Faster Labor Contracts Act Mandates Binding Arbitration If New Union Deals Stall Past 120 Days

This bill, officially titled the Faster Labor Contracts Act, is designed to drastically shorten the time it takes for newly unionized workers to secure their first employment contract. The core mechanism is a series of strict deadlines and mandatory intervention steps. Once a union is certified or recognized, the employer must start bargaining within 10 days of a written request. The goal is to prevent the drawn-out negotiation periods that often leave newly organized workplaces without a contract for a year or more.

The 90-Day Clock: From Table to Mediator

Negotiating the first contract is often where things get sticky, and this bill aims to cut through that delay. If the employer and the union haven't reached an agreement after 90 days of bargaining, either side can call in the Federal Mediation and Conciliation Service (FMCS). Think of the FMCS as the referee who steps in when the game gets too heated. They have 30 days to try and help the two sides find common ground. This structure recognizes that simply having a union isn't enough; the real benefits—like higher pay or better benefits—only kick in when that contract is signed.

Mandatory Arbitration: When the Referee Makes the Call

If that 30-day mediation window closes without a deal, the dispute moves into mandatory, binding arbitration. This is the biggest shift in the bill. Instead of allowing negotiations to drag on indefinitely, a three-person panel steps in to write the contract for them. This panel consists of one person chosen by the union, one by the employer, and one neutral member they agree upon (or the FMCS picks if they can’t agree). The decision made by this panel is legally binding on both the employer and the union for two years.

This binding panel isn't just making up numbers; they have to consider several factors, including the employer’s financial health, the cost of living for employees, and what similar businesses in the area are paying. For a small business owner, this means that after roughly four months of failed negotiations, a third party could dictate their labor costs and operational terms for the next two years. For the worker, it means they get the contract and its benefits much faster, but it also means the terms are decided by a panel rather than directly negotiated.

The Real-World Impact on Your Paycheck

Right now, a group of newly unionized nurses might vote for representation in January, but they might not see any change in their benefits or wages until the following summer—or even later. Under this new system, if they hit the 90-day mark in April without a contract, they would be in mediation in May and potentially have a binding contract by June or July. This accelerates the timeline dramatically, ensuring that the benefits of organizing are realized much sooner. The trade-off is that both sides lose control over the final outcome once it hits the binding arbitration stage, a significant shift in power away from the bargaining table and toward the panel.

Finally, the bill requires the Government Accountability Office (GAO) to conduct a study within one year of enactment. The GAO will track the average number of days it takes for new unions to secure that first contract. This is essentially a report card for the new law, measuring whether these strict timelines actually succeed in speeding up the process across the country.