Forbes

Revolution at Labor.

- Amity Shlaes, presidenti­al Scholar at the King’s college and chair OF the coolidge Foundation BOARD; Paul Johnson, Eminent British historian and author; and DAVID MALPASS, global Economist, president OF Encima global llc, Rotate in writing this column. to

A THUMB in the eye to the minimumwag­e lobby is how most journalist­s depict the nomination by Presidente­lect Donald Trump of Andrew Puzder to the post of labor secretary.

But offering up a fast-food entreprene­ur for the labor post does more than offend a particular interest group. The Puzder nomination represents a structural blow to the whole edifice that we have called “labor relations” since the Department of Labor was created more than 100 years ago.

First, consider Andrew Puzder. As the head of CKE Restaurant­s, a company that directly or through franchises employs 75,000 workers, Puzder has more involvemen­t with labor regulation­s every day than many executives do in a lifetime. He’s worked with nonunioniz­ed labor, not the union establishm­ent.

Next, consider Puzder’s two- dozen-odd predecesso­rs. The progressiv­es who establishe­d the Department of Labor, Democratic or Republican, believed that government ought to support the unions and that wage increases were always beneficial. These same progressiv­es also took a top-down approach, reckoning that just a few establishm­ent parties—big Labor, Big Business, the government and maybe an academic or two—could and should determine whether unemployme­nt was 3%, 5% or 10%. Nonunion workers, small-business employers, company owners and innovators—none of these were in the room.

The first labor secretary, William Bauchop Wilson, set the pattern. Wilson had served as secretary-treasurer of the United Mine Workers and then as a congressma­n representi­ng the 15th district in Pennsylvan­ia. Wilson applied his thumb not to someone’s eye but to the scales of government, tipping them toward organized labor and pushing hard to help coal strikers in Colorado and Michigan. James “Puddler Jim” Davis, Wilson’s successor, came out of the steel mills and also had a political bent, successful­ly running for the U.S. Senate after his service. (Davis became cosponsor of the Davis-bacon Act, known for forcing wage hikes on small employer-contractor­s.)

Franklin Roosevelt tapped Frances Perkins. She hadn’t led unions, but Perkins had experience in both academia and government. The New Deal’s labor secretary helped to elevate the Department of Labor from office to edifice. It was during the Perkins era that the Wagner Act, wildly pro-union, became law and the National Labor Relations Board, an independen­t agency and court system for labor, was created. The New Deal also establishe­d the national minimum wage, the very device that Puzder challenges.

Perkins didn’t merely side with union members—she led them. Dur- ing strikes at the Homestead Steel Works in Pittsburgh, the labor secretary marched with workers to assemble at a government site, a U.S. post office, so that she might remind them of the merits of collective bargaining.

The change that voters may have expected didn’t come when Republican Dwight Eisenhower took office. Ike, a conciliato­r by nature, selected a Democrat and former director of labor for the state of Illinois, Martin Durkin, to lead the department. Even George Shultz, a free-marketer, had more experience in academia than in business when he took office.

persecutio­n of Donovan

Among all of the labor secretarie­s to date, one stands out: Raymond Donovan, whose main credential was running the business side of Schiavone Constructi­on in New Jersey. Ronald Reagan’s selection of Donovan so irritated prolabor Democrats that even before his confirmati­on they sought to prove he was some kind of Tony Soprano, operating corruptly. Once Donovan was confirmed, the Democrats kept assailing him. It was Donovan, who, after a Bronx jury had acquitted him of both fraud and grand larceny, posed the poignant question: “Which office do I go to to get my reputation back?” Succeeding labor secretarie­s have sometimes fought harder for the private sector—the Bush Administra­tion’s Elaine Chao comes to mind.

It takes chutzpah to select for a cabinet post someone from the fast-food industry. Left-leaning periodical­s vilify this fast-food executive for sport. But maybe chutzpah is necessary. The fact is that Democrats have long counted on Republican presidenti­al winners’ being too timid to appoint a labor secretary who might challenge Big Labor.

If confirmed, Puzder is likely to do something that demonstrat­es that the economy expands better without government, powered by those shadowy figures who don’t usually win places at the top table. He’s likely, too, to remind us that a union-tilted Labor Department doesn’t necessaril­y serve the country best.

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