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Proposal Puts Too Much Power in Unions' Hands

10.13.09

Although the Employee Free Choice Act has gotten most of the attention, it is not the only pro-labor legislative proposal that warrants scrutiny.

One such initiative, the Patriot Corporations of America Act of 2009, deserves particular focus because it would greatly increase the success of union-organizing drives. Further, if the legislation includes a card-check feature rather than allowing employees to vote for or against a union by secret ballot, it would achieve the Employee Free Choice Act's key provision through the regulatory process. The Patriot Corporations Act sounds good on the surface. It offers American corporations a 5 percent tax break in exchange for providing needed domestic jobs and employee benefits. These designated "Patriot Corporations" also would receive preference in federal contract bids.

These advantages, however, come with a price. To achieve an annually renewed Patriot Corporation designation, a corporation would have to meet the following requirements during the taxable year:

The Patriot Corporations Act's tax break could benefit many corporations, especially if tax rates begin rising. But any company that wishes to remain union-free should approach the neutrality obligation with extreme caution.

This article appeared in the October 13, 2009 issue of The Kansas City Star.

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