Industry Organizations Sign Coalition Letter Opposing the Faster Labor Contracts Act

WASHINGTON — HARDI, the American Supply Association, and Associated Builders and Contractors recently joined the Coalition for a Democratic Workplace, including 375 other organizations, in a letter urging members of Congress to oppose the Faster Labor Contracts Act, also known as the FLCA.

The coalition letter raises concerns that the legislation would significantly expand federal involvement in private labor negotiations by allowing government-appointed arbitrators to impose first contracts between unions and employers. Under the bill, employers and newly certified unions would have a limited period to reach an initial agreement. If they are unable to do so, the process could move to mediation and then binding arbitration, resulting in a two-year contract that neither side could appeal and workers would not have the opportunity to ratify or reject.

“Setting a dangerous precedent, House Democrats and a few unprincipled Republicans today voted to pass the Faster Labor Contracts Act,” said ABC President and CEO Michael Bellaman. “The FLCA imposes arbitrary and unrealistic deadlines on employers to finalize negotiations with newly elected unions or face ‘binding interest arbitration of first contracts.’ In practice, this means, for the first time in American history, a federal government bureaucrat will appoint an individual to dictate exactly what is included in a contract between two private negotiating parties.

“The consequences of this misguided bill include destroying voluntary agreement and good-faith labor-management negotiations and could expand to disputes over wages, benefits and working conditions to include social or political issues unrelated to the day-to-day needs of workers and employers,” said Bellaman. “ABC supports legislation that upholds the intent of the National Labor Relations Act and protects freedom of association. Unfortunately, the FLCA would undermine the bargaining process and counter the freedoms the NLRA was designed to protect.”

The issue has practical implications for HARDI members, the organization said. Labor policy affects how businesses manage their workforce, plan for costs, negotiate in good faith, and maintain operational flexibility. The coalition argues that the FLCA would replace voluntary agreement with a federally imposed process that could dictate wages, benefits, leave policies, safety procedures, and other workplace terms without sufficient consideration of an individual business’s circumstances or financial viability.

The letter also emphasizes that current law already requires employers and unions to bargain in good faith. Rather than improving that process, the coalition argues that the FLCA would create a rigid system that prioritizes speed over meaningful negotiation, worker input, and practical outcomes. The concern is not simply that the bill would change the timeline for negotiations, but that it would shift final decision-making authority away from employers, employees, and unions and toward outside arbitrators.

HARDI’s decision to sign the letter reflects its broader commitment to supporting policies that allow members to operate with certainty, flexibility, and a fair regulatory framework. Distributors are employers, community businesses, and essential partners in the HVACR supply chain. Federal labor policies that affect workforce management and business planning can have direct consequences for their ability to serve contractors, customers, and local markets.

Key provisions of the FLCA:

• Within 10 days of receiving a request to collectively bargain with a newly recognized union, the parties must begin bargaining. If the employer and union do not reach an agreement on a first contract within 90 days of the beginning of bargaining—regardless of whether they are negotiating in good faith, and for any reason at all—the parties must participate in mediation. This would be an unprecedented expansion of federal government authority into the private sector.
• If mediation is also unsuccessful within mere weeks, a three-person arbitration panel chosen by the parties will be required to settle the dispute by a majority vote and the decision will be binding. If the parties fail to identify individuals to join the arbitration panel within two weeks, an arbitrator chosen by federal government bureaucrats will impose a collective bargaining agreement on the workers, employer and union.

“The FLCA fortifies the role of government bureaucrats in private workplace matters and applies a one-size-fits-all contract process on business, workers and unions,” said Bellaman. “The Trump administration and U.S. Senate must reject this egregious legislation. ABC calls on them to instead stand with workers, entrepreneurs and small businesses.”

Visit protectingamericanworkers.org to learn more.