▶ 0:17:57The subcommittee on health, employment, labor, and pensions will now come to order. I note that a quorum is present. Without objection, the chair is authorized to call a recess at any time. Today's hearing will examine the current state of labor law under the National Labor Relations Board and explore solutions that promote worker choice, provide legal predictability and stability for employers, and give workers better access to fair representation in their in their elections.
▶ 0:18:28In 1935, Congress passed the National Labor Relations Act to protect workers and to supervise union elections through the Under the uh under the Biden Harris administration, however, the NLRB engaged in gross mismanagement and acted as the litigation arm for big labor, protecting union bosses rather than elevating rank and file members.
▶ 0:18:53The board spent four years under the Biden Harris administration gutting the democratic process by which unions become exclusive representatives of employees. One way in which the board undermined this valued democratic process is by attacking the use of secret ballots. Secret ballot elections are the gold standard in any democratic system.
▶ 0:19:17That is why the NLR A the NLR the board and the courts have traditionally encouraged their use in union elections. However, the Biden Harris NLRB gutted that historic pro uh preference for secret ballot elections in favor of the card check process.
▶ 0:19:36I have been committed to protecting the use of secret ballots, which is why I recently introduced the Secret Ballot Protection Act, which guarantees that every vote to unionize a workplace is cast with a secret ballot. And yet another blow to work force democracy, the Biden Harris uh NLRB uh gagged employers who wish to exercise their free speech rights during a union election campaign.
▶ 0:20:03The board made it an unfair labor practice for an employer to require its employees to attend a meeting on work time and discuss its stance on unionization. The cornerstone of any campaign is robust debate about the pros and cons of the various candidates and options. But the Biden Harris board was less interested in debate and democracy than it was in seeing that unions were entrenched in every workplace.
▶ 0:20:29One of the purposes of NLR is to help resolve workplace conflict and remedy unfair labor practices. Congress created the NLRB to write wrongs, not to punish wrongdoers. But the Biden Harris board was too interested in exceeding congressional authority, and both the general counsel and the board itself worked to expand ways to punish parties found to have committed unfair labor practices.
▶ 0:20:56The NLRB also raised barriers to holding elections at all, even when employees petition the board for a vote. The biggest hurdle was the return of the controversial blocking charge policy, which allows unions to file frivol frivolous, unfair labor charges and delay elections by months or years. Finally, the Biden Harris board spent four years engaging in government overreach to expand unions and their control over American workers.
▶ 0:21:23The Biden Harris board defined graduate students and student athletes as employees simply so these groups can unionize. The NLRB also adopted an elastic standard to determine whether a worker is an employee covered by the act or an independent contractor despite data showing that this will have a disastrous impact on the economy.
▶ 0:21:45Similarly, the board published a final rule establishing a broader standard to determine the existence of a joint employer relationship threatening the franchise model in other business relationships. I will continue to fight for the rights of American workers and push back on LNRB overreach. For many congresses, I have introduced the Employee Rights Act, which addresses these issues I have mentioned here today.
▶ 0:22:12As I work to reintroduce this bill, this Congress, the well-being of the American worker will remain at the forefront. We are here today to discuss how to ensure the NLRB serves the interest of workers as Congress It is time for the board to champion the right of employees to pick the union, not the union to pick the employees. It is time for the board to refocus on resolving workplace conflicts instead of punishing business owners.
▶ 0:22:40I look forward to discussing how to uh how to just that uh with our expert witnesses today. I hope that together we can find a way to make NLRB a more balanced referee of American workforces work force workplaces. With that, I yield to the ranking member for an opening statement. Thank you, Mr. Chairman. I want to thank the witnesses uh here today to have this open uh debate of ideas.
▶ 0:23:09I just want to mention that uh po unions are more popular right now than any time in American history, 71% according to well nonpartisan vetted polling. Um and that's because Americans know that they need a voice. They need a voice in the most concentrated uh economy in American history, worse than the guilded age of where the money is.
▶ 0:23:34that picture uh at the swearing in of the current president where those three individuals have more wealth than 40% of the American population. So we need counterveailing institutions. The American public gets it. Mr. Chairman, 71% of the American people know that labor unions are their voice and it is about balance. But the idea, at least from my perspective, couldn't be more different than yours about the balance right now and the comments I just made.
▶ 0:24:02Today's hearing is an important one in that regard as we will discuss the National Labor Relations Board, the only federal agency that protects the rights of tens of millions of American workers to organize and have a voice. While I welcome the opportunity to discuss this these important issues, committee Republicans are holding this hearing as if these are normal times and it is simply business as usual. Let me start by acknowledging the obvious.
▶ 0:24:31These are not normal times and they're not normal times for American workers. As their disposable income continues to shrink, as the promise by this president do something inflation is actually not happening, it's getting worse. In fact, since returning to the White House, the Trump administration has unfortunately consistently undermined working Americans, particularly those who wish to exercise their right to organize and collectively bargain.
▶ 0:25:00In January, President Trump ordered the unprecedented firing of the NLRB of NLRB member Gwen Wilcox, a highly experienced labor lawyer and champion for American workers. By firing member Wilcox, the president stripped the NLRB of its quorum, preventing the NLRB from doing its vital work, protecting American workers from harassment and coercion by union busting companies.
▶ 0:25:27Then in February, President Tom Trump issued an executive order giving himself unprecedented control over the rulemaking and legal positions of independent agencies, including the NLRB. The repercussions of this executive order could prove to be disastrous, not only for the NLRB and the American workers they defend and their independence, but for workers as a whole.
▶ 0:25:52Since the NLRB's inception, workers have relied on the AY's expertise and independence in enforcing the National Labor Relations Act. Any loss of independence means that the NLRB and other independent agencies are vulnerable to direct political inference interference from President Trump and the administration.
▶ 0:26:13Even though the NLRB has not issued reductions in force as of now, we continue to pay close attention to any efforts by Doge to cut the NLRB's already barebones workforce. The birds the board's workforce is nearly 30% smaller than it was 15 years ago, while its workload has grown.
▶ 0:26:35I also remain concerned that the president's budget fails to make the investments necessary to address the NLRB's staffing crisis, particularly at its regional offices. Today, we have a unique opportunity to learn more about what the Trump administration's policy mean for the NLRB as a as well as the American workforce. from true expert and committed se public servant. We are very fortunate to have Miss Jennifer Abbruso.
▶ 0:27:06Thank you for being here again. You're you're a great witness in my from my perspective as one of the witnesses. She worked for decades at the NLRB, most recently as the general counsel. Based on the title of today's hearing, committee Republicans will have you believe that the scales have been tipped in favor of pro- union workers or big labor bosses. That is far from the truth.
▶ 0:27:31By and large, the system remains rigged against American workers in favor of corporations that don't play by the rules. And let me say that this isn't about all employers. Many employers who have union contracts and don't play by the rules. The problem is that we're going down to the worst employers.
▶ 0:27:51Employers who want to pay subminimum wage work wages are okay with violating child labor laws and re reliable consistently proved to defend and help the economy labor laws that protect the American workforce.
▶ 0:28:06It's those employers that my hope would be that we would join in making sure that there's oversight and consequences when they violate not just the spirit of the law, but the letter of law and allow for effective Simply look at the numbers. From 1979 to 23, annual wages for the bottom 90% of American households has increased just 44% while average incomes for the wealthiest 1% increased more than 180%.
