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IFA Insider, Volume 12, Issue No.10, Monday, May 7, 2007

Congress Steps Up Pro-Union Labor Law Overhaul
It appears that passing the Employee Free Choice Act and undoing 60 years of established labor law may not be enough for some members of Congress. Just weeks after the U.S. House of Representatives’ passage of the radical legislation to erode employee and employer rights in union-organizing elections, a bill has been proposed that would reclassify millions of supervisors as rank-and-file employees for the purposes of union-organizing efforts.

The Re-Empowerment of Skilled and Professional Employees and Construction Trade Workers Act, introduced as H.R. 1644 in the House and S. 969 in the Senate, would amend Section 2(11) of the National Labor Relations Act to remove the tasks “assign” or “responsibility to direct” from the current statutory definition of a "supervisor." In addition, the bill adds a requirement that such individuals exercise supervisory authority other than assigning or directing work more than 50 percent of the time.

Since most supervisors likely spend the majority of their time involved in assigning or directing work, the practical effect of such a change would be a dramatic expansion of the pool of employees eligible for union organizing. By reclassifying such a large number of supervisors, the bill threatens to destroy the careful balance established by the National Labor Relations Act between the legitimate rights of employees to organize and the responsibility that some employees have as managers to maintain the policies of the employer in the workplace.

IFA, as a founding member of the Coalition for a Democratic Workplace, is urging lawmakers to oppose anti-franchising measures that would ease union organization of small businesses. For more information on this issue, contact IFA Vice Pres. of Government Relations David French at 202-662-0768 or dfrench@franchise.org.

The coalition is composed of workers, employers, associations and organizations that are united to protect the right of workers to access federally-supervised private-ballot elections when deciding whether or not to join a union. Members of the coalition oppose the so-called Employee Free Choice Act because it would strip American workers of that right and replace it with a scheme known as “card check” in which their votes are no longer private. The measure would make an employee’s vote public to the worker’s employer, union organizers and co-workers.

According to the coalition, “The only way to guarantee worker protection from coercion and intimidation is through the continued use of a federally-supervised private-ballot election so that personal decisions about whether to join a union remain private.”

Quick, Reliable Employee Verification System Aired on Capitol Hill
On April 26, the U.S. House Subcommittee on Immigration, Citizenship, Refugees, Border Security, and International Law of the Committee on the Judiciary conducted a hearing to discuss proposals for improving the electronic employment verification and worksite enforcement system.

The system is a quick and reliable electronic way to verify employees’ eligibly to work and is a critical component of immigration reform. Along with dealing with the 12 million undocumented workers already in the United States, increasing border security, and establishing a program for future foreign workers when domestic workers cannot be found, an electronic employment verification system is a top priority for IFA.

Testifying at the hearing was Randall Johnson, a co-chairman of the Essential Worker Immigration Coalition, a coalition of businesses, organizations and trade associations. IFA serves as an EWIC steering committee member. EWIC supports comprehensive reform of U.S. immigration policy to facilitate a sustainable workforce for the American economy while ensuring national security.

Additionally, IFA serves as an executive committee member of the Electronic Employment Verification System Working Group, which submitted a statement for the hearing record that underscored Johnson’s testimony. A new EEVS system would affect every American employer and the working group exists to ensure that any new system is fair and functional. The EEVS Working Group outlined the essential elements for the development of a new verification program including the costs to employers, system phase-in and application, standards of intent and safe harbor for employers, timeline of verification, employer relationships with contractors, enforcement and expansion of anti-discrimination protections.

For more information, contact IFA Manager of Political Education and Government Relations Jessica Bonanno at 202-662-0775 or jbonanno@franchise.org.

Legal Fest Begins Today; FTC, State Regulators to Speak
Gathering for the first time since the long-awaited revision of the FTC’s Franchise Rule, many leading franchising-sector legal experts and government regulators will air their views of the measure during the 40th annual IFA Legal Symposium that opens today and continues through May 8 at the Capital Hilton in Washington, D.C.

