With the confirmation of Lori Chavez-DeRemer as Secretary and Keith Sonderling as Deputy Secretary, the leadership team at the Department of Labor (DOL) is finally in place. However, numerous questions about the department’s future course persist.
New Heads
Former U.S. Representative Chavez-DeRemer was an unexpected nominee. A Teamster-supported advocate for unions and a rare Republican vote for the Protecting the Right to Organize (PRO) Act, Chavez-DeRemer was closely questioned by a dubious Republican-dominated Senate committee. During her nomination hearing, Chavez-DeRemer retreated on several of the specific elements of the PRO Act and insisted she would back the administration’s positions.
Sonderling, a former Equal Employment Opportunity Commission (EEOC) commissioner and long a fixture in Republican workplace regulation, faced a barrage of questions from Democratic Senators because of his inability to explain the newly created, Elon Musk-run Department of Government Efficiency’s (DOGE) activities at DOL, even though he was in place as a senior advisor to the department.
Regulatory Issues Abound
The Secretariat faces an unusually large number of significant decisions regarding regulation of workers and the workplace. At least six wage-rule cases against the DOL from the Biden administration are still pending. In many cases, the Trump administration received stays so that it could formulate a position, but there has been no clarity. As a result, fundamental questions regarding independent contractors, prevailing wages for federal contractors, federal contract worker minimum wage, and overtime remain unsettled.
Perhaps reflecting the conflicted positions of the secretary or simply a matter of getting a new department organized, the fact is the department has yet to establish a defined position in major court challenges to Biden-era regulations. Surprisingly, the department hasn’t moved quickly to alter or amend DOL support of the prior administration’s rules. As court deadlines loom, some decisions will have to be made either to align the department with the administration’s pro-business platform or take the DOL in a new direction.
Hawley Bill Creates Complications
The Faster Labor Contracts Act—introduced by Missouri Senator Josh Hawley and openly supported by the Teamsters—is perhaps the best example of how the Republican Party is reshaping its position on unions and labor.
The bill, named by opponents a “mini-PRO Act,” would fundamentally change how union contracts are negotiated. Under the proposed legislation, companies in a bargaining relationship with a union, particularly a new union, would have only 10 days to begin contract negotiations after their workers’ union sends a bargaining demand. If a contract hasn’t been reached in 90 days, either party can request mediation, and if mediation doesn’t resolve existing differences within 30 days, the mediator would refer the dispute to binding interest arbitration.
The bill also determines the structure of the arbitration. The arbitration would be overseen by a three-person panel, with one member chosen by the union, one chosen by the company, and one chosen by the union and company together. The panel would then settle the dispute and impose a two-year contract, taking into account factors such as the employer’s size and financial status, employees’ cost of living, and average wages in the industry. Other elements of the bill would cement a 20-day organizing campaign into law, ban “captive audience speeches,” and permit compensatory damages in unfair labor practice cases.
The vigor of Big Labor’s support is mirrored by the ardor of the opposition from Big Business, who note that binding arbitration would effectively remove a company’s right to have a definitive voice in determining, among other things, the very cost of doing business.
Passage Less Significant Than Proposal
Few in Congress believe the Faster Labor Contracts Act will pass. However, the mere fact that a prominent Republican Senator introduced the bill marks a striking reversal in the party’s stance toward unions. The advocacy of Vice-President JD Vance for a more “blue-collar friendly” party adds weight to Hawley’s bill and may create an overtly “proworker” caucus within the Republican Party.