GOVERNMENT AFFAIRS
------------Report

October 7, 2022


This Week in Illinois

Oppose Constitutional Amendment 1: Fact Sheet


The Illinois Chamber Employment Law Council has provided an explanation of why the business community should oppose Constitutional Amendment 1 which will appear on ballots next month. Provided below is that explanation.


The Constitutional Amendment before the voters is framed as a ”workers’ rights” issue with the effect of banning right to work laws in Illinois. If approved, its impact will be far-reaching and completely change the landscape of collective bargaining for private employers and their employees in the state. The constitutional question seeks to elevate workers’ rights to collectively bargain to a level not contemplated under federal law and expands the subjects over which employers and unions can negotiate. The Constitutional Amendment creates a significant conflict between federal and state law. The broad, undefined terms used in the Amendment, will create legal uncertainties that will result in costly, piecemeal litigation for workers and employers. We are aware of no other state that provides the constitutional protections this change will provide.

 

Creates conflict between federal and state law

The National Labor Relations Act (NLRA) is the federal law that grants employees in the private sector the right to form or join unions, engage in concerted activities or refrain from engaging in such activities. The question before voters includes terms and phrases that go beyond those included in the NLRA. The conflict between federal and state law created by the Constitutional change will raise questions of which law controls, questions that will need to be answered by litigation and a court.

 

Choice of association denied for workers

A fundamental right provided to all citizens under the First Amendment of the United States Constitution is the right to free speech and freedom of association. The Constitutional Amendment before voters prohibits any law or ordinance that allows union workers to choose whether they wish to be a member of the union or not. In the 2018 United States Supreme Court decision Janus v. Illinois AFSCME, government workers who choose not to be a member of the union cannot be required to pay union dues as a condition of working in the public sector. Approval of this Constitutional Amendment raises other legal questions of the impact on Janus and private sector workers.

 

Broadens workers’ rights to collectively bargain

The Constitutional Amendment also broaden the scope of subjects that must be negotiated between employers and workers. While the NLRA requires negotiations over wages, hours and conditions of employment, the question before voters adds the undefined terms “economic welfare” and “safety at work” to the mix. Case law explains what subjects of bargaining are required under the NLRA, but no case law has yet been developed explaining what these new terms could include. Approval of the Constitutional Amendment will also mean lawmakers could never “interfere with, negate or diminish” these rights – terms that are broad and undefined and may cause lawmakers an inability to clarify through legislation.

 

Our Illinois Constitution provides such protection to public employees. The result of that protection has been to squash efforts by state lawmakers and voters to address Illinois’ pension fund deficits. Do we want similar limits placed on the private sector?

 

Another “blackeye” for Illinois and its ability to retain and create jobs

The uncertainty caused by the conflict between federal and state law will bring another “blackeye” for Illinois’ efforts to retain and create jobs. With major companies like Caterpillar, Boeing, Citadel and Tyson making decisions to move jobs out of the state, why would businesses small and large consider investing in Illinois. Certainly, the adoption of this Constitutional Amendment will push Illinois even further behind in its favorability for businesses to locate or expand.

 

Chief Executive Magazine polling of nearly 700 CEOs and business owners from every U.S. state ranked Illinois 48th for best business states. Illinois is currently ranked 45th in the United States for its economic outlook by the American Legislative Exchange Council’s analysis of 15 important state policy variables. U.S. News & World Report’s “Best States Methodology” has Illinois ranked 45th for “growth” and 39th for “economy.


Voter approval of this constitutional change only adds to the negative perception that Illinois is unfit to locate or expand in.


View the PDF version of this document here.


If you have any thoughts or questions please reach out to Jay Shattuck at jfshattuck@michaelbeststrategies.com or Aaron Harris at adharris@michaelbeststrategies.com

Illinois Chamber Holds 2022 Annual Luncheon


The Illinois Chamber of Commerce was thrilled to hold its 2022 Annual Meeting which took place yesterday, October 6 at the Palmer House Hilton in Chicago. This year's theme was Future of Energy and Impact on Illinois: Actions by the Federal Reserve.


We were pleased to have over 340 chamber members and guests in attendance for a fantastic event that included an energy-focused panel discussion featuring business leaders from Boeing, Citgo, and LS Power.


President and CEO of the Federal Reserve Bank of Chicago, Charles Evans took part in an informative Q&A session with Illinois Chamber President & CEO Todd Maisch during the event.


We offer a sincere thank you to all of our sponsors and members who joined us for this critical meeting of the Illinois business community. We also want to thank each of the elected officials and dignitaries in attendance. 


We will have more coverage of this event in next week's publication. 

Session Update


As a reminder, the General Assembly has released the schedule for veto session. Lawmakers will be back in Springfield Tuesday, November 15 -November 17 as well as November 29-December 1. 

 

View and download the veto calendar here.

 

Looking forward, Legislators have been informed to keep their schedules open between January 4th-10th for potential lame duck session dates. We will let you know when those dates are finalized.


Legislative Update: Bills of Interest


No bills of interest were introduced, passed or signed into law this week.

Connect with the Chamber
If you have questions about the Government Affairs Report, contact Clark Kaericher at ckaericher@ilchamber.org. Do not reply to this email.