January 21 2005 Copyright 2005 Business Research Services Inc. 301-229-5561 All rights reserved.
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Contractors Must Post Union Notice -- Again A new rule requires federal contractors to post notices telling employees they are not required to join unions. The interim rule in Federal Acquisition Circular 2001-26 has been a ping-pong ball between Republican and Democratic administrations. The rule implements a 2001 executive order issued by President George W. Bush. He said it is designed “to promote economy and efficiency in government procurement. When workers are better informed of their rights... their productivity is enhanced.” The order says contractors must post the union notice in “conspicuous places” and it must include the following statement: “Under federal law, employees cannot be required to join a union or maintain membership in a union in order to retain their jobs.” The statement must also tell nonunion employees that they can only be required to pay dues for collective bargaining, contract administration and grievance adjustment, and that employees who believe they have been paying dues for other purposes may be entitled to refunds. President George H. W. Bush signed a similar order in 1992, but President Clinton revoked it when he took office. When the current President Bush reinstated the order, unions took him to court. A federal judge blocked the order, but that decision was overturned by the U.S. Court of Appeals for the District of Columbia. Unions complain that the executive order is one-sided because it does not require informing employees that they have a right to join a union. The deadline for comments on the interim rule is Feb. 18.
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