Javier Palomarez, USHBC President & CEO, Responds to House Passage of the Faster Labor Contracts Act
Supporters argue the legislation will help workers obtain first contracts more quickly following union certification. Critics, however, have raised concerns that the bill fundamentally alters the collective bargaining process by shifting significant authority away from employers and employees and into the hands of third-party arbitrators.
In response, Javier Palomarez, President & CEO of the United States Hispanic Business Council (USHBC), issued the following statement:
“While the USHBC strongly supports the rights of workers to organize and engage in collective bargaining, we are deeply concerned by the House passage of the Faster Labor Contracts Act. Collective bargaining works best when employers and employees negotiate directly and reach agreements that reflect the unique realities of their workplace. This legislation risks replacing that process with government intervention. It is also a clear example of unnecessary government overreach into a process that has historically been driven by employers and employees themselves.”
Palomarez continued:
“If negotiations fail to produce an agreement, a government-appointed arbitration panel can impose the terms of a contract that workers never vote on and employers have very limited ability to challenge. That represents a significant departure from the principles that have guided labor relations in the United States for decades.
Small businesses are not Fortune 500 companies. They do not have armies of lawyers, consultants, and labor specialists at their disposal. Many employers, particularly small and mid-sized businesses, require flexibility and sufficient time to negotiate complex agreements that affect wages, benefits, scheduling, operations, and long-term financial viability.
A labor agreement that works for a billion-dollar corporation may be completely unrealistic for a growing business operating on tight margins. Small businesses deserve to have their unique circumstances considered, not be measured against standards designed for companies many times their size.”
Palomarez added:
“Workers deserve a voice. Employers deserve a voice. The answer is not to remove both parties from the negotiating table and hand the final decision to outside arbitrators who may have little understanding of the business, workforce, or local economic conditions affected by their ruling. Congress should be focused on encouraging good-faith bargaining, not replacing it.”
The USHBC urges the Senate to carefully consider the long-term implications of this legislation and reject provisions that weaken direct negotiations between employers and employees.
To learn more, follow @myushbc and @JPalomarez on X.
Visit ushbc.com/join to become a member today.
About the USHBC
Javier Palomarez is the President & CEO of the United States Hispanic Business Council (USHBC). The USHBC is a leading voice for the small business community. A 501(c)6 non-profit organization, the USHBC focuses on the success of American small businesses by ensuring they have a voice in the national dialogue. The USHBC is a nonpartisan organization.
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