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    U.S. Judge Blocks Rule Extending Reach of Labor Law to Franchisers

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    The ruling upends the National Labor Relations Board’s move to broaden the standard for determining when a company is liable for labor law violations.A federal judge, siding with business lobbying groups, has blocked a rule that would broaden the reach of federal labor law to make big franchisers like McDonald’s responsible for the conditions of workers they have not directly hired.The judge, J. Campbell Barker of the United States District Court for the Eastern District of Texas, on Friday vacated a rule issued by the National Labor Relations Board determining when a company is a joint employer, making it liable under labor law for the working conditions of those hired by a franchisee or provided by a staffing agency. He said the rule, which was to go into effect Monday, was too broad.The decision by Judge Barker, a nominee of former President Donald J. Trump, keeps in place a more business-friendly standard for assigning legal liability.Unions and employees support the rule because it makes it easier to bargain for better conditions, while franchisers say it would disrupt their business model.The U.S. Chamber of Commerce, which led a group of business groups challenging the rule, applauded the ruling. “It will prevent businesses from facing new liabilities related to workplaces they don’t control, and workers they don’t actually employ,” Suzanne P. Clark, chief executive of the chamber, said in a statement.The labor board’s chair, Lauren McFerran, who was named by President Biden, said in a statement that the ruling was “a disappointing setback,” but “not the last word” on the joint-employer standard. If the board appeals the ruling, the case would move to the conservative U.S. Court of Appeals for the Fifth Circuit. The labor agency pushed for the case to be moved to Washington, but Judge Barker denied that request.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    After Gains at Big Three, U.A.W. Aims at Nonunion Plants

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    A looming union election at a Volkswagen plant in Chattanooga could determine the trajectory of union organizing at more than a dozen auto factories.When Shawn Fain, the United Automobile Workers president, unveiled the deal that ended six weeks of strikes at Ford Motor in the fall, he framed it as part of a longer campaign. Next, he declared, would be the task of organizing nonunion plants across the country.“One of our biggest goals coming out of this historic contract victory is to organize like we’ve never organized before,” he said at the time. “When we return to the bargaining table in 2028, it won’t just be with the Big Three. It will be the Big Five or Big Six.”Four months later, the first test of that strategy has come into focus, and it features a Volkswagen plant in Chattanooga, Tenn.According to the union, more than half of over 4,000 eligible workers have signed cards indicating support for a union. Workers say they have done so because they want higher pay, more paid time off and more generous health benefits — and because the recent strikes at Ford, General Motors and Stellantis persuaded them that a union can help win these concessions.“The Big Three, they had their big campaign, and their big strike and vote, and new contracts — we paid attention to that very closely,” said Yolanda Peoples, who has worked at the Volkswagen plant for nearly 13 years.The Volkswagen plant announced an 11 percent pay increase shortly after the strikes at the Big Three. The raise brought the top hourly wage for production workers to $32.40, but the comparable wage for the Detroit automakers will exceed $40 by the end of the new contracts. (Volkswagen said the wage adjustment was part of a yearly review.)We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Starbucks and Union Agree to Work Out Framework for Contract Talks

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    In an initial move, the coffeehouse chain said Workers United members would get improved benefits that other employees received in 2022.Starbucks and the union that represents employees in roughly 400 of its U.S. stores announced Tuesday that they were beginning discussions on a “foundational framework” that would help the company reach labor agreements with unionized workers and resolve litigation between the two sides.The union greeted the development as a major shift in strategy for Starbucks, which has taken steps to resist union organizing at the company since the campaign began in 2021, moves that federal labor regulators have said violated labor law hundreds of times.Starbucks, which has denied the accusations, said in a statement that it hoped to have contracts negotiated and ratified by the end of the year and would agree to a “fair process for organizing” — something the union has demanded for years. It said that, as a gesture of good faith, it was providing unionized workers with benefits it introduced in 2022 but withheld from union stores, like an option for customers to tip via credit card.Representatives of both Starbucks and the union, Workers United, said that while details must be worked out, they hoped to be back at the bargaining table in the coming weeks. Negotiations between the two sides had largely lapsed over the past several months.Workers who have helped lead the organizing said the development had surprised them. “It still feels pretty surreal right now,” said Michelle Eisen, a longtime barista at a Starbucks in Buffalo that was the first company-owned store to unionize during the current campaign. “There has not been a single call I’ve been on today where either I wasn’t crying or everyone else wasn’t crying.”If a framework is agreed to and quickly leads to contracts, experts said, it could be a major development in labor relations in corporate America, where companies like Amazon and Apple have resisted union organizing to varying degrees.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Can a Tech Giant Be Woke?

