Tag Archives: labor laws

Uber likely to shut down in California for over a year if new ruling not overturned

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From today’s NBC News Online:

In new court filings Wednesday, a top Uber official said the company would “almost certainly need to shut down” ride services in California for “likely more than a year” if a judge’s groundbreaking ruling issued this week is upheld on appeal.

In a new four-page declaration, Brad Rosenthal, Uber’s director of strategic operational initiatives, said that if the company has to reclassify the bulk of its workforce as employees rather than contractors, it will “force Uber to dramatically restructure its entire business model and its relationships with drivers and riders.”

In a call with investors Wednesday, Lyft CEO John Zimmer said the company would likely also suspend operations in the state for similar reasons.

Earlier Wednesday, Uber CEO Dara Khosrowshahi said the company would halt service in its home state of California for a few months if a judge’s groundbreaking ruling this week is upheld on appeal.

“We will have to shut down until November,” Khosrowshahi told MSNBC’s Stephanie Ruhle in an interview.

On Monday, Judge Ethan Schulman of the San Francisco County Superior Court found that there was an “overwhelming likelihood” that both Uber and Lyft had misclassified drivers as contractors rather than employees. Drivers make up the bulk of those companies’ labor forces.

The ruling was the latest twist in a lawsuit brought against the companies in May by the state’s attorney general. Schulman put a hold on enforcement of his ruling for 10 days pending appeal.

In the new filings, both companies asked the judge to at least extend this hold period beyond 10 days while they begin the appeals process. Schulman is set to hold a hearing on this issue Thursday.

Read the complete article here.

Mnuchin says plan for unemployment extension will be based on 70% wage replacement

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From today’s CNBC News Online:

The Republican coronavirus relief plan will extend enhanced unemployment insurance “based on approximately 70% wage replacement,” Treasury Secretary Steven Mnuchin said Thursday. 

The Treasury secretary also said a payroll tax holiday, which President Donald Trump has repeatedly pushed for, “won’t be in the base bill.” The president appeared to concede defeat on the issue in a tweet Thursday and blamed Democrats for sinking the proposal (though many Republicans on Capitol Hill also oppose a payroll tax cut). 

Mnuchin spoke to CNBC about the state of negotiations hours after Senate Republicans and the Trump administration said they reached a tentative deal on legislation they say will serve as a starting point in talks with Democrats. Congress faces pressure to pass an aid package, as Covid-19 case and death counts rise around the country and the critical extra $600 per week unemployment benefit expires at the end of the month. 

But Republican plans to release their plan as soon as Thursday appeared to hit a snag as they tried to craft legislative text, further adding to doubts about Congress’ ability to provide immediate relief. Democrats hammered the GOP for a lack of urgency for a second straight day, and rejected the possibility of breaking a coronavirus package into more than one bill if lawmakers cannot reach a broad agreement in July. 

“This is a package. We cannot piecemeal this,” House Speaker Nancy Pelosi, D-Calif., told reporters at a news conference with Senate Minority Leader Chuck Schumer, D-N.Y. He added that “we’re not going to take care of one portion of suffering people and leave everyone else hanging.”

It is unclear how Republicans would structure the plan to provide 70% wage replacement. Lawmakers chose the $600 per week sum in the March rescue package because they decided outdated state unemployment systems could not handle processing payouts for 100% of a worker’s previous wages. 

Read the complete article here.

Congress passes bill to ease bids by workers to form unions

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From today’s Minneapolis Star Tribune:

In a move that supporters said would help working families, the Democratic-controlled House has approved a bill that would make it easier for workers to form unions and bargain for higher wages, better benefits and improved working conditions.

The “Protecting the Right to Organize” or PRO Act would allow more workers to conduct organizing campaigns and would add penalties for companies that violate workers’ rights. The act would also weaken “right-to-work” laws that allow employees in more than half the states to avoid participating in or paying dues to unions that represent workers at their places of employment.

In one of its most controversial provisions, the bill would close loopholes that allow what supporters call intentional misclassification of workers as supervisors and independent contractors in order to prevent them from joining a union.

The House approved the bill, 224-194, on Thursday. The measure is unlikely to be taken up in the Republican-controlled Senate and faces a veto threat from the White House.

