Updates on the Employee Free Choice Act

Last week a group of senators friendly to the labor unions decided to drop the card check provision from the bill. This was the provision that would  require employers to recognize a union as soon as a majority of workers signed authorization cards stating they wanted to join the union.

In its place these senators and union officials are looking at different ways of shortening the time to 5 or 10 days after 30 percent of workers sign the authorization cards instead of the current 60 day time period.  Other items being considered are giving unions the use of company property and to limit employer ability to hold captive employee meetings.

What hasn’t had nearly the amount of discussion but is equally concerning to employers is the binding arbitration provisions if an employer fails to reach a contract with a new union. Employers argue it would be wrong for arbitrators that would be designated by the government to dictate what an employer’s wages and benefits would be.

In addition to the arbitration provision, corporate lobbyists have indicated they would oppose fast election, arguing that such a provision would deny employers ample opportunity to educate employers about the downside of unionizing, such as strikes and union dues.

Labor leaders counter that employers will have plenty of opportunity to fight unionization, noting that many companies begin educating employees on the downside of unionization the day they are hired.

Regardless of whether the provisions listed above become law, employers should expect some reforms to labor law in the near future.

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WASHINGON – The Internal Revenue Service today reminded individual and business taxpayers that many energy-saving steps taken this year may result in bigger tax savings next year.

The recently enacted American Recovery and Reinvestment (ARRA) of 2009 contained a number of either new or expanded tax benefits on expenditures to reduce energy use or create new energy sources.The IRS encouraged individuals and businesses to explore whether they are eligible for any of the new energy tax provisions.

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Notice 2009-41 provides procedures that manufacturers may follow to certify property as qualified residential energy efficient property under § 25D of the Internal Revenue Code, as well as guidance regarding the conditions under which taxpayers seeking to claim the § 25D credit may rely on a manufacturer’s certification. If you have questions about this please let us know.

See how BCG&Co. is geared for your manufacturing needs.

On April 3, Finance Committee member Olympia J. Snowe (R-ME) and Committee Chair Max Baucus (D-MT) introduced S. 823, the “Net Operating Loss (NOL) Carryback Act,” which would allow businesses of any size to carryback losses incurred in 2008 and 2009 for five years. Senator Snowe said, “While the recently enacted economic stimulus bill included a modest NOL carryback provision to assist smaller firms, this legislation will help any company that has losses from 2008 or 2009 carry back those losses to offset taxes paid in the previous five years when they were profitable. This will go a long way in helping to keep more workers on payroll and stabilize overall operations.” Snowe was referring to the recently enacted American Recovery and Reinvestment Act of 2009 which allows qualifying small businesses (whose average annual gross receipts in a test period are $15 million or less) to choose a three- four-or five-year net operating loss (NOL) carryback period for certain losses instead of the usual two-year period.  Snowe had previously attempted to establish such a liberal five year carryback for NOLs in the Senate-passed stimulus bill but the provision was cut back in the House-Senate Conference negotiations and instead capped for businesses with gross receipts of $15 million and less.

The bill would also block companies that receive cash from the Trouble Asset Relief Program (TARP) from utilizing this tax incentive.