Walsh set to unveil new job quality initiative

Jan 19, 2022

With help from Shayna Greene

Quick fix

MEMORY LANE WITH MARTY: Labor Secretary Marty Walsh will reflect on the Biden administration's 2021 labor wins in his remarks before the U.S. Conference of Mayors later this week.

Here's what else the top labor official plans to address in his remarks, a preview of which was shared exclusively with Weekly Shift:

The so-called Great Resignation: "Everyone talks about the Great Resignation, and I think what we've seen there is not necessarily resigning from work but resigning from their jobs — a job that was not fulfilling enough for folks," Walsh said earlier this month.

The spike in retirements: Data compiled by the St. Louis Federal Reserve revealed that there were 3.3 million, or 7 percent, more retirees in the U.S. as of October 2021 compared to January 2020.

Expanding entrepreneurship: The number of people filing initial paperwork to start a business in the U.S. rose 25 percent between 2019 and 2020, a study from loan platform LendingTree found.

How Covid-19 has weighed heaviest on low-wage workers: Workers making the least were hit the hardest at the outset of the pandemic, and they remain the most affected a year later, according to an analysis by the left-leaning Economic Policy Institute.

Last but not least: Walsh also plans to unveil a new DOL effort targeted at improving job quality, the details of which will be shared Friday. It will focus on workforce development, among other things.

The event is a homecoming of sorts for Walsh, who spent multiple terms as mayor of Boston before his nomination to helm President Joe Biden's Labor Department. Since taking office, Walsh has traveled to more than 60 cities and 30 states, frequently meeting with mayors as he extols the virtues of Biden's economic agenda, visits job training centers, sits down with local unions and more.

GOOD MORNING. It's Wednesday, Jan. 19. Welcome back to Weekly Shift, your go-to tipsheet on employment and immigration news. Send feedback, tips and exclusives to emueller@politico.com. Follow me on Twitter at @eleanor_mueller.

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.

Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories.

On the Hill

SCOTT WEIGHS IN ON LAPSED OSHA RULE: House Education and Labor Chair Bobby Scott (Va.) is the latest Democrat on the Hill to urge Walsh to reinstate his agency's regulation protecting health care workers from Covid-19.

"The risks these workers face are so severe that we call on you to reconsider that decision and, following the reinstatement of the protections under the [emergency temporary standard], move with maximum urgency to a final standard that will secure the protections of the ETS for some of the nation's most essential workers," Scott, along with Workforce Protections Subcommittee Chair Alma Adams (D-N.C.), wrote in a letter over the weekend.

Already at the party: Democratic senators, more than 100 members of the House and the SEIU penned similar letters to Walsh last week. (Adams signed the House letter ; Scott did not.) The week prior, AFL-CIO, NNU and other national unions asked a federal court to direct OSHA to continue enforcement — and to work on publishing a permanent version.

ICYMI: The rule, which required health care employers to create a transmission prevention plan, expired Dec. 21 — without the agency indicating whether it would replace the temporary rule with a permanent one or consider it still in force. On Dec. 28, the agency said it would officially withdraw the regulation as it continues work on a permanent one.

THE SENATE'S FILIBUSTER FACE-OFF: The Democratic caucus is laying blame on Sens. Joe Manchin (D-W.Va.) and Kyrsten Sinema (D-Ariz.) for the party's failure to advance sweeping elections reform because neither wants to weaken the filibuster, our Burgess Everett and Marianne LeVine report.

"The move carries considerable risk, given that Sinema and Manchin will be essential to any further success the party can muster this year" — particularly on the party's social spending package, which includes billions of dollars for labor-related priorities like child care and NLRB enforcement, among other things.

MORE HILL NEWS: "Iowa's Child-Care Problems Show Scale of Washington's Challenge," from The Wall Street Journal

AND: "How a GOP majority in Congress might handle Biden in 2023," from POLITICO

Around the Agencies

WALSH CALLS ON UNIONS TO STEP UP: It's not only the responsibility of the federal government to expand union membership, the labor secretary said in remarks streamed Tuesday.

While "the PRO Act is probably one of the biggest ways that the federal government can support unionization," "unions have a responsibility to organize as well," he said at a Barron's event. "It can't just be: 'Sign this card.' You have to go out and do your work."

"I firmly believe in creating a relationship and a partnership," he added. "And I think that you shouldn't be afraid of a union, you should be in partnership.

