Posts tagged Joint Employer
‘All-of-government’ approach undermines workers’ free choice
February 15, 2024 // As punishment for the “offense” of simply not being organized by a union, these employers face particular hostility from the supposed arbiter of private-sector labor relations, the National Labor Relations Board. Now packed with pro-union Biden appointees, the Board continues to issue decisions that appear singularly focused on increasing union power without regard to their impact on workers or businesses.
U.S. labor board delays new unionization rule after business groups sue
November 20, 2023 // The U.S. Chamber of Commerce and other business groups — including the American Hotel and Lodging Association, the International Franchise Association and the National Retail Federation — sued the NLRB in federal court in Texas last week to block the rule. They say the rule upends years of precedent and could make companies liable for workers they don’t employ at workplaces they don’t own. But the NLRB says the current rule makes it too easy for companies to avoid their legal responsibility to bargain with workers.
NLRB responds to CEI on government ‘encouraging’ unionization
November 14, 2023 //
Google contractors objected to reading obscene Bard prompts — now they’re unionizing
November 9, 2023 // They first started unionization efforts in June after they were directed to work on the then-unannounced Bard chatbot. As part of their efforts to help train the bot, they were asked to “handle obscene, graphic and offensive prompts,” according to a report from Bloomberg. When one of the contractors filed a complaint with Accenture’s human resources department about the content, Bloomberg reports their work was outsourced to Accenture workers in Manila. Just weeks after the contract actors announced their unionization campaign, dozens of contractors were laid off, leaving only about 40 out of 120 workers with their jobs.
Do we all work for the federal government?
November 6, 2023 // Under the NLRB’s reasoning, the federal government is a joint employer of all workers covered by these laws. It even says that joint employers include those who exercise “reserved control” — i.e., they don’t set standards, but they have the power to do so. That expands the definition of joint employer even more. Congress has the power to draft legislation affecting essentially any part of the economy. As such, it reserves the right to set standards for all workers, making the federal government a joint employer of anyone and everyone. It’s highly unlikely that unions or the NLRB will try to apply the new rule in this way, since it’s clearly beyond the pale. (Imagine Department of Labor officials bargaining with union officials over the future of workers at your mechanic, along with almost every other business you’ve ever patronized.) Yet if it’s wrong to say that Washington, D.C., is a joint employer over the economy’s workers, it’s equally wrong to make that claim about larger companies and the workers at their independent franchisees. It defies logic — and will injure millions of small businesses and their workers.
This New Labor Rule Could Be Trouble for McDonald’s
October 5, 2023 // McDonald’s and other franchise companies have made it clear they believe the stakes are high. The “reality is that our business model is under attack,” CEO Chris Kempczinski said of possible joint-employer regulations in a speech at a franchising industry conference in Las Vegas earlier this year, in remarks he also published on LinkedIn. Changes by the NLRB, he said, would transform franchisees “from independent small-business owners to employees of the parent brands.” Heightened joint-employer liability could hurt the franchise model in two main ways, according to the International Franchise Association. One possibility, along the lines of what Kempczinski described, is that a franchisor would exert more control over the franchisees. That undercuts one of franchisors’ big selling points to potential franchisees—that they’re offering a path to running their own business, with all of the freedoms that provides. It could also add compliance costs, and potentially, legal and liability expenses. Those increased costs are also a frequent worry for franchisees, says restaurant consultant John Gordon, principal at Pacific Management Consulting Group. Franchisees typically pay franchisors a percentage of their sales, and their profit comes after those fees and their operating expenses. Franchisees are “justifiably afraid of the franchisor passing costs onto them that weren’t part of the franchise agreement,” he says, and wary of joint-employer liability for that reason.
Pro-Union Shift Expected With Labor Board Member’s Pending Exit
August 21, 2023 // Abruzzo has asked the board to resurrect the Joy Silk doctrine—which would allow unions to bypass an official NLRB election with a card-check vote instead—and overturn the 1940’s Babcock & Wilcox ruling to make captive audience meetings unlawful. In another pending case, the board also may decide the fate of the 1970 Ex-Cell-O precedent, which prohibits the NLRB from forcing companies or unions to accept provisions of a collective bargaining agreement. Overturning that decision would allow the board to levy financial remedies against companies to compensate workers for what they could’ve earned with good-faith contract negotiations. The NLRB’s August agenda also includes finalizing regulations to expand the factors that can trigger a joint-employer finding. The rule, proposed nearly a year ago, would eliminate the stricter joint employment standard established by the Trump-era board. Other pending cases could boost the potency of worker strikes, expand the scope of labor law protections, and make other changes that bolster worker and union power.
The PRO Act is wrong for Pennsylvania
August 21, 2023 // Fortunately, there’s an alternative to the PRO Act that lawmakers can get behind. The Employee Rights Act–also introduced this year–would empower workers and bolster the small business community. Among provisions, the bill would guarantee that any vote to form a union would be done via secret ballot election, protect the autonomy of self-employed Americans, and preserve the franchise small business model.
Op-ed: Time to protect worker autonomy
July 21, 2023 //