As of early May, there were reports in the national media that a compromise bill was being drafted by Democratic Speaker of the House Nancy Pelosi, who was said to be holding private meetings with a minority group of Democrats opposed to the legislation in its current form, including Sen. Arlen Specter (D-Pa.).

Andrew Weikert, director of government affairs for the Auntie Anne’s Inc. hot pretzel chain, is spending a lot of time in Washington these days battling a contentious labor issue his company fears could critically impair its franchise system at a time when economic recovery remains uncertain.

The Lancaster, Pennsylvania–based quick-serve operating nearly 1,000 units is just one of many restaurant companies taking a hard line against the Employee Free Choice Act of 2009 (EFCA), also known as “card check” legislation, which was introduced in identical bills in the U.S. Senate and House of Representatives on March 10.

The legislation calls for changes to a labor law that opponents say threaten to skew the organizing process unfairly toward unions, whose numbers have been steadily waning in recent years. Critics of the act also say it would bring near-certain increases in hourly wages at a time when many restaurants are struggling with slower sales and a range of economic pressures brought on by the recession.

“Costs are going up. When you combine that with an increase, perhaps a dramatic increase in labor costs, it could have the potential to put some of our franchises out of business,” says Weikert, who along with Auntie Anne’s CEO, Sam Beiler, joined the National Restaurant Association (NRA) in its recent lobbying efforts against the legislation.

Proponents of the bills argue that increased union representation as well as the higher wages and secure benefits it guarantees would give more power to the middle class, which has borne the brunt of the downturn. Workers’ increased buying power could help to jumpstart the economy at a time when consumer spending remains stagnant, they argue.

“Passing the Employee Free Choice Act would be tantamount to a mini-economic stimulus package—pumping $49 billion into the economy every year at a time when working families need it most,” says Christy Setzer, a spokeswoman for the Service Employees International Union (SEI). SEI is among the groups leading the charge for EFCA, which was introduced by Sen. Ted Kennedy of Massachusetts and Rep. George Miller of California, both Democrats.

The business community remains staunchly opposed to the changes, with groups such as the NRA, the U.S. Chamber of Commerce, the International Franchise Association (IFA), and others raising millions in attempts to thwart the bills.

“The economy is in a fairly challenging place,” says David French, IFA’s vice president of government relations. A recent IFA FranPulse poll indicated that 86 percent of Americans in franchising say EFCA includes provisions that would hamper their ability to compete.

“Even the most optimistic supporters of this bill recognize that it is going to cost jobs,” French says.

EFCA is a reincarnation of earlier legislation introduced most recently in 2007 under the administration of President George W. Bush. It would give workers the choice of unionizing by either a majority sign-up known as a card check or staging an election that would be supervised by the National Labor Relations Board (NLRB), the arm of the federal government charged with enforcing labor laws.

If passed, the new law would eliminate the veto power employers hold over the card-signing option. Since the Taft-Hartley Act of 1947, employers have had the right to call for the NLRB-supervised private ballot.

Challengers argue that the legislation eliminates debate and would rush the union certification process through without giving an employer the chance to make its position known to workers.

“Employers have a free speech First Amendment right to speak out and share their views on labor unions,” says Eugene Scalia, co-chair of the labor employment practice group at the law firm Gibson Dunn & Crutcher LLP and former solicitor of labor under President George W. Bush. Scalia testified in March at a Senate hearing on the legislation.

“Employees would be signing these voting cards in circumstances that could be very intimidating without hearing both sides of the story,” Scalia says. “The objective would be a campaign by ambush.”

Under EFCA, if employers and the union fail to reach terms of a first contract within 120 days of bargaining, a government-appointed arbitrator could be brought in to set the terms of the first two-year contract. In addition, the legislation would triple damages for employers found guilty of firing union supporters or breaking other labor laws.

Besides concerns over the loss of their veto, business groups say the mandatory arbitration would give outsiders with potentially limited knowledge of the industry power to set unrealistic terms.

“With the economy being in poor shape, having that much less flexibility to adapt to market conditions is particularly problematic,” says Brendan Flanagan, the NRA’s vice president of federal relations.

In coming months, lobbying efforts are expected to remain robust, with strong public relations campaigns from both sides and no shortage of media attention.

The Washington-based Economy Policy Institute, a nonprofit group focused on how economic policy affects lower- and middle-income workers, issued a statement supporting the legislation in late February.

It was backed by more than 30 prominent U.S. economists and appeared as an ad in the Washington Post.

“In recent decades most bargaining power has resided with management,” said the letter, which was written by Harvard University economist Richard B. Freeman. “The Employee Free Choice Act is not a panacea but it would restore some balance to our labor markets.”

Both President Barack Obama and Vice President Joe Biden were co-sponors of prior versions of the legislation when they served as senators; the president has indicated that he would sign the legislation if it was passed by the Democratic-controlled Congress.

Whether or not EFCA will gain majority support remains uncertain. That is due in no small part to efforts by companies such as Auntie Anne’s, which was influential in winning the recent change in position of Democrat Sen. Arlen Specter of Pennsylvania, whose opposition prevented the legislation from gaining a 60-vote Senate majority needed to win cloture, the quick end to debate that could lead to a vote.

“He graciously listened to us,” Weikert says. “I haven’t seen, in the 10 years I’ve been doing this, the concerted and focused effort on behalf of the entire business community to defeat something.”