Monday, April 5, 2021

Is the economy really coming back? — Unions, Republicans worry about Biden’s plans for green jobs — White House pivots on immigration messaging

Presented by Walmart: Delivered every Monday by 10 a.m., Weekly Shift examines the latest news in employment, labor and immigration politics and policy.
Apr 05, 2021 View in browser
 
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By Rebecca Rainey

Presented by Walmart

Editor's Note: Weekly Shift is a weekly version of POLITICO Pro's daily Employment & Immigration policy newsletter, Morning Shift. POLITICO Pro is a policy intelligence platform that combines the news you need with tools you can use to take action on the day's biggest stories. Act on the news with POLITICO Pro.

Quick Fix

Vice President Kamala Harris is set to travel to Oakland, Calif. today to discuss "small business" and to boost the sprawling $2 trillion infrastructure proposal President Joe Biden released last week. A key arm of Biden's overall post-Covid agenda, the plan promises to put millions back to work and to serve as, in his words, the "largest American jobs investment since World War Two."

Recent indicators suggest the job market is already starting to heal, our Megan Cassella writes . The Friday jobs report showed that more than 916,000 Americans returned to work in March (about 300,000 more than expected) and the unemployment rate dropped to 6 percent. That's just the latest in a series of recent reports "showing a resurgent economy, with consumer confidence jumping to levels not seen since the start of the pandemic and manufacturing activity surging to its highest peak in nearly four decades," she writes.

That's welcome news for many Americans. But it could make Biden's infrastructure package harder to sell to the GOP and centrist Democrats, who are wary of more spending after shelling out $1.9 trillion in relief money just last month, Megan points out — particularly if "the economy looks poised to get there on its own."

CONCERNS ABOUT JOB QUALITY: Some unions and Republicans have also argued that the president's proposal could ultimately cost U.S. workers a lot of jobs in the long run. As your host and Eric Wolff report, decarbonizing the economy will "mean eliminating the kind of steady, fixed-location jobs that come with coal mines or fossil fuel power plants."

A SHORT-TERM FIX? Biden's plan would create millions of jobs by calling for the construction of vast numbers of solar, wind and battery projects, among others. But those construction gigs would be temporary and require workers to move around. And once the projects are complete, they would need few workers to maintain them.

"From our perspective, if the jobs aren't there when the mine closes, this plan fails," said Phil Smith, a spokesperson for the United Mine Workers of America. "There's a very large disconnect between what the aspirations are here and what's going to end up actually happening on the ground."

LABOR PROVISIONS: Biden's plan seeks to assuage such concerns by using tax credits to encourage companies to keep labor standards high and to move more manufacturing to the U.S. He also called on lawmakers to pass the Protecting the Right to Organize Act, H.R. 842 (117), which would broadly expand workers' ability to form unions.

Your Shift author expects that many of the pro-labor policies tucked into the infrastructure package will cause fireworks in Congress. They're a no-go with the business lobby and Republicans, who say they restrict workers' free choice when it comes to union membership and are harmful to companies.

Already, Republicans are slamming the proposal as a new "Green New Deal" and pushing for something narrower. a narrower, bipartisan bill. Sen. Roger Wicker (R-Miss.), for instance, said on "Meet the Press" that he supports infrastructure improvement but added: "I don't want to do it by raising taxes and cutting jobs for Americans." More on that from our David Cohen.

NOT EVERYONE'S A CRITIC: Some labor economists say that because the investments would be spread out over eight years, the interruption to workers wouldn't be as abrupt as some fear. Many unions also fervently back the plan — particularly those poised to build out a decarbonized energy grid — and the Biden administration has promised organized labor a seat at the negotiating table.

MORE: "Biden's latest stimulus plan: Reducing inequality," from our Victoria Guida

AND: "With stimulus cash and jobs spike, U.S. emerges as main engine for global economic recovery," from The Washington Post

GOOD MORNING. It's Monday, April 5, and this is Morning Shift, your tipsheet on employment and immigration news. Send tips, exclusives and suggestions to emueller@politico.com and rrainey@politico.com. Follow us on Twitter at @Eleanor_Mueller and @RebeccaARainey.

 

A message from Walmart:

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DRIVING THE WEEK

BIDEN CHANGES MESSAGING ON IMMIGRATION: Biden is "racing to unite Democrats behind a new message on immigration policy and why the current situation is decades in the making," our Laura Barrón-López, Sarah Ferris and Christopher Cadelago report . In calls with House lawmakers last week, administration officials stressed that "they inherited a disaster" from former President Donald Trump, and emphasized their "renewed diplomatic efforts with Central American countries, which lapsed under the Trump administration."

WHY THE SWITCH? The pivot from the administration "is a tacit acknowledgment that their initial posture — in which they downplayed the problem and steadfastly refused to call it a crisis —wasn't working," our trio writes.

BY THE NUMBERS: "The number of unaccompanied children arriving at the border hit a monthly high in March, exceeding the last record-high in May of 2019. In total, some 170,000 people were apprehended by border patrol last month."

WHAT NOW? Immigration reform is still poised to go nowhere on Capitol Hill. "Some border Democrats say they appreciate Biden's efforts to address the long-term root causes of the migrant surge," Laura, Sarah and Christopher write. "But they argue that the administration needs a plan to address the immediate influx of migrants now, too."

RELATED: "Deportations and Arrests of Immigrants in the U.S. Illegally Fall Sharply Under Biden," from The Wall Street Journal

AMAZON UNION VOTE UPDATE: Officials from the NLRB and the union expect to begin publicly counting votes this week in the union election at an Amazon fulfillment center in Bessemer, Ala.

