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H.R. 5408: Faster Labor Contracts Act

This bill, titled the Faster Labor Contracts Act, aims to streamline the process for workers to establish their first collective bargaining agreement after being recognized as a labor organization. Here are the key points of what the bill proposes:

Purpose

The Act seeks to address delays in negotiating initial labor contracts that can often take a significant amount of time—averaging about 465 days post-certification, as identified by studies. It intends to ensure that employees can quickly secure a contract after being represented by a labor organization, thereby supporting their rights under federal labor law.

Amendments to Collective Bargaining Processes

The bill proposes various amendments to Section 8 of the National Labor Relations Act, including:

  • Timely Bargaining Start: Employers must meet with the newly recognized labor organization to commence collective bargaining within 10 days of a written request.
  • Set Timeframes: If an agreement is not reached within 90 days of beginning negotiations, either party can request mediation.
  • Arbitration Process: Should mediation fail within a 30-day period, the dispute will be referred to a three-person arbitration panel that will make a binding decision for two years, based on factors such as the employer's financial status and employee living costs.

Reporting Requirements

The Government Accountability Office (GAO) will be responsible for delivering a report to Congress within one year of the bill's enactment. This report will analyze the time it consistently takes to reach an initial contract after certification of a labor organization, aiming to identify shortfalls or improvements in the current system.

Implications for Employees

By promoting faster contract negotiations, the bill intends to benefit employees by:

  • Reducing the time they wait for contracts that establish wages and working conditions.
  • Strengthening their bargaining power through quicker resolution processes.
  • Ensuring that their existing working conditions remain in place while a new contract is being negotiated.

Overall Goals

The overall aim of the Faster Labor Contracts Act is to enhance labor relations efficiency, support workers' rights to organize, and ultimately lead to better outcomes in terms of wages and benefits for employees across the United States.

Relevant Companies

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Sponsors

26 bill sponsors

Actions

2 actions

Date Action
Sep. 16, 2025 Introduced in House
Sep. 16, 2025 Referred to the House Committee on Education and Workforce.

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