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The Retail Employer

Dear Member,

The RMA Staff and I hope you find happiness and good health this season, and wish your hard work and generosity will come back to you four-fold in the New Year.

Very best wishes,
Nancy Thomas
Interim President

The Retail EmployerDecember 2008

First Friday Forum

Upcoming...First Friday Forum

Friday, January 9, 2009

"Marketing Smarter in Tough Economic Times" with Tom Blue, RMA Marketing Guru

Click here for more information >>

The many events over the past few months will have a profound, and long lasting, effect on consumer shopping habits.  Here are a few quick points.

  • Research tells us that these are troubled times...potential  financial collapse, high gas prices, big-business closings, mortgage foreclosures, and more, have created a seismic shift in consumer shopping behavior that will have permanent ramifications.

  • The losers...mid-tier companies with moderate "ho-hum" appeal.  Today, large chunks of consumers are searching for answers on how to adapt.  Therefore, retailers must respond to the changing consumer value equation...the elements that drive value have changed.

The dynamics are already there, and the shift in consumer buying habits is clearly evident.  Retailers must start to adjust now, and recognize the need for new tactics that will help to grow the business during the near term, and beyond.  This presentation focuses on the critical elements in the decision process, and provides nine practical suggestions for ensuring future success.

7:45–9:15 a.m.

New Location!: Crowne Plaza Richmond West
6531 West Broad Street
Richmond, VA 23230
(804) 285-9951
Directions >>

Cost: Members, $25; Non-members, $30

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The Employee Free Choice Act (Opposing View)

by David E. Nagle

Last year a politician said, “If a majority of workers want a union, they should get a union. It’s that simple.”

So, let’s allow a group of employees who wish to be represented by a union—say 30%?—to file a petition with the National Labor Relations Board. Those who favor a union, and those who do not, can share facts and express opinions. Union supporters can convey their views during breaks, lunch, and after hours through conversations, emails, calls, mailings and even home visits. After 30-45 days, the government conducts a secret ballot election. When the polls close, the election officer opens the ballot box, counts the votes, and announces the results. If the union receives votes from a majority, it is the employees’ bargaining representative. The company and union are then obliged to bargain in good faith over all terms and conditions of employment, and the resulting contract reflects the terms agreed to by all.

Sounds simple, workable, and fair, so this is the Employee Free Choice Act, right? Wrong. This describes the process under current law. Unions, which today represent only about 12% of the workforce (7.5% in the private sector), want their own bailout. While it is hard to be against “employee free choice”, the name reflects not that which is protected—but that which is sacrificed.

The Employee Free Choice Act (EFCA) has two key components: first, it does away with secret ballot elections; second, it abandons the concept that the parties should only be bound by the terms and conditions of employment upon which they have reached agreement. As to the first, under EFCA, when a union goes to the NLRB with cards signed by 50% plus 1 of the workers in a unit, they represent them. End of story. No campaign; no exchange of views; no opportunity to listen and educate themselves; no allowance for views to evolve. Currently, signing a card starts the process, but under EFCA, signing the card ends the process. Why is that bad? Because as voters become better informed, their views often change. A year ago Rudy Giuliani and Hillary Clinton had their respective nominations sewn up. Didn’t voters become better informed through the robust exchange of views during the subsequent campaign?

EFCA allows unions to represent employees whenever they get cards signed by a majority of workers. Is that hard? Have you signed a petition at a supermarket, knowing that you are not bound on election day? Can you decline to sign a card when a union organizer shows up at your home, with a few friends and what he claims is a stack of cards signed by your co-workers (but which he keeps confidential, for now)? He wants you to sign without time to do your own research, to speak with friends who have experience working in unionized facilities. And he is waiting, in your home, or the lunchroom, or the parking lot. There will be no election, for the “card check” takes the place of secret ballots.

Which brings us to a less-publicized aspect of EFCA. Currently, the parties must bargain in good faith as to all terms and conditions of employment, and only when they reach agreement are they contractually obligated. Not so under EFCA. Despite the fact that bargaining is often a long and arduous process, EFCA provides only 90 days for bargaining, followed by 30 days for mediation. If no agreement has been reached, an arbitrator will dictate the terms and conditions of employment—wages, benefits, job classifications, discipline, etc. The arbitrator’s ruling is binding for two years.

Some political figures oppose EFCA. One said:

I’m concerned about a bill in Congress that would effectively eliminate an employee’s right to a private vote when deciding whether to join a union. It’s hard to believe that any politician would agree to a law denying millions of employees the right to a private vote. I’ve always been a champion of labor unions, but I fear that today’s union leaders are turning their backs on democratic workplace elections. I’ve listened to all their arguments, and reviewed the facts on both sides. Quite simply, this proposed law cannot be justified. Working families deserve a voice and a private vote.

Must be a Republican or a lobbyist for the business community, right?

I’m Senator George McGovern, and I approved this message, because democracy is something that should never be sacrificed.

