A recent law passed in Alabama requiring secret ballot union elections for companies to receive economic development incentives is “critical to free enterprise,” according to Associated Builders and Contractors of Alabama president Jay Reed.
Senate Bill 231 (SB231), sponsored by State Sen. Arthur Orr (R-Decatur) and House Majority Leader Scott Stadthagen (R-Hartselle), requires companies that receive state, county or municipal economic incentives after Jan. 1, 2025, to repay those incentives if they voluntarily recognize a union without conducting a secret ballot election.
The bill was signed into law by Gov. Kay Ivey in May.
The law also prohibits employers from disclosing an employee’s personal contact information to a labor organization or third party acting on behalf of a labor organization without the employee's prior written consent unless otherwise required by state or federal law.
“While we welcome and celebrate large industries coming to our state, we still must protect the reason these industries are coming to Alabama in the first place. Ensuring secret ballot unionization elections is critical to free enterprise. There is a reason why our political elections are conducted with secret ballots, and workers should be given those same protections when choosing whether to organize or not,” Reed said.
Orr said in a statement, “This law simply requires that employers who receive state funds conduct unionization votes by secret ballot.”
“The purpose of the secret ballot is obvious: it prevents employees from being intimidated, ostracized, or humiliated for making the decision they believe is in the best interest of them and their families,” he added.
In a National Labor Relations Board (NLRB) private election in May at two Mercedes-Benz factories in Alabama, 56% of workers voted against joining the UAW. The final tally showed 2,045 workers voting for joining and 2,642 workers voting against joining UAW.
The UAW asked the NLRB to order another union election at Mercedes-Benz shortly after the first election failed.
“This law does not prevent workers from joining unions. It gives employees the right to vote privately and be free from pressure campaigns from labor unions or anyone else. Secret ballots are a foundational principle in our nation, and workers deserve the right to make their own decisions freely,” Stadthagen said.
Associated Builders and Contractors of Alabama represents Alabama’s construction industry.
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