What Trump should do now that Andy Puzder withdrew his nomination for Secretary of Labor–Thomas Kochan

MIT Sloan Professor Thomas Kochan

MIT Sloan Professor Thomas Kochan

From Fortune

Now that President Trump’s pick for Secretary of Labor, CKE Restaurants CEO Andy Puzder, has withdrawn his nomination for U.S. Secretary of Labor, America will avoid, at least for the moment, a highly divisive debate over the future of U.S. employment and labor policy. This gives President Trump an opportunity to reconsider the type of person he wants to carry out his agenda.

Will Trump choose someone who respects the mission of the Labor Department, which is: “To foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.”

Or, will he choose another candidate who will implement an agenda that weakens employment standards and enforcement; thwart efforts of women and men who are organizing to support low-wage workers, and deepen the divide between business and labor? If this is the direction of whoever gets confirmed Secretary of Labor, we will be revisiting last century’s labor battles and further divide the nation. Read More »

Good gig? New employment proposals for contract workers could make it better — Thomas A. Kochan

MIT Sloan Professor Thomas Kochan

MIT Sloan Professor Thomas Kochan

From WBUR Cognoscenti

Last week, Sen. Elizabeth Warren unveiled a comprehensive set of proposals to provide basic employment policy protections and income security benefits to those working in the so-called “gig” economy and others in subcontracted or franchised arrangements. Whether one agrees with her specific ideas or not, the nation owes her a debt of gratitude for putting these issues front and square on the table for a discussion that is long overdue.

The gig economy, best embodied by Uber, Lyft and Task Rabbit, may account for less than 1 percent of the workforce, but it has sparked a debate over what to do about all those who make their living outside of standard employment relationships.

Standard employment relationships are ones in which there is a clearly defined and identifiable employer that is responsible for complying with the range of employment laws put on the books since the New Deal: unemployment insurance, Social Security, minimum wage and overtime rules, and the right to unionize and gain access to collective bargaining. To be clear, the vast majority of American workers, about 85 percent to be exact, still work in this type of employment relationship.

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How do we ensure the next generation of workers isn’t worse off than the last? — Thomas Kochan

MIT Sloan Professor Thomas Kochan

MIT Sloan Professor Thomas Kochan

From The Conversation

Discussions about the future of work are clearly in the air.

This week, Secretary of Labor Tom Perez is convening a three-day symposium on the issue. Simultaneously, the Brookings Institution hosted a discussion about the implications of the “gig” economy for work and employment policy. At MIT, we are also planning a similar conversation for early next year.

And in Silicon Valley, leaders of high-tech companies and worker advocates have recently started discussing new ways to offer benefits to contract workers following several high-profile cases in which Uber drivers and others have sued to be considered regular employees and gain the accompanying benefits.

All this couldn’t come at a better moment, but time is of the essence. Unless talk leads to actions to change the course of the economy and labor market, the next generation of workers is destined to experience a lower standard of living than their parents – the opposite of the American Dream.

Read More »

What the Market Basket deal says about American workers — Thomas A. Kochan

MIT Sloan Professor Thomas Kochan

MIT Sloan Professor Thomas Kochan

From Fortune

Imagine high-level executives, store managers, clerks, and warehouse workers standing outside their stores side by side for a month demanding their CEO be reinstated and the business model that made the company thrive be maintained. And imagine their customer base cheering them while they had to shop elsewhere at considerable inconvenience and expense.

That is exactly what happened this summer at Market Basket, a highly successful New England family-owned grocery chain with 71 stores and 25,000 employees. On Wednesday night, Arthur T. Demoulas struck a triumphant deal to buy his warring cousins’ share of the family grocery empire, ending a six-week standoff between thousands of employees and management.

Though not everyone may have heard of this story, it is indeed the biggest labor story of the year. And if it emboldens others to speak out for similar workplace causes, it may turn out to be the most important workplace event to come along so far in this century.

Read the full post at Fortune.

Thomas Kochan is the George Maverick Bunker Professor of Management, a Professor of Work and Employment Research and Engineering Systems, and the Co-Director of the MIT Sloan Institute for Work and Employment Research at the MIT Sloan School of Management.

Can a new brand of unions help America’s workers? — Thomas Kochan

MIT Sloan Professor Thomas Kochan

MIT Sloan Professor Thomas Kochan

From Fortune

Hardly a day goes by when American unions are not attacked from some quarter: Last week, the Supreme Court weakens unions representing home care workers, one of the lowest paid and fastest growing occupations. This follows another ruling struck earlier last month in which a California judge threw out teacher tenure, due process and seniority rules under the dubious theory they are the cause of persistent inequality in education outcomes. And in 2011, Wisconsin’s governor decimated public sector unions by taking away state and local government employee rights to collective bargaining, reversing a policy in place since 1959.

It’s clear that for years most private sector employers have successfully fought union organizing and collective bargaining using every legal delaying tactic and in many cases illegally firing workers. Wal-Mart  WMT 0.42% ,the nation’s largest private employer, is the most visible case in point. By deploying its union-fighting swat team from corporate headquarters to any store that shows signs of worker protest, it has remained 100 % “union-free.”

The result: Now down to representing only 7% of private-sector workers, America’s unions and collective bargaining are no longer able to provide workers the power they need to redress workplace injustices or achieve a fair share of the economic growth they help generate.

But America desperately needs a vibrant, innovative, growing, and yes powerful, set of organizations that give voice to and represent workers with their employer and in social and political local and national discourse. No democracy in the world has been sustained over time without some independent institution that stands up for and advances worker rights, interests and economic welfare. Moreover, there is an almost perfect correlation between the decline in union representation and the rise of income inequality.

Having said this, we should not be nostalgic. Trying to recreate unions in their mirror image would be both futile and ill-conceived. Instead, America needs to invent, support and grow a new and renewed labor movement that fits the needs of today and tomorrow’s workers and economy.

The good news is a wide range of experiments with new forms of mobilization and worker representation is now underway inside and outside of the labor movement.

Unions in the utility industry, health care and manufacturing industries are using knowledge and skills as the key source of worker power by expanding apprenticeship training, creating partnership with community colleges, vocational schools, and employers to fill the “middle skills” gaps that exist today or will grow as skilled baby boomers retire.

Read the full post at Fortune.

Thomas A. Kochan is a professor of industrial relations, work, and employment at the Massachusetts Institute of Technology’s Sloan School of Management. He is author of the book, Restoring the American Dream: A Working Families’ Agenda for America.