Hay Group Study Finds Most Companies are Concerned about the Employee Free Choice Act, While Less Than One Quarter are Projecting the Impact on Labor Costs

- Most Companies Believe EFCA Will Negatively Impact Business -
PHILADELPHIA--(Business Wire)--
A new Hay Group study finds that 85% of companies are concerned about the impact
of the Employee Free Choice Act (EFCA), and 89% believe EFCA will increase their
companies` vulnerability to unions - yet only 16% are projecting the labor costs
associated with unionization. The study, conducted by Hay Group, a global
management consultancy, surveyed 178 companies.

"Companies recognize that if the Employee Free Choice Act passes it will have an
impact on their business, but few are being proactive and strategically
preparing for the increased labor costs," said Richard Fine, a senior consultant
at Hay Group. "Instead, we`re seeing companies take a wait-and-see approach.
It`s as if they see the rain coming, but aren`t getting out their umbrella."

Hay Group`s study also found that nearly 60% of respondents expect some form of
EFCA to pass. While the majority of respondents are not projecting labor costs,
64% are already taking some actions regarding EFCA: 64% of those taking action
are planning or considering adding or increasing supervisor management and
training programs, and another 47% are planning or considering improvements to
unit climate and engagement.

Other key findings from Hay Group`s Employee Free Choice Act Survey:

* More than 80% of respondents said executives at their organization are
concerned about EFCA.
* Approximately 90% of respondents indicated the amount of HR time and resources
spent on union avoidance would increase if EFCA passes. Of those, half thought
HR time and resources spent on union avoidance would increase by 10-24%.
* Nearly 35% of respondents expect EFCA to increase employee pay at their
organization.
* Approximately 16% of respondents indicated that they have projected the costs
associated with a union joining their organization. The majority of those
respondents believe total labor costs will increase by more than 10%, and many
believe it will increase by more than 25%.
* More than 70% of respondents rated their current work climate with hourly
employees as positive or very positive, however, only 35% of respondents
administer employee opinion surveys to address union avoidance and
vulnerability.

"Ultimately, whether or not an organization becomes unionized comes down to
management," added Fine. "The most effective way to avoid organized labor is to
create and sustain a strong employee value proposition, embodied by trust, open
communication and employee engagement. Employers should be taking the time now
to ensure their employees are engaged to avoid a dramatic increase in labor
costs later."

About Hay Group

Hay Group is a global consulting firm that works with leaders to transform
strategy into reality. We develop talent, organize people to be more effective,
and motivate them to perform at their best. With 88 offices in 47 countries, we
work with over 7,000 clients across the world. Our clients are from the private,
public, and not-for-profit sectors, across every major industry and represent
diverse business challenges. Our focus is on making change happen and helping
people and organizations realize their potential.

For more information, including requests for interviews, please contact Gretchen
Steinmiller at 212-840-1460 or gretchen@blisspr.com.

Hay Group
Gretchen Steinmiller, 212-840-1460
gretchen@blisspr.com

Copyright Business Wire 2009