▶ 0:28:37Let me repeat that again. 90% of American households, they got a 44% raise. Sounds like a lot, but the top 1% people making over $10 million a year made 180%. Again, it gets worse and worse at the expense of American workers who get up every day and go to work and perform well. 70%, as I said in my beginning comments, approve of labor unions.
▶ 0:29:04And 60 million American workers say they would unionize if given the opportunity. And even for those who don't unionize, we know from the research that union activity raises the bar for everyone, union and non-union. Makes the country a better place and more productive. Makes it more like the Eisenhower administration when we grew the American middle class and a GDP of 6% over a decade.
▶ 0:29:30Meanwhile, worker or workers organizing has skyroed skyrocketed over the last few years. that union membership has hit a new record low record low. Why is this the case? It's because for too long, unscrupulous employers, not all employers, have weaponized captive audience meetings, faced no real penalties for illegal firings, and exploited procedural tricks in NLRB's proceedings to crush workers unions efforts and their ability to have a voice.
▶ 0:30:00I come to this hearing with what I believe is a unique perspective. As many of you know, I own small businesses. I made many payrolls in a very difficult business, the restaurant business. And I take pride in the relationships I formed with my employees during that time. They made me successful. I learned that the success of a business lies in the relationship between the employer and the employees, union or non-union.
▶ 0:30:26Treating workers with respect that they deserve is not only not only a right, it is a savvy business practice and it is the essence of America. As the toqueville said in the 1800s, the simple genius to America is to expect exceptional things from ordinary people that works in employer employee and in the business sector. I am also a former union member having been a teamster and a member of the AFL CIO.
▶ 0:30:54I know firsthand the benefits of union membership and the power unions have in bridging the gap between workers and their employers, helping all workers and not just those, as I have said, who are union members earn higher pay, better benefits, safer workplaces, and have respect. Forming a union must be a right and not a fight. Democrats will not stay quiet while this administration attacks American workers. I hope we can have a productive discussion today, Mr.
▶ 0:31:22CH chairman that centers around workers experiences and also focuses on low road employers who do a disservice not just to their workers but to the best American employers who respect their workers. Thank you. I yield back. Uh the ranking member yields.
▶ 0:31:41Uh, pursuant to committee rule 8C, all members who wish to insert written statements into the record may do so by submitting them to the committee clerk electronically in Microsoft Word format by 5:00 p.m. 14 days after this hearing. And without objection, the hearing record will remain open for 14 days to allow such statements and other extraneous material noted during the hearing to be submitted for the official hearing record.
▶ 0:32:10I'll now turn to the introduction of our four distinguished witnesses. Our first witness is Mr. Aaron Sullum, a staff attorney for the National Right to Work Legal Defense Foundation in Springfield, Virginia. Our second witness is Mr. Vincent uh Vishi Venicio, the president of the Institute for the American Worker in Hamilton, Virginia. And I hope I didn't mess that last name up too bad there.
▶ 0:32:38Our third witness is Jennifer Arbusia, senior adviser to the president of communication workers of America in Washington DC. Mrs. Abuso served as general counsel of the NLRB during the Biden administration. Our last witness is Mr. Roger King, senior labor and employment council at HR Policy Association in Washington DC. We thank the witnesses for being here today and we look forward to your testimony.
▶ 0:33:06Pursuant to committee rules, I would ask that you each limit your oral presentation to a threeminut summary of your written statement. As committ committee members have many questions for you, the clock will countdown from 3 minutes. Pursuant to committee rule 8D and committee practice, however, you will not cut off uh I will not cut off your testimony until you reach the five minute mark.
▶ 0:33:30I would also like to remind the witnesses to be aware of their responsibility to provide accurate information to the subcommittee. Now, it's my privilege to recognize Mr. Solum for your testimony. Uh, thank you, Chairman Allen, Ranking Member Dson, and members of the committee. My name is Aaron Solum. I'm an attorney at National Right to Work Legal Defense Foundation.
▶ 0:33:53I represent individual employees, uh, workers whose voices are too often lost in policy debates dominated by union officials and employer interests. The National Labor Relations Act is fundamentally about employee free choice. It protects equally the right to choose a union and the right to reject one. The board is supposed to remain neutral between those choices.
▶ 0:34:17But over the past four years, the Biden NLRB has severely tilted the playing field in favor of union officials at the expense of employees who oppose union representation. And this shift wasn't surprising at all. President Biden promised to be the most pro-UN president in history, and his appointees followed that lead. Consider just the following examples.
▶ 0:34:38In SEMICS, the board held it would nullify an employee vote against a union and then decide that the union is to be the employees representative if an employer supposedly committed even minor unfair labor practices. With the election prevention rule, the Biden board took away employees right to call for a secret ballot election after they are subjected to a union card check campaign by res restoring the so-called recognition bar.
▶ 0:35:04And also with the election prevention rule, the Biden board revived the discredited blocking charge policy, which allows unions to unilaterally delay an employee descertification election simply by filing an allegation against the employer. No neutral factf finding required. The Biden NLRB's agenda confused empowering union officials with protecting employee free choice. This agenda ignores the reality that many workers don't want union representation.
▶ 0:35:33It it ultimately infantilizes employees by treating them like sheep who are too ignorant to decide for themselves whether they want to be unionized. To restore balance and fairness, the next board in this Congress should advance a truly promployee agenda. This agenda should be centered on employee democracy and protecting employees right not to fund union politics.
▶ 0:35:56That includes ending non-stutory election bars like the recognition bar that prevent elections at regular intervals, ending the blocking charge policy to restore employees right to a timely secret ballot election, protecting employees right to opt out of funding for union politics, and ensuring open debate by protecting free speech on all sides.
▶ 0:36:18Labor law shouldn't protect employees, should protect employees, and that includes employees who don't want a union, employees who want information about the downsides of a union, and employees who want to work without being forced to fund union political causes. Thank you, and I look forward to your questions on all of these issues. Thank you, Mr. Solomon. Now, I recognize Mr. Bonuccio for your testimony.
▶ 0:36:43Chairman Allen, members of the committee, my name is Vincent Ferduchio and I'm president of Institute for the American Worker. I4 AW is a 501c3 educational organization focused on empowering American workers. Thank you for giving me the opportunity to testify here today. Constantly shifting interpretations of the National Labor Relations Act are causing confusion and harming workers.
▶ 0:37:06The National Labor Relations Board needs to restore balance and ensure fairness and transparency for workers, unions, and job creators. In addition to the NLRB's efforts, Congress can work to enhance a level playing field, ensuring NLA empowers the American worker with a fair and transparent system.
▶ 0:37:27This system should prioritize worker infranchisement, ensuring that a majority or quorum of the full bargaining unit has a say in union elections to make sure unionization reflects the true will of the workforce. This is something that a plain reading of the NLR already provides. The act is clear. Representatives are to be selected or designated by, and I quote, the majority of the employees in a unit.
▶ 0:37:56The NLRB should also ensure workers can make an informed decision on unionization by not stifling speech and for be and forbidding employer meetings on unionization. These meetings are essential to allow workers to hear all sides on what a unionized workplace would mean for them and their families. The board should also ensure the NRA does not shield harassing or discriminatory language or conduct, preserving a respectful workplace.
