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Delivered every Monday by 10 a.m., Weekly Shift examines the latest news in employment, labor and immigration politics and policy. | | | | |  | | By Eleanor Mueller and Nick Niedzwiadek | With help from Shayna Greene and Ximena Bustillo
| | | HANDS TIED: At first glance, it would seem the U.S.’ primary agency responsible for workers — the Labor Department — would have at least some control over rising prices, which are disparately impacting lower-income employees. And indeed, DOL is doing what it can: Labor Secretary Marty Walsh told Eleanor last month that he sees the role of his department as smoothing out supply chain snags — such as trucker shortages and shipping bottlenecks at major ports — to make sure those can’t continue to exacerbate the inflation. “We’re trying to do two things,” Walsh said. “One is to get the ships into shore … to get more goods and services here,” including by creating a pilot program to train more truck drivers. “Second thing is the president’s push to build America,” he said, pointing to recent efforts to ramp up domestic manufacturing of computer chips and solar panels. “We have to start building more here to be less reliant.” But the fact remains that the agency — along with the rest of the executive branch — is pretty much along for the ride when it comes to increased costs that are squeezing consumers and businesses alike. “That’s the frustrating thing,” Curtis DuBay, senior economist at the U.S. Chamber of Commerce, told Eleanor. “If you’re a policymaker on that side, there’s not that much they can do at this point.” DuBay and others say the Federal Reserve and, to a lesser degree, Congress hold most of the control over inflation. DOL and other departments don’t have many ways of directly countering the trend, despite how much it overlaps with their policy areas. “DOL, we do have some say in it,” Walsh said. “But this is an all-of-government approach. … We’re all at the table working on this issue.” DOL-led efforts to improve workforce development and boost employment “take time,” Nick Bunker, an economist at Indeed, told Eleanor. “That’s not the sort of thing that is going to have an immediate impact on inflation.” “The sort of [policies] that potentially could have an immediate impact on growth and prices, for the most part, has been delegated to the Federal Reserve,” Bunker said. “The way the system is currently set up is that it’s on the Fed to figure this out.” Moody’s Analytics’ Mark Zandi was more blunt: “There’s no lever that the Labor Department can pull that’s gonna make a big difference here.” Rachel Greszler, an economist at the Heritage Foundation, pointed out that one of former President Jimmy Carter’s solutions to inflation in the 1970s was to direct agencies to “get rid of unnecessary regulations.” But that’s unlikely to happen within a Biden administration. For example, efforts to regulate gig work are “problematic both for the employers that need to hire those workers and also for those individuals,” Greszler said. “Really everything that needs to be done is in the opposite direction.” GOOD MORNING. It’s Wednesday, Feb. 23. Welcome back to Morning Shift, your go-to tipsheet on employment and immigration news. 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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| | | HOW UKRAINE COULD AFFECT THE ECONOMY: A Russian invasion of Ukraine could cause food and energy prices to spike, inflation fears to grow and investors to spook, The New York Times’ Patricia Cohen and Jack Ewing report. It’s “a combination that threatens investment and growth in economies around the world,” they explain. But “however harsh the effects, the immediate impact will be nowhere near as devastating as the sudden economic shutdowns first caused by the coronavirus in 2020. Russia is a transcontinental behemoth with 146 million people and a huge nuclear arsenal, as well as a key supplier of the oil, gas and raw materials that keep the world’s factories running. But unlike China, which is a manufacturing powerhouse and intimately woven into intricate supply chains, Russia is a minor player in the global economy.”
| | | FIRST IN SHIFT: Republican Reps. Virginia Foxx (N.C.) and Rick Allen (Ga.) are demanding that Walsh answer questions about his level of involvement in several recent labor disputes and possible conflicts of interest. In a letter being sent today, the pair hammers Walsh for his October picket-line meeting with striking Kellogg’s workers in Lancaster, Pa., and raises concern regarding the secretary’s stated interest in facilitating negotiations between unions and employers. “Your participation clearly demonstrated a one-sided view of labor-management relations, harmed the integrity of your office, and called into question the neutrality of the Department of Labor by inappropriately inserting the federal government on one side of a labor dispute.” The letter is a follow-up to one Republicans sent in November , which they said DOL has so far ignored. They again asked for responses to the questions they raised months ago, as well as for Walsh to detail any requests he has received “seeking your participation in strikes or other labor-management activity” as secretary. MORE HILL NEWS: “A Key to Returning to Normal Is Paid Sick Leave, Democrats Say,” from The New York Times
| | | TRUMP-ERA INDEPENDENT CONTRACTOR TEST OFTEN WORKED FOR EMPLOYEES: The NLRB test in place since 2019 to determine whether workers are considered employees or independent contractors has broken in favor of employees with more regularity than a prior standard used under the Obama administration. In 11 instances in which the legal test laid out in the SuperShuttle DFW case was applied, workers were deemed employees protected by federal labor law in all but one case, Bloomberg Law’s Robert Iafolla reports. “The single contractor finding came in SuperShuttle itself,” Bloomberg noted. By contrast the previous test used for several years “resulted in 17 rulings that workers were employees and seven that they were independent contractors.” The findings are somewhat surprising: At the time, the SuperShuttle test was viewed as a more business-friendly policy that gave employers more latitude to label workers as independent contractors than the 2014 FedEx Home Delivery standard. In December, the NLRB announced its plan to revisit the classification standard.
