News: Change is coming to DOL. But how much?

Monday, November 25, 2024

Change is coming to DOL. But how much?

Nov 25, 2024

QUICK FIX

THIS IS HAPPENING: President-elect Donald Trump tapped outgoing Rep. Lori Chavez-DeRemer (R-Ore.) to lead the Labor Department — part of an avalanche of announcements that kept a good chunk of professional Washington glued to their work phones Friday evening.

Chavez-DeRemer, who narrowly lost reelection earlier this month, is an unorthodox choice. She is one of just three House Republicans to embrace the PRO Act — the suite of union-friendly labor reforms that would completely shift the paradigm in worker-management relations if ever enacted — and she was one of eight GOP co-sponsors of a bill that would expand union rights for public-sector workers.

That garnered her endorsements from several unions in Oregon, though not the state AFL-CIO. And Teamsters President Sean O’Brien championed her for the Labor role.

But her coziness with organized labor has rankled some conservatives and business groups, though many are holding their fire so as to not draw Trump’s ire. Others on the right, like Compact Magazine founder Sohrab Ahmari — whose outlet ran an op-ed from O’Brien touting Chavez-DeRemer — cheered her pick as a sign of a new populist path forward for workers.

Chavez-DeRemer’s nomination could also scramble the confirmation calculus, as she may be one of the few Trump Cabinet selections to pick up Democratic votes while having to do some legwork to win over business-friendly Republicans.

Sen. Bill Cassidy (R-La.), who is in line to chair the HELP committee come January, posted on social media that he wants a “better understanding of her support for Democrat legislation in Congress that would strip Louisiana’s ability to be a right to work state, and if that will be her position going forward.”

Expect other Republicans to lean on Chavez-DeRemer to distance herself from some of the provisions in the PRO Act — such as its inclusion of the controversial “ABC” test for independent contractors — and other policies that fall under DOL’s ambit. And it remains to be seen who Trump will eventually appoint to posts at other workplace agencies, like the National Labor Relations Board and Equal Employment Opportunity Commission, and whether they will fit the same mold as Chavez-DeRemer or not.

Nevertheless unions are wary of false hope, given the Trump administration’s overall deregulatory tilt and other top decision makers who are opposed to organized labor.

“We are counting on Rep. Lori Chavez-DeRemer to hold the line for working people and reject attempts by anti-worker extremists in the Trump Administration and Congress to enact Project 2025 and endanger workers’ livelihoods and lives,” the Communications Workers of America said in a statement.

GOOD MORNING. It’s Monday, Nov. 25. Welcome back to Morning Shift, your go-to tipsheet on labor and employment-related immigration. Send feedback, tips and exclusives to nniedzwiadek@politico.com and lukenye@politico.com. Follow us on X at @NickNiedz and @Lawrence_Ukenye.

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AROUND THE AGENCIES

ATTENTION LARRY TURNER: Watchdogs in and outside of the federal government are increasingly worrying that Trump will move to oust dozens of agency inspectors general and install loyalists, our Josh Gerstein and Nahal Toosi report for Pro subscribers.

Some IGs are already on their way out: CIA Inspector General Robin Ashton and Intelligence Community Inspector General Thomas Monheim have said they plan to leave their posts in the coming weeks.

Across the government, there are more than 70 inspectors general tasked with ferreting out waste, fraud and abuse, and investigating alleged misconduct. About 10 of the posts are currently filled by officials installed or confirmed during Trump’s first term. Another 10 are vacant.

More agency news: “Waffle House claims NLRB process is unconstitutional,” from Restaurant Dive.

Even more: “GOP pollster says survey data shows Americans would not support Trump’s efforts to reinstitute Schedule F,” from the Government Executive.

In the Workplace

SPEAKING OF IGs: DOL’s Employee Benefits Security Administration improperly armed a class-action law firm with information being used in a federal lawsuit in Colorado against fiduciaries of an Employee Stock Ownership Program, House Education and the Workforce Chair Virginia Foxx (R-N.C.) alleged.

In a letter dated Thursday, Foxx accused EBSA of colluding with the attorneys to “circumvent” federal discovery rules “by conducting a fishing expedition under the guise of an EBSA investigation and then supplying confidential information to plaintiffs’ attorneys for use in private litigation against plan fiduciaries.” The letter, which was addressed to DOL IG Larry Turner, asked him to open an investigation.

At issue is DOL’s use of a so-called “common interest agreement” with the firm, Cohen Milstein Sellers and Toll, which has drawn criticism from the judge overseeing the case.

“Common interest agreements are a well-established legal tool that recognize existing legal privileges,” the Labor Department said in a statement. “They are used by government and private litigants alike.”

The IG’s office acknowledged receiving Foxx’s letter but declined to comment further. Attorneys on both sides of the underlying case did not return requests for comment.

More workplace news: “Strippers, Christmas Gifts and an RV: Workers Push It With Company Cards,” from The Wall Street Journal.

On the Hill

BERNIE’S STICKING AROUND: Senate HELP Chair Bernie Sanders (I-Vt.) said Friday he intends to stay on as ranking member once Republicans take over in January, our Sophie Gardner reports for Pro subscribers.

“In the next Congress, I look forward to serving as the Ranking Member on HELP and continuing to fight for a health care system that guarantees that every American can see a doctor, an education system that is affordable to all, and a country in which all seniors can retire with dignity,” Sanders said in a statement.

Sanders also ruffled feathers by saying he would serve on the Senate Finance committee, eliciting a response from Sen. Chuck Schumer’s office saying that such assignments are not yet finalized.

More Hill news: “Ernst to head new Senate DOGE Caucus,” from our Katherine Tully-McManus.

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Unions

TRACKING THE TRACKS: President Joe Biden last week formed an emergency board to examine an ongoing labor dispute between the NJ Transit system and the Brotherhood of Locomotive Engineers and Trainmen, New Jersey Globe reports.

It is the second board that Biden has convened, following one during the summer that did not ultimately succeed.

The union has been working without an updated contract since 2019.

More union news: “UAW says majority of workers at Ford joint-venture battery plant sign union cards,” from Reuters.

IMMIGRATION

COMING SOON: Meat processors and farm employers are bracing for Trump’s forthcoming immigration crackdown and its implications for their heavily foreign-born workforce, The Wall Street Journal reports.

“Immigration authorities stepping up deportations are likely to increase companies’ reliance on outside staffing firms to fill their facilities, current and former industry executives said. Those actions could also accelerate initiatives inside companies to automate tasks to reduce their reliance on human labor.”

Related: “Immigrants Across U.S. Rush to Prepare for Trump Crackdown,’ from The New York Times.

WHAT WE'RE READING

— “‘Like nothing you've see’: Trump team readies a flurry of executive actions for Day 1,” from NBC News.

— “Sharp elbows and raised voices: Inside Trump’s bumpy transition,” from The Washington Post.

— “Views of DEI have become slightly more negative among U.S. workers,” from Pew Research.

THAT’S YOUR SHIFT!

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