Highlighting the legal fest’s feature luncheon will be Franchise Program Coordinator of the FTC’s Bureau of Consumer Protection Steve Toporoff, Maryland Assistant Attorney General of the Division of Securities Dale Cantone, IFA Ombudsman Joel Buckberg and Kilpatrick Stockton partner Rupert Barkoff.

During general and concurrent sessions, attendees will expand their understanding of disclosure and registration issues, alternatives to single-unit franchising, managing franchise relationships, updating a system using the operations manual, earning claims and franchise growth models.

Once the Legal Symposium concludes, attendees are encouraged to remain for the IBA/IFA Joint Conference May 8-9, which will address issues related to international operations, including privacy laws, development agreements, protection of intellectual property and receipt of payments.

Franchise Educators Receive Honors
The Univ. of Texas at El Paso’s Executive Director Carolyn Gough and its Entrepreneurial Development Executive Director Frank Hoy were recently honored for their excellent workshop presentation. As the presenters of an outstanding workshop during the U.S. Association for Small Business and Entrepreneurship Conference conducted at the conference earlier this year, Gough and Hoy received the 2007 Rowan University Outstanding Workshop in Entrepreneurship Pedagogy Award. The workshop that they coordinated was titled, “Education and Research Opportunities for USASBE and Small Business Institute (SBI) Members through the Certified Franchise Executive Program.”

Nominations Sought for IFA Board of Directors
IFA is currently seeking to fill vacancies on its board of directors. Service on the board is not only an honor, but also an opportunity for candidates to serve the franchise community at the highest level. Board members are elected for an initial three-year term and are eligible for re-election to one additional three-year term.

Successful candidates should demonstrate previous contributions to the association and franchise community, such as participation on committees, speaking at programs and conferences and support for other IFA activities. New directors will be elected at the September meeting of the IFA board and will begin their terms as directors at the conclusion of the 2008 convention meeting of the board. The board meets three times annually: during the IFA convention in February or March; at a summer meeting in June; and during the Fall Leadership Conference in September. Members of the board volunteer their time and underwrite their travel, hotel and other incidental expenses and are encouraged to support IFA programs and activities, including IFA’s political action committee, FranPAC.

Interested candidates may begin the process by going to IFA’s Web site at www.franchise.org, then at “About IFA,” open “Board Nomination Form” to download a copy. Complete the form and mail, along with your UFOC, by May 11 to the attention of Cecelia Bond at IFA. If you cannot open the link, e-mail your request to cbond@franchise.org. Help IFA ensure the future leadership of the organization through your personal participation. For additional information, contact Bond at 202-662-0780.

Baltimore Kick-off Launches Women, Minorities, Vets Seminars
The “Franchise Opportunities for Women, Minorities and Veterans” seminar series debuted April 21 at Coppin State University in Baltimore and drew more than 100 participants. The first seminar in the series attracted attendees who were committed to learning more about franchising and how the proven business model incorporates training and other benefits.

Speakers included U.S. Rep. Elijah E. Cummings (D-Md.); Baltimore Mayor Sheila Dixon; IFA Educational Foundation Chairman Michael Roman, CFE (ExxonMobil); and Diversity Institute Chairman Eric McCarthey (Coca Cola). Maryland 44th Dist. Del. Melvin Stukes attended to support the program.

The next seminar in this series is the Black Enterprise Entrepreneurs Conference and Expo May 9-12 in Lake Buena Vista, Fla. For details about this and other seminars in the series, visit Franchise.org.

IFA Annual Convention Program Suggestions Sought
IFA members are invited to assist in helping create an even greater annual convention experience in 2008 by offering program suggestions. This year’s Las Vegas fete, which drew nearly 3,100 attendees—500 more than the year before—and featured the largest number of exhibit booths in the event’s Exhibition Hall history, was the result of ideas from all membership categories.

