Today’s News & Commentary — April 19, 2017

The New York Times weighs in on the effect that Trump’s “Hire American” order may have on tech worker visas.  According to the Times, the order “represents a small win for bigger tech companies,” but may hurt smaller technology companies that “cannot afford to pay high salaries and are already struggling to attract talent.”  Senator Schumer, however, had a different take: “This does nothing,” he said. “Like all the other executive orders, it’s just words — he’s calling for new studies. It’s not going to fix the problem. It’s not going to create a single job.”

Is O’Reilly no longer a factor?  That’s the question being asked at Politico, which cites the Wall Street Journal’s report that Fox News “is preparing to cut ties with . . . O’Reilly.”  Since an April 1 New York Times story broke the news that Fox had paid out about $13 million to settle sexual harassment allegations against O’Reilly, pressure has been mounting on Fox to fire its biggest star.

As the New York Times puts it, “[t]he threat of a Hollywood strike is getting real.” Members of the Writers Guild of America will begin voting today on whether to authorize a walkout.  If members approve a strike, it could have “serious implications.” When writers went on strike a decade ago, it cost the Los Angeles economy an estimated $2.5 billion, affecting everyone from the writers themselves to caterers, limo drivers, and florists.  As for how a strike would affect viewers, the Times explains that late-night comedy shows would screen reruns, some scripted series would be delayed, and daytime soap operas would probably end (unless producers bring in non-union writers).  A strike might also speed the shift from network viewing to Netflix and Amazon.

Today’s News & Commentary — March 9, 2017

Congresswomen Jan Schakowsky (D-Ill.) and Pramila Jayapal (D-Wash.) stood in solidarity with rallying crowd of women for International Women’s Day. According to Politico, labor unions such as the American Federation of Teachers and National Nurses United were in attendance. Rep. Schakowsky addressed the protestors, stating, “American women still earn far less than men 50 years after President Kennedy signed the Equal Pay Act.”

The Huffington Post reports that the number of deportations of undocumented workers under the Trump administration, alongside the regime’s immigration policies, begs the question of how reporting standards in immigrant labor will shift. Chicago attorney Christopher Williams, who specializes in immigrant wage theft cases, notes, “There’s a lot of fear out there, and it’s driving workers further underground. I honestly think it’s creating an incentive to hire more undocumented workers, because now they’re even more vulnerable to being exploited.” So far, the Labor Department has not issued a press release detailing wage and safety investigations since Trump’s presidency commenced.

Meanwhile, the D.C. Circuit has issued its opinion in Scoma’s of Sausalito. Scoma’s involved an employer’s withdrawal of recognition of UNITE HERE Local 2850 based on the employer’s belief that the union no longer enjoyed majority support of the bargaining unit.  The Board held that the withdrawal was illegal and issued a bargaining order. The D.C. Circuit agreed that withdrawing recognition was an unfair labor practice, but refused to enforce the Board’s bargaining order remedy. Instead, the court of appeals sent the case back to the Board and ordered the Board to come up with a less “extraordinary” remedy for the illegal withdrawal of recognition.

In other NLRB news, the Board has ordered a Regional Director to revisit its decision that NBCUniversal workers in Chicago, New York, and Los Angeles were part of a single nationwide bargaining unit.

Today’s News & Commentary — March 8, 2017

Today is International Women’s Day, and many women around the country are participating in a strike that has been billed as “A Day Without a Woman.”  The action is intended to highlight the economic importance and impact of women on society, and it was organized following the Women’s March on January 21.  CNN reports that American women “aren’t the only ones taking to the streets.”  In Ireland, women and pro-choice activists are expected to rally across the country in a day of action dubbed “Strike 4 Repeal,”  aimed at repealing Ireland’s eighth amendment, which places the right to life of an unborn child on equal footing with the right to life of the mother.  In Australia, thousands rallied in Melbourne, demanding economic justice and reproductive rights for women around the world.  In the Philippines, women’s rights activists marched to the embassy in Manila, carrying signs calling for employment and discrimination reforms. Protests also took place in Rome and Moscow.