▶ 0:38:23It should also preserve independent work arrangements and maintain a clear direct control standard for joint employment. Many of these issues can be addressed at the board level. Still, Congress can and is taking steps to protect transparency, fairness, and the ability of workers to champion their own destiny. Representative Bob Ander recently introduced the Worker Infranchisement Act, which would require a quorum of workers to vote in a secret ballot election before a union is organized.
▶ 0:38:53To give workers more freedom, Representative Eric Berles in the last Congress introduced the Workers Choice Act, which would allow workers in unionized jobs and right to work states to opt out of representation and negotiate directly with their employer.
▶ 0:39:08Representative Kevin Kylie re recently introduced the Modern Worker Empowerment Act to ensure that American workers who want to work for themselves or earn extra side income are not forced to be Unfortunately, on the negative side, Senator Josh Holly has introduced the Faster Labor Contracts Act, which would allow government bureaucrats to force arbitration for first contracts on workers, unions, and job creators.
▶ 0:39:36Labor law needs to embrace and encourage entrepreneurship and the flexibility that modern workers want. Congress has sought to remedy many of these matters through legislation. And the NLRB can also restore balance for workers by embracing traditional interpretations on these issues and staying faithful to the plain language of the NL. Thank you for giving me this opportunity and I will welcome any questions. Thank you, Mr.
▶ 0:40:06Vonio. And next I recognize Mrs. Abbruso for your testimony. Thank you, Chairman Allen and Ranking Member Daneier. I'm Jennifer Abbruso and I served the public for almost 30 years at the National Labor Relations Board, most recently as its general counsel. As to the theme of this hearing, I would submit that we need to restore balance and ensure fairness and transparency at all workplaces around the country.
▶ 0:40:32In order to do that, the NLRB must be able to hold true to the public policy of the United States as stated in the National Labor Relations Act, and that is to encourage collective bargaining and to protect workers full freedom of association. We all know that the power dynamics at workplaces are skewed in favor of employers.
▶ 0:40:52And in enacting the statute, Congress rightly recognized the only way to combat that power imbalance was by fostering strength and numbers among employees so they could act together and engage with their employers and negotiate over improved working conditions and wages with or without a union. As written and intended, the NLR is a pro-worker statute, not a pro-UN one and not a promployer one.
▶ 0:41:18It protects workplace democracy where employees feel empowered to freely exercise their rights to engage in union or other protected activity to better their lives. The problem is that the NLRB is not fully protecting workers in this country right now and it could get worse. Today I share four action items for Congress to consider and implement. First, you should force this president to abide by the NLR.
▶ 0:41:46In January, the president unlawfully fired board member Gwen Wilcox, an experienced labor law attorney with who was well well steeped in labor law, violating not only the statute, but also 90 years of Supreme Court president. As a result, the board lost its quorum, which means it can't issue decisions. And who's benefiting from them? That that dysfunction? Not workers. Employers.
▶ 0:42:11employers who now feel emboldened to violate the law with impunity and retaliate against their workers because there's no functioning board to hold them accountable. So, at the same time that corporations and billionaires are pushing for more tax cuts at the expense of working families, they're also trying to squatchch worker action, worker power, worker voice.
▶ 0:42:31Second, Congress needs to fight to maintain the statutory independence of this multimemember bipartisan board and its decision-making authority through actions and arguments made in court. I think this president believes that he can ignore statutes, fire people at whim, and give his donors a blank check to trample on workers rights in this country to unionize, collectively bargain, and act together to improve their circumstances. Third, Congress needs to fully fund the NLRB.
▶ 0:43:00When I started back at the as general counsel, the staffing was at the lowest level it had been since 1958. The staff is very talented and very dedicated, but they do not have the resources that they need to address the case intake. Until Congress fully funds the NLRB, workers are going to continue to experience long delays in getting remedies after being unlawfully fired. They can't get back to work in any timely manner. They can't get the back pay that they deserve.
▶ 0:43:29And unfortunately, corporations can afford to drag out the processes, but workers cannot. Fourth, Congress should use its power to make the law even more balanced and fair by passing legislation that protects more employees, covers more employers, assesses penalties for violators, and facilitates reaching collective bargaining agreements in a timely manner. Congress passed this statute in 1935 amid during the Great Depression amid widespread industrial instability and workplace conflict.
▶ 0:43:58A functioning well-funded NLRB can help ensure stable labor management relations at workplaces that enorm alike. So this is all about protecting workers and their families whose interests you were elected to represent. So, thank you and I look forward to your Uh, thank you for your testimony. Lastly, I recognize Mr. King for your testimony.
▶ 0:44:28Thank you, Chairman Allen, Ranking Member Visalier, and Committee Chair Wahlberg, and Ranking Committee Member Scott. It's nice to again appear before this I'm here on behalf of the HR Policy We represent over 350 employers that have operations throughout the country.
▶ 0:44:51Our employee complement of those member companies is almost 10% of the private sector workforce in this country. The issues before this committee on a continual basis are of vital interest to our association. I commend the committee for the title of the hearing today, rebalancing uh the application of the National Relations Board.
▶ 0:45:19Uh suffice it to say, while I have a very high regard for my my colleague Miss Abbruso, uh I believe she has a incorrect view of the National Lab Relations Act at the outset. uh what unfortunately many proponents come here in this committee and other committees and they make the statement that the national relations act was passed to promote collective bargaining.
▶ 0:45:44That's correct to a point, but what those individuals fail to acknowledge is the act was enacted by the Congress for those employees that desire union They have the cart before the horse. Uh, collective bargaining doesn't occur unless or until a majority of employees in an appropriate unit have elected union representation.
▶ 0:46:13With respect to the balancing of the application of the act, it's been out of balance in a very significant way for the last four years plus. First, the office of general counsel has pursued initiatives uh that are not core important to the act.
▶ 0:46:34For example, uh pursuing the thought that college athletes, student athletes should be covered by the national relations act, a significant waste of government money and agency and trying to narrow the definition of who is an independent contractor has interfered with numerous entrepreneurial opportunities for literally thousands of workers in this country.
▶ 0:47:04Further broadening the definition of joint employer status has interfered with business relationships for thousands of employers and many many more thousands of employees. The franchise or franchisee industry has been seriously disrupted by initiatives by the National Labor Relations Board.
▶ 0:47:26This attempt to expand the act well beyond its intent, well beyond the core mission of protecting employees, and I certainly agree with Mr. Bruo. The the act is intended to protect employees, not union institutional interest nor employer interest. It's about employees.
▶ 0:47:47But in the office of general counsel's pursuit of this agenda, uh, they have wasted taxpayer dollars in numerous numerous unneeded initiatives. The AY's own statistics show that for every lack of settlement percentage of 1%, uh, the agency suffers at least $2 million of wasted resources. The settlement rate of four cases has dropped dramatically under the past administration, at least 5%.
▶ 0:48:18That's $10 million right there. But that's not the end of the story. The time it takes to even get to the settlement has increased significantly. So at the time that the agency is not using its resources properly, it continually comes to Congress and asks for more money. That's certainly not appropriate. Uh, briefly with respect to the National Labor Relations Board's uh, the Biden board overruled literally decades of precedent.
▶ 0:48:49Mr. Allen, I commend you for your proposal to guarantee secret ballot elections. The Seck's case at bottom is all about eliminating secret ballot elections and relying primarily on card checks. Uh, that case alone overrules decades of precedent. The Amazon case that was referred to earlier prohibits employers from having meetings with employees regarding unionization.
