Michaels Stores Warns Investors of Employee Free Choice Act
Michaels Stores, a chain of art and craft supply stores, issued its quarterly income report today. But with this standard report came a caveat for the next quarter: Michaels warns that passage of the Employee Free Choice Act could negatively impact its bottom line. From its release:
if the Employee Free Choice Act is adopted, it would be easier for our associates to obtain union representation and our businesses could be adversely impacted
Of course, this is nonsense. Passage of the Employee Free Choice Act won’t adversely impact the business of Michaels or any other retailer. It will help its employees earn more of the money they help the company make, but giving workers a free and fair choice won’t drive customers away.
Michaels isn’t the first to try this trick. Citigroup downgraded Wal-Mart’s stock last spring over similar, baseless fears of the Employee Free Choice Act. Days later, Citigroup hosted an anti-Employee Free Choice Act call with the US Chamber of Commerce.