He’s right. The secret ballot—the right to vote in confidence, without fear of retaliation—is too important to be abandoned just to help unions. Employees are entitled to develop their own views after hearing and participating in informed debate. The sanctity of a secret ballot must be preserved. However, there is a lot of momentum behind this bill. Last summer, the politician quoted at the top of the column said this:

We’re ready to play some offense for organized labor. It’s time we had a president . . . who strengthens our unions by letting them do what they do best—organize our workers. . . It is time to pass Employee Free Choice Act in the Senate, and I will make it the law of the land when I am President.

He will be sworn in on January 20th. But union representation elections should be decided by secret ballot, just like elections for public office. A secret ballot is the best way to protect freedom of choice, whether in the workplace, or in public office. There is no limit to the mischief that can arise when we abandon the secret ballot. Hear the one about the process being used to fill that vacant Senate seat in Illinois?

David E. Nagle is a partner in the Richmond office of Jackson Lewis LLP, a national workplace law firm with over 500 attorneys in 40 offices across the nation, all dedicated to representing management in workplace law and related litigation. For 27 years, David has counseled and represented employers in Virginia. He is listed in Best Lawyers in America, and Chambers’ Leading Lawyers for Business. He can be reached at david.nagle@jacksonlewis.com or (804)648-4077.

This column previously appeared in the Richmond Times-Dispatch and is reprinted with permission.

Calls requesting information on the Employment Law Information Program should be directed to Preston Perrin with the Retail Merchants Association at 804-662-5500.

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Don't Let a Tough Economy Put Your Team into a Depression—Five Inexpensive and Easy Ways to Inspire Your Workforce

As the end of the year approaches, does the state of the economy and your business’ budget have you worried?  If so, you’re not alone. A recent report by the Corporate Executive Board found that many Fortune 500 companies are looking at reducing or eliminating merit-based raises for 2009.

Times are tight, and businesses must do what it takes to survive. But in times like these, it’s also critical to remember that your workforce is also enduring a tough economy.  Experts say all this weighs on the minds of employees and can affect motivation, creativity, and productivity. Here are a few creative and inexpensive ideas to let your team know they matter and engage a spirit of inspiration among your workforce.

Encourage innovation. The saying that ideas are free is true, and now is a perfect time to use innovation to set your services and products apart and stay ahead of the curve when it comes to the bottom line. Innovation is in short supply in many industries. So, taking the effort to encourage innovation across your workforce is a great way to motivate your team to do their best and instill in them the reality that their work matters.

Help solve problems. Many employers are having a hard time hanging on to hope in light of the challenges they face, and this attitude quickly transfers down to employees at all levels of your business. Instead of giving in to a sense of desperation or discouragement, realize that now is the prime time to seek out creative solutions. Get your team in on the process, and help them solve the problems they are facing, too. This not only gives your business a better shot at success, it shows employees that their problems are important.

Become a more lovable boss. An employee’s relationship with their boss is one of the prime factors contributing to their overall job satisfaction. When people know they matter to their employer, they are more likely to be engaged in their work and perform better.

Take time to make work fun. At this time of year, under end-of-the-year deadlines, employees often check out mentally and go into punching-the-clock mode just counting down the days until much-needed time off. Especially during the holiday season, when employees probably may want to be anywhere but at work, it’s important to take time to make work fun.

Make your appreciation known. With year-end evaluation, budgeting, and planning top-of-mind right now, chances are you’re spending most of your day on high-level business matters. It’s easy to get consumed by these things and lose sight of the needs of your workforce. Even if you only have a few moments to spare over the next few weeks, consider making it a point to say thank you to your team.

By taking the time to use a few of these tips, you can inspire your workforce to do the kind of work your business needs to thrive, but the payoff doesn’t end there. Businesses that still take the time and effort to invest in employees are at a premium today. Word travels fast about great workplaces that are doing what it takes not just to balance their budgets and keep the doors open, but to treat employees right during the process.

This article is reprinted with permission of Express Employment Professionals at www.ExpressPros.com. Contact Ms. Lorraine Alexander at 804-550-0200 or by email  if you would like to be added to their distribution list.

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Sales Tax—Dealer Discount Elimination

Virginia Retail Federation (VRF) representatives will meet with Governor Kaine’s staff January 5 to start negotiations on the governor’s proposed elimination of the “dealer discount.” The “dealer discount” is the small percentage of the sales tax that the state remits back to merchants as compensation for collecting the tax. The fee has been in place since 1966 when the Virginia sales tax was established.

The VRF will propose a number of options to the governor and the General Assembly for replacing budget money that would be gained by the state for gutting the fee. One proposal is to collect tax from internet sellers, like Amazon, which has locations in Sterling and Ashburn, VA, and collects data in Ashburn, and ships orders from Sterling. Under Virginia code, out-of-state internet dealers with “nexus,” or place of business in Virginia, must be subject to sales tax.

The General Assembly convenes January 15. Please contact your legislators immediately to:

  1. Oppose elimination of the “dealer discount;”
  2. Support taxation of internet or out-of-state dealers that are selling and shipping from locations in Virginia, but not collecting or paying sales tax.

To find and contact your legislators, go to the Virginia General Assembly Web site, www.legis.state.va.us. For more information on this issue, contact Margaret Ballard, 757-406-9431, mballard@retail-alliance.com or George Peyton, 804-662-5505, gpeyton@retailmerchants.com

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