While business leaders sometimes find themselves straying into the political arena, in general, they prefer to stick to business. The reality is, however, that politics can have a tremendous impact on the business world, and business leaders need to at least stay on top of developments even if they aren’t sticking their necks into the political arena as a more active participant.
Each time a new presidential administration comes into office, there’s the potential for disruption. The president nominates the people who will run powerful and impactful departments like the Departments of Commerce, Treasury, and Labor. When the outgoing and incoming presidents are from different parties, things can get even more interesting. Some business leaders are already wringing their hands trying to figure out how disruptive the leadership change will be.
One cabinet nominee who has raised many eyebrows among the business community is potential Labor Secretary, Lori Chavez-DeRemer. Stakeholders on both sides of the political spectrum have expressed some anxiety over the pick, with some Republicans labeling her too pro-union and some Democrats questioning the authenticity of Chavez-DeRemer’s pro-labor image.
This has left politicians, labor groups and employers alike scratching their heads a bit and wondering what to expect from the new Labor Secretary. We reached out to some industry experts to get their thoughts.
A Nod to Working-Class Voters Sets Up Potential Intra-Administration Tension
Many political observers see Chavez-DeRemer’s selection to run the Labor Department as a reward to the working-class voters who shunned the Democratic ticket to vote Republican. While a pro-union choice to run the Department would certainly be received positively by that branch of the MAGA coalition, the more mainstream, business-friendly GOP wing would likely take issue with moving the needle too far in favor of labor. This has the potential to set up tension and conflict in the incoming administration’s cabinet and inner circle as groups like workers and business leaders jockey for influence.
“Labor Secretary nominee and Oregon congresswoman, Lori Chavez-DeRemer, is known for her pro-union background which may indicate an emphasis on enhanced worker relations and protections under the new presidential administration,” notes Amy Mosher, Chief People Officer at isolved. “In fact, many unions support Chavez-DeRemer, with Teamsters President Sean O’Brien highlighting her pledge to ‘listen to workers and find common ground to protect and respect labor in America.’ During a time when most businesses face losses because of being understaffed or under skilled, Chavez-DeRemer’s labor-friendly background could lead to better employee-employer dynamics as organizations strive to attract and retain top talent,” Mosher says.
However, Mosher also notes that the new administration has already staked out very business-friendly positions in many areas impacting the HR function. “We’ve already observed shifts, such as the scaling back of DEI initiatives and moves toward full-time return-to-office policies,” she says. “Additionally, anticipated cost containment pressures may intensify, especially with possible changes to overtime, tipped wages, and salary exemption rules—a common occurrence during administrative transitions.”
AFL-CIO president Liz Shuler noted in a statement that even if Chavez-DeRemer is sincere in her pro-union policies, Trump is ultimately the one in charge of setting labor policy. He, she says, is the president-elect, not Rep. Chavez-DeRemer. She says: “It remains to be seen what she will be permitted to do as secretary of labor in an administration with a dramatically anti-worker agenda.”
A Mixed Record on Labor
A Republican daughter of a Teamster’s member. That short description gets to the heart of the seeming paradox that is Lori Chavez-DeRemer. Chavez-DeRemer’s stance on labor and unions presents a complex picture, marked by both supportive actions and elements that raise questions about her future approach. During her tenure in Congress, she was one of only three Republicans to vote in favor of the Protecting the Right to Organize (PRO) Act, aligning with pro-union legislation aimed at strengthening workers’ rights. Additionally, her familial ties to labor are notable; she has highlighted her father’s long-standing membership in the Teamsters union, underscoring a personal connection to the labor movement.
However, progressive commentators like American Prospect argue that Chavez-DeRemer is only marginally more pro-union than the GOP mainstream and cites multiple examples from her short tenure in Congress as proof.
Impact of External Factors
Of course, politicians and cabinet members don’t operate in a vacuum. Countless political leaders have stepped into a role with heads full of revolutionary ideas only to be stymied by the realities of politics, the economy, global events, and shifting public opinion.
In this sense, Chavez-DeRemer’s policy decisions could be driven by factors beyond her control. Between a global pandemic, geopolitical conflicts, and new technologies, the labor market is in a state of tremendous flux already, something a new Labor Secretary will need to contend with regardless of their own priorities.
For example, workers are increasingly demanding more flexibility, including things like remote or hybrid work, flexible working hours, generous PTO policies, and better work-life balance. At the same time, a growing gig economy means more battles over classification of workers as employees or contractors, a distinction central to the Department of Labor’s enforcement role.
It’s hard to say what likely incoming Secretary of Labor Lori Chavez-DeRemer’s policy and enforcement priorities will be coming into the role and what impact she’ll have on the HR function among businesses. While some on the right fear an unusually pro-labor Republican Department of Labor, many on the left are skeptical and anticipating a more traditional, business-friendly approach.
Time will tell.
Are you wondering whether the contract employee laws and regulations will change with the incoming presidential administration? Let us help you! Join our employment experts who will discuss how the incoming U.S. Secretary of Labor will change and shape the HR industry. Be there on January 13 at 11:30am EST!
Lin Grensing-Pophal is a Contributing Editor at HR Daily Advisor.
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