Politico weighs in on Trump’s revised executive order, noting that attention “may now shift to the refugee-related provisions” in the order.  The new order exempts valid visa holders and eliminates the provision that called for the U.S. to prioritize religious minorities (i.e. non-Muslims) in refugee admissions, but left in place a 120-day suspension of the refugee resettlement program (although Syrian refugees are now barred only temporarily, whereas before they were barred indefinitely).

At the Atlantic, Alana Semuels interviews David Weil, an Obama appointee who directed the Department of Labor’s wage-and-hour division, about the future of DOL under Trump.  One of Weil’s big worries concerns “the overlay of immigration policies on…the labor market.”  As Weil put it, “There’s a lot of writing on the wall that deeply, deeply concerns me.”

In international news, Argentina’s main labor union led a mass picket on Tuesday to protest job cuts and pay raises.  According to Reuters, the picket attracted tens of thousands of demonstrators and took place in the midst of a two-day teachers’ strike.  The protests also come at a bad time for Argentinian President Mauricio Macri: key congressional elections are slated to take place in October, and Macri needs his political coalition to do well “in order for him to keep pushing his economic reforms through Congress and position himself for re-election in 2019.”

Today’s News & Commentary — January 11, 2017

In case you missed it, the New York Times has full video and text coverage of President Obama’s farewell speech. In his speech, President Obama praised worker organization as part of “our nation’s call to citizenship,” called for “a new social compact” that, inter alia, “give[s] workers the power to unionize for better wages,” and warned that “[i]f every economic issue is framed as a struggle between a hardworking white middle class and an undeserving minority, then workers of all shades are going to be left fighting for scraps while the wealthy withdraw further into their private enclaves.”

Also at the New York TimesNoam Scheiber covers two new studies on raising the minimum wage.  The first study found, consistent with the growing body of work on minimum wage, that increasing wages does not contribute to a decline in hiring.  However, the study also showed that when employers were forced to pay more in wages, they hired more productive workers, so that the overall amount amount of money employers spent on each job did not change substantially.  If this pattern were to apply across the economy — and the study’s author, as well as other economists, note that there are many reasons it might not — a higher minimum wage could result in low-skilled workers losing their jobs to higher-skilled workers.  The second study suggested that some employers may go out of business in response to a rising minimum wage.  The study, which examined restaurants in the San Francisco area, found that many poorly rated restaurants went out of business after a minimum-wage increase took effect.  Highly rated restaurants, by contrast, appeared “to be largely unaffected,” and overall there was “no substantial rise in restaurant closings after a minimum-wage increase.”

Politico and CNBC report that Andy Puzder’s confirmation hearing for Secretary of Labor may be delayed until February.  Puzder was originally scheduled to testify before the Senate Committee on Health, Education, Labor and Pensions on January 17, but the hearing will now be moved and may not take place until after Betsy DeVos’ hearing, which has also been delayed.

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Today’s News & Commentary — November 30, 2016

On Tuesday, the SEIU-backed Fight for $15 movement staged a nationwide “day of disruption” to demand, according to the New York Times and Politico, a $15-an-hour minimum wage, the right to form a union, and health benefits for low-wage workers.  The protests mark the four-year anniversary of Fight for $15, and thousands of workers across multiple cities took the streets.  The protests included retail workers, Uber drivers, fast food employees, and workers at hospitals and airports.

Donald Trump has chosen Elaine Chao, former secretary of labor under President George W. Bush, to serve as secretary of transportation.  The New York Times observes that she is “likely to be one of the more essential players” in the new administration, given that Mr. Trump has stated that infrastructure redevelopment will be a top priority of his first 100 days in office.

In October, the NLRB resolved an action against Bridgewater Associates, and the New York Times has now obtained a document about the agreement.  It is so heavily redacted, however, that it is “unclear what, if any, changes were made to Bridgewater’s employee rules and practices.”  This past summer, the NLRB challenged certain confidentiality provisions in the contracts that Bridgewater requires each of its full-time employees to sign.  The NLRB action was initiated after a former Bridgewater employee filed a sexual harassment complaint.  However, after Bridgewater and representatives of the former employee came to a private nonboard agreement, the NLRB withdrew its complaint.

