In case you missed it, the Supreme Court just struck down (pdf) a biased California statute that prevented companies who received state grants from sharing accurate information about unions with their employees. Foundation attorneys filed an amicus curiae brief in support of overturning the Ninth Circuit’s flawed reasoning.

The Foundation’s press release is now available online. Money quote:

Had the Ninth Circuit’s ruling not been overturned, employees of companies accepting funds from the state would be denied truthful information regarding the downsides of unionization. Employers could have ultimately been blackballed from government contracts unless they cleared the path for union organizers to recruit new forced dues-paying union members.

The Foundation’s amicus brief is also availble online (pdf). Union lawyers argued the California law was intended to ensure "neutrality" in the workplace, but the argument rang hollow, as Foundation attorneys pointed out (emphasis mine):

Assembly Bill No. 1889, Cal. Gov’t Code §§ 16645.2 and 16645.7 (“AB 1889”), is the law at issue. It is a state labor regulation that has only one purpose and effect: to halt the free flow of non-coercive information from employers to their employees, so that unions may take advantage of the enforced silence and corral uninformed employees into unionization. AB 1889’s “gag rule” directly conflicts with the core of federal labor policy, which encourages the free flow of non-coercive information precisely so that employees can make an intelligent and fully informed decision to choose or reject unionization. Employees are the real victims of this misguided state effort to undo federal labor policy.

The Foundation’s amicus brief goes on to explain why state-enforced "neutrality" agreements are heavily biased in favor of union organizers (emphasis mine):

AB 1889 [the California law] enables unions to demand and receive so-called “neutrality and card check” agreements, under which employees’ right to choose or reject unionization in a free and uncoerced manner is hampered. For example, most “neutrality and card check” agreements place a gag on employer speech, so that employees are unable to learn from their employer anything that may be unfavorable to the union. Moreover, such agreements typically provide unions with employees’ home addresses and other confidential information, so that union agents can make home visits and other potentially unwanted solicitations as a means to cajole or coerce employees to sign cards. Additionally, unions are often given physical access to the workplace to further pressure employees to sign the cards. Perhaps most egregious, most neutrality agreements waive NLRB-supervised secret-ballot elections and substitute the “card check” process, in which a signed authorization card counts as a “vote” for the union. Thus, the union acts to prevent employees from voting their consciences in a traditional secret-ballot election, even though experience shows that the process of soliciting union authorization cards often relies upon coercion and misrepresentations.

The San Francisco Chronicle has a concise write-up here. This passage highlights the court’s key findings:

The court rejected arguments by California and labor unions that the state is entitled to restrict the use of its own funds in the workplace. Stevens said California was trying to regulate employer speech by requiring extensive record keeping, to ensure that no state funds were spent against unions, and by requiring businesses to pay the legal fees of unions and other private parties who successfully sued them for violations.

Unfortunately, this setback means that Big Labor is now more intent than ever on passing coercive "card-check" legislation. The Chronicle’s article continues:

From a union perspective, he said, the case also highlights the importance of labor-backed legislation – passed by the House, but stalled in the Senate – that would require an employer to recognize a union if a majority of employees signed affiliation cards.

While the Foundation’s strategic litigation strategy continues to pay dividends, Big Labor’s political clout and election year campaign plans could put our forces on the defensive more than ever come November.