▶ 0:49:16Uh that case decision again overrules decades of precedent and is inconsistent with section 8C of the NRA and the first amendment. And from my perspective, it has no chance of survival in the court. In in summary, uh there are many other things uh Chairman Allen that we could discuss and hopefully we'll have an opportunity to do that this morning. Thank you, Mr. King.
▶ 0:49:42Under committee rule nine, we'll now question witnesses under the five-minute rule. I will recognize myself for five minutes. Um Mr. Venuccio, your written testimony reflects your concern that under current law, NLRB election procedures do not do a good job at ensuring workers get the collective bargaining representatives of their choice.
▶ 0:50:07As we all know, the Biden Harris NLRB made it easier than ever for unions to come into a workplace without an election at all. How should current election procedures be changed to address your concerns, Mr. Chairman? Thank you again for the question and the opportunity. Um, workers need empowerment. Um, and when it comes to selection to selecting a union, they need to be empowered to make that choice to make that choice securely and privately.
▶ 0:50:36And that choice should be reflective of the entire workforce. Um, given some of your legislation in the past, uh, Secret Ballot Protection Act, workers should be afforded the secret ballot to choose a union in private without intimidation or coercion. And we have heard countless stories before this committee of that type of intimidation and coercion that comes with car and could come out of a decision stemming from the seme decision of the previous NLRB.
▶ 0:51:04Further, the NLRB should also honor the true language, the precise language of the National Labor Relations Act that says that a union must be chosen by the majority of all the employees in a unit or at a minimum a quorum of majority of the employees in the unit. Good. Thank you, Mr. King. Last Congress, the Save Local Business Act was introduced to reverse the damage done by the Baris Biden Harris board's position on the joint employer issue.
▶ 0:51:33Can you explain uh the 2023 NLRB joint employer rule and how we can amend the law to create a predictable legal landscape for employers? Well, hopefully an approach will emerge from the board, whether it be a Democrat board, Republican board, uh, Chairman Allen, that only would find a joint employer relationship when there's direct and immediate control of one entity over another entity's employees in terms
▶ 0:52:03of conditions of employment. This area of the law has been turned upside down, back and forth. It is in a state of continual flux. It helps no one. And as I mentioned at the outset of my remarks, it particularly hurts franchiseors and franchises which are the bedrock of entrepreneurialism in many of the communities in in your respective districts. This has to change. Yes, I agree. Mr.
▶ 0:52:30Sullum, you discussed the Biden Harris board's blocking charge policy in your written testimony. Can you expand on your comments and give some examples of the way that blocking charge policy has been abused by unions and the board to delay elections? Uh, Chairman Allen, thank you for your question. Um, you know, I I I I give a few examples in my written testimony on pages 8 and N, but just to pull one out, um, was one of my colleagues cases. It was called Apple Bus Company. an Apple bus company.
▶ 0:52:59They filed for an election in 2017 and they didn't get an election until 2019 because over the course of the next two years union filed 15 blocking charges, eight of which were dismissed. Uh the other ones were settled with non-admissions clauses. So there was never any proof that any of the allegations exist. When the day for the election finally came, union didn't even face the voters. They walked away. They disclaimed interest, which makes it look like they were filing just to delay their time in power.
▶ 0:53:25uh the blocking charge policy uh which was brought back by the Biden board is going to lead to more of this and in fact uh member McFaren's own descent dissenting from the Trump one rule showed that roughly about 22.5 frivolous blocking charges were filed per year and so the Trump 2 board should return to the election protection rule and allow uh employees to get elections uh promptly. Okay. Uh yes, thank you.
▶ 0:53:54Uh again, I was for 40 years ran a small business and uh uh in fact, Mr. Ranking member Dona and I talk about the old times a lot. Uh but I I'll tell you um uh over my career uh things changed drastically. It's a it's a you know it's a modern workforce today, a very entrepreneurial uh workforce.
▶ 0:54:20Uh I was with a group last night when they were talking about ESOP programs and things like that. I remember that folks working at Proctor and Gamble there in Augusta uh uh who uh were making nice wages but they ended up millionaires because they were participating in the Proctor and Gamble stock program.
▶ 0:54:39Uh I know that my greatest privilege as uh an employer was to give uh our workers an opportunity, our employees, it's like family actually to uh provide for their family, provide for their church, their community, and this great country. And uh that is a great privilege.
▶ 0:55:00So, please know that uh you know employers are are very dedicated to I'm sure they're bad actors, but uh for the most part, if you're going to stay in business, you better take care of your folks is what we used to say. So, with that, I'll yield back and now recognize Miss McBath from Georgia for your questions. Thank you, Mr. Chair and Ranking Member Don, and to your staffs and to our witnesses for being with us today.
▶ 0:55:30By my count, we've had roughly seven different anti-UN and anti-worker hearings at the full and subcommittee level last Congress. And that was more hearings than we had on any other topic considered before this committee. And the majority is picking up right where it left off in trying to make it as difficult as possible for working Americans to organize a union and protect themselves on the job.
▶ 0:55:57Regardless of what may be said at these hearings or how hostile to unions this president and this majority may be, the first section of the National Labor Relations Act clearly states that it is, and I quote, the policy of the United States to encourage the practice of collective bargaining, freedom, and and and freedom of association end quote. But that is the exact opposite of what we see from this president and House Republicans.
▶ 0:56:26Instead, we see efforts to change the status quo, to change the rules and make it as uncomfortable as possible for working men and women in this country to exercise their rights in the workplace. My Republican colleagues claim overreach by the previous administration, but fully pres but fully support this president illegally firing firing Gwyn Wilcox from the National Labor Relations Board, essentially freezing this important agency and preventing it from carrying
▶ 0:56:56out its mission to protect workers from being wrongly fired for exercising their rights. Instead of changing the rules to make it harder for workers to organize and more difficult for companies to voluntarily recognize a union, we should be ensuring that every American can freely exercise their rights in the workplace without the fear of being fired and losing their main source of income.
▶ 0:57:22The difference between Republicans and Democrats on this issue and so many others could not be more clear. The Democrats used our majority to save the hard-earned pensions of over 1.2 million Americans, literally preventing people from having to go back to work in their old age and helping them to enjoy their retirement.
▶ 0:57:45Republicans used their last majority under President Trump to change the law to prevent union workers from being able to write their dues off on their taxes. Now they are using their current majority to extend tax cuts for the wealthiest Americans while taking away nutrition and health care benefits from millions of families. And they're doing it all at the same time.
▶ 0:58:11Make no mistake, this majority is not a pro union majority or proworker majority. As I mentioned earlier, President Trump illegally removed Gwyn Wilcox from the NLRB without a hearing. as required by law just a week into uh the the second term showing that cracking down on unions was always their intention. Miss Wilcox was not fired for negligence or for malfcence.
▶ 0:58:41Like so many others, she was wrongly fired for her commitment to maintaining a political independence of this important agency. She was fired for her refusal to abandon the rule of law in this country and our long commitment to the idea that some government functions should be protected from special political interests.
▶ 0:59:04That commitment is what differentiates our country from corrupt regime regimes and that is what's at risk every day that this president is allowed to do these things unchecked. Mr.
▶ 0:59:17Bruzzo, beyond the fact that the removal of Miss Wilcox is a true overreach of presidential power, can you talk about why every American should be concerned about a president firing a member of the NLRB without a legitimate reason for the first time in history? Thank you.
