PolicyBrief
S. 844
119th CongressMar 4th 2025
Faster Labor Contracts Act
IN COMMITTEE

The "Faster Labor Contracts Act" aims to expedite initial collective bargaining agreements between employers and newly recognized unions by setting deadlines for negotiation, mediation, and arbitration, ensuring employees can more quickly benefit from union representation.

Joshua "Josh" Hawley
R

Joshua "Josh" Hawley

Senator

MO

LEGISLATION

Faster Labor Contracts Act Proposes 90-Day Deadline for First Union Deals, Mandates Arbitration

So, a workplace votes to unionize. What happens next often involves a lot of waiting – sometimes over a year – before that first contract outlining wages and benefits actually gets signed. The Faster Labor Contracts Act aims to dramatically shorten that timeline.

The core idea is simple: speed things up. Under this bill, once a union makes a written request, the employer has just 10 days to come to the table and start bargaining. Both sides then have a 90-day window from the start of bargaining to hammer out an initial collective bargaining agreement.

From Talking to Timelines

What if 90 days pass and there's still no deal? That's where things get interesting. The bill mandates a next step: either the union or the employer can request mediation through the Federal Mediation and Conciliation Service (FMCS), a neutral government agency that helps resolve labor disputes. Think of it as bringing in a referee to help find common ground.

But the clock keeps ticking. If after 30 days of mediation there's still no agreement, the process moves to mandatory binding arbitration. This is the bill's biggest shift. Instead of more negotiation, the dispute goes to a three-person panel. The union picks one member, the employer picks one, and those two agree on a neutral third member (or the FMCS appoints them if needed).

The Arbitrator's Call: What's Weighed?

This arbitration panel isn't just flipping a coin. The bill directs them to consider specific factors when making their decision: the employer's financial health, the type of business, the cost of living for employees, workers' ability to support themselves and their families, and what similar businesses are paying. Crucially, the panel's decision, reached by majority vote, becomes the binding contract for the next two years, unless both sides later agree in writing to change it.

This means the power to set the initial terms could potentially move from the negotiating parties to this third-party panel if talks and mediation fail. It's designed to prevent drawn-out fights after a union is formed, ensuring workers see the results of their vote sooner. However, it also means employers might face terms set by arbitrators, based on that list of factors, which could significantly impact operations, especially for smaller businesses watching their bottom line.

Keeping Tabs

Finally, the bill includes a check-up mechanism. It requires the Government Accountability Office (GAO) to report back to Congress within a year on whether this new process actually reduces the average time it takes to get that first contract signed. It's a built-in way to see if the accelerated timeline works as intended in the real world.