Madam Speaker, I would like to submit the following testimony on the National Mediation Board's proposed rule regarding union elections under the Railway Labor Act. Changed Time and Circumstances Justify Amending NMB Representation Vote…
Madam Speaker, I would like to submit the following testimony on the National Mediation Board's proposed rule regarding union elections under the Railway Labor Act.
Changed Time and Circumstances Justify Amending NMB Representation Vote
Procedures
(by Frank N. Wilner)
By Notice of Proposed Rule Making (NPRM) dated Nov. 3,
2009, the National Mediation Board (NMB) proposes to amend
its rules interpreting and administering the Railway Labor
Act (RLA) ``to provide that, in representation disputes
[determinations as to who will be the bargaining agent for
airline and railroad and commuter railroad employees], a
majority of valid ballots cast will determine the craft or
class representatives.''
The long-standing procedure of the NMB requires a majority
of eligible voters (as opposed to those actually voting) to
vote affirmatively in favor of representation, meaning a
failure or refusal of an eligible voter to participate is the
equivalent of a ``no union'' vote.
The NMB proposes to change its procedure so that, in the
future, only ballots of those actually voting will be
counted, and each voter will make a choice between
representation by a specified union or ``no union.'' This
will comport with the long-standing procedures of the
National Labor Relations Board, which interprets and
administers the National Labor Relations Act.
The NMB has authority to make this change in policy. As the
Supreme Court observed:
[N]ot only does the statute [RLA] fail to spell out the
form of any ballot that might be used but it does not even
require selection by ballot. It leaves the details to the
broad discretion of the [National Mediation] Board with only
the caveat that it `insure' freedom from carrier
interference.
Says the NMB in its NPRM:
The Board's current policy requires that a majority of
eligible voters in the craft or class must cast valid ballots
in favor of representation. This policy is based on the
Board's original construction of Section 2, Fourth of the
RLA, which provides that,
`[t]he majority of any craft or class of employees shall have
the right to determine who shall be the representative of the
craft or class . . .'
This interpretation was made in the NMB's first annual
report in 1935 ``. . . not on the basis of legal opinion and
precedents, but on what seemed to the Board best from an
administrative point of view.''
In its November 2009 NPRM, the NMB says:
. . . under its broad statutory authority, [the board] may
also reasonably interpret Section 2, Fourth to allow the
Board to certify as collective bargaining representative any
organization which receives a majority of votes cast in an
election.
And the NMB has done just that in the past, although
infrequently. As the NMB said in its first annual report in
1935 that, ``Where, however, the parties to a dispute agreed
among themselves that they would be bound by a majority of
the votes cast, the Board took the position that it would
certify on this basis . . .''
The Supreme Court has held that while the words of Section
2, Fourth ``confer the right of determination upon a majority
of those eligible to vote,'' the statute ``is silent as to
the manner in which that right shall be exercised.''
The U.S. Fourth Circuit Court of Appeals held, in 1936:
The universal rule as to elections of officers and
representatives is that a majority of the votes cast elects,
and that those not voting are presumed to acquiesce in the
choice of the majority who do vote.
And Chief Justice Morrison Waite held, in 1877:
All qualified voters who absent themselves from an election
duly called are presumed to assent to the expressed will of
the majority of those voting, unless the law providing for
the election otherwise declares. Any other rule would be
productive of the greatest inconvenience and ought not to be
adopted, unless the legislative will to that effect is
clearly expressed.
Moreover, courts give the decisions of expert federal
agencies great deference; and are, in the words of the
Supreme Court (Chevron doctrine), ``reluctant to preclude any
federal agency's deliberations of policy because a federal
agency, which is controlled by the political branches of the
federal government, is constitutionally better suited than a
federal court to render policy decisions.''
The NMB enjoys even greater insulation from second-guessing
by the courts. The Supreme Court observed in 1943 that
Congress left to the discretionary authority of the NMB the
determination of certifying bargaining representatives.
Perhaps a more pregnant question is why the NMB for so long
has permitted its voting procedures in representation
elections to be out of sync with the standard for all other
democratic elections, where a majority of those voting makes
the determination. This is especially relevant where the
result of such a procedure is that the failure or refusal of
an eligible voter to participate is the equivalent of a ``no
union'' vote.
