expensive than the union plan. In fact, one benefit administrator of a city club remarked that it was unfortunate for the club’s union employees, who receive the same wages and benefits as the non-union staff, but must pay $50 per month, or $600 per year, in dues to the union—generally 1–2 percent of their salaries.
Another argument that clubs recommend sharing with employees pertains to the allowances given to organized labor unions in regard to pension plans. Generally, clubs offer sound pension and retirement plans, while unions are permitted to underfund pensions and instead use its dues payments for union administrative costs. While legal, it may place the retirement plans of many employees in jeopardy should the pension plan not have enough funds to cover all of its retirees.
Clubs with Unions
Some clubs have had unionized workers for many years. While some club managers and HR staff have indicated that the long-term relationship has resulted in a “drama-free partnership” with little or no disagreement over contracts, others note that union animosity is “always present.” One tip to maintaining good relationships is to approach conflict in a practical manner and stand firm for those issues most important to the club in the long run. Keeping union leaders “in the loop” will help head-off some problems before they arise.
For clubs with a unionized staff there may be added costs, such as legal fees to negotiate the initial and subsequent contracts and handle grievance issues. Once a union is formed, the employer and the representatives of the union or unions write the terms and conditions of employment in a legally binding contract. The contact, or collective bargaining agreement (CBA), is put to a vote of the workers and, if approved, is set for a fixed number of years. The contract will then be renegotiated on a regular basis—on average, every three years. When disputes arise, usually the parties resolve their differences through negotiation or arbitration.
When negotiations over CBA terms or working condition grievances fail, a strike may be called. One club suffered a surprise work stoppage on one of the club’s busiest days. However, the one-day strike actually helped the club’s side of the negotiation, and the final CBA was closer to what the club wanted, rather than the union. The club manager attributed this to the amicable relationship and respect employees have with club members.
Larger clubs and areas with high concentrations of clubs are more likely to be targeted for organizing efforts. In addition, the Middle Atlantic and Pacific states have higher-than-average union membership rates than states in the East South Central and West South Central regions. See the sidebar on left for additional union statistics.
Clubs in remote areas may be less desirable to unions looking to expand membership. Because of union administration costs, it is generally not worth the effort to recruit groups of ten employees or less. As previously mentioned, dues run about 1–2 percent of workers pay—and this amount must cover union administrative costs and contribute to the welfare program.
National labor policy and in particular, the National Labor Relations Act, continue to impact small businesses. With a pro-union NLRB board, clubs located in areas with a strong union presence should be mindful that it might become significantly easier for unions to begin organizing efforts this year. Clubs should establish a relationship with a labor attorney in advance of union activity in order to head off such efforts, or to be prepared to respond immediately as time to do so will be limited.
As of March 23, 2012 the information in this article was up-to-date, though it may be subject to change as the NLRB hands down additional rulings and decisions.
Cindy Vizza is NCA’s publisher and senior director of knowledge management and the editor of Club Director.