New rule would make it easier for millions of Americans to unionize, but businesses are pushing back
A new federal rule that goes into effect next month could make it easier for millions of workers to form unions at big companies like McDonald’s. But it’s already facing significant pushback from businesses and some members of Congress.
The rule — announced late last month by the National Labor Relations Board –- sets new standards for determining when two companies should be considered “joint employers” under the National Labor Relations Act.
It sounds wonky. But essentially, the rule could widen the number of companies that must participate in labor negotiations alongside their franchisees or independent contractors. For example, it might require Burger King to bargain with workers even though most of its U.S. restaurants are owned by franchisees. Or it could require Amazon to negotiate with delivery drivers who are employed by independent contractors.
“It’s trying to take in the realities of today’s workforce, when many employers subcontract out work and say, ‘Oh, we’re not the employer,’” said Cathy Creighton, director of the Buffalo Co-Lab at Cornell University’s School of Industrial and Labor Relations. “It’s the employer who is really calling the shots and has the money.”
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