On Wednesday, a US trade group representing manufacturers filed a lawsuit to block a new Labor Department rule which would require businesses to disclose when they seek advice for countering union campaigns.
According to Arkansas Online, the Labor-Management Reporting and Disclosure Act of 1959 required businesses and companies to file reports whenever they employed consultants to directly persuade employees. Federal and state industry group then sued the Department of Labor, saying the expanded financial disclosure targetting anti-union activities are beyond the scope of existing labor law and are utterly unconstitutional.
The National Association of Manufacturers stated in a press release that the lawsuit was filed at a federal court in Little Rock Arkansas. The major US trade group claimed that the persuader rule violates due process and free speech of employers since it restricts their ability to respond to union organizing.
Legal Reader reported that Linda Kelly, NAM's senior vice president and general counsel, said the rule was vague on what specific types of activity must be reported. She then added that the rule would leave employers open to criminal liability if they commit any mistakes.
Proposed in 2011, the rule was finalized last week, amending the federal Labor-Management Reporting and Disclosure Act to require comprehensive reports from employers and their advisers, including the types of legal and consulting services rendered and any fees paid.
The plaintiffs in the said lawsuit are the Coalition for a Democratic Workplace and Associated Contractors, reports Reuters. The Labor Department did not immediately made a comment regarding the matter.
US Trade groups are currently appealing the dismissal of a lawsuit, challenging rules adopted in 2015 that were made to accelerate the union election process, and have promised to challenge a rule expected this year that would encompass mandatory overtime pay to millions of laborers in the US.
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