It makes for sound administrative procedure, however, to
provide reasonable justification--rather than willy-nilly
desire--for changing a long-standing public policy.
Determining a reasonable justification logically begins
with the NMB's observation, in its November 2009 NPRM, that
Section 2, Fourth ``was adopted in a much earlier era, under
circumstances that differ markedly from those prevailing
today.''
The Earlier Era
Time and circumstances have, indeed, changed since the NMB
adopted, during the 1930s, its current policy--not always
followed, as will be explained--that requires a majority of
eligible voters in the craft or class must cast valid ballots
in favor of representation.
Consider:
In 1930, there were 156 major (Class I) railroad systems.
In 2008, the number of major (Class I) railroad systems was
just 7, a 96 percent reduction since 1930.
In 1930, there were 1.5 million employees in the railroad
industry. In 2007, employment in the railroad industry had
declined to just 236,000, an 84 percent reduction since 1930.
In 1930, there were 249,000 miles of railroad line in the
United States. In 2007, the miles of railroad line in the
United States had declined to just 94,440, a 62 percent
reduction since 1930.
While it is instructive that there has been a significant
decline in the number of major railroads, railroad employees
and miles of railroad trackage, those considerations alone
are not enough to justify a change in the NMB's long-standing
voting procedures for representation elections, except to
demonstrate that the environment in which the NMB made its
initial determination to require a majority of eligible
voters was much different than today's environment.
However--and this is crucial--as the NMB conducted
representation elections during the 1930s, the Interstate
Commerce Commission was wrestling with a congressional
directive in the Transportation Act, 1920, to formulate a
plan of merging the nation's railroads into just 19 systems.
Thus, lurking in the shadows of each representation
election during the 1930s was, ``What is the mood of
employees on the other railroads that might become a merger
partner of the railroad on which employees were voting for
representation?'' This concern likely steered the NMB toward
seeking a demonstration in each representation election that
the outcome was a result of votes from a majority of those
eligible to vote.
There are more important facts of changed circumstances:
Company Unions
Among amendments to the Railway Labor Act in 1934 was one
outlawing company unions--a change intended better to protect
employee rights to organize. Company unions were under the
control of carrier officers, with the carriers paying the
wages of the employee representatives.
The House Committee on Interstate and Foreign Commerce
observed at the time (1934) that ``a prolific source of
dispute'' between management and employees was ``the denial
by railway management of the authority of representatives
chosen by their employees.''
So substantial was this conflict that then-NMB Chairman
William M. Leiserson subsequently testified that, were there
a strike occasioned by a dispute over wages and hours, ``we
usually find we can settle those by arbitration or otherwise
. . . But if the issues involved were discrimination or
discharge of men because they had joined the organization, or
the question would be the right of the organization to
represent them, we could not have settled those strikes.''
Between 1933 (the year prior to an RLA amendment that
outlawed company unions) and 1935, some 550 company unions on
77 Class I railroads were replaced by independent national
unions. Indeed, two-thirds of the work of the NMB from 1934
until the start of World War II involved investigations and
purging of company unions.
This was no simple task, as railroads were not anxious to
cede negotiating power to an independent labor union. The New
York Times observed as early as 1922.
When the railroads were handed back to their owners by the
Government (following federal takeover during World War I)
they were working under national agreements made with union
representatives. That was a yoke from which the roads
constantly tried to escape.
Moreover, employees, fortunate to be working during the
Great Depression were frightened--if not terrified--over the
prospect of angering management by not supporting a company
union and, as a result, losing their jobs.
As the U.S. Fourth Circuit Court of Appeals observed in
1936.
. . . any sort of influence exerted by an employer upon an
employee, dependent upon his employment for means of
livelihood, may very easily become undue, in that it will
coerce the employee's will in favor of what the employer
desires against his better judgment as to what is really in
the best interest of himself and his fellow employees.
Although there is no accessible source to determine the
thinking of NMB officials at the time, it is logical to
conclude that requiring a majority of those eligible to vote
(as opposed to a majority of those voting) more conclusively
established on the part of the eligible employees a desire to
be represented by a labor union independent of company
influence.
