U.S. manufacturing group sues to block union 'persuader' rule

A major U.S. trade group representing manufacturers said it filed a lawsuit on Wednesday seeking to block a new Labor Department rule requiring companies to disclose when they seek advice about countering union campaigns.

The National Association of Manufacturers said in a press release that it filed the lawsuit in federal court in Little Rock, Arkansas. The group alleges the so-called "persuader rule" violates the free speech and due process rights of employers because it restricts their ability to respond to union organizing. A copy of the complaint could not immediately be located in court records.

The rule, first proposed in 2011 and finalized last week, amends the federal Labor Management Reporting and Disclosure Act to require detailed reports from employers and their advisers, including the types of consulting or legal services rendered and any fees paid.

Activities covered by the rule, the latest front in a long-running battle between businesses and the Obama administration over labor policy, include hiring consultants or lawyers to create materials and policies for organizing anti-union campaigns.

Linda Kelly, NAM's senior vice president and general counsel, said in the statement the rule was vague on exactly what types of activity must be reported, leaving employers open to criminal liability if they make mistakes.

"Rather than risk criminal penalty from a lack of reporting, employers will simply stop communicating with their employees on important issues," she said.

Associated Builders and Contractors, a construction trade group, and the Coalition for a Democratic Workplace, a business-backed group that advocates on labor policy, are plaintiffs in the lawsuit.

A U.S. Department of Labor spokesman did not immediately return a request for comment.

Previously, the federal reporting law required such disclosure from employers only when their lawyers or consultants interacted directly with workers.

The Labor Department said in a memo accompanying the rule that workers would be better prepared to make decisions about unionizing if they knew who was behind their employers' arguments. The rule is backed by major unions, including the Service Employees International Union and AFL-CIO.

Trade groups are currently appealing the dismissal of a lawsuit challenging rules adopted last year that were designed to speed up the union election process, and have vowed to challenge a rule expected later this year that would extend mandatory overtime pay to millions more U.S. workers.

Source: Reuters