The public portion of the tally consists of physically "counting the yes and no votes by hand, one by one," an NLRB official explained via email. Your Shift team will be keeping a close eye on the formal count.

AMAZON APOLOGIZES OVER 'PEEING IN BOTTLES' SPAT: "Amazon issued an apology on Friday to Rep. Mark Pocan, D-Wis., after mocking his claim that the company's drivers are sometimes forced to urinate in bottles during delivery rounds as a result of the demands of the job," Emma Newburger reports for CNBC.

"We know that drivers can and do have trouble finding restrooms because of traffic or sometimes rural routes, and this has been especially the case during Covid when many public restrooms have been closed," the company wrote on its corporate website.

THE TWEET: "Paying workers $15/hr doesn't make you a 'progressive workplace' when you union-bust & make workers urinate in water bottles," Pocan wrote.

WHAT NOW? Amazon said it "would like to solve" the problem, although it added that bathroom accessibility "is a long-standing, industry-wide issue and is not specific to Amazon."

 

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In the Workplace

BIG COMPANIES FACED $0 TAX BILL: "Fifty-five major U.S. corporations, including Nike, FedEx and Duke Energy, paid no federal income taxes last year even though they recorded billions in profits," our Aaron Lorenzo reports. "In total, the companies racked up nearly $40.5 billion in profits in 2020 but zeroed out their federal tax liabilities by leveraging a variety of breaks, including one made available due to the coronavirus pandemic, which dragged the economy into recession."

NOT FOR LONG? The report, authored by the left-leaning Institute on Taxation and Economic Policy, said the companies would have paid $8.5 billion in federal income taxes at the current 21 percent corporate tax rate, which Biden wants to raise to 28 percent. But instead, Aaron writes, "the 55 companies collectively received $3.5 billion in rebates last year."

 

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Budget and Appropriations

WHERE'S THE BUDGET? Biden's first budget request outlining agency spending targets for the upcoming fiscal year is coming soon, according to officials, despite the expectation that it would land last week, our Caitlin Emma reports.

What to expect: "As part of the request, the White House plans to release a breakdown of proposed funding levels for each federal agency, while outlining certain investments in areas like clean energy, education, public health and elevating historically disadvantaged communities," Caitlin writes. "OMB is expected to unveil a more complete budget later this spring."

 

STEP INSIDE THE WEST WING: It actually is infrastructure week ... and it will be for a while. What is the administration's plan to get its top legislative priority through Congress? Add Transition Playbook to your daily reads for details you won't find anywhere else about the state of play of the administration's top priorities and biggest challenges. Track the people, policies and power centers of the Biden administration. Subscribe today.

 
 
Enforcement

OFFICERS ENGAGE IN SEXUAL ACTS DURING TRAFFICKING STINGS: "In their efforts to rein in illicit massage businesses across the country, police sometimes rely on sting operations in which undercover officers engage in sex acts with spa workers," according to an investigation by Douglas MacMillan and Abha Bhattarai at the Washington Post. "While such tactics are generally permitted by law, policymakers are beginning to propose new limits on physical contact by police, which they say serves to dehumanize — and potentially traumatize — the very women the raids are purportedly meant to help. The spa owners and operators targeted by law enforcement, experts said, often go unpunished."

"It is unclear exactly how often police engage in sex acts during these operations because no organization tracks them," they write. Professional groups estimate there are more than 150,000 massage businesses in the U.S. But "the size of the illicit massage industry is difficult to measure and a matter of debate between anti-trafficking groups, who say there are 9,000 to 11,000 of those businesses in the United States, and advocates for sex workers, who contend those estimates are far too high."

In the States

CALIFORNIA TEACHERS DEMAND CHILD CARE: After disagreeing over efforts to reopen area schools for a year, members of United Teachers Los Angeles want extra support for their own children, our Mackenzie Mays reports . Specifically, the union wants the Los Angeles Unified School District to allow educators with young children to keep working from home until the district can provide them with subsidized child care and a proper child care program.

"The demand is salt in the wound for parents who struggled with distance learning at home amid intense reopening negotiations," Mackenzie writes.

 

A message from Walmart:

Over the next decade, Walmart's $350 billion investment in U.S. manufacturing has the potential to:
• Support more than 750,000 new American jobs.
• Avoid more than 100M metric tons of CO2 emissions by working with suppliers to shift to U.S. manufacturing.
• Advance the growth of U.S.-based suppliers.
• Provide opportunities for more than 9,000 entrepreneurs to become Walmart suppliers and sellers through Walmart's annual Open Call.

 
What We're Reading

— "Minority Entrepreneurs Struggled to Get Small-Business Relief Loans," from The New York Times

— "HP, Dow, Under Armour among nearly 200 companies speaking out against voting law changes in Texas, other states," from The Washington Post

— "Britain brokers labor pacts with US states as it waits on trade deal," from POLITICO

— "MLK's radical vision was rooted in a long history of Black unionism," from The Washington Post

— " Democrats warn of dire consequences if Trade Adjustment Assistance lapses," from POLITICO

— "Labor Sec. Marty Walsh says he and the President are 'committed to raising the minimum wage,'" from MSNBC

— "U.S. must confront Covid spike, noted epidemiologist warns," from POLITICO

THAT'S ALL FOR MORNING SHIFT!

 

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Rebecca Rainey @rebeccaarainey

 

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