The Labor Relations Institute, shortened to LRI, is a prominent organization in the union avoidance consulting industry. Situated in Broken Arrow, a suburb of Tulsa, Oklahoma, LRI operates as a profitable enterprise that connects employers with skilled “persuaders” to combat union organizing campaigns. Some of the biggest names in the business world, such as Aramark, Sysco, Hershey, Pfizer, Mountaire Farms, Sun Chemical, Dollar General, Lowe’s, and Williams-Sonoma, have sought LRI’s services when confronted with the possibility of their workers forming a union.
Employers are willing to pay up to $400 per hour, or sometimes even more, to employ a labor consultant who can effectively counter a union campaign. LRI’s business model allows them to subcontract the actual work to other consultants registered as LLCs. Led by Phillip Wilson, a graduate of the University of Michigan Law School, LRI offers a range of services, from videos and opposition research to a “guaranteed option” that ensures the failure of unionizing efforts for a minimum deposit of $50,000.
Although the number of employees working at LRI is unclear, Wilson himself describes his role as the “president, general counsel, and occasional barista” of the organization. Wilson has built a positive reputation within the industry, making the contentious nature of anti-union campaigns seem more palatable.
While the Labor Department regulates the persuader industry, it’s challenging to determine the exact revenue generated by firms like LRI. Based on disclosed figures, LRI received more than $10 million for persuader work between 2020 and 2022, though this likely represents an underestimation as numerous companies fail to report their spending as required by law. LRI’s income has increased consistently as the number of workers attempting to unionize grows. In 2021 and 2022, LRI’s payments to persuaders increased by 29% and 19% respectively, aligning with the rise in petitions for union elections. This trend suggests that more employers are engaging firms like LRI even before their workers express a desire for union representation.
Wilson often speaks about LRI’s work in terms of fostering positive employee relations, claiming to have improved relationships between managers and employees in over 10,000 companies. However, confidential notes and spreadsheets acquired through public record requests reveal LRI’s subcontractors rating workers’ union support, disclosing personal information, and strategizing ways to discourage unionization.
Former union campaign leaders, such as Ryan Coffel of Colectivo Coffee, have observed that LRI’s consultants introduced tension into the workplace. Meetings organized by LRI seemed biased against the union, though not overtly dishonest. According to Coffel, frustration grew among employees as they had to endure these meetings, resulting in a war of attrition.
Similarly, Shellie Parsons, who attempted to unionize her Dollar General store, reported that LRI consultants had followed employees during their work shifts, instilling fear among the workforce. Despite such tactics, the union election ended in a 2-3 defeat.
LRI was originally established by Phillip Wilson’s father, Donald, in 1978 as a business focused on manufacturing and marketing labor relations videos. The company marketed its products to employers facing union campaigns and utilized aggressive marketing strategies. In 1998, the Labor Board’s Office of the General Counsel issued a warning regarding LRI consultants soliciting leads on union campaigns from federal employees. Some employees were accepting compensation for providing such information, an ethical violation is accepting such payments.
The Inspector General’s investigation revealed that LRI had recruited federal workers as coordinators to gather information on union election petitions, paying them monthly salaries, bonuses, and gifts. The investigation also uncovered instances where payments were disguised to evade taxes. The Federal Bureau of Investigation joined the investigation, but ultimately, the U.S. Attorney’s Office chose not to pursue a case. Notably, some board employees had been working for LRI on the side.
While LRI’s research and films were deemed subpar by some competitors, the firm excelled at generating business through its extensive database and mass mailings. Few other union avoidance firms can match LRI’s track record and expansive network of persuaders, including 84 former union organizers.
In conclusion, LRI remains a dominant force in the union avoidance consulting industry, connecting employers with persuaders to undermine union organizing campaigns. Despite controversies surrounding the industry, LRI continues to thrive, capitalizing on the increasing number of workers seeking union representation.
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