February 25, 2009

President Obama Revises Labor Executive Orders

Filed under: Employment Law — Tags: , , , , , , — Paul @ 10:39 am

A recent national SHRM article describes how President Obama has revised some federal labor orders. Here are excerpts from the article:  Two of the orders signed by Obama directly contravene directives signed by [former President George] Bush.

One of Obama’s new directives revokes Executive Order 13201, which required federal contractors to post a notice of nonunion employee rights concerning payment of union dues—also known as the Beck Poster. According to Obama’s order, federal contractors will no longer use the Beck Poster and will be required to post another notice that the U.S. Department of Labor (DOL) will develop.

The new notice will advise employees of their rights under the National Labor Relations Act. The new directive requires the DOL to develop and publish the new notice by May 2009. Obama signed a directive that revokes Executive Order 13204 issued by Bush in February 2001.

The new order will require businesses that sign new contracts with the federal government to offer jobs to the qualified employees of companies that held the same or similar government contracts. When issuing the order, Obama said his administration is working to reduce disruptions that occur when new contractors begin working with the federal government.

The new directive offers a right of first refusal to employees whose employment will be terminated whenever the federal government agrees to do business with a new contractor. The third executive order will prohibit federal contractors from using taxpayer money to influence their employees’ choices on union representation.

The directive will bar federal agencies from reimbursing contractors to pay for any activities or programs that the business might use to persuade employees to exercise or not to exercise their rights of union representation and collective bargaining. The directive states that those costs must be excluded from any billing, invoice, proposal or reimbursement for any federal government contract. The three directives instruct the DOL to develop rules and guidelines to enforce the orders. According to the orders, DOL officials have from 120 to 180 days to release the new regulations.

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