In a recent interview on CNBC, Warren Buffet categorically came out against card checks. He said that he is in favor of secret ballot elections, for it has been a traditional aspect of our American democracy.
Now, Berkshire Hathaway, Mr. Buffet’s multifaceted enterprise, owns many companies that are unionized. Though he claims that unions play an important role in Corporate America, a position with which I have serious disagreements, Mr. Buffet nevertheless understands the damage that would occur if the Employee Free Choice Act (EFCA) becomes law.
Indeed, the EFCA would result in significantly increased labor costs, thus reducing corporate profitability, which would be reflected in the diminished value of the stocks of companies unionized under the undemocratic rules imposed by the EFCA.