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    The December day in 2021 that set off a revolution across the videogame industry appeared to start innocuously enough. Managers at a Wisconsin studio called Raven began meeting one by one with quality assurance testers, who vet video games for bugs, to announce that the company was overhauling their department. Going forward, managers said, the lucky testers would be permanent employees, not temps. They would earn an extra $1.50 an hour.It was only later in the morning, a Friday, that the catch became apparent: One-third of the studio’s roughly 35 testers were being let go as part of the overhaul. The workers were stunned. Raven was owned by Activision Blizzard, one of the industry’s largest companies, and there appeared to be plenty of work to go around. Several testers had just worked late into the night to meet a looming deadline.“My friend called me crying, saying, ‘I just lost my job,’” recalled Erin Hall, one of the testers who stayed on. “None of us saw that coming.”The testers conferred with one another over the weekend and announced a strike on Monday. Just after they returned to work seven weeks later, they filed paperwork to hold a union election. Raven never rehired the laid-off workers, but the other testers won their election in May 2022, forming the first union at a major U.S. video game company.It was at this point that the rebellion took a truly unusual turn. Large American companies typically challenge union campaigns, as Activision had at Raven. But in this case, Activision’s days as the sole decision maker were numbered. In January 2022, Microsoft had announced a nearly $70 billion deal to purchase the video game maker, and the would-be owners seemed to take a more permissive view of labor organizing.The month after the union election, Microsoft announced that it would stay neutral if any of Activision’s roughly 7,000 eligible employees sought to unionize with the Communications Workers of America — meaning the company would not try to stop the organizing, unlike most employers. Microsoft later said that it would extend the deal to studios it already owned.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    For Michigan’s Economy, Electric Vehicles Are Promising and Scary

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    Last fall, Tiffanie Simmons, a second-generation autoworker, endured a six-week strike at the Ford Motor factory just west of Detroit where she builds Bronco S.U.V.s. That yielded a pay raise of 25 percent over the next four years, easing the pain of reductions that she and other union workers swallowed more than a decade ago.But as Ms. Simmons, 38, contemplates prospects for the American auto industry in the state that invented it, she worries about a new force: the shift toward electric vehicles. She is dismayed that the transition has been championed by President Biden, whose pro-labor credentials are at the heart of his bid for re-election, and who recently gained the endorsement of her union, the United Automobile Workers.The Biden administration has embraced electric vehicles as a means of generating high-paying jobs while cutting emissions. It has dispensed tax credits to encourage consumers to buy electric cars, while limiting the benefits to models that use American-made parts.But autoworkers fixate on the assumption that electric cars — simpler machines than their gas-powered forebears — will require fewer hands to build. They accuse Mr. Biden of jeopardizing their livelihoods.“I was disappointed,” Ms. Simmons said of the president. “We trust you to make sure that Americans are employed.”Tiffanie Simmons works in Wayne, Mich., at a Ford Motor factory that builds Broncos.Nick Hagen for The New York TimesMs. Simmons’s union has endorsed President Biden, but “I was disappointed” in him, she said.Nick Hagen for The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Amazon Argues National Labor Relations Board Is Unconstitutional

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    The company made the novel claim, echoing arguments by SpaceX and Trader Joe’s, in a legal filing while fighting a case.In the latest sign of a growing backlash within corporate America to the 88-year-old federal agency that enforces labor rights, Amazon argued in a legal filing on Thursday that the National Labor Relations Board was unconstitutional.The move followed a similar argument by SpaceX, the rocket company founded and run by Elon Musk, in a legal complaint in January, and by Trader Joe’s during a labor board hearing a few weeks later.The labor board consists of a prosecutorial arm, which issues complaints against employers or unions deemed to have violated federally protected labor rights; administrative judges, who hear complaints; and a five-member board in Washington, to which decisions can be appealed.Amazon’s filing was part of a case before an administrative judge in which labor board prosecutors have accused Amazon of illegally retaliating against workers at a Staten Island warehouse known as JFK8, which unionized two years ago.The company’s lawyers repeatedly denied in their filing that Amazon had broken the law. Then, under a section titled “Other Defenses,” they argued that “the structure of the N.L.R.B. violates the separation of powers” by “impeding the executive power provided for in Article II of the United States Constitution.”The company also argued that the board or its actions or proceedings violated Articles I and III of the Constitution, as well as the Fifth and Seventh Amendments — in the last case because, the filing said, board hearings can seek legal remedies beyond what’s allowed without a trial by jury.Amazon declined to comment.The claims it made in the filing echo arguments that lawyers for SpaceX made in a federal lawsuit last month, after the labor board issued a complaint accusing the company of illegally firing eight employees for criticizing Mr. Musk. SpaceX sued in Texas, but a federal judge there on Thursday granted the board’s motion to transfer the case to California, where the company’s headquarters are located.In a statement, the board’s general counsel, Jennifer A. Abruzzo, said, “I am pleased that SpaceX’s blatant forum-shopping efforts in Texas attempting to enjoin the agency’s litigation against it have failed.”Wilma Liebman, a chairwoman of the labor board under President Barack Obama, called the arguments by Amazon and SpaceX “radical,” adding that “the constitutionality of the N.L.R.B. was settled nearly 90 years ago by the Supreme Court.”The arguments appear to align with a broader conservative effort to question the constitutionality of a variety of regulatory actions, some of which have resulted in cases before the Supreme Court.In January, the Supreme Court also agreed to hear a case brought by Starbucks, which is challenging a federal judge’s order reinstating employees who were fired during a union campaign. The outcome of the case could rein in the labor board’s longstanding practice of seeking reinstatement for workers while their cases are litigated, a process that can take years. More