This conclusion is given validity by a comment of the
nation's Federal Coordinator of Transportation (1933-1936),
Joseph Eastman, who proposed that in organizing employee
unions, ``a majority shall speak for all.''
Racial Discrimination
There was, during the 1930s, a national shame of racial
discrimination.
It was not until 1955 that the Interstate Commerce
Commission, taking instruction from Brown v. Board of
Education of Topeka, Kansas, ruled that the very practice of
segregation in interstate commerce was a violation of the
Interstate Commerce Act.
For sure, discrimination against African-Americans existed
also in railroad employment practices.
On Atlanta Terminal Co., for example, there was an effort
to separate, for representation, Caucasian and African-
American employees. Management said it wanted a demonstration
that the Brotherhood of Railroad and Steamship Employees
represented the ``white employees.'' The NMB ordered that one
ballot be issued ``among all the employees involved in the
dispute regardless of color to afford all of them an equal
opportunity to indicate their choice of representatives.''
As another example, the Brotherhood of Locomotive Firemen
and Enginemen had an agreement with 10 railroads in the South
to restrict hiring and promotion of African-Americans, and
the BLF&E, according to President Roosevelt's Committee on
Fair Employment Practices, ``refuses to represent them with
respect to their grievances when such grievances are in
conflict with the interests of junior white firemen.''
The national shame of racial discrimination surely created
a unique challenge for the NMB--a challenge best met by
requiring that representation elections be determined by a
majority of those eligible rather than of those voting to
guard against racial discrimination in the voting process.
Conflict among labor unions and crafts
Also unique to the period of the 1930s was the large number
of competing labor organizations and crafts. Where
representation of craft and class today is generally
established in bright line fashion on the larger railroads
(which employ almost 90 percent of rail workers), that was
not the case during the 1930s.
In 1935, on New York, Chicago & St. Louis Railroad, a
dispute arose between the Brotherhood of Railroad Trainmen
(BRT) and the Switchmen's Union of North America (SUNA)
regarding representation of switchmen. The BRT claimed
representation of switchmen systemwide; and the SUNA sought a
separate vote of switchmen in Buffalo and those in Cleveland,
rather than systemwide.
In 1937, on Indiana Harbor Belt Railroad, a dispute arose
between the Brotherhood of Railroad Trainmen and the Order of
Railroad Telegraphers regarding representation of operators,
towermen, levermen, train directors and operator-
switchtenders.
In 1935, the Brotherhood of Railroad Trainmen complained
that the NMB had denied certain brakemen a representation
ballot in a dispute involving road conductors.
The NMB observed in its first annual report in 1935:
[Representation disputes] arose mainly because of
overlapping jurisdiction . . . the antagonism engendered by
the contests has developed a tendency for employees who are
members of one organization to challenge the representation
of the other organization. . . .
The NMB since has made clear that Section 2, Ninth of the
RLA requires a systemwide election by craft or class; but, in
those early years, the NMB, in decisions of first impression,
surely recognized that to assure a perception of equity that
the vote results had to be based on a majority those eligible
to vote--that the NMB had to get it right.
Also, technology has eliminated what were some 291 crafts
or classes in 1935, and merger among unions reduced what had
been some 21 separate craft unions in 1935 to many fewer
today.
Also notable is that it was not until 1954 that the AFL
amended its constitution to prohibit raiding by AFL member
unions of other AFL-member unions (now memorialized by
Article 20 of the AFL-CIO constitution).
Communication and education
Times and circumstances also have changed with regard to
education and communication.
In 1930, only 30 percent of Americans were graduated from
high school, while, today, the number exceeds 70 percent.
During the 1930s, representation elections were carried out
by mail ballot, with each eligible voter being sent a ballot
along with an instruction sheet explaining the procedures for
a secret ballot election. A significant number of blue collar
workers during the 1930s may well have been unable to read at
a level sufficient to ensure they understood the ballot
procedures, much less the subject matter of the election.
It was not until 1943 that a single AT&T operator could
complete a long-distance telephone call; previously, as many
as five operators and 23 minutes were required to connect a
telephone in San Francisco with one in New York. As late as
1950, the cost of a five-minute long-distance telephone call
between New York and Los Angeles cost $3.70, which is
equivalent to $32.73 in 2009. This affected the ability of
independent unions--and union supporters--to communicate with
railroad employees over a wide geographic area.
