Monday, December 19, 2022

Between the lines of last week's NLRB decisions

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Dec 19, 2022 View in browser
 
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By Nick Niedzwiadek

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PROGRAMMING NOTE: We'll be off next week for the holidays but back to our normal schedule on Tuesday, Jan. 3.

QUICK FIX

TEA (LEAF) TIME: For several weeks, Shift has said that the five members of the National Labor Relations Board would rev their engines as Republican appointee John Ring's term comes to an end.

They certainly delivered , issuing a daily drumbeat of 3-2 decisions to closely watched cases. These rulings are interesting — to reporters, labor unions and employers alike — both on their own terms as well as for what clues they contain about the board's ideological direction.

Last week in two cases — Bexar County II and American Steel Construction — the Democratic majority unwound precedents set during the Trump era when the board was controlled by GOP appointees. In both instances, the present board returned to earlier benchmarks, rather than coming up with new ones.

At the time, Lauren McFerran was frequently the one drawing up dissenting opinions , and now that she chairs the board it's perhaps unsurprising that she's prioritized reversing course in areas she thought were wrongly decided. It fits within the long history of the NLRB rulings ping-ponging whenever the board's partisan dynamics flip.

The swing can also be felt in what doesn't change, as demonstrated by the ruling in Sunbelt Rentals, where Republican appointees sought to revisit a 1964 standard warding against the threat of coercion when an employer seeks to interview workers over the course of unfair labor practice proceedings. But while things were pending, Democrats took control and instead affirmed the 58-year-old test set in Johnnie's Poultry.

The Democratic majority's largest imprint is arguably demonstrated in its ruling expanding the types of compensation that can be recovered for workers who are illegally fired or punished for labor-related activity.

In that case, Thryv, they did so without embracing the "compensatory damages" legal framework advocated for by NLRB General Counsel Jennifer Abruzzo, also an appointee of President Joe Biden. Rather they rooted their decision in the agency's authority to "make-whole" those negatively affected by wrongful actions — seemingly in the belief that doing so would better withstand court challenges.

It's just one example in the handful of cases that came out of late , but Abruzzo has been blunt about her expansive reading of labor law and has advanced a number of relatively novel legal applications — e.g. that the NCAA is misclassifying collegiate athletes as non-employees — whose fates ultimately lay with the board.

If the board decides not to endorse those positions, or tries to achieve them by different means as in Thryv, that could complicate the general counsel's calculus moving forward. Alternatively upcoming rulings will show that they are broadly in alignment, and supercharge this era of the NLRB.

GOOD MORNING. It's Monday, Dec. 19. Welcome back to Weekly Shift, your go-to tipsheet on employment and related immigration news. Your host encourages you to not fire a grenade launcher in the office. Send feedback, tips, and exclusives to emueller@politico.com and nniedzwiadek@politico.com. Follow us on Twitter at @eleanor_mueller and @nickniedz.

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On the Hill

BERNIE'S INSIDE GAME: For decades Sen. Bernie Sanders (I-Vt.) has been on the vanguard of America's political left, even when that placed him on a political island. But soon he'll be tasked with consensus-building as the chair of the powerful HELP committee, our Burgess Everett reports.

"I'm going to be walking a tightrope," Sanders told POLITICO. "I want to work with Republicans on issues where we can make progress. In other areas, they're not going to support me. And I'm not gonna give up on those issues."

HOUSE GOP IN SUSPENDED ANIMATION: Kevin McCarthy 's struggles to secure the votes to become House speaker next year is holding up other matters — including contested committee leadership races, our Olivia Beavers, Jordain Carney and Sarah Ferris report.

"The decision to formally punt comes as little surprise to many lawmakers, who had speculated that McCarthy might delay contested fights as a point of leverage as he works to lock down support. Still, many Republicans say they're concerned that limbo could have lingering effects — particularly if the speaker's election gets ugly and drags on past Jan. 3."

More hill news: "Top Republicans try to tank new ESG rule," from Axios.

 

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Around the Agencies

OSHA RAPS AMAZON: Amazon failed to properly document and log workplace injuries at several of its warehouses, the Occupational Safety and Health Administration said Friday.

OSHA said it found more than a dozen record-keeping violations as part of an ongoing probe of Amazon's safety practices across six facilities, your host reports.

