Prominent Dems Introduce Bill Banning Forced Arbitration

Mark Gruenberg

Mark Gruenberg Editor, Press Associates Union News

Prominent congressional Democrats, including chair of the relevant House committee and eight presidential hopefuls, want to negate the Supreme Court’s ruling that mandates company-friendly forced arbitration that overrides workers’ rights.

The Restoring Justice For Workers Act, unveiled by House Judiciary Committee Chairman Jerry Nadler, D-N.Y., House Education and Labor Committee Chairman Bobby Scott, D-Va., and Sen. Patty Murray, D-Wash., would reverse the High Court majority’s decision last year that the Arbitration Act of 1925 overrides the National Labor Relations Act, approved 10 years later.

The ruling by the 5-man GOP-named majority effectively banned workers from going to court when their employment contracts – mostly by individuals with firms, but sometimes by unions with firms – mandate the two sides submit all disputes one by one to arbitrators.

Sending arguments to arbitrators winds up in company wins more than 90% of the time, judicial data and other studies show. And arbitration clauses not only override labor law, but the court’s majority ruled, can ban its use altogether. Their ruling also closes off class action suits. 

“The bill would overrule Epic Systems v. Lewis, which allowed employers to continue to require workers to sign forced arbitration clauses,” a summary from Scott’s panel says.

“Arbitration clauses prevent workers from banding together to enforce their legal rights and are often buried in the fine print of employment contracts, meaning many workers are not aware they waived their rights. Use of forced arbitration clauses that block workers’ access to the courts has led to widespread non-enforcement of workers’ rights, including their right to minimum wage, overtime, and to a workplace free of discrimination and sexual harassment.”

The anti-forced arbitration measure, unveiled May 16, is one of a raft of pro-worker legislation pending in the Democratic-run House, with much of it designed to overturn anti-worker rulings by the court’s GOP majority. Nadler’s House Judiciary Committee is the lead set of solons on arbitration.

“For far too long, corporations have tied the hands of American workers through the use of forced arbitration clauses, which are often buried in the fine print of employment contracts and used as a precondition for employment,” Nadler said.

“Forced arbitration strips working Americans of their day in court to hold employers accountable for wage theft, discrimination, harassment and many other forms of misconduct,” he added. The law, if passed, would “finally put an end to this exploitation of American workers and to ensure they have equal protection under the law to hold their employers accountable for illegal behavior. Victims of sexual assault, racial discrimination, and other forms of corporate abuse and misconduct deserve their day in court.’

“Workers should not be coerced into signing away their rights as a condition of their employment, but that is the reality for millions of workers across the country,” said Scott. “Companies are increasingly using mandatory arbitration agreements to slam the courthouse door on their employees, denying them a fair venue to seek recourse for wage theft, discrimination, or harassment. And the court majority ruling banned workers’ class action suits, too, he added.

The bill “protects employees’ fundamental right to have their day in court and join with their co-workers to hold companies accountable for unlawful conduct,” Scott concluded.

Besides Nadler and Scott, 47 House Democrats – including presidential nomination hopefuls Tim Ryan of Ohio and Eric Swalwell of California – signed on. The 16 Senate co-sponsors include presidential hopefuls Cory Booker (N.J.), Kamala Harris (Calif.), Amy Klobuchar (Minn.) – both former prosecutors – Kirsten Gillibrand (N.Y.), Bernie Sanders (Vt.) and Elizabeth Warren (Mass.).

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Posted In: Allied Approaches

Union Matters

Get to Know AFL-CIO's Affiliates: National Association of Letter Carriers

From the AFL-CIO

Next up in our series that takes a deeper look at each of our affiliates is the National Association of Letter Carriers.

Name of Union: National Association of Letter Carriers (NALC)

Mission: To unite fraternally all city letter carriers employed by the U.S. Postal Service for their mutual benefit; to obtain and secure rights as employees of the USPS and to strive at all times to promote the safety and the welfare of every member; to strive for the constant improvement of the Postal Service; and for other purposes. NALC is a single-craft union and is the sole collective-bargaining agent for city letter carriers.

Current Leadership of Union: Fredric V. Rolando serves as president of NALC, after being sworn in as the union's 18th president in 2009. Rolando began his career as a letter carrier in 1978 in South Miami before moving to Sarasota in 1984. He was elected president of Branch 2148 in 1988 and served in that role until 1999. In the ensuing years, he worked in various roles for NALC before winning his election as a national officer in 2002, when he was elected director of city delivery. In 2006, he won election as executive vice president. Rolando was re-elected as NALC president in 2010, 2014 and 2018.

Brian Renfroe serves as executive vice president, Lew Drass as vice president, Nicole Rhine as secretary-treasurer, Paul Barner as assistant secretary-treasurer, Christopher Jackson as director of city delivery, Manuel L. Peralta Jr. as director of safety and health, Dan Toth as director of retired members, Stephanie Stewart as director of the Health Benefit Plan and James W. “Jim” Yates as director of life insurance.

Number of Members: 291,000 active and retired letter carriers.

Members Work As: City letter carriers.

Industries Represented: The United States Postal Service.

History: In 1794, the first letter carriers were appointed by Congress as the implementation of the new U.S. Constitution was being put into effect. By the time of the Civil War, free delivery of city mail was established and letter carriers successfully concluded a campaign for the eight-hour workday in 1888. The next year, letter carriers came together in Milwaukee and the National Association of Letter Carriers was formed.

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