▶ 0:59:40Yes, it is all about protecting workers and workers won't have um an independent body to decide their cases. It is putting the scales uh putting thumb on the scales of justice, rigging the system and corporations with money and corporate billionaire donors will be able to influence the White House uh and uh be able to avoid liability or worse you get folks uh decision makers at
▶ 1:00:10the board that will call the White House and say, "Hey, we have a case against Amazon or we have a case against Meta or we have a case uh against Tesla or SpaceX. Uh what do you want us to do here? So it is the opposite of correcting the power imbalance and it is allowing for workers to have less safe working conditions and more inequities at the workplace and less voice. Thank you so much and I yield.
▶ 1:00:40Uh the gentle lady yields. I now recognize uh it's my privilege to recognize our great chairman Jim Wahlberg for your questions. Well, I thank another great chairman and I appreciate the uh the panel being here today.
▶ 1:00:54Uh this is an issue that u you know I've had concerns with for many years right now and card check in my my opinion right now does not serve unions well with membership that feel at times that they are pestered and pushed in a unfair way to even consider unionization. But uh Mr. Venuccio, good to see you. Um do you think the card check process is less fair than secret ballot ballot elections?
▶ 1:01:23and uh what can be done to ensure fairness in that process? Uh Mr. Chairman, it's good to see you as well and thank you for the question. Um CR check is absolutely inferior to a secret ballot election. Uh we have heard testimony before this committee time and again of workers being intimidated, workers being threatened and coerced of not getting the full story on unionization, signing cards only to regret that signature.
▶ 1:01:52Um, the secret ballot gives those workers the opportunity to have a private vote where they can reflect on unionization, where there is not intimidation, where there is not coercion and make that choice just like we choose for any political office in the privacy of a voting booth.
▶ 1:02:12I appreciate that and I you know I contend that if if unions really understood it this this shows that the interest is not so much in the worker but rather in just the operation of the union and uh um card check is wrong secret ballot is American and uh need to continue that. Mr. King.
▶ 1:02:36Uh you devote uh a considerable portion of your written testimony sharing your perspective on the Faster Labor Contracts Act, which is which is appreciated by me. Based on your experience negotiating collective bargaining agreements, what effect would you expect this bill to have on parties abilities to uh reach a first contract? Nothing positive. Uh I negotiated Mr.
▶ 1:03:04Wahlberg collected bar agreements for over 45 years and many of those agreements were first contracts. While the association commends Senator Holly for starting a discussion, unfortunately he just lifted provisions uh from the pro-UN Act, the PRO Act, and put them in a bill.
▶ 1:03:26And as noted by my colleagues here this morning, uh that bill imposes by government fiat an agreement on the parties, union and employers if no contract is reached within 180 days or somewhere in that time frame. That's unrealistic. It has constitutional defects. It's seriously uh in conflict with the National Labor Relations Act.
▶ 1:03:51It was written without any input, any meaningful input from other stakeholders and I respectfully uh would disagree and my association does with the entire approach that Senator Holly is taking. Along that line, do you believe the faster contracts act would result in contracts that are substantially different than the ones arrived under current law? Per perhaps.
▶ 1:04:19We we have this outside group of arbitrators, Mr. Wahlberg, that ultimately is going to be required to write the contract for the parties. And if we go under what's interest, which is what's in the Holly bill, uh the arbitrators generally just split the baby and come out somewhere in the middle. No meaningful collective bargaining occurs.
▶ 1:04:45So yes, they could be quite different, quite detrimental to both employees and employers. Again, this proposal is defective in so many different ways. It was not well thought out, and it is uh something that hopefully the House will not take seriously in any way, shape, or form. I hear you. Uh Mr.
▶ 1:05:08Solumn, uh, your written testimony describes various bars to elections, even though the LRA only has a one-year election bar. Can you explain how all of these other election bars developed, and whether they apply to elections, both certifying and descertifying union representation? Uh, thank you, Chairman Wahlberg.
▶ 1:05:29Uh very quickly, there's several non-stutory bars like the contract bar, which prevents an election for up to three years when there's a collective bargaining agreement in effect except during a 30-day period. The voluntary recognition bar, the successor bar, you can't get an election when you're uh your employer sells its business. Uh in terms of their development, I think former chairman said it best when these developed as incumbent protection devices. Um I think my time has expired, but uh appreciate the thought.
▶ 1:05:58I yield Chairman, I'm just following your example here. I now I now recognize Mr. Man Maninian of of New York for his questions. Thank you, Mr. Chairman. I I'm don't mean to correct you. I'm sure you're also a great boss. Uh Manion, which uh misspells to Manunion sometimes. Not a joke.
▶ 1:06:26Uh so uh thank you all of your witnesses for being here today. Thank you Miss Abbruso for your leadership at the NLRB and for the reforms you've achieved to support organized labor and protect workers rights. Um I fear that some of that progress is now at risk due to this administration's efforts to weaken worker protections and undermine independence and capacity of the NRLB.
▶ 1:06:52Regional offices, especially in central and upstate New York, have been confronting serious staffing and resource shortages for years now, leading to unacceptable backlogs. Workers with valid complaints are waiting months, many times over a year for action. These aren't just delays. They are denial of these workers rights. And when we pair that with the proposed budget cuts to the NLRB, it's clear that we are headed in the wrong direction.
▶ 1:07:22The ranking member mentioned the popularity of labor unions. Well, in upstate New York, in Syracuse and Udica, where I'm from, it's upwards of 80%. And the people who represent those union workers here in Washington and in Albany are pro- union and pro worker. And if they're not, they're not there for very long. And it's not because of union bosses. It's because of trust.
▶ 1:07:53It's because of securing pensions. It's because of the grievance process. It's because of collective bargaining. The people of Central New York understand that the pathway to the American dream is not just a good job. It's a good union job. And you can look back in almost any family's history in this country and you will find that good union job that took people out of poverty.
▶ 1:08:19Before my time in Congress, I was a president of a 400 member teachers association, teachers, nurses, school psychologists, and social workers. I led two successful contract negotiations, including one that was unanimously ratified 366 to zero. So, I understand the power of collective bargaining and the importance of a fair and a functioning system.
▶ 1:08:42That's why I strongly support legislative reforms like the PROACT that would ensure workers rights and that those rights would be better protected. Mr. Bruso, in your view, what statutory reforms beyond the adequate funding that you referenced, citing four uh items, four actions by this Congress or others are most urgently needed to empower workers and ensure
▶ 1:09:12that the NLB can fully carry out its function. Thank you. So, as I said, first of all, you need to bring board member Will Cox back and have a quorum. Uh, you need a well steeped, well experienced labor lawyer in that role. Um, otherwise, uh, there will be continued violations of the law. Uh, and you know, corporations make a ton of money off the backs of their workers.
▶ 1:09:41Uh, and those that need the most protections and the most tax breaks are workers and their families. Uh so that's first and foremost and secondly as I said there has to be independent decisionmaking at the board. Uh if there isn't then the power imbalance will just get even more skewed.
▶ 1:10:02Um corporate corporations will just use their money uh to influence the White House and again that affects workers detrimentally and affects their workplaces making them less safe. inequities, losing their voice. Um, uh, thirdly, uh, as I said, pass legislation that actually is more fair, uh, and more balanced for protections of workers rights.
