The Trump appointee charged with enforcing federal labor rights is scrambling to head off a court ruling in a case against McDonald’s that could redefine the accountability of companies for the labor practices of their franchisees.
The official, the general counsel of the National Labor Relations Board, has been exploring settlement terms with workers at the center of the board’s complaint against McDonald’s, according to lawyers involved in the case. A judge had halted the trial until Monday to give the agency a chance to do so.
If no settlement is reached and the judge were to rule against the company, the decision could have enormous implications for the franchise business model, affecting millions of workers in the fast-food industry and beyond. Corporations could be required to bargain with unionized workers at disparate franchise locations.
The National Labor Relations Board did not respond to a request for comment. A McDonald’s spokeswoman said that “settlement discussions are a normal part of any litigation process.”
The case was brought during the Obama administration, when the board was under Democratic control. Since President Trump’s election, Republican members have regained a majority, steering the board away from a pro-labor orientation.
In honor of MLK Day, we post a short educational video here with excerpts from Martin Luther King, Jr. and James Baldwin that draw the connection between racial injustice and economic inequality in the United States. Their insights are as true today as they were fifty years ago, showing just how far we’ve come and how far we have to go. If we want peace, we must work for justice in all its forms.
From inside the control room carved into the rock more than half a mile underground, Mika Persson can see the robots on the march, supposedly coming for his job here at the New Boliden mine.
He’s fine with it.
Sweden’s famously generous social welfare system makes this a place not prone to fretting about automation — or much else, for that matter.
Mr. Persson, 35, sits in front of four computer screens, one displaying the loader he steers as it lifts freshly blasted rock containing silver, zinc and lead. If he were down in the mine shaft operating the loader manually, he would be inhaling dust and exhaust fumes. Instead, he reclines in an office chair while using a joystick to control the machine.
He is cognizant that robots are evolving by the day. Boliden is testing self-driving vehicles to replace truck drivers. But Mr. Persson assumes people will always be needed to keep the machines running. He has faith in the Swedish economic model and its protections against the torment of joblessness.
“I’m not really worried,” he says. “There are so many jobs in this mine that even if this job disappears, they will have another one. The company will take care of us.”
In much of the world, people whose livelihoods depend on paychecks are increasingly anxious about a potential wave of unemployment threatened by automation. As the frightening tale goes, globalization forced people in wealthier lands like North America and Europe to compete directly with cheaper laborers in Asia and Latin America, sowing joblessness. Now, the robots are coming to finish off the humans.
The National Labor Relations Board on Thursday overturned a key Obama-era precedent that had given workers significant leverage in challenging companies like fast-food and hotel chains over labor practices.
The ruling changes the standard for holding a company responsible for labor law violations that occur at another company, like a contractor or franchisee, with which it has a relationship.
The doctrine also governs whether such a corporation would have to bargain with workers at a franchise if they unionized, or whether only the owners of the franchise would have to do so.
While most labor law experts expected the labor board, which gained a Republican majority only in late September, to overturn the board’s so-called joint-employer decision from 2015, the speed of the change came as a surprise to many.
“Frankly, it’s shocking,” said Wilma B. Liebman, a former Democratic appointee on the board who once served as its chairwoman.
The board’s 3-to-2 vote, along party lines, restores the pre-2015 standard, which deemed a fast-food corporation a joint employer only if it exercised direct and immediate control over workers at the franchise, and in a way that was not limited.
Employer groups had been agitating to undo the standard that was set under President Barack Obama almost from the moment it was decided, and they applauded the decision on Thursday.
The key question in determining whether a company, like a fast-food corporation, is a joint employer of workers employed by another company, like one of the chain’s franchisees, is the degree of control exercised by the corporation over workers at the franchise. The ruling on Thursday declared that such control must be direct.
Under the Obama-era doctrine, the fast-food corporation could be held liable for labor violations that occurred at the franchise even if the control it exerted was indirect — for example, if it required the franchisee to use software dictating certain scheduling practices — or if it had the right to exercise control over workers that it nonetheless didn’t exercise.
The reversal could have important implications for the ability of workers to win concessions from employers through collective bargaining. In many cases, a contractor or franchisee has such low profit margins that it could not afford to raise wages or improve benefits even if it wanted to.
Bethamy Magrow is grateful that the minimum wage in New York City is rising to $13 at the end of next month. Earning the current minimum of $11 an hour at a Times Square fashion retailer and scheduled to work some weeks for only 19 hours, the 25-year-old sales worker realizes she doesn’t quite clear New York’s poverty line.
It would be nice if her schedule didn’t change so much from week to week, she told me, so she could set up her doctors’ appointments in advance. But at least New York bars retailers from changing the schedule from one day to the next. In any case, jobs she has had at Whole Foods and Pokéworks, a restaurant on Union Square, were no better or worse.
