Posts tagged gig economy
Op-Ed: Labor Department stuck in 1930s with rule against independent contractors
January 23, 2024 // With a national rule, however, few of those escape options are possible. Freelancers are unlikely to flee the country, and there is no such thing as a national ballot measure. The department has only just finalized the rule, so revisions are unlikely unless there is a change in control of the executive or legislature this November. Independent contractors face an extremely uncertain future. The reason why the rule is likely to be such a problem is because it is based on a vision of what the workplace should look like from a century ago, when large corporations dominated. Large corporations made sense when it was harder to be nimble as a business. Nobel Prize winner Ronald Coase explained the reason we have corporations at all is because of the presence of what are called transaction costs. If I have a business idea that requires the services of someone else, I face those costs. If the business idea requires someone with advanced mathematical calculation skills I don’t have, I can either contract with someone who has those skills to do the work every time I need it, or I can hire them as an employee instead and have them always available.
Commentary: Kevin Kiley: American Dream in danger
January 22, 2024 // AB 5 offers a warning to the nation. It is one reason California has ranked first or second in the country when it comes to unemployment and poverty, and last in the country in wage growth. Congress must reject the nationalization of AB 5 and protect the diverse range of work arrangements that contribute to the American economy. We must oppose the ongoing attacks on worker freedom and ensure that worker preferences and autonomy are accounted for in all policy decisions. More than ever, we must support the right of enterprising Americans to pursue their calling as they see fit. To that end, I am introducing legislation to nullify Biden’s Independent Contractor rule, and urge all Members of Congress to support it.
Opinion: Biden adds to his ‘Bidenomics’ flop: This new rule throws wrench in popular gig economy.
January 22, 2024 // Biden promised to be the “most pro-union president you’ve ever seen,” so he needs to reward all those campaign donations. And Biden’s doing it regardless of the impact on the economy. Independent contractors cannot be unionized, so the more companies lean on these workers, the less ability unions have to organize. It’s really that simple. The Biden administration is trying to sell its new rule as a way to protect workers and make it easier for them to qualify for benefits such as overtime pay and paid time off.
Across the Midwest, unions are breaking through in a way they haven’t in decades
December 20, 2023 // Union members and labor experts agree that a collective sense of job insecurity and frustration over wages and working conditions are driving activity in the region.
From Hollywood to auto work, organized labor is flexing its muscles. Where do unions stand today?
November 9, 2023 // There are also limits for organizers under current labor law. That means that what worked in auto workers' labor campaign, for example, may not look the same or be possible in other industries. Larger, more established unions typically have more bargaining power — and that's reflected in new contract wins seen today. “We have a labor law that was designed in the era in the 30s and 40s, when auto plants of 10,000 workers (were organizing)," he said. Starbucks is “split into these small coffee shops of 15 workers. ... They need to join together to have any kind of bargaining power against a big employer. But our labor law isn’t structured to help them do that,” Colvin said. Service jobs can also be hard to organize due to part-time work and high turnover rates. The same can be said for Amazon warehouses, where there have been pushes for unions.
Unions’ power ebbs and flows
November 6, 2023 // Unionization efforts have expanded but many are taking place where there is little history of organized labor, creating a higher bar for workers. Colvin points to Starbucks workers who have seen union drives clipped in the last year. Starbucks has been accused of chilling organization by closing unionized stores and firing pro-union workers. There are also limits for organizers under current labor law. That means that what worked in the auto workers' labor campaign, for example, may not be possible for other industries.
Will Biden Labor Nominee Julie Su Suffocate the Gig Economy?
October 13, 2023 // Su, and other progressives like Federal Trade Commissioner Lina Khan, want to force a 20th century model of a heavily regulated and controlled labor market on the 21st century gig economy. They also want to impose 20th century style trade unionism, replete with mandatory union dues that (coincidentally I am sure) can in part be used to support progressive candidates and causes in the gig workforce. This is one reason why a bipartisan majority of the Senate is right to oppose Su’s nomination, and why President Biden was wrong to nominate her as Labor Secretary, and certainly wrong to defy the will of the Senate by keeping her as acting Secretary for an indefinite period of time. Biden should pick a new nominee. While no one nominated by Biden will support a free-market labor policy, the nominee should at least understand that massive federal regulations on the labor markets and compulsory unionism are relics that do not fit the economy of the future.
Labor leader Shuler touts union support as possible auto strikes loom
September 1, 2023 // Unions would support President Joe Biden in his reelection campaign next year, Shuler said, praising the president’s work to deliver federal infrastructure spending. Biden campaigned on infrastructure improvements and supported the $1.2 trillion bipartisan infrastructure law Congress passed in 2021. The law supports millions of jobs, she said, not only in construction and transportation but in the service industry as well. Every job created by the federal spending should be a union position, Shuler said.
California’s on the cusp of transforming America’s fast food industry — again
August 16, 2023 // “Because it’s so many stores, and going store to store would be difficult, the path to unionization here is basically through legislation,” said Brandon Dawkins, SEIU 1021 vice president of organizing. “After we get the council together and force the employer to the table, then the unions — we can come in and really sit down and negotiate with the corporations to, number one, create a union and, number two, address issues like safety and wage theft.” A labor council’s purview extends to workplace conditions like predictable scheduling — a longstanding goal for labor — noted California Labor Federation Executive Officer Lorena Gonzalez, a former state lawmaker who carried an earlier version of the bill when she served in the state Assembly. “If you get joint employer liability, it’s more likely McDonald’s would want to talk about a national agreement or strategy because now they’re on the hook for every labor violation,” Gonzalez said. That tactic has angered restaurant operators who have rallied against the legislation. Marisol Sanchez, a second-generation McDonald’s franchise owner, has appeared in advertising opposing the 2023 bill. Sanchez said she believed SEIU was acting on its own political agenda rather than in response to worker demands.
Hotel Workers Strike against Scab Staffing App and Anti-Black Racism
August 2, 2023 // Bradley said he’s been trying to get a permanent hotel job for more than a decade, and suggested that discrimination was the reason he was passed over. “I think I’ve proven myself, and it’s still not enough,” he said. UNITE HERE has negotiated contract language to push hotels to hire Black workers, starting in Local 1 in Chicago in 2006, with similar language in contracts in Boston and Los Angeles. “Often we’re put against each other, right?” said Briceño. “So through all these years that we’ve been bargaining, we take the opportunity to educate our top leaders, folks that come to the negotiation, to understand the need to speak with one voice for the workers and the inclusion of Black workers.”