▶ 1:10:30Cover more employees, domestic workers, agricultural workers, uh, those that are mclassified as independent contractors. cover more employers that are actually joint employers who are trying to avoid liability uh or trying to not get at the bargaining table. Penalize violators of the law. That's how you deter violations from happening.
▶ 1:10:57Uh and so those are and of course as you said fund the NLRB that is uh you know I believe the NLRB needs to be fully funded and that requires at least $100 million more to their budget to actually protect the rights of workers in this country. Thank The gentleman from New York Gills. I now recognize my neighbor and friend across the river, uh, Representative Joe Wilson for his questions.
▶ 1:11:28Thank you very much, Chairman Rick Allen, for your leadership. And it's very humbling on this side. I get to follow two great chairpeople. Can you imagine? Uh, Tim Wahberg and Rick Allen. But I'm I'm grateful to be here. And and with that too, I I want to thank all the witnesses for being here. And of course um the national uh right to work committee to me uh for decades has just been a pioneer for workers rights and successfully promoting workers rights and right to work laws uh in a majority of of American states.
▶ 1:11:59South Carolina is a prime example of success with workers having rights to join a union or not. No force unionization. The consequence has been that South Carolina now has the become the largest manufacturer of tires in America with Michelin tires, Bridgestone tires, Continental tires, GT tires of Singapore, and the leading exporter of tires of any state in the union.
▶ 1:12:24Additionally, South Carolina is the leading exporter of cars with BMWs, the largest manufacturing plant uh X5s for everyone uh in Spartanberg, South Carolina. along with Volvo and Mercedes. Especially extraordinary is Boeing with 10,000 jobs in the Charleston area building 787-10 jetliners.
▶ 1:12:46And my constituents directly benefit with Boeing by having tubing by Zeus Corporation, cabled by Prismium Corporation and uh with HY providing the And last year I was happy to actually be in Riad, Saudi Arabia, where they announced a purchase of $39 billion worth of 787 jetliners. And of course, President Trump topped that.
▶ 1:13:12Last month he worked with Cutter to buy a hundred billion dollars worth of 787s. And so we really benefit by having workers having a choice of jobs or unionization or not. And Mr. Russo, I want to thank you for your service with uh NLIB with Michael McChor, Senior, and I'm grateful that the National Right to Work Act has been introduced over the years.
▶ 1:13:37I'm grateful to be the lead 100 co-sponsors in the House, which is races, force, dues, clauses, and federal statute without adding a single letter to federal law. South Carolina has a right to work law.
▶ 1:13:50state uh has seen tremendous economic growth as as I've indicated expanding economic freedom for businesses and workers and we need to continue to promote job creation and ending forced to extend workers rights for the American people. Mr. solemn. The work that you do at the National Right to Work Foundation is so critical and how is it that you assess the bill of workers choice to be?
▶ 1:14:20Um, thank thank you uh, Congressman. Um, I I think you just hit the the nail on the head is that right to work, you know, drives job creation. If you look at a study that was done by Benjamin Austin and Matthew Lily uh who are at Harvard and Duke uh now they found that there was higher employment and population growth in right to work states. Uh but you know the best thing about right to work isn't necessarily uh economic growth. It's about employee free choice.
▶ 1:14:47Uh the economic growth is just a positive externality of it. And indeed uh the Trump administration is proposing to pursue a proworker agenda. uh what would you uh look to as a proworker agenda? Yeah.
▶ 1:15:01So, so how they can pursue a proworker agenda at the NLRB is to concentrate the way I think about is the three Bs blocks, stop blocking charges, stop bars, and enforce back and move to an opt-in opt- out system so employees no longer have to fund union politics without jumping through hoops. And indeed, what a difference because during the Obama administration, uh there was an effort uh to stop Boeing from being able to develop in Charleston.
▶ 1:15:29Out of the blue, uh they came uh and acted against our governor Nikki Haley. Uh they uh provide indicated the uh that the plant couldn't be built. They already had a thousand workers, had a 100,000 square foot facility and NLRB came in and said, "You can't do it." But thank goodness we also have a very good attorney general uh Alan Wilson in South Carolina working with our US senators Tim Scott and Lindsey Graham and uh it was a
▶ 1:15:59real team effort and uh with leadership we were actually able to succeed but uh what a difference. I mean it's inconceivable to try to block uh such a development which has been so beneficial to all American workers. And with that I yield back uh to our great chairman Rick Allen. I thank my friend from South Carolina for yielding. And now I recognize Mr. Takano for his five minutes of questioning from California. Thank you, Chairman Allen.
▶ 1:16:28Uh, and thank you for the witnesses for being here today. Um, Ms. Abbruto, um, I just want to follow up on a question that got asked, um, by one of my colleagues. Um, I want to ask you, is is card check required by law? sorry.
▶ 1:16:49Uh so yes, by law uh in 1935, the NLRA gave uh employees the right to designate or select their their uh collective bargaining representative. What that means is that they can uh sign cards and if a majority of those employees uh support unionization then that union can then bring that forth to uh the employer and seek voluntary recognition.
▶ 1:17:18So voluntary recognition is actually in the statute right now and to Mr. Venuccio's point that is a m majority of people who are supporting uh being uh represented uh by a union uh and that is through uh cards or some other mechanism that shows that they have majority support. Are employers or workers ever barred from asking for a secret ballot election? No.
▶ 1:17:48Well, under the SEX decision, they are not. uh they can voluntarily recognize uh their uh the union that's their employees choice and they should respect their employees choices but they have the option under the sex decision to file a petition and get a board conducted election.
▶ 1:18:10However, if they violate the law uh during the election process between the filing of the petition and the election being conducted in ways that do not allow for a free and fair election, uh they will be subject to a bargaining order.
▶ 1:18:28So uh the assertion made earlier uh that uh somehow rulemaking or the Obama administr the the B administration had somehow uh done away with secret ballot election. Is that does that not a correct assertion? That is not a correct assertion. So employers or employees could request a secret ballot um instead of the card check. Correct.
▶ 1:18:56And often times unions will file a petition uh to have a board conducted election. Thank you. Thank you. Um my colleagues have spoken about the seismic changes that have occurred for workers and organized labor since the Trump administration took office, including the unprecedented removal of member Gwen Wilcox from the National Labor Relations Board. Um as you stated, the removal of member Wilcox deprived the board of a quorum. What does that mean for the workers on the ground?
▶ 1:19:24Can you give some examples of how this has impacted American workers? Yeah, so right now uh the board can't make uh issue any sort of decision. So that means that workers who are fired for example cannot return to work cannot get the back pay that they're owed.
▶ 1:19:42Um we are seeing delay tactics uh whether it's in unfair labor practice uh cases where employers now are not settling cases but rather litigating and then then letting it sit at the board where a decision can't be made. Uh so those unlawfully fired people can't get relief um in any timely fashion. We're seeing it in election cases where they'll the employers will appeal after an election and have it sit at the board.
▶ 1:20:12So when a union wins an election uh there'll be an appeal by the employer and then it'll just sit and so nothing can happen um until the board uh reaches a quorum. And thirdly, just one other thing, they can also test cert meaning the they that and have been doing this where union wins.
