With advice from Allie Bice and Ian Kullgren
Editor’s Note: This copy of Morning Shift is appear weekdays at 10 a.m. POLITICO Pro Application & Clearing subscribers authority absolute aboriginal admission to the newsletter anniversary morning at 6 a.m. Learn added about POLITICO Pro’s absolute activity intelligence coverage, activity accoutrement and casework at politicopro.com.
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— The acting arrangement acceding amid the UAW and GM includes ample bonuses and allowance increases — but doesn’t save the Lordstown plant.
— New Jersey activity admiral are acid Uber and Lyft to see whether they misclassified advisers as absolute contractors.
— Lawmakers alien a bipartisan bill to absolute non-compete agreements.
GOOD MORNING! It’s Friday, Oct. 18, and this is Morning Shift, your circadian tipsheet on activity and clearing news. Send tips, exclusives, and suggestions to [email protected], [email protected] and [email protected] Follow us on Twitter at @RebeccaARainey, @IanKullgren, and @TimothyNoah1.
FAREWELL TED: Thursday was Ted Hesson’s aftermost day at POLITICO. Ted, who covered clearing and, for abundant of his time here, wrote Morning Shift, is affective on to Reuters, area he’ll abide to awning immigration. Drop him a band and ambition him well!
WHAT’S IN THE GM CONTRACT: Added capacity emerged Thursday on the acting GM-UAW agreement. The contract, aback ratified by workers, grants bonuses for full-time workers ($11,000) and acting workers ($4,500). Workers will additionally accept 3 percent allowance increases in the added and fourth year of the contract, with 4 percent lump-sum payments in the aboriginal and third. The arrangement additionally provides a added adjustable vacation activity and, by 2023, an alternate allowance attic of $32.32 for abiding workers. Read the abounding account from the Detroit Free Press.
BUT, BUT, BUT… Although the abutment got GM to reopen the Detroit-Hamtramck plant, the bulb in Lordstown, Ohio will abide closed. About 40 above bulb workers accustomed Thursday alfresco GM address in Detroit to appetite associates to adios the accord unless it offers saves Lordstown. “I feel betrayed,” Anthony Naples, a 25-year GM agent from Youngstown, told the Detroit News. “I abhorrent Mary Barra, and now I can’t accusation her anymore. It was up to our guys, and they didn’t get it done.”
POLITICO aboriginal appear that the White House, at the alpha of the strike, was aggravating to accomplish GM to reopening Lordstown. Although that didn’t happen, a being accustomed with the negotiations told POLITICO’s Daniel Lippman this anniversary that the accord “would not accept happened afterwards Peter Navarro’s help.”
Navarro served as a agitator to accompany the two abandon together, according to the person. “Looking to the future,” Navarro told Lippman in an interview, “the White House is alive with GM, added agencies of the government and assorted stakeholders on an activity plan advised to ample the brand of the Lordstown ability with acceptable advantageous abutment jobs while the broader eyes is to accommodate abundant application opportunities for the workers of Lordstown over the best term.”
SOUTHERN COMPETITION WEIGHED ON GM NEGOTIATORS: During the strike, Accepted Motors’ position at the acceding table “didn’t accent the charge to accumulate costs bottomward due to adopted competition,” Harold Meyerson writes in The American Prospect. Rather, administration cited “the antagonism it faced from adopted automakers’ factories actuality in the United States—specifically, in the South.”
That’s because, Meyerson writes, “when companies that are amalgamated in their home countries —Volkswagen, Mercedes, Nissan, and the like—open factories in the USA, they put them in Mississippi, Alabama, Tennessee, South Carolina, and the scattering of added states that accept a centuries-long history of action to paid labor.” A swath of southern states including Alabama, South Carolina and Georgia, accept allowable appropriate to assignment laws that prohibit unions from accession binding fees from non-members to awning their allotment of aggregate acceding costs. Adopted automakers accept been on clip in contempo years to aftermath added cars in the U.S. than American manufacturers.
UBER AND LYFT FACE NJ PROBE: “New Jersey activity auditors are investigating Uber Technologies Inc. and Lyft Inc. to see if the rideshare companies are abominably classifying drivers as absolute contractors and should be on the angle for application taxes,” Chris Opfer letters for Bloomberg Law. “If the accompaniment decides that drivers are employees, Uber and Lyft would additionally be amenable for advantageous drivers minimum accomplishment and overtime, and accouterment acting affliction insurance.”
The accompaniment Department of Activity and Workforce Development “has beatific surveys to drivers beyond the accompaniment over the aftermost year gluttonous advice about their assignment arrange and tax status,” according to Opfer. Rideshare companies about allocate their drivers as absolute contractors rather than employees; the closing adore assorted added protections beneath federal activity and allowance laws. But New Jersey uses an agent allocation accepted accepted as the “ABC” assay that makes it harder for businesses to allocate workers as absolute contractors. It’s the aforementioned accepted codification by California beforehand this year (which advancing a bent lobbying accomplishment from both Uber and Lyft). Added from Bloomberg Law.
BIPARTISAN NON-COMPETE BILL INTRODUCED: Sens. Todd Young (R-Ind.) and Chris Murphy (D-Conn.) alien a bill Thursday that aims to absolute the use of non-compete agreements, which they altercate makes it harder for advisers to change jobs and for baby businesses to accredit accomplished workers, POLITICO’s Ian Kullgren reports. The legislation would admittance companies to crave non-compete agreements alone in “necessary instances of a dissolution of a affiliation or the auction of a business,” the senators said in a statement.
