Democratic Senator Joe Manchin of West Virginia is teaming up with Republicans to oppose a new progressive labor reform. The reform, implemented by the National Labor Relations Board (NLRB), changes the rule on joint employers, making it more likely for big companies like McDonald’s to be held accountable for unfair labor practices involving their franchisees or subcontractors. While labor groups support the change, Manchin views it as government overreach and wants to stop its implementation.
Manchin intends to join Republican Senator Bill Cassidy of Louisiana to overturn the NLRB’s joint employer rule through legislative action. They argue that the rule destroys the entrepreneurial and capitalist spirit of America. Cassidy claims that the reform unfairly burdens large franchisors with liabilities that should belong to their smaller franchisees.
For years, big corporations have avoided liability for labor law violations within the workplaces that produce or sell their products, placing responsibility on the smaller firms they contract with. However, worker advocates argue that these corporations exert control over working conditions and should be held accountable. Trade groups and Republican lawmakers have resisted this legal interpretation.
Under Democratic control, the NLRB moved forward with a joint employment rule, replacing a previous version implemented by a Republican board during the Trump administration. The new rule increases the likelihood of big corporations being considered joint employers and facing legal consequences when workers are threatened or retaliated against for organizing. The AFL-CIO labor federation supports the NLRB’s rule, emphasizing the importance of collective bargaining.
Business lobbies, including the U.S. Chamber of Commerce and the National Retail Federation, oppose the new rule. The International Franchise Association plans to challenge the rule in court and seeks congressional intervention using the Congressional Review Act (CRA). The CRA grants Congress the power to veto agency regulations within 60 days of implementation. Republicans previously used the CRA to dismantle progressive reforms during the Trump presidency.
Passing a CRA resolution would require Manchin to rally support from at least one other centrist Democrat. Senator Kyrsten Sinema of Arizona, who has taken business-friendly positions in the past, may be a potential ally. It ultimately falls on President Joe Biden to veto any resolution approved by Congress. Biden, who is considered a labor ally, has not indicated whether he would veto a resolution overturning the joint employment rule.
Unions, such as the International Brotherhood of Teamsters, support the NLRB’s rule, as it could force companies like Amazon to collectively bargain with workers. However, if a resolution to overturn the rule passes, it would disappoint unions that have supported Biden’s labor agenda. The joint employment rule is set to take effect on December 26, giving Congress until late February to attempt to repeal it.
