Labor Urges Obama to Reverse Bush Executive Orders Affecting Government Contractors and Federal Employees

While it is widely expected that organized labor will push for the reintroduction of the Employee Free Choice Act (EFCA) soon after President-elect Obama takes office, the administration has indicated a reluctance to engage in controversial battles early into the Obama presidency; particularly those which employers contend will hurt business at this fragile time in the nation’s economy. In order to appease organized labor, however, the new administration may back other labor-related measures that will not require a lengthy and contentious legislative battle. Specifically, Obama may be more receptive to reversing a number of President Bush’s executive orders that are perceived negatively by organized labor. These executive orders were signed in the early days of the Bush administration, and sought to reverse labor/management policies set by the Clinton administration. The contentious executive orders include the following:

  • Executive Order on Preservation of Open Competition and Government Neutrality Towards Government Contractors’ Labor Relations on Federal and Federally Funded Construction Projects. This order prohibited any government construction contract from requiring or prohibiting bidders, offerers, contractors or subcontractors from entering into or adhering to agreements with one or more labor organizations. In essence, this executive order made it impermissible to favor bidders who promised to employ unionized workers.
  • Executive Order on Notification of Employee Rights Concerning Payment of Union Dues or Fees. This order required federal contractors to post a notice to its employees informing them that (1) they are not required to join or maintain membership in a labor union, and (2) that those who are not union members—but are nonetheless required to pay dues or fees pursuant to a union security agreement—can object to paying a portion of those dues or fees to support activities that are not related to collective bargaining, contract administration or grievance adjustment.
  • Executive Order on Nondisplacement of Qualified Workers Under Certain Contracts. This order revoked Clinton-era Executive Order 12933, which required that solicitations and building service contracts for public buildings include a clause outlining existing employees’ right of first refusal to take positions under the new contract. The right of first refusal clause did not apply to managerial or supervisory employees. The new contract could not advertise employment openings until the right of first refusal had been exercised by the existing employees.
  • Executive Order on Revocation of Executive Order and Presidential Memorandum Concerning Labor-Management Partnerships. This order revoked another Clinton executive order that established the National Partnership Council and required federal agencies to form labor-management partnerships for management purposes. The National Partnership Council was comprised of, among other members, the Director of the Office of Personnel Management, the Deputy Secretary of Labor, the Chair of the Federal Labor Relations Authority, the President of the American Federation of Government Employees, a representative from the AFL-CIO and officials from a number of other federal sector unions. The labor-management partnerships mandated the involvement of employees and their union representatives as full partners with management representatives in performing certain managerial functions.

Not only is reversing these executive orders a quicker and somewhat less-conspicuous way to appease organized labor versus promoting pro-labor legislation such as EFCA, but it also would continue what is becoming a tradition when the administration changes party hands. Therefore, it is likely that one or all of the above measures will be rescinded within the first 100 days of the new administration.
 

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.