Context: The PRO Act, Democrats' package to remake labor law so workers can more easily join unions, is stalled in the Senate. Some provisions have been included in the party's hefty social spending package — also stalled in the Senate.

FIRST IN SHIFT: Workers at Maximus, the federal contractor that staffs call centers for CMS and CDC, are calling on the company's CEO to expand Covid-19 protections for its employees.

"As workers on the CCO contract serving Affordable Care Act and Medicare participants, we are gravely concerned about the recent skyrocketing cases of COVID across our country and in our call centers," the workers, who are organizing under CWA, wrote Tuesday in a letter provided exclusively to Morning Shift.

"However, we have yet to receive any information as to whether or not we could have been exposed at work, leaving us to believe that Maximus has stopped all attempts at contact tracing." They note that in Mississippi and Louisiana, where some of the call centers are located, cases are spiking and vaccine rates are low.

What they want: The workers demanded contact tracing, five days of paid sick leave for workers who test positive for Covid-19, and 10 days of paid sick leave for workers who test positive and are symptomatic, among other things.

"We have been following CDC guidelines for site operations, personal protection, cleaning, contact tracing, and vaccination recommendations while also adhering to local or jurisdictional requirements at all our locations," Maximus said in a statement to Morning Shift. "To be clear, Maximus conducts contact tracing in all our facilities for confirmed positive cases and individuals who were exposed to a positive case."

"We offer paid time off options for employees when they do not pass their daily health screening, test positive for COVID-19, require isolation, or need a vaccination, and provide an incentive for any employee who completes their vaccine series."

NLRB TAKES ON FORCED ARBITRATION: The NLRB announced Tuesday that it will begin accepting briefs on whether it should adopt a new legal standard to determine whether confidentiality requirements in a mandatory arbitration agreement violate labor law.

Submissions are due March 21, according to the notice.

In the Workplace

WHEN LABOR AND INFLATION COLLIDE: A dockworkers' strike on top of existing worker shortages could impact the supply chain and in turn worsen inflation, The Washington Post's David J. Lynch reports.

"Within weeks, shippers' attention will turn to negotiations for a new contract with the longshore workers union on the U.S. West Coast," Lynch explains. "Bargaining over their last deal in 2014 became so acrimonious that several key ports were brought to a near-standstill, drawing intervention from President Barack Obama."

"Supply issues pose a stiff challenge to the Federal Reserve's hopes of cooling inflation, according to Fed Chair Jerome H. Powell. The Fed's principal inflation-fighting tool — higher interest rates — can't cure the shortage of semiconductors that afflicts manufacturers or ensure labor peace on the docks."

THE ONE WHERE WE CAN ALL RETIRE: A growing number of companies are putting more money into employees' 401(k) retirement accounts in order to attract and retain staff amid widespread worker shortages, The Wall Street Journal's Lauren Weber and Anne Tergesen report.

By the numbers: "About 16 percent of large and midsize employers plan to raise their 401(k) contributions or reinstate a previously suspended match in 2022, while another 8 percent said they are considering such a move, according to preliminary results of a survey of about 100 companies conducted last fall by investment-consulting firm Callan LLC. The combined total is up from about 12 percent that took similar action in 2021."

HYBRID WORK IS HERE TO STAY: Raging coronavirus rates, a tight labor market and the nation's more than 10 million job openings have forced bosses to accept the inevitability of a hybrid work model, The Washington Post's Taylor Telford reports.

Upsides… "Now they are learning to leverage its benefits," Telford writes. "That includes more flexibility and less time commuting for employees, and lower real estate and operating costs for companies."

…and downsides: "But the downside of remote work — particularly the deleterious effects on mentorship and person-to-person interactions that shape company culture — still trouble corporate leaders. More than a third of the executives polled in Deloitte's 2021 Return to Workplaces survey said the biggest concern about hybrid or remote work was preserving company culture. Maintaining performance and collaboration also were top concerns."

MORE WORKPLACE NEWS: "Texas, Arizona Have Recovered All the Jobs Lost When Covid-19 Hit," from The Wall Street Journal

DON'T MISS CONGRESS MINUTES: Need to follow the action on Capitol Hill blow-by-blow? Check out Minutes, POLITICO's new platform that delivers the latest exclusives, twists and much more in real time. Get it on your desktop or download the POLITICO mobile app for iOS or Android. CHECK OUT CONGRESS MINUTES HERE.

