On February 2, 2009, executive orders signed by the new administration created a series of new rules that will effectively require the management of government contractors to “talk to the union.”
The first executive order requires that all federal contractors post a notice informing employees of their rights under the federal labor laws.
The second executive order impacts all federal contractors and mandates that costs associated with so-called “persuader activities” designed to influence employees to join or not join a union are not reimbursable by the federal government under the government’s contract with the employer.
The third executive order impacts federal contracts covered by the Service Contract Act. The order requires that all service contracts include a clause granting a “right of first refusal” to all employees, except managerial and supervisory employees, employed by the predecessor.
In this context, it is appropriate to examine why non-union ESOP companies have a thirty-five year track record of staying non-union.