Biden as ‘Most Pro-Union President’ Shows in House Spending Bill

President Joe Biden’s commitment to be “the most pro-union president you’ve ever seen” is borne out in a series of proposals to boost organized labor through House Democrats’ $1.75 trillion tax and social spending plan.

The package, which could receive a House floor vote on Friday, would create monetary penalties for existing violations of U.S. labor law, increase the enforcement powers federal agencies exercise in the workplace, and link union-friendly requirements to renewable energy tax credits, among other worker-focused provisions.

The endgame for the big-ticket package—the centerpiece of Biden’s domestic agenda—is still in doubt, as moderate Democrats in the Senate have spoken out against provisions such as paid family and medical leave. The legislation is being advanced via the budget reconciliation process, which allows Democrats to pass it with a simple majority in both chambers, leaving no margin for Democratic opposition in the 50-50 Senate.

Unions have promoted the spending package publicly and behind the scenes, along with the other major legislative component of Biden’s agenda—the Senate-passed bipartisan infrastructure bill. That measure, which still must go through the House, would finance billions of dollars in construction projects, creating jobs for members of the building trades unions.

“We’re on the cusp of a truly historic investment in infrastructure, but we need to make sure that the jobs created are family-sustaining jobs that give all workers a shot at the middle class,” said Russ Breckenridge, legislative and political director for the United Association of Union Plumbers and Pipefitters.

Here’s a rundown of the pro-union items in the tax and spending plan:

Civil Monetary Penalties

The spending bill would establish fines of up to $50,000 for existing violations of the National Labor Relations Act. Penalties would reach $100,000 in some cases.

That would give the National Labor Relations Board power for the first time to hit employers with financial penalties for engaging in unfair labor practices, such as threatening to fire a worker if they join or vote for a union.

The Communications Workers of America said the fines would “fund transformational programs” to help workers and rein in corporations, according to a statement. (Bloomberg Law journalists are represented by the Washington-Baltimore News Guild, a division of the CWA.)

Enforcement Powers

Two of the U.S. Labor Department’s main enforcement agencies—the Wage and Hour Division and the Occupational Safety and Health Administration—would get more power when enforcing laws that prohibit overtime, child labor, and safety violations.

The financial penalties the Wage and Hour Division can impose for violations would be increased tenfold, and OSHA’s fines would also greatly rise.

Agencies that combat discrimination in the workplace, such as DOL’s Office of Federal Contract Compliance Programs and the U.S. Equal Employment Opportunity Commission, would also receive supplemental funding for enforcement activities. That would give the former more ammunition to go after government contractors that violate the law and the latter to more aggressively enforce civil rights laws in the workplace.

The DOL’s workforce development efforts would be bolstered with a 50% increase in annual funding through Sept. 2026.

Renewable Energy Tax Credits

The package also helps boost unions in the transformation to renewable sources of energy.

For renewable energy and energy efficiency projects, the $1.75 trillion proposal would provide a “bonus” rate five times the standard base rate of tax incentives, if projects meet certain prevailing wage and apprenticeship requirements—top demands for unions as the package advances through the chambers.

Breckenridge said both the spending package and the infrastructure bill needs to include these provisions.

“Whether it’s funding to replace lead pipes or modernizing our energy infrastructure with an all-of-the-above approach, these labor protections are critical to ensure all workers, like United Association members, earn fair wages and benefits on these projects,” he said.

The tax component of the spending package clarifies that taxpayers can claim the “bonus rate” if they can prove that laborers on a project are paid a prevailing wage, which the DOL determines based on average pay for specific craft workers in a geographic location. They can also claim the higher rate if a percentage of the project’s workers are qualified apprentices.

Eric Dean, general president of the International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers, applauded tying a registered apprenticeship requirement to the tax credit, saying it puts “domestic manufacturing and construction at the center of our fight against climate change,” according to a statement provided to the White House Oct. 28.

Electric Vehicle Credits

A credit to encourage consumers to buy electric vehicles would also benefit unions. The proposal would provide auto buyers an additional $4,500 in credits, on top of an existing $7,500 credit, for electric cars made in the U.S. by union workers.

Ray Curry, president of United Auto Workers, said in a statement that the provision would “create and preserve tens of thousands of UAW members’ jobs.”