▶ 1:20:32They just say we're not going to recognize and bargain with you with your representative and and then that sits and so what what happens is it undermines employee choice and it undermines union support because the union can't get to the bargaining table. Well, great. I'd like to note for the record that as la as as of last week there were 459 cases pending before the board. That is 459 cases of workers who won their union uh but their bosses are refusing to bargain uh a fair contract.
▶ 1:21:02Workers who have who have been fired but haven't gotten their jobs back and workers illegally denied raises including thousands of Starbucks workers waiting to get back pay. Um, on February 18th, the Trump administration issued an executive order that mandates that the NRLB submit new regulations to the director of office of management and budget for review. It also allows for OM to control NRLB's aortionment to uh advance the president's policies and priorities.
▶ 1:21:29Requires NRBL staff to Oh my goodness, I'm running out of time. Um, I'll have to let that some other member asked that question. I'll yield back. I thank the gentleman for yielding and now call on Dr. Uner from Missouri for your questions. Uh thank you, Mr. Chairman, and thank you to the witnesses for taking time to come and be with us here today. Uh we are holding this hearing today at an exciting time in the world of labor policy.
▶ 1:21:58The American people elected a president who is committed to improving worker freedom so workers can have a stronger voice. Workers have a right to organize and join unions. At the same time, workers rights of free speech and free association must respect be respected as well. Nowhere is is this principle more important than in workplace unionization elections. Unions have at times hijacked these processes, sometimes with surprising results.
▶ 1:22:27According to research from the Institute for the American Worker, just 4.9% of current union workers have ever voted for the union that represents Unions frequently discourage workers who they know will vote against them during elections from voting altogether, leading to elections where only a handful of workers show up to vote and unionize an entire workplace. An example is the United Football League where only 13% of players voted the union into power.
▶ 1:22:56Unionization elections should empower American workers, not cherrypick the few workers who favor unionization. We must ask ourselves how we got to this point. A study published by the Institute for the American Worker and the Meno Center for Public Policy released this week entitled misread how legal authorities allow tyranny of the minority to subvert worker infranchi infranchisement addresses this question.
▶ 1:23:22The study shows how flawed corp corporate interp court interpretations of the railway labor act and the national labor relations act have given rise to our current predicament. Um Mr. Verduchio, could you share with us some of the key findings of this study? Uh, thank you, Representative Ander, and it's good to be testifying in front of you again, this time in front of Congress.
▶ 1:23:44So, thank you very much, and um thank you for your leadership on the Worker Infranchisement Act that would require a quorum of workers to bring in a union uh in order for that union to have exclusive representation and represent all workers. uh the misread study that um you cite uh it has several findings.
▶ 1:24:06Um first of which it cites a uh earlier institute for the American worker study that shows that um as you said only 4.9% of workers had ever voted for the union at their workplace. Uh the reasons for that is many is many. First it's as you pointed out um unions can organize with a minority a slim minority of workers uh voting for that union. It is also um as uh my fellow witness Mr.
▶ 1:24:34Soomn has pointed out the difficulty of removing a union when it is formed. This is why having a quorum or having as the clear language of the National Labor Relations Act says the majority of select the union is so important. Yes. Well, no, thank you. Thank you for that. Yeah. Thank you for your mention of my own um bill, the worker infranchisement act.
▶ 1:25:02I think clearly we need a legislative solution to fix this problem. Um that's why my will bill would require twothirds quorum of eligible workers to be present at a workplace unionization election for the election to be deemed valid. I believe this ensures a fair elections process and before we subject the entire workplace to monopoly representation by the union. Uh this is uh is is important.
▶ 1:25:32My bill as you know would also require secret ballot voting. The NRLB has long recognized that in-person voting via secret ballots results in the highest level of participation in union representation elections.
▶ 1:25:47The Supreme Court in fact in NRLB versus Gile Packing Company recognized that card checks are quote admittedly inferior to the election process and noted that quote we would be closing our eyes to obvious difficulties if we did not recognize that there are have been abuses primarily arising out of misrepresentation by union organizers. Um Mr.
▶ 1:26:12Salam, I was wondering if you could highlight some of those abuses, particularly in light of the NRLB's comx seck decision. Uh, thank you, Congressman. Well, if you look at what Se does, it's rather radical. Seek says we take an election and we throw out the election results and install the union by government fiat to rule even when they lost. And I I I I'm running out of time.
▶ 1:26:35So, just very very quickly, uh the uh a card check is vastly inferior because all of the protections of a secret ballot election uh are missing in a card check. There there's no secrecy. Uh there can be coercion and you can be uh asked time and time again to sign a card. Whereas a an election, you just vote once. Thank you. I yield back. I thank the gentleman for yielding. Now I recognize ranking member DS for your qu five minutes of questioning. Thank you Mr. Chairman.
▶ 1:27:06Mr. Bruo the importance of the independence of all independent boards and commissions but in this instance in particular the danger to that independence as prescribed by statute. Could you address that and but and the attack on that by this administration? Yes. Uh thank you. So workers again uh won't have independent an independent agency and an independent uh decision- making.
▶ 1:27:32So what that means is that um there'll be thumbs on the scale of justice. The system will be rigged. It means people with more money uh corporate billionaire donors and other corporations will be able to spend their money to influence the White House to then avoid liability. Uh and so it actually encourages corruption.
▶ 1:27:52Uh and those that are at the effect of this are workers uh whose will have uh less power in their workplaces and less opportunity to make gains and to actually profit uh and for the value that they add to their employers profit-making enterprises. And we've heard a lot about intimidation. You were there for 30 years. Um there's some of that that just happens in these kind of situations.
▶ 1:28:18But I think of the situation right now that's happening in Southern California with David Orta, a labor leader for SEIU and what happened to him and what is happening um seems incredibly heavy-handed. Uh so could you speak to that is if we're going to be get to what I hear all four of you say and my Republican colleagues is we want a balance.
▶ 1:28:40certainly seems like we're out of balance from our perspective and that's an extreme example right now where fortunately he's been released and due process should go ahead if he's broken the law he should be held accountable but the interpretation and the pretty um heavyhanded application of the law in this instance and others is directed I think at labor at silencing them yes I thank you for that uh you know it's an an injury to one is an injury to all and this is an assault
▶ 1:29:10on immigrant communities uh who are being indiscriminately rounded up and and detained, but it's also an assault on on this esteemed labor leader. It's assault on the labor movement and it's an assault on all workers around the country and their rights in this country, including under the Constitution. their right to free speech, their right to freely associate, their right to engage together, their right to protest peacefully.
▶ 1:29:40And the weaponization of the federal government to squaltch those rights and squaltch that those actions cannot be tolerated. When I was general counsel, I took an oath to protect and defend the Constitution of the United States from all enemies, foreign and domestic. And just because I was removed from the my role as general counsel doesn't mean that I don't feel that I have that duty to this day.
▶ 1:30:08Uh and we all need to do our part to ensure that we remain a country of the people, by the people, and for the people. Mr. Brusso, history's repeating itself to me right now. I remember growing up in l Massachusetts listening to my grandparents in their generation talking about the 30s when um the woman's uh federation of textile workers was the first labor union and they were largely immigrants who who realized how they were being abused.
▶ 1:30:37The immigration and I like to tease my f good friend former chairman Fox that when she says this country was founded on freedom I always add and cheap labor. So it's a dynamic in our history that's replaying itself right now in Southern California from my perspective. Work people come here to aspire to get jobs. But on the other hand, unfortunately there have been employers and political people who wanted them to work for nothing or next to nothing. Could you talk to that?