In international news, BBC News reports that the introduction of a National Living Wage in the UK has not affected employment.  The Low Pay Commission, the body that monitors low pay for the government, stated that it has found “no clear evidence” of changes in employment or hours since the the introduction of a higher minimum wage in April.  In addition, it found that employment has continued to rise even in sectors “most obviously affected, such as cleaning, hotels, horticulture and retail.”  BBC News notes that although various economists and think tanks had warned that raising the minimum wage would hurt employment, the Low Pay Commision’s findings “contradict” those warnings.

 

SEPTA Hearing: Balancing the Right to Vote and the Right to Strike

The Southeastern Pennsylvania Transportation Authority has, as promised, sought a court order to enjoin the strike that has shut down public transit in Philadelphia.  On Friday, the court declined to issue an immediate order but scheduled a hearing on Monday to decide the question prior to election day.  In my view, a narrow injunction – one focused on election day – is appropriate in these circumstances.  But the broader injunction that SEPTA is seeking should be denied.

As we noted on Thursday, Pennsylvania law protects transit employees’ right to strike. Like federal labor law, state law recognizes that the right to strike is critical to workers’ ability to secure fair terms and conditions of employment.  State law does allow courts to enjoin transit strikes, but only in narrow circumstances: only when “the court finds that the strike creates a clear and present danger or threat to the health, safety or welfare of the public.”  Crucially, that danger or threat must “not be one which is normally incident to a strike.”  Before a court can enjoin a strike, therefore, it must find some additional or special threat to the public welfare that is not incident to any transit strike.

SEPTA wants to shut the strike down immediately and in its entirety.   Continue reading

Today’s News & Commentary — October 19, 2016

On Tuesday, Harvard University and the Harvard Graduate Student Union–United Auto Workers (HGSU-UAW) signed an agreement on election terms for eligible students to vote on unionization.  An email sent to the student body about the election can be accessed here.  HGSU-UAW seeks to represent all Harvard students who serve in research and teaching positions, with the exception of undergraduate research assistants.  The NLRB will conduct an on-site secret ballot election on November 16 and 17.  Both the Office of the Provost and the HGSU-UAW have created FAQ pages about unionization, and the HGSU-UAW has also created a “Response” to the Harvard FAQ page.

The Harvard University Dining Services (HUDS) workers’ strike has entered its third week, and students continue to rally to the cause.  On Monday, hundreds of students staged a walk-out to support the workers.  As The Crimson reports, the protests began at 10:30am, when Divinity students gathered at the Harvard Divinity School before marching to the Science Center Plaza to join striking HUDS workers for a rally.  At 12:30pm, hundreds of undergraduates walked out of their afternoon classes and joined another rally, organized by the Student Labor Action Movement, at the John Harvard statute.

Ford has decided to stop making small cars in the United States, and plans to move production of its Focus compact cars from a factory in Wayne, Michigan to a new plant in Mexico.  Donald Trump and other critics of NAFTA have attacked Ford for creating jobs in Mexico instead of the United States.  However, as the New York Times points out, the move will not result in a cut to U.S. jobs: the Wayne factory will remain fully staffed to build more trucks and S.U.V.s.  As the Times explains, Nafta has played a role in shifting American manufacturing jobs to Mexico.  The story of Ford’s Wayne plant, however, demonstrates that many factors — including the state of the economy, the profitability of the vehicles being produced, the strength of the dollar, and how well or not each carmaker’s products are faring in the marketplace — determine the number of auto-making jobs in the United States.

At the end of September, Nissan CEO Carlos Ghosn threatened to abandon a major investment in the U.K. until the nation provided more clarity on its plans for post-Brexit trade relations with the E.U.  According to the Wall Street Journal, Ghosn now appears to have shifted his tone.  After a meeting on Friday with U.K. Prime Minister Theresa May, Ghosn said in a joint statement that he looked forward to “continued positive collaboration.”  In the statement, Prime Minister May said that the U.K. government would continue to work with Nissan as it develops “the environment for competitiveness of the automotive industry here in the U.K. to ensure its success.”