Release Date: Jan 30, 2009Contact: 888-249-NEWS


New Executive Order Interferes with Employer-Employee Communication

Hinders Free Speech and Rights of Employees

WASHINGTON, D.C.—Randel Johnson, vice president of the U.S. Chamber of Commerce for Labor, Immigration and Employee Benefits, had the following comment about the new executive order signed by President Obama today titled, "Economy in Government Contracting:"

"We are disappointed with President Obama's executive order "Economy in Government Contracting," the purpose of which is to interfere with an employer's ability to communicate with its employees about whether they should be represented by a union.

"The executive order would disallow disbursements to federal contractors for specific activities conducted by them related to conveying the company's views during a labor organizing drive.

"This executive order also directs the Federal Acquisition Regulatory Council to issue regulations codifying this executive order thereby converting the FAR regulations into neutrality agreements where employers waive their free speech rights and allow unions to approach their employees without being able to respond.

Just last year, Justice John Paul Stevens wrote in an opinion for the Supreme Court that the National Labor Relations Act favors "uninhibited, robust, and wide-open debate in labor disputes" and gives employees the "right to receive information opposing unionization."

"The new Executive Order runs counter to the fundamental values of free speech, hindering the right of employees to hear from their employers about the vital decision whether or not to join a union.

"In addition to the interference with employer free speech rights, this executive order will create severe administrative problems in trying to distinguish how federal funds have been used."


The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.


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