Notification of Organizing Rights Proposed
The U.S. Department of Labor has proposed regulations implementing Executive Order 13496, signed on January 30, 2009, and which applies to all firms under contract with the federal government to provide goods or services in the amount of $100,000 or more. The regulations define the type of notification covered contractors and subcontractors must give employees about their rights to organize a labor union. Among other things, the proposed notification informs employees that they have a right to take actions to improve working conditions without penalty, including the right to strike and picket.
While labor law is exclusively proscribed by the National Labor Relations Act (NLRA), the proposed regulations state that the President’s legal authority is under the federal Procurement Act, which authorizes executive policies that ensure “economical and efficient” procurement and supply. Every president dating back to the Roosevelt administration has used this authority to pursue executive policies, including encouraging or discouraging union activity, although the U.S. Supreme Court has held that the Procurement Act does not give the president broad discretionary power to set labor policy. For example, in 1996, the court held that Executive Order No. 12954, which prevented the
Specifically, the proposed regulation states, in relevant part, that the
Has a proprietary interest in ensuring that [government] contracts will be performed by contractors whose work will not be interrupted by labor unrest. The attainment of industrial peace is most easily achieved and workers’ productivity is enhanced when workers are well informed of their rights under Federal labor laws, including the [NRLA].
The Office of Federal Contract Compliance Programs (OFCCP) will enforce the Order when finalized, although it is more than likely that a lawsuit will be filed to enjoin enforcement.
