Regis Tries to Cut into Employees’ Rights

Regis Corp. is cutting into employees’ rights. Reports surfaced over the weekend that the salon company asked employees to sign a form opposing the Employee Free Choice Act.

The Employee Free Choice Act, if passed, would make it easier for workers to unionize by eliminating secret-ballot elections in favor of an open card check option that would allow for a union to form if a majority of workers signed pro-union cards. Supporters of the EFCA say the shift away from the secret ballots historically used to organize workplaces is necessary to avoid intimidation by management during elections. Business leaders opposed to the bill counter that the change would expose workers to peer pressure during the process. Many large retail companies, including Wal-Mart Stores Inc., and several industry associations, oppose the legislation in its current form.

Paul D. Finkelstein, chairman, president and chief executive officer of Regis Corporation, strongly denies that the company is attempting to keep employees from unionizing. The issue was raised by a report in The New York Times on Sunday, detailing a debate stemming from the company’s request that stylists in its Cost Cutters salon in Great Falls, Mont., sign the disputed document.

Mr. Finkelstein said to date, 90%of Regis’ employees have signed the form, and that, in fact, it was devised in response to internal focus groups at Regis. “Our employees continue to tell us that they want to have the right to a secret ballot,” he said. “That is all this form does.”

Labor sources disagreed, adding that Regis’ efforts appear to be isolated. A spokesman for Workers United, which represents 150,000 textile workers, apparel, laundry and retail distribution workers, said the Regis effort was the first such move in recent years.

“This attempt to take away workers’ rights hasn’t been seen since the Western metal mines of the early 20th century and it is totally inappropriate in modern society,” said Bruce Raynor, president of Workers United.

There are no immediate plans to take action against Regis or the local salon, said Olaf Stimac, president of the Central Montana Central Labor Council, but local unions are looking into future steps to help the former salon manager who resigned over the document. Possible steps could include a filing with the National Labor Relations Board, Mr. Stimac said.