Today, railroad employees have near universal access to
hard-wired and wireless telephones, as well as e-mail, with
the costs of communicating relatively insignificant. In the
words of former NMB Chairperson Maggie Jacobsen, the Internet
has become ``a 24-hour, seven-day-a-week union meeting.''
Indeed, the U.S. Census Bureau reports that 74 percent of
Americans 18 years and older in the workforce use the
Internet. As airlines and railroads are among the most
computerized industries in America, the percentage of airline
and railroad employees who are Internet savvy is likely
higher than 74 percent.
During the 1930s, there was a communications challenge--in
employee reading comprehension as well as the ability to
communicate by electronic means (including telephone). That
communications challenge could well have affected the ability
of voting-eligible employees to be aware of the subject
matter, while lower standards of reading comprehension
impeded the ability of employees to understand the subject
matter, mechanics and rules of a representation election.
By requiring that a majority of eligible employees vote in
favor of representation, the procedure better assured that
the majority would be made aware of the election and for what
they were voting. The matter of employee reading
comprehension is far less a problem today, and there no
longer exists impediments to dissemination of information by
electronic means (including voice).
Conflicts in ideology
Not readily recognized today is that there was great social
upheaval during the period of the Great Depression.
Communism was viewed by many workers at that time as
superior to capitalism, and communists were active agents for
change. In 1938, for example, communist agitator William Z.
Foster advocated worker militancy.
The president of the Switchmen's Union of North America
responded that communist efforts are intended ``to create
disharmony, discord and disunity among the members of
standard railroad labor organizations.''
Here, again, was reason for the NMB to certify
representation votes on the basis of a majority of those
eligible to vote rather than to permit, perhaps, a handful of
agitators to determine representation votes for a radical
organization by intimidating a majority of workers from
casting ballots.
Conclusion
The National Mediation Board proposes to bring its 75-year-
old representation election voting procedures in sync with
those of the National Labor Relations Board, and what the
federal courts term, the ``universal rule as to elections of
officers and representatives.''
The change would provide that the outcome of an election is
determined by a majority of those voting, scrapping the
archaic majority-of-those-eligible rule, which arbitrarily
assumes that those not voting be counted as a ``no vote.''
Circumstances have changed since the NMB instituted such
voting procedures in 1934. The reasons then included:
An effort by the NMB to demonstrate to employers that their
employees overwhelmingly preferred an independent labor union
to a company union controlled and financed by management.
An effort to guard against racial discrimination in an
election and better assure access to ballots by African-
American workers.
An effort to resolve conflict among some 21 separate
independent labor unions seeking to represent some 291
separate crafts or classes at the time--to ``get it right''
by determining the desires of a majority of those eligible to
vote.
An effort to combat substantially lower levels of education
and reading comprehension among workers. By requiring a
positive vote among a majority of those eligible, it was
better assured that efforts would be made by those asking for
the election to reach and explain voting procedures to those
eligible.
An effort to combat technological difficulties in
communicating with potential voters. Again, requiring a
positive vote among a majority of those eligible better
assured that efforts would be made to reach out and
communicate with those eligible.
An effort to combat Communist agitators, who were using
intimidation and other tactics to encourage worker militancy
and workplace discord.
Today:
There no longer are company unions or the threat of company
unions.
Racial discrimination has been outlawed, and procedures are
in place to root out and prosecute racial discrimination in
the workplace.
Conflicts among RLA-covered labor unions are largely non-
existent today, and the number of crafts and classes of
workers has been reduced substantially. Moreover, by
including a ``no union'' choice on the ballot provides
eligible employees opportunity to cast a ``no vote.''
Levels of education, especially among railroad and airline
workers, have been dramatically improved, with most using
computers in their daily work routines.
Barriers to communication among workers, as well as between
workers and their employers and union organizers have been
almost entirely eliminated with near universal access to
telephone and e-mail. Also, today's railroad and airline
workers have substantially higher levels of education than
they did during the 1930s.
Because of changes in circumstance, 75-year-old NMB voting
procedures are ripe for change to bring them in sync with the
universal rule as to elections of officers and
representatives, which is a majority of those casting
ballots.