The bill if enacted, could accept a ample reach. Nearly 40 percent of workers accept been appropriate to assurance a non-compete acceding at some point in their career, the Treasury Department says. The bill would “also acquiesce workers to sue administration civilly, ambience a amends of $5,000 for anniversary anniversary a artisan is affected to assignment beneath an banned agreement.” Added from Kullgren.
GOLDMAN SACHS CUTS EMPLOYEE PAY, SHIFTS FOCUS TO TECH: Goldman Sachs is authoritative added cuts to agent advantage as it pushes advanced with tech developments like the Apple Card, CNBC’s Hugh Son reports. An assay by CNBC begin that the aggregation is ambience abreast 35 percent of its acquirement for agent allowances and pay.
The aggregation appear a pay cut for advisers beforehand this year in apprehension of connected assurance on technology. Those cuts are starting to appearance in the abstracts — CNBC begin that the boilerplate Goldman Sachs agent becoming $527,192 for their aboriginal nine months in 2009. For the aforementioned bulk of time in 2019, the boilerplate agent becoming $246,216.
And automation is accepted to abide to shakeup the workforce, a Federal Reserve address concluded. POLITICO’s Ian Kullgren appear aback in April that “occupations calmly attainable to workers who abridgement a four-year academy bulk are beneath acceptable to be asleep by automation than some white-collar jobs.” (Elizabeth Warren, booty note.)
HOW THE TIPPED MINIMUM WAGE FIGHT PLAYED OUT IN DC: Nearly every Democratic presidential applicant has accustomed adopting the federal minimum allowance to $15, but few accept categorical specific affairs for how to accomplish this abiding ambition of organized labor, POLITICO’s Mary Newman reports.
A action in the nation’s basic shows aloof how complicated the affair can be. In June 2018, D.C. voters anesthetized by added than a 10-point allowance Action 77, which gradually added the minimum alternate allowance for the city’s angled advisers to the aforementioned bulk for non-tipped workers (reaching $15 in July 2020). “But not all angled workers, who are paid a minimum of $3.89 an hour now, accurate the increase,” Newman writes, “creating an abrupt alienation that led the D.C. City Council to abolition the initiative.”
“On one ancillary were those who against the repeal, and on the added were servers and others who feared that the added allowance would lower the bulk they fabricated in tips, as able-bodied as accession costs for restaurants,”she writes. Michael Saltsman of the bourgeois Application Policies Institute said: “The better takeaway over the agitation of Action 77 is that this absolutely is a bipartisan issue.” He argued that this new banking burden will force restaurants to abutting their doors absolutely or embrace automatic technologies — like book computers for acclimation — to abate activity costs. Learn added from the aboriginal adventure of POLITICO’s new video alternation “Policy Driven.”
TRUMP EYES HARDLINE DHS HEAD AHEAD OF 2020: As Trump signals that clearing will already afresh be a axial focus of his campaign, bodies central and alfresco the White House are lobbying Trump to accord the job of Homeland Security secretary to Ken Cuccinelli, “one of the president’s top lieutenants for his advancing clearing agenda,” POLITICO’s Anita Kumar and Ted Hesson report.
“Trump will name his fifth Homeland Security secretary as anon as this anniversary afterward years of annoyance with his clearing leaders who he didn’t anticipate formed fast enough,” they write. Kevin McAleenan, stepped bottomward as acting secretary aftermost anniversary afterwards confined aloof six months.
Cuccinelli, acting arch of U.S. Citizenship and Clearing Services, has the abutment of arch DHS officials, as able-bodied as Trump’s arch adviser and clearing restrictionist Stephen Miller. But acting White House arch of agents Mick Mulvaney may not be awash on Cuccinelli, a above accompaniment agent and advocate accepted in Virginia whose accomplished comments on amusing issues, including address criticized as anti-LGBT, gives Mulvaney “heartburn,” a top DHS official told Kumar and Hesson. Trump is accepted to accredit a secretary “on a acting basis” they write, “in allotment because it would be boxy to get the blazon of baton he wants accepted by alike the Republican-controlled Senate.” Added from POLITICO.
LA TIMES AND ITS UNION REACH A ‘TENTATIVE’ AGREEMENT: The Los Angeles Times and its union, the L.A. Times Guild, came to a acting arrangement acceding afterwards 15 months of negotiations. The arrangement awaits final approval from abutment members, but a arbitrary of the arrangement shows guarantees like actual 5 percent pay raises for best associates and anniversary increases every two to three years. The arrangement additionally solidifies job protections, wherein the aggregation can alone conduct or blaze advisers out of “just cause.”
“It’s a difficult time in the industry, but we’ve landed cogent pay increases and a ample assurance net of job protections that are some of the best in the industry,” said Carolina A. Miranda, co-chair of the L.A. Times Guild, in a statement. “We’re beholden that Dr. Patrick Soon-Shiong is actively reinvesting in The Times. This is a win for journalism and a win for L.A.”
The newsroom voted to unionize in January 2018, because of ambiguity from its then-owner Tribune Publishing. The cardboard was awash to Soon-Shiong anon after, and the newsroom began negotiating an acceding with administration in July 2018. If the three-year arrangement is approved, the arbitrary states the abutment will accommodate a “successor agreement,” afore it expires.
— “Union Pacific Affairs Added Job Cuts as Demand Falls Off,” from The Bank Street Journal
— “Working to Benefit Society, Not Aloof Companies,” from The New York Times
— “Senate fails to override Trump on bound bank emergency,” from POLITICO
— “Mexican admiral pledges to ‘fully honor’ USMCA activity commitments,” from POLITICO
— “Chicago teachers’ bang leaves parents, acceptance in lurch,” from The Associated Press
— “Trump seems to accept no botheration abrasive absolute unions,” from AlterNet
THAT’S ALL FOR MORNING SHIFT!
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