Unions

TECH MEGA-DEAL PUTS SPOTLIGHT ON WORKPLACE COMPLAINTS: CWA is urging the government to address Activision Blizzard worker concerns in light of Microsoft's proposed acquisition of the video game company.

Microsoft agreed to buy Activision Blizzard in an all-cash deal valued at about $68 billion, The Wall Street Journal's Cara Lombardo, Kirsten Grind and Aaron Tilley report.

"Before any approval of this proposed deal, the Department of Justice, Federal Trade Commission, and states Attorneys General must all carefully consider the impacts on consumers and American workers," CWA President Chris Shelton said in the statement, "especially Activision Blizzard employees who have been trying to improve working conditions and raising up troubling issues regarding company culture of sexist and discriminatory cultural practices, pay inequity, workplace harassment and abuse."

Background: Activision has collected about 700 reports of employee concerns over misconduct and other issues since July. That number has been disputed by the company, Reuters' Herbert Lash reports. In response to the allegations, Activision has fired or pushed out more than three-dozen employees and disciplined another 40 since the summer.

MORE: " Activision Blizzard Pushes Out Dozens of Employees Over Workplace Misconduct," from The Wall Street Journal

AFL-CIO WEIGHS IN AHEAD OF MEXICO GM ELECTION: The AFL-CIO is urging General Motors to guarantee a fair and open union election for more than 7,000 workers at the company's Silao facility in Guanajuato, Mexico.

In February, GM employees will vote to elect a new union to represent them. But the AFL-CIO said it's concerned because of prior challenges to organizing. In August, a Confederation of Mexican Workers union contract was thrown out in a vote required by the Mexican labor law reform. In April, the first attempt at a vote was annulled because of irregularities stemming from a complaint under the labor chapter of the USMCA trade agreement.

"While we welcome the opportunity afforded by the Mexican labor law reform for workers to choose their union, we are concerned by the lack of protection for workers' rights inside the GM plant, especially after the irregularities in the April vote, and reports of continued harassment and violence targeting independent union activists," the AFL-CIO said in a statement.

Looking ahead: The group called on the Mexican labor authority to publicly clarify the rules on activities prior to the election, during voting, in the vote-counting process and in determining the final outcome. The union federation also demanded that all workers have access to voting — including paid time to cast their vote.

Bringing in backup: Part of the AFL-CIO's statement included a push for the Mexican government and labor authority to add more independent observers, specifically international labor practitioners, in addition to the U.N.'s International Labour Organization and Mexico's National Institute of Elections.

MORE UNION NEWS: " Unions Push Back On State Guidelines Allowing Health Care Workers With Coronavirus To Return To Work," from KPIX

AND: "Labor And Management Working To Extend Hollywood's Covid Protocols To Address Omicron Surge," from Deadline

Immigration

MIGRATION REFORM MORPHS INTO TRADE FIGHT: Vice President Kamala Harris' push to tackle a root cause of Central American migration has reignited a decades-old fight between clothing importers and U.S. textile producers across the South, our Doug Palmer reports.

Harris "has been pressing American companies to help stop Central American migration by creating jobs in the troubled region," Palmer writes. "But no major clothing importer has promised to source more product from Central America because of the restrictive U.S. rules that govern trade with the region."

Looking ahead: "Companies such as The Gap, Levi Strauss, Hanesbrands and VF Corp., whose brands include The North Face, have forged a new coalition aimed at changing long-entrenched views on the subject. They are pushing for a seat at the table with Harris, as she weighs options to create more employment in the region."

What We're Reading

— "Opinion: A year into his presidency, Biden has kept some of Trump's worst immigration policies in place. Why?" from The Washington Post.

— "The Taliban Have Staffing Issues. They Are Looking for Help in Pakistan," from The New York Times.

— "Inflation fears are sparking a big drop in markets. Here are 3 things to know," from NPR.

— "Banks say they are paying up for talent as hiring is competitive," from Reuters.

— "What the Supreme Court's OSHA Ruling Means ," from The Wall Street Journal.

— "Taking On Starbucks, Inspired by Bernie Sanders," from The New York Times.

— "Omicron fallout and tough labor talks likely to rattle supply chains and fuel inflation," from The Washington Post.

— " Is Interning for an Influencer Worth It?" from The New York Times.

— "Can You Afford to Join the Great Resignation?" from Bloomberg.

— "Security officers say Smithsonian staff shortages threaten safety of priceless treasures, and people," from The Washington Post.

— "I'm a Longtime Union Organizer. But I Had Never Seen Anything Like This" from The New York Times.