Insights

Home > News & Insights > Insights > The Stark Reality Of Unionization

Share this on:   a b j c

The Stark Reality Of Unionization

Published by on March 19, 2009

The Greenbrier Resort has filed for Chapter 11 bankruptcy.  As noted in a post today at the VLW Blog here, the primary reason for the bankruptcy filing was the refusal of the nine unions representing the vast majority of the Resort’s workforce to renegotiate their labor agreements in the face of the recession and woes […]

The Greenbrier Resort has filed for Chapter 11 bankruptcy.  As noted in a post today at the VLW Blog here, the primary reason for the bankruptcy filing was the refusal of the nine unions representing the vast majority of the Resort’s workforce to renegotiate their labor agreements in the face of the recession and woes in the luxury resort industry.   More after the break.

The VLW Blog has a link to the affidavit of the Greenbrier’s CFO here, which outlines the numbers.  According to the CFO, the resort’s labor costs take up more than 70 percent of its revenues while the average in the industry for labor is 40 percent or less.  The resort plans to ask the bankruptcy judge to allow it to reject the labor contracts under Sec. 1113 of the Bankruptcy Code if it cannot renegotiate the contracts.

The rejection of labor agreements and pension plans through the bankruptcy process is likely to incease as more companies fail in these difficult economic times.  With situations like this unfolding, is it really the time to be putting in place pro-union legislation such as the “Employee Free Choice Act”? 

As noted in our earlier post here, the EFCA would do away with secret ballot elections for workers to decide whether to be represented by a union and replace it with a “card check.”  In addition, if the company and union fail to reach an agreement within a specified period of time, the parties would have to submit to mandatory arbitration of the labor agreement, which would result in wages, benefits and other terms and conditions of employment being dictated to the employer by a government official.

Topics:

Share:   a b j c