Millions of Americans have similar stories to tell. For all the talk about the “end of retail,” it is one of the largest employers in the country, accounting for about one in eight workers in the private sector. For every miner toiling in the United States, there are almost 25 retail workers. Manufacturing, the apple of President Trump’s eye, doesn’t employ nearly as many.
Typically paying full-time employees less than $33,000 a year, well below the midpoint across the economy, retail jobs have become the work of the lower class, the main source of support for Americans left behind by economic change.
This raises a fairly urgent question: If retail work sets the living standard for so many low-income families, why doesn’t it get more attention?
From today’s Chicago Tribune by Alexia Elejalde-Ruiz:
Jennifer Ruiz holds her patient’s trembling hand as she presses a stethoscope to the frail woman’s chest and belly. She compliments the woman on her recently painted fingernails. She cheerfully asks how she’s feeling, knowing she’ll get no answer from the little curled body in the big hospital bed but for a penetrating stare.
Ruiz, a hospice nurse, finds her work deeply meaningful, in part for reasons that are obvious: “We get to be there for people during some of the most tragic and tough times in their lives,” she said.
But even those who shepherd the dying and their families through the fear, heartbreak and mystery of the end of life can lose sight of a job’s meaning in the stress of the day-to-day, if their employer doesn’t foster it.
“You have to fan that flame,” said Brenda McGarvey, corporate director of program development at Skokie-based Unity Hospice, where Ruiz works. “It’s your responsibility.”
A job’s meaningfulness — a sense that the work has a broader purpose — is consistently and overwhelmingly ranked by employees as one of the most important factors driving job satisfaction. It’s the linchpin of qualities that make for a valuable employee: motivation, job performance and a desire to show up and stay.
Meaningful work needn’t be lofty. People find meaning picking up garbage, installing windows and selling electronics — if they connect with why it matters.
But many Chicago-area employers seem to be missing an opportunity to tap this critical vein.
In a survey conducted by Energage for the Chicago Tribune’s 2017 Top Workplaces magazine, local employees regarded their employers more positively than the national average on nearly all measures, but companies fell significantly short in response to this statement: “My job makes me feel like I am part of something meaningful.” Meaningfulness also was the only measure that did not see any improvement among Chicago-area respondents this year, compared with last.
From yesterday’s New York Times by Christine Owens:
House Republicans on Tuesday took another step in their campaign to cheat workers out of fair pay and workplace rights. On a vote largely along party lines, the House advanced a bill to roll back longstanding “joint employer” protections for workers contracted by big companies like Apple or Alaska Airlines.
For years, when two companies both control the terms and conditions of employment, they are also both considered responsible for workplace violations like wage theft, sexual harassment or safety problems. So if a window washer working for a contractor fell because safety equipment was improperly installed by the company whose building he was cleaning, he could sue both the contractor and the larger company for damages.
But under the bill passed on Tuesday, large corporations that outsource jobs would get virtually full immunity from workplace violations, while the typically smaller, poorly capitalized local businesses that provide the workers would bear all the liability. This could leave these small businesses exposed to bankruptcy, leaving workers in danger of having no remedies at all.
Contracting out work is not necessarily bad; it’s often a smart way for companies to efficiently handle certain tasks, like payroll administration and cleaning work.
But the problem is that many companies also contract out to lower compensation costs and, sometimes, to avoid basic legal responsibilities to workers. Even when such cost-cutting is not the top reason a company outsources, workers usually suffer.
From today’s New York Times “Opinion” by Ginia Bellafante
This past week, Hudson’s Bay, whose story begins 347 years ago in the fur trade, making it the oldest company in North America, announced that it was selling Lord & Taylor’s flagship store, on Fifth Avenue, several years after it had acquired the department store chain through a deal with a private-equity firm.
The buyer would be WeWork, the office rental outfit very much rooted in the virtue-and-shell-game ethos of 21st-century capitalism. The founders Adam Neumann and Miguel McKelvey got together in a building on the Brooklyn waterfront where they both worked — Mr. Neumann as the proprietor of a company called Krawlers that produced padded clothes for babies — and quickly realized that they could make money from all the vacant space they saw around them by simulating the atmosphere of the Silicon Valley workplace, fueling the dreams of young entrepreneurs who always wanted to appear as if they were having fun. Over the summer, seven years into its existence, WeWork reached a $20 billion valuation.
On the face of it, the transformation of a department store — the first in the country to install an elevator — into the headquarters of a start-up is simply a story of the new economy cannibalizing the old. Traditional retail businesses have been in decline for a long time; the cult of shared goods and services enabled by technology is ever ascendant.
