Acting Labor Secretary Julie Su (Photo by Roy Rochlin/Getty Images for One Fair Wage)
President Joe Biden’s renomination of Julie Su as labor secretary faced opposition from Democrats due to her alleged bias towards unions. A review of Su’s public calendars revealed that she prioritized meetings and events with union leaders over business groups while the Labor Department was developing its federal crackdown on independent contractors, a move supported by unions.
During her first six months in office, Su’s schedule included a 90-minute dinner with Liz Shuler, the head of AFL-CIO, a mega-union that fully supported the pending federal independent contractor rule. This rule aimed to reclassify contractors and freelancers as employees, making it more difficult for individuals to work independently. Su also met with Bart Sheard, the legislative counsel of AFL-CIO, who later became her senior adviser, and participated in a roundtable with SEIU, which praised the proposed rule for promoting fairness and justice for workers.
In addition to these meetings, Su actively engaged with union conventions, delivering keynote remarks at Virginia’s AFL-CIO conference. However, she had minimal interactions with CEOs and no meetings with business groups or small business representatives, despite her claims of seeking common ground between workers and businesses.
Despite concerns from Democrats about her perceived one-sided loyalty towards unions, Su continued to prioritize labor interests even after her nomination faced opposition in the Senate. As the Labor Department’s acting secretary, she held regular check-ins with SEIU but neglected to meet with any business groups. This ultimately led to her confirmation being rejected by the Democrat-controlled Senate.
Meanwhile, the Labor Department finalized its union-backed independent contractor policy, which was modeled after a California law championed by Su during her tenure as the state’s labor chief. This policy has faced opposition from business owners and the self-employed.
Tom Manzo, founder of the California Business and Industrial Alliance, expressed concerns about Su’s agenda, stating that she has consistently supported Big Labor unions. Comparing Su’s appointment schedule to her predecessor Marty Walsh, it is evident that she spent significantly less time with business leaders and associations.
California’s independent contractor law, enforced by Su, has had a negative impact on various professionals, including freelance writers, tutors, and truck drivers. The law, authored by a former Democratic legislator who now leads a powerful union, caused significant disruption and required exemptions for certain professions. Uber is currently fighting to overturn the law in a federal appeals court.
The Labor Department received over 54,000 public comments on the independent contractor policy, with many independent contractors and business owners urging the government to respect their autonomy in earning a living.
Why do supporters of Su argue that her engagement with unions is necessary to address the challenges faced by workers, particularly those in low-wage industries?
Ntions and conferences, such as the National Union Convention and the Conference on Workers’ Rights, while giving limited attention to events organized by business groups or associations. This perceived favoritism towards unions has caused concern among Democrats who believe that Su’s actions undermine the principles of fairness and impartiality that should guide the Labor Department’s decision-making process.
Supporters of Su argue that her engagement with unions is necessary to address the challenges faced by workers, especially those in low-wage industries. They believe that her focus on protecting workers’ rights and promoting labor unions is aligned with President Biden’s pro-labor agenda. They also point to her previous experience as the Labor Commissioner in California, where she successfully pushed for policies that advanced the interests of workers and unions.
However, critics argue that Su’s alleged favoritism towards unions jeopardizes the rights of independent contractors and undermines the flexibility and autonomy that they enjoy. They argue that reclassifying independent contractors as employees could lead to a loss of jobs and economic opportunities, especially for those who prefer the flexibility of freelance work. They also claim that Su’s close ties to unions raise questions about her ability to objectively oversee the policies and regulations that impact both workers and businesses.
The opposition from Democrats to Su’s nomination highlights the divisions within the party on issues related to labor and employment. While many Democrats support stronger labor protections and increased union power, others are concerned about the potential negative consequences of policies that restrict the rights of independent contractors and hinder business growth.
The controversy surrounding Su’s nomination also underscores the larger debate on the role of unions and the balance between worker rights and economic growth. Advocates for stronger unions argue that they play a crucial role in advocating for fair wages, safe working conditions, and worker protections. On the other hand, critics argue that excessive union power can stifle innovation, create inefficiencies, and hinder economic competitiveness.
As President Biden’s labor secretary nomination faces opposition from within his own party, it remains to be seen how the administration will address the concerns raised by Democrats. The outcome of this nomination process will have significant implications for workers, businesses, and the future of labor policy in the United States.
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