Punching In: Biden Has Spate of Options for Labor Chief Pick

Monday morning musings for workplace watchers.

Walsh Out, Who’s In?|Sanders Calls Execs to Testify

Rebecca Rainey: The race to replace Labor Secretary Marty Walsh is well underway. While the Biden administration hasn’t yet provided a timeline on when Walsh is expected to exit, lawmakers and government officials have wasted no time floating various trial balloon candidates to replace him.

Of the names we’ve heard: former Michigan Democratic Rep. Andy Levin, the Association of Flight Attendants-CWA President Sara Nelson, former Labor Secretary and UN Ambassador Chris Lu, and even former New York Democratic Rep. Sean Patrick Maloney.

“He was an incredible labor organizer in Michigan before coming here,” New York Democrat Rep. Jamaal Bowman said about Levin. “He knows the issues through and through. He knows the law, both federally and locally. He would be good.”

Sen. Bernie Sanders (I-Vt.), also rumored to be on the short list for Biden’s labor secretary coming into the administration, said he himself wasn’t interested in the job, but backed Nelson.

Reality check: Despite the endorsements, it seems that the obvious pick would be the DOL’s current no. 2, former California labor secretary Julie Su. The deputy secretary has been at the agency since July 2021, is familiar with staff, how the agency functions, and is also viewed by the labor community as a fierce workers’ rights advocate.

If Biden were to tap someone other than Su, it could be tricky politically. Asian American organizations that backed Su for Biden’s labor secretary initially have already started to put the heat on the president for failing to have a member of the Asian American community in his Cabinet. And she has support from members of the progressive wing of the party.

Massachusetts Democrat Sen. Elizabeth Warren didn’t go so far as to endorse Su for DOL chief, but spoke positively about her to reporters Thursday.

“I think she’s terrific,” Warren said.

The Federal Vacancies Act would allow Su to enter the position almost seamlessly, and permit her to stay there even if there is opposition to her nomination in the Senate, because she’s already been confirmed to the deputy role.

Ultimately, Biden could simply not nominate anyone. In that scenario, after 210 days, the Vacancies Act stipulates that Su could no longer hold the “acting” title.

But the administration could also delegate the duties of the vacant labor secretary position to her, and instead give her the title of “principal” agency leader, similar to the arrangement Jessica Looman currently has at the DOL’s Wage and Hour Division. The same scenario also occurred at the Occupational Safety and Health Administration under former President Donald Trump.

READ MORE:
As Walsh Exit Looms, Calls Mount to Name Deputy to DOL Top Spot
Labor Secretary Marty Walsh to Exit Biden Administration (2)

Deputy Secretary of Labor Julie Su, left, and Secretary of Labor Marty Walsh speak to Resilience Force Workers on Feb. 7, 2022, in LaPlace, La.

Photo by Josh Brasted/Getty Images for Resilience Force

Diego Areas Munhoz: Sanders had a blazing start at the top of the Senate’s main labor committee, showing a focus on union workers and warning CEOs they should be ready to testify.

Sanders started his tenure as chairman of the Senate Health, Education, Labor and Pensions committee last week. In one of his first moves, he called Starbucks CEO Howard Schultz in for testimony and held a press conference telling rail industry executives to either give workers paid sick days or they’ll also be called to testify.

This week, the committee also will vote on a roster of executive nominees and host a hearing on the health-care workforce shortage.

The packed agenda, with an initial labor focus, comes as the new 51-vote Senate Democratic majority guarantees Sanders power to subpoena business executives to question them over their treatment of workers and handling of organizing efforts.

“I hope that the companies and corporations do the right thing; I hope they do it voluntarily,” Sanders said in a Feb. 9 press conference at the Capitol with Sen. Mike Braun (R-Ind.) and rail union leaders.

“If they don’t, I look forward to seeing them right here in this Senate committee room to tell us why they cannot afford to do the right and moral things for their workers,” he said.

Hours before the conference, which dealt with the issue at the center of the negotiations to avoid a nationwide rail strike last year, Sanders opened the first HELP committee hearing in this Congress. Next to him was Sen. Bill Cassidy (R-La.), the new top Republican on the panel, who said he hopes to find common ground with Democrats on issues such as workforce development.

But Cassidy also expects executives to be called in for testimony under his colleague’s chairmanship.

“He’s the chair, he has that right,” said Cassidy, who didn’t sign the letter Sanders and the committee’s Democrats sent to Schultz.

Schultz was called to testify because his company is breaking labor laws in its handling of organizing in stores all across the country, Sanders said. Zeroing in on illegal union busting will be one of his priorities for the committee’s labor agenda, he said.

“In a time when workers all across this country are organizing unions, we cannot allow large corporations owned by billionaires, companies like Starbucks and Amazon, to violate federal labor law and engage in illegal union-busting activities,” Sanders said in his opening remarks in the first HELP hearing. “This is an issue I feel very strongly about. People have a right to organize.”

Rep. Bowman, a progressive Democrat who sits on the House Education and Workforce panel, said he’s excited about the prospects of Sanders’ tenure.

“He has been a leader his whole career, holding corporations accountable for their treatment of labor and union busting and dealing with the issue of wealth inequality so I’m happy to hear that he’s calling in Mr. Schultz,” said Bowman. “I’m sure he’s gonna call a lot more people.”

We’re punching out. Daily Labor Report subscribers, please check in for updates during the week, and feel free to reach out to us.