Union Promotion Stalls in Senate, Finds Legs Elsewhere

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On March 9, 2021, the U.S. House of Representatives passed the Protecting the Right to Organize (PRO) Act largely along party lines. The PRO Act protects workers’ right to organize, expands their collective bargaining power and includes other provisions that would increase the administrative burden on employers and amplify labor costs. This legislation comes at a time when many multifamily firms are feeling financial pressures due to COVID-19, notably the ongoing federal eviction moratorium.

Amongst the bill’s several provisions, the PRO Act would codify an Obama-era National Labor Relations Board ruling on joint-employer status that would potentially hold multifamily owners liable for any fines incurred by their subcontractors, suppliers, vendors, or temporary staff. It also amends the collective bargaining process by mandating arbitration between employer and employees, prolonging negotiations without a deadline for resolution and preempts right-to-work state laws.

The PRO Act now sits in the U.S. Senate but does not appear to have united support from the Democratic caucus; 45 Democrats and two Independents back the proposal. Recognizing the near insurmountable hurdle faced by the PRO Act, President Biden issued an executive order on April 26 establishing the Force on Worker Organizing and Empowerment to promote “policy of support for worker power, worker organizing, and collective bargaining”. The task force is charged with submitting policy and legislative recommendations within 180 days.

We anticipate that the task force will recommend that what cannot be achieved legislatively should be considered regulatorily. What is certain, however, is the clear support the Biden Administration has shown for the PRO Act and the emphasis it is placing on worker organization and empowerment. The National Apartment Association (NAA) continues to work with the Administration and Congress on balanced and sustainable housing policy. We will keep you updated as the situation develops.

For more information on labor and employment issues, please contact Sam Gilboard, NAA Manager of Public Policy.