Benjamin Sachs is the Kestnbaum Professor of Labor and Industry at Harvard Law School and a leading expert in the field of labor law and labor relations. He is also faculty director of the Center for Labor and a Just Economy. Professor Sachs teaches courses in labor law, employment law, and law and social change, and his writing focuses on union organizing and unions in American politics. Prior to joining the Harvard faculty in 2008, Professor Sachs was the Joseph Goldstein Fellow at Yale Law School. From 2002-2006, he served as Assistant General Counsel of the Service Employees International Union (SEIU) in Washington, D.C. Professor Sachs graduated from Yale Law School in 1998, and served as a judicial law clerk to the Honorable Stephen Reinhardt of the United States Court of Appeals for the Ninth Circuit. His writing has appeared in the Harvard Law Review, the Yale Law Journal, the Columbia Law Review, the New York Times and elsewhere. Professor Sachs received the Yale Law School teaching award in 2007 and in 2013 received the Sacks-Freund Award for Teaching Excellence at Harvard Law School. He can be reached at [email protected].
As the date for the union election at Volkswagen’s Tennessee plant approaches, state lawmakers are threatening to withhold tax incentives from the automaker if the union wins the election. But conditioning the availability of tax incentives on VW’s union status would in all likelihood be preempted by federal labor law, and therefore illegal.
Here’s the most recent report from the state:
If the workers opt for UAW representation, VW would have a “very tough time” securing more incentives from the state legislature, Bo Watson, a state senator from suburban Chattanooga, said during a press conference this morning. He was flanked by House Majority Leader Gerald McCormick, a powerful figure in Tennessee politics, who said the “heavy hand” of the UAW is unwelcome in the state.
“The taxpayers of Tennessee reached out to Volkswagen and welcomed them to our state and our community,” McCormick, a Republican from Chattanooga, said in an e-mail to Automotive News. “We are glad they are here. But that is not a green light to help force a union into the workplace. That was not part of the deal.
A spokesman for Tennessee Gov. Bill Haslam said in an e-mail to Automotive News that state lawmakers would play a big role in approving incentives for the VW plant because the project would be too large to approve with existing funding for the state’s “FastTrack” incentive program.
“The governor has been clear about the impact of the UAW on the state’s ability to recruit other companies to Tennessee,” the Haslam spokesman said. “Any discussions of incentives are part of additional and continued talks with VW, which we look forward to.”
If Tennessee state lawmakers follow through and withhold future tax incentives based simply on VW’s union status, their action would run afoul of National Labor Relations Act preemption principles. A state may not, that is, condition tax incentives on the bare fact that a firm is union or nonunion. Absent some clear, genuine, and specific proprietary interest in discriminating against union employers, such selective use of state tax incentives would be impermissible under federal law.
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December 13
In today’s News & Commentary, the Senate cleared the way for the GOP to take control of the NLRB next year, and the NLRB classifies “Love is Blind” TV contestants as employees. The Senate halted President Biden’s renomination of National Labor Relations Board Chair Lauren McFerran on Wednesday. McFerran’s nomination failed 49-50, with independents Joe […]
December 11
In today’s News and Commentary, Biden’s NLRB pick heads to Senate vote, DOL settles a farmworker lawsuit, and a federal judge blocks Albertsons-Kroger merger. Democrats have moved to expedite re-confirmation proceedings for NLRB Chair Lauren McFerran, which would grant her another five years on the Board. If the Democrats succeed in finding 50 Senate votes […]
December 10
In today’s News and Commentary, advocacy groups lay out demands for Lori Chavez-DeRemer at DOL, a German union leader calls for ending the country’s debt brake, Teamsters give Amazon a deadline to agree to bargaining dates, and graduates of coding bootcamps face a labor market reshaped by the rise of AI. Worker advocacy groups have […]
December 9
Teamsters file charges against Costco; a sanitation contractor is fined child labor law violations, and workers give VW an ultimatum ahead of the latest negotiation attempts
December 8
Massachusetts rideshare drivers prepare to unionize; Starbucks and Nestlé supply chains use child labor, report says.
December 6
In today’s news and commentary, DOL attempts to abolish subminimum wage for workers with disabilities, AFGE reaches remote work agreement with SSA, and George Washington University resident doctors vote to strike. This week, the Department of Labor proposed a rule to abolish the Fair Labor Standards Act’s Section 14(c) program, which allows employers to pay […]