On June 1, the Coalition for a Democratic Workplace (CDW) released a white paper on the perils of the Faster Labor Contracts Act, legislation pending a House floor vote via a Democrat-led discharge petition. CDW’s white paper, The Arbitration Trap: Why the Faster Labor Contracts Act Is Bad for Workers, Employers, and the American Economy, explains how the FLCA would produce perverse economic incentives, reward bad-faith bargaining, and generate unchecked labor costs that could destroy jobs and shutter facilities. Moreover, the bill strips workers of the democratic right to ratify or reject their own contracts, violates the foundational principle of freedom of contract, infringes on workers and employers’ Constitutional rights, and creates a mechanism by which the political demands of organized labor’s most aggressive locals can be nationalized into binding employment agreements without worker or employer consent.

The following statement can be attributed to CDW Chair Kristen Swearingen:

“The Faster Labor Contracts Act is big government at its worst. As our white paper explains, mandatory arbitration crushes genuine labor-management negotiations and worker voice and replaces it with a system that rewards bad faith tactics, expands the federal bureaucracy, and could result in economically ruinous contracts for businesses and employees alike.

“The House of Representatives is on the verge of voting on this bill. CDW hopes the representatives take a serious look at the consequences this bill will have on their constituents before placing their vote.”