The National Labor Relations Board recently issued a rule change that may have wide-ranging impacts for workers and businesses.

The update to the joint employer rule would require parent companies to negotiate collective bargaining agreements with employees even when using a staffing agency or subcontractor.

It also means franchisors and franchisees can both be held liable for unfair labor practices.

This replaces a Trump-era rule change that made it easier for companies to avoid a finding of joint-employer status.

Brian Petruska - general counsel with the mid-Atlantic regional organizing coalition of the Laborer's International Union of North America - said the rule change is a win for workers.

"It means that the employees' right to organize still is meaningful," said Petruska, "even in this modern world we live in with layers and layers of LLCs and corporations who are now defining the workspace."

The rule change now faces legal challenges including from the U.S. Chamber of Commerce, which filed suit against the board in federal court.

In a statement on its website, the Chamber says the rule change will "create chaos and more legal confusion that will harm both employers and workers."

The NLRB rule establishes that two or more entities may be considered joint employers of a group of employees when more than one entity possesses the authority to control employees' essential terms and conditions of employment.

The board says this change is more in line with established common-law agency principles.

Petruska said he sees opposition to the updated rule coming from a number of industries including restaurants, construction and hotels.

He also said the franchise business model will no longer insulate the parent company from labor issues.

"Now," said Petruska, "the fact that they have that control may cause them to be embroiled in local labor disputes that the franchisees are having with their employees."

The new rule will go into effect next February.

More jobs are available now in Kentucky compared with the past couple of years and many are better-paying union jobs driven by federal investments, according to a new report from the Kentucky Center for Economic Policy.

The construction industry added more than 13,000 jobs or 16% above pre-pandemic levels.

Jason Bailey, executive director of the Kentucky Center for Economic Policy, noted the rate of growth is nearly twice the national average.

"Building new manufacturing facilities like the Blue Oval plant in Hardin County, in energy-related construction, in building infrastructure like bridges and water and sewer systems," Bailey outlined.

The state is also seeing big job gains in health care and the clean energy sector. Eastern Kentucky, however, continues to grapple with fewer jobs and a lower workforce participation rate. And public sector employment lags behind, in part due to lean state budgets and income tax cuts.

Among Kentuckians of prime working age, 80% are already working or in the labor force. Bailey explained most of those not working are either caregivers or people living with an illness or a disability.

"There are very, very few people who are not in the labor force that don't have real barriers," Bailey emphasized.

After decades of declining union membership, Bailey noted the Commonwealth is seeing an uptick in labor organizing.

"There are more workers voting to form unions," Bailey observed. "There's more union strikes and job actions, higher union membership."

Yet many Kentucky workers are paid low wages and lack benefits and workplace protections. In 2023, 19% of workers were paid less than $15 an hour. According to the report, 28% of working residents' incomes put their family below the poverty line.

A Pennsylvania environmental justice group is voicing its concerns about the potential sale of U.S. Steel, the effect on the community and the future of its jobs.

Japan's Nippon Steel is buying U.S. Steel for more than $14 billion.

Matthew Mehalik, executive director of the Breathe Project, said prioritizing the health and well-being of Mon Valley residents over corporate profit would have to be included in the proposed agreement. It would then need approval from the Biden administration and the Committee on Foreign Investment in the United States to avoid monopolies. He added union jobs may also be affected by the sale.

"There's also arbitration happening with the United Steelworkers, because their position is that they weren't consulted for the sale of the company," Mehalik pointed out. "Their current contract has a clause in there that would require that."

President Joe Biden is preparing to block the proposed takeover for national security reasons. Mehalik added there is no labor agreement with the U.S. Steel Workers' Union examining the impact on the region and community. U.S. Steel has had a presence in the Mon Valley since 1901 and currently employs about 4,000 workers.

Mehalik noted Mon Valley residents feel they are being left out of important conversations about the sale and are urging better health protections.

"The community needs to have a seat at the table," Mehalik emphasized. "They need to be able to articulate their concerns so that the health harms that keep happening from these old, outdated leaking U.S. Steel facilities, you know, those pollution emission events come to a stop."

He added Nippon Steel is offering to invest $1.3 billion in U.S. Steel Corporation's Mon Valley and Gary Works. However, he added specifics regarding how the investment would be used are not well-articulated.

A new report showed income inequality in Wisconsin is declining as lower-wage workers are seeing faster wage growth but Black, Latino and women workers still lag behind.

A study by the High Road Strategy Center at the University of Wisconsin-Madison found the state's job market hit record levels in the second quarter and the inflation-adjusted median hourly wage has increased by 97 cents.

Laura Dresser, associate director of the High Road Strategy Center at the University of Wisconsin Madison and the report's co-author, said the increase in the median wage is just making up for the period inflation ran ahead of earnings in 2022.

"In these last five years, lower-wage workers have seen their wages go up by 8%," Dresser reported. "In terms of purchasing power, real value, and high-wage workers have only had wages go up about 1%."

The State of Working Wisconsin 2024 report noted the number of jobs in Wisconsin has topped 3 million and unemployment remained steady at 3%. The study also found the rate of unionized workers in Wisconsin dropped by one-third between 2011 and 2023, the steepest decline in union membership across the Midwest region.

Despite the increase in wages, the report said significant wage gaps remain between white men and workers who are Black, Latino or female. Dresser pointed out Latinos earn about 33% less, Black workers make 25% less, and white women's pay lags 16% behind in the workplace.

"When you focus on improving the quality of jobs, especially at the bottom of the labor market, you also are looking to close racial and gender gaps in wages," Dresser explained. "Because it is Black and brown and women workers who are dominant in lower-wage jobs."

The report made some recommendations for Wisconsin lawmakers. It suggested raising the minimum wage from $7.25 to $15 an hour to help close the pay gap, rolling back the state's so-called "right to work" laws to restore union rights and increasing investments in child care and education to provide relief for families and employers.


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