Employers' Use of Persuader Services Highlights Need for Labor Law Transparency

Recent disclosures to the U.S. Department of Labor's Office of Labor-Management Standards (OLMS) have brought to light the contentious practice of employers hiring external consultants to dissuade employees from unionizing. The Forms LM-20, mandated for employers engaging in such 'persuader' services, have exposed instances where companies may have breached the Labor-Management Reporting and Disclosure Act (LMRDA) by submitting filings after National Labor Relations Board (NLRB) election outcomes were declared.

Notable cases include The Tustin Group in Fairfield, NJ, and American Rock Products in Yakima, WA, which utilized persuader services at considerable costs. The situation at American Rock Products is particularly noteworthy as the union emerged victorious in the election, yet the consulting agreement was filed subsequently. Alro Steel Corporation in Jackson, MI, and Medix Ambulance Service in Hillsboro, OR, have also been identified in similar circumstances, with Alro Steel's union failing to secure a win and Medix's case remaining unresolved.

These findings emphasize the critical role of transparency and compliance with labor laws in safeguarding employees' rights to organize. The tardiness in filings by certain employers casts doubt on the efficacy of existing regulations and underscores the imperative for more rigorous enforcement to curb inappropriate interference in union elections.