Hearing of the Small Business Committee - "Adding to Uncertainty: The Impact of DOL/NLRB Decisions and Proposed Rules on Small Businesses"

Statement

Thank you, Mr. Chairman.

For America's small businesses, employees are their most important asset. While this has always been the case, it has never been truer than it is today. In a globally competitive economy, small companies often succeed and fail based on the talent of their staff, who can help invent a new product, develop an innovative service or just discover a better, more efficient way of serving a client. For America's entrepreneurs, their employees are central to their strategy and critical for firms' long term growth.

For these reasons, the vast majority of small businesses enjoy strong relationships with their employees. Indeed, I would submit that for 99% of small firms, relationships between management and employees are cordial, and not adversarial -- regardless of whether the businesses' workers are organized, or not.

This record is particularly remarkable given just how many Americans work for small enterprises -- half of the U.S. private sector workforce is employed by small businesses. 44 percent of our country's non-farm payroll can be attributed to small companies. Most of us get our first job at a small enterprise. Considering the enormous contribution small companies make to U.S. employment, the positive history of employee-employer relations at small firms is especially noteworthy.

In those instances where there are disputes, the National Labor Relations Board exists to help mediate. This structure provides a proven channel for resolving labor disagreements. The Board works to protect the rights of both employees and employers. With so many Americans -- entrepreneurs and employees -- counting on NLRB to serve as a fair conduit for resolving labor problems, it is critical that the Board operate as efficiently and effectively as possible.

Several recent steps outlined by the NLRB to improve its election process would further that goal. Allowing filings with the Board to be submitted in electronic form is commonsense. In today's Internet age, it only makes sense that this option be available to those seeking redress --- be they employees or employers. In addition, putting in place standardized timeframes for the resolution of disputes, would add certainty to the process for all participants. Streamlining the appeals process would also cut down on unnecessary red tape.

On their face, these seem like logical efforts to make the NLRB work better for everyone. This Committee often hears about the need to streamline government institutions. If we were discussing environmental regulations, tax compliance or workplace safety issues, reducing paperwork and setting deadlines for agency action would be universally applauded as efforts to lessen the burden on entrepreneurs. However, when those steps might facilitate hard working Americans organizing a union, there seems to be a "hue and cry" from the other side of the aisle. This position strikes me as inconsistent, at best.

Mr. Chairman, the vast majority of small businesses in our country enjoy warm relationships with their employees and, in fact, most of them will likely never need to make use of the NLRB. However, when problems arise, it is important that fair, workable processes be in place. It is my hope that the NLRB's steps can improve this system for all participants.

I thank our witnesses for being here today and yield back.

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