Wary of card-check bill, tech lobbying against it

A little over a month before his election to Congress, Gerry Connolly sat down with dozens of technology company executives from the area he was running to represent.

At the board meeting of the Northern Virginia Technology Council, Connolly expected questions on issues unique to the industry, such as expanding broadband access or raising visa limits for highly skilled foreign workers. But the Fairfax County Board chairman also found himself defending the Employee Free Choice Act (EFCA), a controversial proposal to expand union membership.

{mosads}“They spoke in almost apocalyptic terms and they made it clear they didn’t support it,” said Connolly, a Democrat, who would end up winning the race to replace Rep. Tom Davis (R-Va.), who did not run for reelection. “I was a little surprised by the vehemence of the argument against the bill.”

Business associations such as the U.S. Chamber of Commerce and the National Federation of Independent Business (NFIB) have spent millions of dollars opposing the measure — also known as “card-check” — because they believe it would expand union memberships. The bill would allow workers to organize by signing a petition, instead of through a secret ballot. Critics say that could lead to intimidation of workers. Labor groups argue the bill will result in better wages and benefits by making it harder for management to block organizing efforts in the workplace.

Up to now, large tech groups have been on the sidelines in what is likely to be one of the roughest fights in Congress next year. A few, however, are preparing to weigh in. That makes other tech lobbyists nervous that, by doing so, the industry could sacrifice relatively good relationships with Democrats and, therefore, jeopardize some of their other legislative priorities.

Gary Shapiro, president and CEO of the Consumer Electronics Association, is on the side of weighing in.

“The tech industry has been asleep on the switch on this one,” Shapiro told The Hill. “If you want to devastate our country economically and shut us down every week with a strike, card-check is the answer.”

Shapiro’s group represents about 2,000 tech companies, including manufacturers and retailers. He says some member companies have threatened to move their operations overseas if the bill passes.

Until recently, that wasn’t much of a possibility. President Bush had promised to veto the bill if it ever reached his desk. But the bill died in the Senate last Congress. Democrats, though, have expanded their majorities in Congress and taken over the White House, making card-check a real possibility, Shapiro said.

Other tech groups don’t like the bill, either.

“Our board is very much opposed to the bill,” said John Palafoutas, senior vice president for AeA, a tech trade association with 2,500 member companies.

But the group seems sensitive to fears that being too aggressive in their opposition could damage their relationships with Democratic leaders, who support the bill.

Palafoutas said AeA will defer to the larger business associations in Washington, such as the Chamber and NFIB, to lead the campaign against card-check next year.

“The other groups are going to deploy resources on this. We are going to let members of Congress know where we stand, and we are going to move on,” he said.

Other tech lobbyists plan to take a similar tack of cautious opposition. Some, in fact, plan to avoid the melee altogether and leave it to the larger business community to push back against the bill.

“You can shoot yourself in the foot. Choose your battles wisely, especially when those battles can be fought by someone else,” said one tech lobbyist.

{mospagebreak}Tech companies are generally excited about the prospects of working with the Obama administration.

The president-elect’s campaign relied on tech wizardry to generate grassroots support and expand its base of contributors. And Obama has surrounded himself with a number of advisers attuned to the high-tech world, such as Eric Schmidt, Google’s CEO.

{mosads}Obama, however, also voted for card-check last time it came to a vote on cloture in the Senate. Unions overwhelmingly backed his presidential campaign, and he has promised to sign the bill if it reaches his desk.

Tech companies have faced off with labor unions in Washington before. The two were on opposite sides in the debate over how to reform the nation’s patent laws. Moreover, Silicon Valley often supports trade deals that are opposed by unions, such as the Colombia Free Trade Agreement.

But several advocates for tech companies contacted by The Hill argued their energy would be better spent on lobbying something other than card-check. The battles over patent reform and trade deals will return next year, for instance. And Obama’s planned stimulus package is seen as a potential boost to tech, because it may include provisions to increase broadband access and expand the use of information technology to lower healthcare costs.

“We are not the make-or-break on this issue while we are on several other issues,” said another tech lobbyist.

Many lobbyists also believe that even if card-check is approved, it will not lead to unionization in the tech industry. High-tech workers already enjoy high wages and good benefits. According to AeA, high-tech salaries are 87 percent higher than that of the average private-sector employee.

That’s a point that Connolly, a director of community relations at Science Applications International Corporation who will now represent a district that is home to several high-tech companies, has made to his constituents.

“I’m not sure if we have a dog in this fight, and I say this as someone who comes from the tech industry,” he said.

Palafoutas of AeA makes the same point. Still, the possibility of card-check passing is not something he welcomes.

“If their employees want to organize, that’s up to them. But this really skews the playing field,” Palafoutas said.

Connolly supports the bill because he believes it will level the playing field, which he says has long been tilted in favor of businesses. He blamed policies pushed by the Bush administration for stifling union growth.

“We have to redress the gross imbalance of the last eight years. I don’t think this legislation [would] even be here if hadn’t been the relentless hostility against labor by the Bush administration,” he said.