On June 8, 2017, the Department of Labor released a proposal to rescind the persuader rule.
This rule had been scheduled to go into effect on April 24, 2016 however, implementation was on hold due to a nationwide injunction issued by the U.S. District Court for the Northern District of Texas. This rule would have narrowed the advice exemption in the Labor-Management Reporting Disclosure Act of 1959 (LMRDA).
If this rule had been implemented, a consultant would have had to fill out Form LM-10 even if a consultant had no direct contact with any employee as long as the consultant was involved in:
- the planning and/or scheduling of meetings between management and employees for the purpose of persuading employees concerning union organizing, even if the consultant is not present at these meetings.
- providing communication materials (letters, speeches, posters, etc.) other than boilerplate, “off-the-shelf” materials. If a consultant rewords communications written by the employer in order to make the material more persuasive, Form LM-10 must be filed.
- developing personnel policies which would have the effect of persuading employees.
The recent DOL proposal means that there will be a 60-day public comment period. If the DOL ultimately does decide to reverse the persuader rule, consultants would once again only need to report if they have direct contact with employees. For those consultants who do not have direct employee contact and the companies that hire those consultants, this is a win. Neither consultants nor their clients will have to spend time completing unnecessary paperwork.
While this would be a setback for unions, unions nationally are winning more representation elections than employers, according to the Bureau of National Affairs (BNA). In 2016, unions won 71.8% of representation elections. This is actually the highest union win rate going back a decade.
As stated recently by John Hawkins, MPI President|CEO, “this is wonderful news for companies that want to remain union free. However, unions will continue to fight for every advantage so companies must remain hyper-vigilant for union organizing”.
MPI Consulting has a 42 year history in over +350 campaigns with a +90% success rate in helping clients remain union free. As a full service Human Resource company, MPI Consulting specializes in working with clients to develop preventative employee strategies to avoid 3rd party organizing attempts in key areas such as: Labor Relations, Strategic HR Consulting, Organizational Development, Employee Survey and Employee Engagement Strategies, Front Line Manager and Supervisor Training, as well as Market Compensation and Benefits Analysis.
MPI Consulting works directly with employers or employer’s General Counsel to manage labor campaigns in partnership with more than 150 law firms across the U.S. to help clients remain union free.
For more information about MPI Consulting or to contact us for a consultation, Contact Us.