Just over 98 percent of the attendees who completed the ’07 convention evaluation form gave the convention an overall rating of “excellent” or “good” and 96 percent indicated they plan to participate in next year’s program.

Program suggestions are requested to develop a slate of educational sessions to be conducted during the 48th Annual Convention set for Feb. 9-12 in Orlando at the Marriott World Center. IFA members can download and complete the “Call for Papers” questionnaire located at Franchise.org (select Events and IFA’s Annual Convention).

Please provide your best suggestion for an educational session, its moderator and potential speakers. Send the completed form to IFA Senior Director of Meetings Anne Poodiack by fax, 202-628-0812 or apoodiack@franchise.org by May 21.

Americas Competitiveness Forum Set June 11-12
U.S. Commerce Secretary Carlos Gutierrez will host the Americas Competitiveness Forum June 11-12 at the Atlanta Marriott Marquis.

The forum will provide a venue to explore cutting-edge ideas and highlight best practices relating to innovation, education, global supply chain strategies, fostering entrepreneurship, and the overarching theme of developing greater regional competitiveness.

The secretary’s counterparts have been invited and many high-profile individuals and minister-led delegations are expected to attend, including El Salvador Vice Pres. Ana Vilma de Escobar, U.S. Secretary of Education Margaret Spellings, Inter-American Development Bank Pres. Luis Alberto Moreno and Peruvian economist Hernando de Soto.

For information, visit www.trade.gov or contact the Department of Commerce’s Eric Stark at 202-482-1845 or acf@mail.doc.gov.

Like the New IFA Insider Look?
IFA heard your suggestions and has responded with this newly-designed IFA Insider, which debuted with a cleaner and more inviting appearance last month. The improvements of color, typeface and graphics are the result of the creative ideas shared by association members.

The semimonthly publication remains the primary source for the latest news affecting the franchising sector, including stories about federal and state legislation and regulations that could affect the operation of franchise small businesses. Other beneficiaries of association-member suggestions include IFA’s newly-designed Web site and the easier to navigate Spring/Summer Franchise Opportunities Guide.

The IFA team is working to ensure that its communications products are easy to read, provide valuable and timely information and are attractive to readers and viewers. Now that you’ve had an opportunity to view a couple of issues of the new Insider, we’d like to get even more of your feedback.

Return VetFran Survey by May 8
The Fresno Bee, Associated Press, the Phoenix Business Journal and Army Times have one thing in common: all have featured articles on IFA’s military outreach program, the Veteran Transition Franchise Initiative, known as VetFran. These and other media have published articles focusing on military veterans who are exchanging their uniforms for franchised small-business logo-wear.

Help IFA share your VetFran success stories with Congress and the media by responding no later than May 8 to the quarterly survey sent by e-mail last week to all participating companies. Return surveys to VetFran Staff Liaison Terry Hill via fax, 202-628-0812.

"Customers First" Correction Notice
A recent IFA Insider newsletter article describing the services provided by the International Franchise Association-endorsed "Customers First" program, powered by Franchise Payments Network, contained errors. For a complete list of services offered, visit Franchise.org, Press Releases on the Member/Business Resources site.

The IFA Insider is written, edited and produced by Laura Fenwick, Terry Hill, Jodi McCray and Hilary Strahota.

IFA Insider newsletter is published bi-weekly (24 times a year). Correspondence: International Franchise Association, 1501 K Street, N.W., Suite 350, Washington, D.C. 20005, (202) 628-8000. Copyright 2007 International Franchise Association. Contents of this publication may not be reproduced, stored in a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without prior permission of the publisher. The International Franchise Association sends out email and fax updates and opt-in email newsletters to its membership. If you would no longer like to receive one or all of these communications follow the "Unsubscribe" instructions found at the bottom of each email, fax or newsletter. For further questions, please call our Membership Service Department at 202-662-0765 between the hours of 9:00 a.m. and 5:00 p.m. Eastern, Monday-Friday or email ifa@franchise.org.

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