Faster Labor Contracts Act Advances in Congress
On June 9, 2026, the U.S. House of Representatives passed the Faster Labor Contracts Act, which would significantly alter collective bargaining negotiations for first union contracts.
Currently, there are no required deadlines to reach a first collective bargaining agreement after a union is certified and negotiations can extend for months or years. If this Act passes, the following deadlines are imposed:
- Day 10: Within 10 days of union certification, employers must begin bargaining.
- Day 100: If an agreement is not reached within 100 days of union certification, federal mediation may be initiated.
- Day 130: If mediation fails, binding interest arbitration begins within 130 days of union certification.
- Day 144: If no agreement is reached within 144 days of union certification, an arbitration panel is selected to impose a final contract. If the parties are unable to mutually select a neutral third arbitrator, the Federal Mediation and Conciliation Service would designate the third arbitrator. The contract will be binding for two years.
And, while the arbitration panel must consider several factors, including the employer’s financial status, cost of living for employees, and wages paid by comparable companies, ultimately, mandatory arbitration will take away both the employer’s and union’s right to negotiate and voluntarily agree to contact terms, and both parties may be subject to the terms and conditions of employment imposed by government-appointed arbitrators. In addition, employees and employers would have to wait at least two years to have an opportunity to decertify a union.
Because of the potential significant impacts to employers who may be impacted by union organizing, employers are strongly encouraged to express their opinions to Hawaii Senators Brian Schatz and Mazie Hirono.
We will continue to monitor this Act and provide updates as necessary. Members who have questions may contact their Labor Relations Consultant for more information.