labor lawAdivision of labor law center

An new executive order requires federal contractors to post notices informing employees of their right to form unions and collectively bargain. This requirement must be included in every federal contract along with language giving the government the right to terminate/suspend the contract or even debar the contractor for noncompliance.       

 

Under Executive Order 13496, every federal contractor is required to post a notice informing employees of their rights to form unions and collectively bargain. This executive order overturns an order signed by President George W. Bush early during his administration.

 

Under the Executive Order signed by President Barack Obama on Friday, January 30, 2009, this requirement must be included in every federal contract along with language giving the government the right to terminate or suspend the contract if the employer does not comply.

 

In fact, employers who fail to post the required notice can be debarred for noncompliance.

 

The Executive Order signed by President Obama focuses specifically on situations where a federal contract expires. Often, a new contract is awarded for the same service at the same location. Sometimes, the new contract is awarded to the same company that held the previous contract. For example, this may occur when a company has a contract to operate a restaurant or club on a military base.

 

Often the new contractor hires all or many of the previous contractor’s employees. After all, these employees are already trained and know how the operation works. However, in some cases, the employer will lay off all the previous workers and hire new employees, often at the minimum wage.

 

According to the executive order, “The Federal Government’s procurement interests in economy and efficiency are served when the successor contractor hires the predecessor’s employees. A carryover work force reduces disruption to the delivery of services during the period of transition between contractors and provides the Federal Government the benefits of an experienced and trained work force that is familiar with the Federal Government’s personnel, facilities, and requirements.”

 

It also preserves well-paying jobs in a troubled economy. For that reason, the new executive order requires federal contractors to notify employees of their rights to form a union and collectively bargain to keep their jobs during a transition. 

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