Investigators found that Amazon was misclassifying injuries, not recording them in a timely fashion or not documenting them in the first place. Amazon faces just over $29,000 in proposed fines for the violations.

NOT SO SECURE: Social Security could be insolvent in a decade, according to a Congressional Budget Office analysis of its financial projections.

"CBO projects that if Social Security outlays were limited to what is payable from annual revenues after the trust funds' exhaustion in 2033, Social Security benefits would be about 23 percent smaller than scheduled benefits in 2034."

In the Workplace

CHILD LABOR AT ALABAMA AUTO PLANTS: Minor workers in Alabama were employed in several parts suppliers used by carmakers Kia and Hyundai, Reuters reports.

"The shortage of labor across manufacturing, and the low pay offered by some plants and agents for factory jobs, often attract job candidates most pressed for work — particularly undocumented migrants and minors."

Two of the car-part manufacturers implicated told Reuters that "to the best of our knowledge" they don't employ children.

PUTTING FRED THE BAKER OUT OF WORK: Krispy Kreme is preparing to automate its production process as the company is looking to improve its financial footing, The Wall Street Journal reports.

"Krispy Kreme has begun testing new technology in its shops that would cut back on repetitive labor, and expects to automate about 18% of its total doughnut production over the next 18 months … The company expects the investment, which has so far cost $6 million, to produce $2 million in annual savings."

More workplace news: "Squeezed by Temp Nurse Costs, Hospital Systems Create Their Own Staffing Agencies," from Kaiser Health News.

 

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Unions

RAIL UNION LEADERSHIP SHAKEUP: The head of the second-largest rail labor union said Friday he would retire rather than continue running against a challenger who edged him out in the initial vote.

Eddie Hall received about 500 more votes than Dennis Pierce — who has served as president of the Brotherhood of Locomotive Engineers and Trainmen since 2010 — a result that reflects the wellspring of dissatisfaction among the union's rank-and-file members over the recently concluded contract situation.

There were allegations that internal election rules were violated during the campaign, and a union committee opened the door for a rerun. But Pierce said doing so would risk "further division" and opted to step aside.

"The membership must stand united in the fight against the rail carriers, and stop blaming their union and its officers for the actions of those carriers," Pierce said in a statement announcing his decision.

More union news: "Former union officials admit bribery charges," from The Chief.

IN THE STATES

MICHIGAN PAUSES UI COLLECTION: Michigan's unemployment insurance office is suspending its effort to collect overpayments tied to pandemic-related claims, the Detroit News reports.

The decision is partially tied to a legal order shielding individuals with pending appeals from collections, but the state's new policy extends beyond that group.

"It's unclear how many individuals the pause will affect, but the agency hopes to have preliminary data on the number of individuals impacted after the collection activity has stopped."

More state news: "Vanguard spared ESG grilling in Texas after ditching green alliance," from the Financial Times.

 

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Immigration

BIDEN'S BORDER WOES RETURN: The coming end of Title 42 has the Biden administration racing to try to prepare for an expected deluge of migrants seeking to enter the country, our Myah Ward reports.

"The major policy shift coming next week is anticipated to inundate a southern border already heavily strained by irregular migration and an overwhelmed asylum processing system — setting up the Biden administration for a pre-Christmas border crisis."

Related: "Court denies GOP states' effort to continue Title 42 border expulsions pending appeal," from ABC News.

More immigration news: "Another Sign of Hard Times in Local News: A Declined Visa," from The New York Times.

A message from DoorDash:

Opportunity and Flexibility: That's what DoorDash delivers. Our mission to empower local economies means we provide merchants with the tools to expand their businesses, Dashers with the access to earn income when, where, and how they choose; and consumers with the best in their neighborhood at the tap of a button.

 
What We're Reading

— "Biden wants 'green' economy, but talks fail to revive key aluminum plant," from The Washington Post.

 "Why Companies Do Layoffs Around Christmas," from The Wall Street Journal.

— "Transgender worker denied coverage alleges discrimination," from The Associated Press.

— "She Testified to Congress About Being Sexually Assaulted. Now She's Being Sued," from POLITICO Magazine.

— "Stop Complaining about the 'Gerontocracy.' Older People Are More Vital Than Ever," from Esquire.

THAT'S ALL FOR WEEKLY SHIFT!

 

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Nick Niedzwiadek @nickniedz

 

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