Even so, Democrats touted it as a major victory for worker rights and said it would help reverse a decades-long trend of declining union membership in the U.S. workforce. Less than 11% of American workers belong to a union, a statistic Democrats called disgraceful.

“Without these protections, the playing field will remain heavily stacked against workers,” said Rep. Mark Pocan, D-Wis.

The bill’s sponsor, Rep. Bobby Scott, D-Va., called labor unions one of the most powerful tools workers have to improve their standard of living. But under current law, there are “no meaningful penalties for predatory corporations that use unlawful tactics to discourage workers from organizing a union,” said Scott, who chairs the House Education & Labor Committee.

Read the complete article here.

NLRB HAS ‘SYSTEMATICALLY’ DAMAGED WORKER RIGHTS ON BEHALF OF LOBBYISTS, REPORT SAYS

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From today‘s Newsweek:

President Donald Trump’s National Labor Relations Board has catered to the requests of a prominent business lobbying group and “systematically” eroded workers’ rights, according to a report from the Economic Policy Institute released Wednesday.

The report says that the labor board, which is supposed to protect the interests of workers, has “elevated corporate interests above those of working men and women and have routinely betrayed the statute they are responsible for administering and enforcing.”

Trump has depicted himself as a champion of blue-collar workers. He regularly touts the monthly jobs report and the unemployment rate, which is currently at a half-century low. He promoted his 2017 bill to overhaul the tax code as a victory for workers, though an April report from the Center for Public Integrity noted corporations benefitted far more than workers did.

But the president has pushed policies that critics say contradict his claims of supporting worker right, including rebukes for efforts to cut the power of unions. Past reports from journalists and left-leaning think tanks have also challenged Trump’s self-depiction as a champion of the laboring class. The Center for American Progress wrote in August that Trump had enabled wage theft, empowered employer discrimination and threatened worker safety, and in 2018, detailed how his policies were “hurting American workers.”

EPI’s report further challenges Trump’s claims as a workers’ advocate by closely examining the functioning of the NLRB, which is comprised of three Trump appointees, one Democrat holdover and a Trump-appointed General Counsel. The report says that, during Trump’s time in office, the board has worked to undermine the intended duties of the agency.

Read the complete article here.

Yes, America Is Rigged Against Workers

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From today’s New York Times:

The United States is the only advanced industrial nation that doesn’t have national laws guaranteeing paid maternity leave. It is also the only advanced economy that doesn’t guarantee workers any vacation, paid or unpaid, and the only highly developedcountry (other than South Korea) that doesn’t guarantee paid sick days. In contrast, the European Union’s 28 nations guarantee workers at least four weeks’ paid vacation.

Among the three dozen industrial countries in the Organization for Economic Cooperation and Development, the United States has the lowest minimum wage as a percentage of the median wage — just 34 percent of the typical wage, compared with 62 percent in France and 54 percent in Britain. It also has the second-highest percentage of low-wage workers among that group, exceeded only by Latvia.

All this means the United States suffers from what I call “anti-worker exceptionalism.”

Academics debate why American workers are in many ways worse off than their counterparts elsewhere, but there is overriding agreement on one reason: Labor unions are weaker in the United States than in other industrial nations. Just one in 16 private-sector American workers is in a union, largely because corporations are so adept and aggressive at beating back unionization. In no other industrial nation do corporations fight so hard to keep out unions.

The consequences are enormous, not only for wages and income inequality, but also for our politics and policymaking and for the many Americans who are mistreated at work.

Read the complete article here.

Why does Congress allow contractors to exploit immigrants in detention?

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From today’s New York Times:

There are more than 48,000 people being held in immigrant detentionin more than 200 facilities in the United States. More than two-thirds of them, according to the National Immigrant Justice Center, are confined by private companies, working on contracts with the federal government. Those numbers have ballooned in the last two years under the Trump administration, drawing new attention to the terrible conditions detainees are living in.

One feature of privately run centers — the Voluntary Work Program — is the subject of six separate lawsuits, which say that privately run immigrant detention centers are coercing detainees into working for a dollar a day and punishing those who don’t. The lawsuits demand, among other things, that the practice stop and that detained workers be paid minimum wage.

Congress should not wait for these lawsuits to be decided. Democrats have won the House, so even if they can’t stop the president’s anti-immigrant push, they can push to raise the obsolete and exploitative $1-a-day wage. And, just as they have rejected Mr. Trump’s request for $5.7 billion for the border wall, they should reject the request for $2.8 billion to expand detentions to 52,000 beds.

