Binding Arbitration Could Force Workers into Underfunded Pensions
The misnamed Employee Free Choice Act (EFCA, H.R. 800) is organized labor’s top legislative priority. The portion of the bill that ends union organizing elections has received the most attention and criticism. No less dangerous, however, is a binding arbitration provision that would empower government officials to set workers’ wages and working conditions. This would improve union finances but threaten the retirement security of millions of American workers. Congress should not endanger workers’ retirement security by allowing government arbitrators to force workers into financially unstable or insolvent plans.