| | | INFLATION HITTING LOWEST EARNERS THE HARDEST: Wage increases in 2021 were not enough to offset the erosive effect of inflation for those making less than $20,000, according to an analysis Tuesday by the Penn Wharton Budget Model. Though workers at the bottom-half of the income distribution saw stronger wage growth than higher-paid ones, many of these same households were the ones who saw the steepest cost-of-living increases — eclipsing those pay gains. The authors estimate that for households making less than $20,000, income increases equated to only one-third of their cost-of-living spike. Those competing forces largely offset one another for workers making between $20,000 and $100,000 — and those making more than that fared even better, according to the analysis. RURAL HOSPITALS AVOID WORST-CASE SCENARIO: Rural hospital officials have lost only a fraction of their staff to the federal immunization requirement, our Megan Messerly reports. The mandate required that “health care workers in every state except Texas received at least one shot of the vaccine by last week,” and some lawmakers and industry officials warned it would cause a mass exodus from the workforce. Still, staffing strains persist: Hospitals across the country are still facing staff shortages, “the result of longstanding recruitment and retention challenges exacerbated by pandemic-era burnout.” USWNT SCORES A WIN FOR EQUAL PAY: U.S. Soccer and the women’s national team came to a long-sought agreement resulting in $24 million for the athletes and a promise to equalize pay for the men’s and women’s national teams. Big picture: Members of the women’s soccer team have been pushing for equitable treatment for six years, The New York Times’ Andrew Das reports. They received support from fellow athletes, celebrities and politicians — and inspired players in other sports to demand better pay and working conditions. The agreement: The women involved include a group of several-dozen current and former players. Under the agreement, they’ll share $24 million in payments from U.S. Soccer — the majority of which is back pay, highlighting the years of unequal compensation between the men’s and women’s teams. The other major part of the agreement was “U.S. Soccer’s pledge to equalize pay between the men’s and women’s national teams in all competitions, including the World Cup, in the teams’ next collective bargaining agreements.” RELATED: “ The USWNT vs. U.S. Soccer: An Equal Pay Timeline,” from The New York Times.
| | | COUNT ‘EM: There were 140,000 U.S. workers involved in 265 strikes in 2021, according to a new report from Cornell’s School of Industrial and Labor Relations. Although the scope of activity that workers are organizing around seems to be expanding, fewer workers went on strike last year than in 2018 or 2019, project lead John Kallas said. “This speaks to the obstacles and challenges facing workers who decide to strike,” he said. “Strikes and union organizing can often be contagious, though, and whether this translates into more sustainable gains for the labor movement remains a question.” But a noticeable uptick in strikes and workers on strike occurred in October and November, the report found. It’s also important to note that more than 100,000 workers threatened to strike in October and November before reaching agreements, Kallas said: “This speaks to the importance of strike threats, which we do not include in our data, as an important bargaining tool for workers.” UNION ALLEGES UNFAIR LABOR PRACTICES IN AMAZON RE-DO: The Retail, Wholesale and Department Store Union filed unfair labor practice charges against Amazon on Tuesday in its second bid to represent workers at an Alabama facility. The union alleges that Amazon removed pro-union literature from non-work areas; created a new rule that limits workers’ time in the facility before and after their shift to 30 minutes; and forced workers to attend anti-union meetings. “All of these actions expose Amazon’s undisguised efforts to stifle workers’ voices and its contempt for their rights to join together,” Wilma Liebman, a former NLRB chair, said in a statement. “While we haven’t seen today’s filing yet, we’re confident that our teams have fully complied with the law,” Kelly Nantel, an Amazon spokesperson, said. “Our focus remains on working directly with our team to make Amazon a great place to work.” THE ART OF ORGANIZING: Workers at almost two-dozen art museums have created collective bargaining units in the past few years in a push for better pay and working conditions. Though the national union membership rate is near historic lows, many workers who have recently joined unions come from white-collar offices including “the curatorial, administrative and education staffs,” The New York Times’ Zachary Small reports. Organizers say these workers are increasingly frustrated over pay disparities between museum employees and executives, along with job security concerns exasperated by pandemic layoffs. Despite challenges facing workers seeking to organize , “many museum employees who have hitched their futures to collective organizing say they are optimistic that unions will protect them in an uncertain world.” STARBUCKS FAILS TO DELAY UNION ELECTIONS: Starbucks’ legal team faced a setback when a Microsoft Outlook glitch prevented the submission of certain paperwork to the NLRB and the union by the deadline of Feb 11 at noon. Background: As more Starbucks employees seek to organize, the coffee chain has called upon a massive legal team to delay union elections, HuffPost’s Dave Jamieson reports. Starbucks has argued that all the stores in a region should be grouped into one big vote, as opposed to elections being held for each individual store. Photo finish: Though the company was able to send their statement of position to the NLRB and union just eight minutes late, an official with the labor board agreed with the union that Starbucks blew the deadline. Looking ahead: Starbucks can appeal the order from the regional NLRB director by asking the D.C. labor board to review the decision. MORE UNION NEWS: “Some U.S. Apple Store employees are working to unionize, part of a growing worker backlash,” from The Washington Post.
