Private Sector: What’s on the Table?
Amid mounting union activity, members of Congress have introduced two bills that could significantly reshape private sector labor relations. While only proposed and not law at this time, if enacted they would signal a shift toward expanding union power, tightening bargaining timelines, and newly imposed constraints on employers.
Faster Labor Contracts Act (FLCA)
Introduced by a bipartisan team of Senators, the FLCA would fast-track initial union contracts. Employers would have to begin bargaining within 10 days of union certification. If no agreement is reached within 90 days, mandatory mediation begins; after 30 more days, a government-appointed arbitration panel can impose a two-year contract.
Key Impacts:
- Employers lose control of bargaining and face tighter timelines.
- Workers lose the right to vote on final contracts.
- Arbitration could result in rigid or misaligned terms.
Protecting the Right to Organize (PRO) Act
The PRO Act is a sweeping labor reform bill aimed at strengthening union rights and expanding collective bargaining power. It would override state right-to-work laws, redefine who qualifies as an employee, restrict employer interference in union efforts and impose mandatory first contract arbitration if no agreement is reached within 120 days of starting negotiations. If enacted, it would significantly reshape private-sector labor relations by making it easier for workers to organize and harder for employers to resist unionization efforts.
Key Impacts:
- Broadens the definition of “employee,” and bans mandatory employer education meetings.
- Overrides state right-to-work laws.
- Imposes significantly higher fines and personal liability on employers for labor violations.
- Forces early arbitration if no contract is reached within 120 days.
Public Sector: New Executive Orders and Legal Shifts
Recent executive actions and proposed legislation signal a shift in federal labor policy, aiming to reduce union influence and limit collective bargaining in the public sector. While some changes are already in effect, others remain proposals with uncertain futures. Together, they reflect a broader strategy to centralize management authority and weaken union power in government workplaces.
Executive Orders
- EO 14126 Rescinded Ends support for union neutrality and project labor agreements, which are pre-hire contracts that set standardized wages, benefits, and work rules across all contractors on a federal construction project. This rollback reduces union influence in federal contracting by removing any incentive to adopt labor-friendly practices.
- Lame-Duck Bargaining Ban: Rescinds CBAs signed in the final 30 days of the Biden administration unless they involve law enforcement. Designed to prevent last minute agreements from constraining new leadership.
Federal Workforce Freedom Act (FWFA)
- Proposed by Sen. Blackburn (R-TN), this bill would eliminate collective bargaining rights for all federal employees. It is unlikely to pass but reflects an aggressive move to dismantle federal union protections.
Uncertainties, Court Battles and Policy Changes
The federal labor landscape currently remains unsettled as legal challenges, agency shake-ups and shifting policies introduce new complications for both management and unions.
- Board Disruption and Legal Uncertainty – The Trump administration removed a key Biden-era appointee, halting NLRB operations due to lack of quorum. A judge reinstated Gwynne Wilcox, but the administration has appealed, leaving the Board’s authority and future rulings uncertain.
- Policy Reversals Under New Leadership – The Acting NLRB General Counsel has rescinded several Biden-era memos, signaling a rollback of union-friendly policies. The Board is expected to adopt a more employer-aligned stance that narrows worker protections.
- Employer Speech and “Protected Activity” – The NLRB is likely to reverse rulings that limited employer speech during union campaigns (e.g., Amazon, Starbucks). It may also restrict what qualifies as “protected activity,” excluding political expression not directly tied to workplace issues.
- Widespread Federal Layoffs Coming – Agencies are preparing for large-scale RIFs affecting 5–8% of the federal civilian workforce. The U.S. Office of Personnel Management’s directive limits union involvement in these decisions, although certain provisions (advance notice, hiring preferences, training) still require some negotiation with unions.
- Growing Legal and Operational Tensions – Judges have pushed back on the legality of the Administration’s firing sprees and agency closures. In some cases, employees have been placed on paid leave rather than fully reinstated, violating court orders and sowing more uncertainty.
Best Practices: Stay Ahead of the Curve
Private and public employers should review labor strategies, assess collective bargaining agreements, and prepare for faster, less predictable negotiations. With proposals like the FLCA and PRO Act, plus public-sector cuts and union restrictions, agility is key. Employers should train management, budget for potential labor costs and ensure workplace practices align with shifting regulations. Staying informed and flexible will be essential in the months ahead.
K|W|W will continue to monitor these fast-moving developments in labor and employment law across both the private and public sectors. If you have any questions about how proposed legislation, executive orders, or NLRB policy shifts may impact your organization’s bargaining strategy, union relations, or workforce management, please contact any K|W|W attorney. At K|W|W, your compliance and workforce stability remain our top priorities.