This week, a bipartisan majority of the U.S. House of Representatives surprisingly passed the Faster Labor Contracts Act (FLCA). The private-sector employer community has largely ignored the FLCA, as few believed it had any chance in the current Congress. In light of this week’s development, however, that must change. We cannot overstate the impact of the FLCA (if it becomes law) on non-unionized employers of all sizes.

What the FLCA would do: The FLCA would impose on every non-union workplace the risk of mandatory, binding arbitration over everything from pay and benefits to working hours, work rules, and production standards — essentially, every term of employment.

• If employees choose union representation, their employer will have to negotiate a contract with the union within 120 days or become subject to this mandatory arbitration.
• And with the government guarantee of a quick first union contract, without any risk of a strike, union representation will become far more attractive than it has ever been before, increasing the odds of a successful campaign.

Current Landscape: Why This Bill Emerged

Under the National Labor Relations Act (NLRA), employers and unions must bargain in good faith. Currently, there is no deadline for the parties to reach a first union contract after a union is elected. There also is no requirement that the parties ever agree to a union contract should the union insist on terms the employer is unwilling to accept.

Unsurprisingly, first contracts...

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