| | | BIDEN UNVEILS NEW PUBLIC CHARGE RULE: The Homeland Security Department is expected to formally publish its proposal to amend the federal “public charge” rules, in its latest effort to unwind the Trump-era policy that discouraged many immigrants from accessing crucial safety-net programs. How we got here: Early last year, Biden issued an executive order to effectively eliminate the public charge rule, which called for agencies to take into account green card applicants’ use of government assistance programs, including nutrition and medical assistance. Migrants using the programs would be deemed a “public charge” — a potential mark against them as officers weighed their application — which had a chilling effect on participation. Recent surveys found that even though Biden reversed the Trump-era rule, many migrants still abstained from applying for assistance last year. Covid concerns: For example, farmworker advocates argued that the Trump administration’s public charge rule was among the barriers to educating workers in the food and ag sectors about Covid-19 vaccines, testing and treatment. Workers reportedly were fearful that accessing Covid resources would eventually be labeled as a public charge. Fast forward: The new DHS rule unveiled last week is similar to what was used prior to the 2019 revision. Receiving benefits such as the Supplemental Nutrition Assistance Program, housing aid or transportation vouchers would not count against green card applicants. Migrant worker advocates are largely on board with the Biden administration’s moves, though some say the new plan doesn’t go far enough. “The proposal falls short, in failing to clearly exclude all state and local programs from public charge determinations. We look forward to working with the administration to strengthen protections for families,” said Adriana Cadena, director of Protecting Immigrant Families, in a statement.
| | | | STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president’s ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today. | | | | | | | | — “SCOTUS seeks government’s take on workers’ medical weed reimbursements,” from Reuters. — “Singapore to Raise Pay Criteria for Expats in Local Jobs Push,” from Bloomberg. — “ Restaurant work has become more stressful than ever. Could a staff therapist help?” from NPR. — “Idaho governor signs unemployment tax cut into law,” from The Associated Press. — “ The Secret to Getting a Better Job After 50,” from The Wall Street Journal. — “Who Will Win the Great Return-to-the-Office Face-Off?” from Bloomberg. — “ Risking Their Lives, for Little Pay, to Guard India’s Forests,” from The New York Times. — “Texas oil refinery workers ratify Exxon labor contract offer,” from Reuters. — “Will Activision Blizzard workers unionize? Microsoft’s deal complicates things,” from NPR. — “Why the D.C. Police Is Using an NYC Subway Ad to Recruit Gamers, Influencers,” from Bloomberg. — “ Thanks to Remote Work, Many in Gen Z May Never Work in an Office. Will It Matter?” from The Wall Street Journal. — “Maine senators want more seasonal worker visas ,” from The Associated Press. — “How to Get Hired If You’re an Older Worker,” from Bloomberg. — “ Pandemic’s Economic Impact Is Easing, but Aftershocks May Linger,” from The New York Times. — “ISS supports Apple shareholder proposal on forced labor,” from Reuters. — “Google Reaches Undisclosed Settlement in Discrimination Suit,” from Bloomberg. — “Employers may have a trove of data on job candidates. Here’s how workers can control the narrative,” from The Washington Post. — “ M.L.B.’s Negotiations Hit the Road as Lockout Continues,” from The New York Times. — “Major strike at Paris metro disrupts daily commute for millions,” from Reuters. — “ For White-Collar Workers, It’s Prime Time to Get a Big Raise,” from The Wall Street Journal. — “ World Bank unit is financing Chinese companies that appear to employ forced laborers, report says,” from The Washington Post. — “Blockchain.com Is Leasing a Miami Office for Its Crypto Workers,” from Bloomberg. — “Key union vote in Mexico border city moved to Feb. 28,” from Reuters. THAT’S ALL FOR MORNING SHIFT! | | | | Follow us on Twitter | | | | Follow us | | | | |  |