Prison labor is nearly as old as the American prison system itself, and it is protected by the 13th Amendment, which abolished slavery and indentured servitude except as punishment for a crime. This exception means that prisons can require their prisoners to work, even without compensation.

Read the complete article here.

SCOTUS Upholds Workplace Arbitration Contracts Barring Class Actions

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From today’s New York Times:

 The Supreme Court on Monday ruled that companies can use arbitration clauses in employment contracts to prohibit workers from banding together to take legal action over workplace issues.

The vote was 5 to 4, with the court’s more conservative justices in the majority. The court’s decision could affect some 25 million employment contracts.

Writing for the majority, Justice Neil M. Gorsuch said the court’s conclusion was dictated by a federal law favoring arbitration and the court’s precedents. If workers were allowed to band together to press their claims, he wrote, “the virtues Congress originally saw in arbitration, its speed and simplicity and inexpensiveness, would be shorn away and arbitration would wind up looking like the litigation it was meant to displace.”

Justice Ruth Bader Ginsburg read her dissent from the bench, a sign of profound disagreement. In her written dissent, she called the majority opinion “egregiously wrong.” In her oral statement, she said the upshot of the decision “will be huge under-enforcement of federal and state statutes designed to advance the well being of vulnerable workers.”

Justice Ginsburg called on Congress to address the matter.

Brian T. Fitzpatrick, a law professor at Vanderbilt University who studies arbitrations and class actions, said the ruling was unsurprising in light of earlier Supreme Court decisions. Justice Gorsuch, he added, “appears to have put his cards on the table as firmly in favor of allowing class actions to be stamped out through arbitration agreements.”

As a result, Professor Fitzpatrick said “it is only a matter of time until the most powerful device to hold corporations accountable for their misdeeds is lost altogether.”

But Gregory F. Jacob, a lawyer with O’Melveny & Myers in Washington, said the decision would have a limited impact, as many employers already use the contested arbitration clauses. “This decision thus will not see a huge increase in the use of such provisions,” he said, “but it does protect employers’ settled expectations and avoids placing our nation’s job providers under the threat of additional burdensome litigation drain.”

Read the complete article here.

In Sweltering South, Climate Change Is Now a Workplace Hazard

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From today’s New York Times by Yamiche Alcindor

GALVESTON, Tex. — Adolfo Guerra, a landscaper in this port city on the Gulf of Mexico, remembers panicking as his co-worker vomited and convulsed after hours of mowing lawns in stifling heat. Other workers rushed to cover him with ice, and the man recovered.

But for Mr. Guerra, 24, who spends nine hours a day six days a week doing yard work, the episode was a reminder of the dangers that exist for outdoor workers as the planet warms.

“I think about the climate every day,” Mr. Guerra said, “because every day we work, and every day it feels like it’s getting hotter.”

For many working class people, President Trump’s promise to make America great again conjured images of revived factories and resurgent industries, fueled by coal and other cheap fossil fuels. Such workers gave more of their votes to Mr. Trump than they did four years before to Mitt Romney, helping him eke out victory in November with narrow wins across the Rust Belt. Latino votes fell off for Democrats as well,from the 71 percent that went to Barack Obama in 2012 to the 66 percent that went for Hillary Clinton last year.

But to Robert D. Bullard, a professor at Texas Southern University who some call the “father of environmental justice,” the industrial revival that Mr. Trump has promised could come with some serious downsides for an already warming planet. Professor Bullard is trying to bring that message to working-class Americans like Mr. Guerra, and to environmental organizations that have, in his mind, been more focused on struggling animals than poor humans, who have been disproportionately harmed by increasing temperatures, worsening storms and rising sea levels.

Read the entire article here.

New Rules for Part-Time Work?

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From the July 23, 2014 NYT “Room for Debate”:

Part-time jobs often come with fluctuating, on-call schedules and – because of the uncertain hours – inconsistent pay. This can make it hard for workers to schedule weekly routines, childcare or other means of employment for themselves.

Legislation in the House, proposed this week, would ensure employees get two weeks notice about their work schedules, as well as extra pay to compensate for last minute changes.

Should there be a law limiting unpredictable schedules for hourly and part-time workers?

Read the different perspectives of this debate here.