NLRB’s use of subcontractors is criticized
Under President Trump, the National Labor Relations Board told its employees that tight budgets will require cuts to compensation and even downsizing, an agency union said. So it came as a surprise when the union learned the board wants to pay subcontractors to do work that employees traditionally perform.
Congressional Democrats were surprised too — especially when they found out what the subcontractors would be doing.
In a letter to NLRB Chairman John Ring, a management-side attorney appointed by Trump, House Democrats said they are “extremely concerned about reports” that the agency is planning to contract with a third party to review public comments on its proposed new “joint employer” rule. The rule would govern subcontractors’ business relationships and liability.
The proposed rule would alter the national standard by which corporations can be held liable for the mistreatment of workers paid by subcontractors or franchisees. It would also change the standard by which those corporations can be forced to collectively bargain with those workers. In both cases, the new rule would shift the standard in favor of corporations.
“All we have heard from our leadership for more than a year is that because of a budget crisis they have to cut employee compensation and downsize the agency,” said Karen Cook, president of the NLRB Professional Assn. “So it was particularly galling to find out that Chairman Ring is making plans to spend the agency’s limited funds to hire contractors.”
The Democratic lawmakers — Rep. Robert C. Scott of Virginia, chairman of the Education and Labor Committee, and Rep. Frederica Wilson of Florida, who chairs its subcommittee on Health, Employment, Labor and Pensions — wrote that contracting out the reviewing of comments “appears to be an alarming course of action.”
They said the agency “risks further fueling public concerns that it is tainting the rulemaking with conflicts of interest.”
The agency “already has the most qualified staff ” for the task on its own payroll, the Democrats said.
The NLRB didn’t immediately respond to a request for comment.
Eidelson and Kanu write for Bloomberg.