The first iteration of Lord & Taylor was a dry goods store on Catherine Street in Lower Manhattan that opened in 1826. The 676,000-square-foot Italianate building in Midtown it eventually occupied in 1914 (a building for which WeWork is now paying $850 million) stood not merely as a monument to turn-of-the-century commerce but also as the grand testament to what the sociologist Thorstein Veblen called the rising culture of “conspicuous leisure.”
Leisure, Veblen wrote, “does not connote indolence or quiescence.’’ What it conveys is the “nonproductive consumption of time,” by which he was not anticipating the 10,000 hours people would fritter away playing Minecraft, but any time spent away from the activity of labor. In their infancy and well into the first 80 years or so of the 20th century, department stores were largely places to pass the hours. When Lord & Taylor opened on Fifth Avenue and 38th Street it featured three dining rooms, a manicure parlor for men and a mechanical horse that could walk, trot or canter. Harry Gordon Selfridge, founder of Selfridges in London, dictated that “a store should be a social center.” To that end he installed an ice rink and shooting range on the roof of his store and exhibited the first plane to fly over the English Channel.
Andrea Gillette lined up the bottles of fruit-flavored cocktails behind the bar. The guy who leans a ladder against the big chalkboard to write out the day’s fresh fish selection had just about wrapped up.
Floors were swept, sliced lemons were crammed into a plastic bin, the trendy garage-door-style windows facing the shaded patio thrown open. Corey Ahrens brewed coffee.
Chip Kasper, the general manager, called out to the weekday crew at Fish City Grill, a bright, modern seafood restaurant at CityLine, a massive, $1.5bndevelopment 20 miles north of downtown Dallas. Anchored by an almost 10,000-worker State Farm campus, CityLine also features a crop of buzzy fast-casual spots, a Whole Foods Market and a salon offering eyelash extension packages for upwards of $300.
It’s one of a handful of projects that have shifted the economic center of gravity of the nation’s fourth largest metro area; as a result, the northern suburbs of Dallas are some of the fastest-growing cities in the country.
“Got nine minutes to pre-shift!”
A little over a year ago, Fish City’s owner was worried this wasn’t going to happen.
In the roughly two decades since Bill Bayne and a partner opened Half Shells – the seed of what would become a chain of 20 restaurants – Bayne said he and his wife, who now own the Fish City company, have made a point to remember the names of workers at every level.
He takes pride in his ability to retain workers in an industry that sees high turnover. Still, as he prepared to open the chain’s outpost at CityLine he encountered an unanticipated hurdle.
He couldn’t find workers.
Bayne recalled sending his longtime kitchen manager, Frankie Argote, to “ride the rails” in search of people who looked like they might be cooks and to restaurants, where he asked managers whether they had employees who might be able to pick up more shifts. Argote recalled coming back and asking his boss, “Do we want to be cooking or serving?” Because he was struggling to find enough people to do both.
“This [location] has been probably the most challenging,” Bayne said.
As major corporate employers have swarmed places such as CityLine and the areas that surround them, a corresponding explosion of restaurants and bars has left business owners such as Bayne tapping into an almost-dry well of talent. Over the last five years, the number of jobs in food services and drinking places in the Dallas-Plano-Irving metropolitan division increased by 30.4%, according to Bureau of Labor Statistics data. That’s almost twice as fast as growth in those jobs nationally, which was 17.9% for the same time period.
But thanks to a range of factors, the fertile job-hunting fields north of Dallas are essentially off limits to many prospective workers.
A noticeable trend has emerged in the last decade: younger men are staying out of the labor force for longer periods of time or altogether. The cause? Economists increasingly focus on the growth of the “gamer” culture: men play more video games than women, and apparently they prefer the leisure of gaming to the frustration of personal growth that comes with gainful employment in the economy.
Past studies have shown an increasing prevalence of younger men to either avoid work or otherwise work intermittently, instead staying home and playing video games all day. This trend has intensified with the development of online gaming, where individuals play other individuals in live action games that happen in real time through various internet game providers.
According to a recent paper published by the economists Erik Hurst, Mark Aguiar, Mark Bils and Kerwin Charles at the Bureau of Economic Research:
By 2015, American men 31 to 55 were working about 163 fewer hours a year than that same age group did in 2000. Men 21 to 30 were working 203 fewer hours a year. One puzzle is why the working hours for young men fell so much more than those of their older counterparts. The gap between the two groups grew by about 40 hours a year, or a full workweek on average.
Although many economists have pointed to other factors including technological innovation, globalization, and the rise of service sector work, the paper argues that a significant percentage of younger men staying away from work can be traced to the rise of the “Gamer Culture.” That raises important questions about the gender gap at work, including the wage gap, but also whether productivity is stifled by a culture of technological fetishism that worships gadgets that enhance leisure activities rather than increase actual productivity on the job.
For a thorough review of the paper and this growing trend, read here.