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    President of Powerful Service Workers Union Will Step Down

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    Mary Kay Henry of the nearly two-million-member Service Employees International Union will not seek re-election when her term ends in May.Mary Kay Henry, the president of the Service Employees International Union, one of the nation’s largest and most politically powerful labor unions, announced Tuesday that she would step down after 14 years in her position.Ms. Henry was the first woman elected to lead the union, which represents nearly two million workers like janitors and home health aides in both the public and private sectors.Under her leadership, it launched a major initiative known as the Fight for $15, which sought to organize fast-food workers and push for a $15 minimum wage. Winning over skeptics in the ranks, Ms. Henry argued that the union could make gains through a broad-based campaign that targeted the industry as a whole rather than individual employers.Labor experts and industry officials cite the campaign as a major force behind significant minimum-wage increases in states including California and New York and cities like Seattle and Chicago. It also pushed a recent California law creating a council to set a minimum wage in the fast-food industry, which will become $20 an hour in April, and to propose new health and safety standards.But the Fight for $15 campaign has not unionized workers on a large scale and enabled them to negotiate collective bargaining agreements with their employers.Ms. Henry’s tenure has coincided with a series of legislative and legal challenges to organized labor, including state laws rolling back collective bargaining rights and allowing workers to opt out of once-mandatory union fees, as well as a landmark Supreme Court ruling allowing government employees to do the same.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Supreme Court to Hear Starbucks Bid to Overturn Labor Ruling

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    The coffee chain has challenged a federal judge’s order to reinstate a group of union activists who were fired at a store in Memphis.The Supreme Court agreed on Friday to hear a case brought by Starbucks challenging a federal judge’s order to reinstate seven employees who were fired at a store in Memphis amid a union campaign there.Starbucks argued that the criteria for such intervention by judges in labor cases, which can also include measures like reopening shuttered stores, vary across regions of the country because federal appeals courts may adhere to different standards.A regional director for the National Labor Relations Board, the company’s opponent in the case, argued that the apparent differences in criteria among appeals courts were semantic rather than substantive, and that a single effective standard was already in place nationwide.The labor board had urged the Supreme Court to stay out of the case, whose outcome could affect union organizing across the country.The agency asks federal judges for temporary relief, like reinstatement of fired workers, because litigating charges of unfair labor practices can take years. The agency argues that retaliation against workers can have a chilling effect on organizing in the meantime, even if the workers ultimately win their case.In a statement on Friday, Starbucks said, “We are pleased the Supreme Court has decided to consider our request to level the playing field for all U.S. employers by ensuring that a single standard is applied as federal district courts.”The labor board declined to comment.The union organizing campaign at Starbucks began in the Buffalo area in 2021 and quickly spread to other states. The union, Workers United, represents workers at more than 370 Starbucks stores, out of roughly 9,600 company-owned stores in the United States.The labor board has issued dozens of complaints against the company based on hundreds of accusations of labor law violations, including threats and retaliation against workers who are seeking to unionize and a failure to bargain in good faith. This week, the agency issued a complaint accusing the company of unilaterally changing work hours and schedules in unionized stores around the country.The company has denied violating labor law and said in a statement that it contested the latest complaint and planned “to defend our lawful business decisions” before a judge.The case that led to the dispute before the Supreme Court involves seven workers who were fired in February 2022 after they let local journalists into a closed store to conduct interviews. Starbucks said the incident violated company rules; the workers and the union said the company did not enforce such rules against workers who were not involved in union organizing.The labor board found merit in the workers’ accusations and issued a complaint two months later. A federal judge granted the labor board’s request for an order reinstating the workers that August, and a federal appeals court upheld the order.“Starbucks is seeking a bailout for its illegal union-busting from Trump’s Supreme Court,” Workers United said in a statement on Friday. “There’s no doubt that Starbucks broke federal law by firing workers in Memphis for joining together in a union.”Starbucks said it was critical for the Supreme Court to wade into the case because the labor board was becoming more ambitious in asking judges to order remedies like reinstatement of fired workers.The labor board noted in its filing with the Supreme Court that it was bringing fewer injunctions overall than in some recent years — only 21 were authorized in 2022, down from more than 35 in 2014 and 2015.A Supreme Court decision could in principle raise the bar for judges to issue orders reinstating workers, effectively limiting the labor board’s ability to win temporary relief for workers during a union campaign.The case is not the only recent challenge to the labor board’s authority. After the board issued a complaint accusing the rocket company SpaceX of illegally firing eight employees for criticizing its chief executive, Elon Musk, the company filed a lawsuit this month arguing that the agency’s setup for adjudicating complaints is unconstitutional.The company said in its lawsuit that the agency’s structure violated its right to a trial by jury. More