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A coalition of U.S. minority business advocates Monday declared war on legislation that would allow unions to more easily organize, a move that disregards attempts by labor and some businesses to reach a compromise.

"We will not compromise with disaster," National Black Chamber of Commerce President Harry Alford said. "This is war."

Leaders from the U.S. Hispanic Chamber of Commerce and the Asian American Hotel Owners Association, among others, joined Alford in urging Congress to oppose the legislation. The coalition vowed to educate lawmakers and minority community members about the potential negative impact of the bill.

The proposed Employee Free Choice Act, also known as the "card check" bill, would have workers sign cards rather than vote in secret ballot elections, streamlining the process by which unions could form.

The coalition took aim at a particular provision in the legislation that would call for mandatory arbitration to set first-contract terms if companies and unions can't agree within 120 days.

The group said it is inappropriate for government-appointed arbitrators to determine the wages and benefits that companies will ultimately provide to workers. "This is tantamount to a coup or power grab," Alford said. "Entrepreneurs don't take the risks and work hard hours to give it all up."

The coalition's unwillingness to compromise comes against a backdrop of three major retailers - Costco Wholesale Corp. (COST), Whole Foods Market Inc. (WFMI) and Starbucks Corp. (SBUX) - proposing an alternative to the legislation. The retailers' proposal keeps the secret ballot and eliminates mandatory arbitration but gives unions more access to workers and provides for faster elections.

On the other hand, Sen. Arlen Specter, R-Pa., has provided a boost to the coalition's hope of defeating the legislation. The lawmaker announced in late March that he wouldn't support the bill, which is a blow to labor because Specter might have provided the key vote necessary to prevent a Republican-led filibuster, if Democrats all lined up behind the legislation.

The coalition said it believes more House and Senate lawmakers likely will follow Specter, but not without some prodding.

 
-By Darrell A. Hughes, Dow Jones Newswires; 202-862-6684; darrell.hughes@dowjones.com