▶ 1:31:05is that whether it's the Irish, the Italians or people from Central and South America now today, we keep going through this struggle and we can't forget the original sin of this country in terms of enslavement. Yes. Um and I would say that, you know, rather than villainize uh immigrant communities, we should be embracing these hardworking people. They take care of our parents. They pick and serve our food. They build our homes.
▶ 1:31:35They are a part of the fabric of this country. Uh and so we should you know we have more in common than that what separates us and we should be embracing uh everyone who uh makes sure that this country uh can function as well as it does. So uh certainly I I couldn't agree with you more.
▶ 1:31:57There should be uh no intolerance when it comes to whether it's immigrant population or the LGBTQ population for example for the good of the country. That's right. Thank you. I yield back. I thank the gentleman for yielding. And now it's my privilege to recognize our great chairman Emeritus of this committee, Miss Fox from North Carolina. Thank you very much, Mr. Chairman. I appreciate it. And I thank our witnesses for being here.
▶ 1:32:27Um, Mr. Soom, the NLRB during the first Trump administration issued an election protection rule. Could you explain and provide examples of how this rule safeguarded employee I will ask you to be as succinct as you can because I'd like to get all my questions answered. Chair Chairman Emeritus Fox, I'll be very succinct.
▶ 1:32:52It guarded employee free choice because it meant a mere allegation couldn't derail an employees descertification election. Thank you. So, let me follow up. In August of last year, the Biden Harrison LRB issued a final rule titled quote fair choice employee voice end quote which rescended the Trump board's election protection rule and reinstated the Obama era quote blocking char ending uh um policy which
▶ 1:33:22allows certain types of unfair labor practice charges to quote block a board scheduled election. Can you explain the differences between the Trump and Biden policies as they relate to unfair labor practice charges? Do you believe the Biden era blocking charge policy effectively weaponized unfair labor practice claims to stop workers from voting to descertify a union? Uh, Chairwoman Fox, you're absolutely correct.
▶ 1:33:50The difference between the two is under the Trump one rule, a mere allegation couldn't stop an election from occurring. under the bi under the Biden rule, it means that uh any uh unfair labor practice that's filed, regardless of whether it's meritorious or not, will stop an election. So, it incentivizes filing charges just to increase delay. Thank you, Mr. King. Welcome back. Nice to see you coming so often.
▶ 1:34:18M um you say in your written testimony that you believe the restrictions the Biden NLRB general counsel imposed on parties engaged in set settling unfair labor practice charges proved deeply harmful. Could you explain why this was harmful? The former general counsel and her staff took an unrealistic approach to settlements. They cost the agency millions of dollars.
▶ 1:34:45Pursuant to the AY's own formula, for every decrease in the settlement rate, the agency suffers at least a $2 million hit, if you will. And the settlement rate, Dr. Fox, under the previous administration dropped at least 5%. So that's $10 million right now. And finally, the time to get to settlement, when and if you could get to settlement, has lengthened considerably.
▶ 1:35:09So the budget of the NRB has been adversely impacted by the prior Thank you very much, Mr. Venu. In 2023, the Biden board decided the lion elastimemer's case, which held that racist, sexist, and vulgar rhetoric is permissible in the workplace so long as it occurs in the context of union activity.
▶ 1:35:37What is your opinion of the board's decision in this case? I think it opens up the workplace for an un uh it creates an unsafe work environment. It opens up the workplace to harassment, to vile language and conduct and it prohibits employers from taking action to protect their employees and those employees deserve that respect and that protection.
▶ 1:36:04and and we are quite well aware of the vulgarity that has been used by union bosses uh in recent times and this is I think really disgusting. Thank you, Mr. Chairman. I yield back my time to you. Thank you, Dr. Fox. And now I recognize my friend Joe Courtney for five minutes of questions from the great state of Connecticut. Thank you, uh, Mr. Chairman, and thank you, um, to the witnesses for being here today.
▶ 1:36:32This is sort of the annual sort of, you know, union trashing uh event that we have in this committee. And um um you know, it's interesting because um I usually try to point out what the latest uh polling from Gallup is in terms of uh the American people's view of labor unions. Again, last December was the latest version, 70% uh approval, second highest in history. And again, that's not always been the case. If you go back uh even a couple decades ago where it had dipped closer to 50%.
▶ 1:37:02Um you know I also um was privileged to join a bipartisan delegation to the Vatican a couple weeks ago for Pope Leo the 14th's first papal mass um which was unbelievable have an American pope up there.
▶ 1:37:15But uh his choice of the name Leo I I think sent a very powerful message because the last Leo Leo I 13th uh wrote the uh papal encyclical Ray Ray Novarum uh in 1891 which recognized basically the dignity of work and the right of workers to quote withhold their labor uh as a way uh again of trying to improve their lot. It was written actually as sort of a counter to to the sort of rising Marxism and socialism in Europe.
▶ 1:37:44But again, it was a recognition that, you know, we we have to in a free market economy give workers a legal pathway to make sure that their the value of their work is also reflected um in terms of uh the labor market. And and uh again, I think that's really what the genesis of the National Labor Relations Act was was all about.
▶ 1:38:06A couple months ago in my uh we had a a successful outcome collective bargaining between Electric Boat and the UAW Marine Draftman Association. Again, Congress recognizing that we need to accelerate uh submarine construction actually um appropriated some wage improvement funds which were incorporated into the collective bargaining agreement. 30% uh wage increase over the next five years.
▶ 1:38:30the metal trades union which had an earlier contract was reopened to again um you know match that level and again it's because frankly um if we want to get people into the metal trades uh we need to basically increase the entry level um wage rates as well as uh to retain workers who are further along.
▶ 1:38:52I have a a um column in the Connecticut Mirror, Collective Bargaining is rebuilding America's defense industrial base, which I've asked to be um admitted to the record. And again, that's an without objection. Thank you, Mr. Chairman. Again, it's an example of where collective bargaining again helps individual workers, but it also provides a very efficient way to address critical needs uh in our economy and national defense. And um general counsel, former general counsel Bruiser, maybe you could comment on that. Thank you.
▶ 1:39:21Uh well, on that last point, I would say that, you know, in 1935, the NLR was enacted because employees lack channels of communication with their employers. And Congress rightfully said, "We need to empower workers here. We need to we know their strength and numbers.
▶ 1:39:40We need to make sure that they can collectively bargain through representatives of their free choosing and improve their wages and working conditions." And Congress rightfully understood that through those improved negotiated wages and benefits, it would help the failing economy. So it helps everyone to have workers that have power to improve their wages, but also other working conditions. Making sure there's no discrimination in the workplace.
▶ 1:40:10Making sure there's there's safe workplaces. making sure there's a grievance and arbitration proceeding so that workplace conflict can be diminished. That is what the NLR was an enacted for to promote productive labor management relations. And I will just say one other thing.
▶ 1:40:27If there is no independent NLR and NLRB anymore, then I fear and I expect that workers are going to go back to the pre-1935 self-help activities of mass protests and mass strikes to gain or regain their the the benefits that they earned through their hard work, retake governance of our country and get the dignity and respect and recognition that they
▶ 1:40:58deserve for the value that they add to their employers operations and build a stronger Navy. Um could you just respond to again the comments were made about some of your um actions as general general counsel? Uh yeah, I mean my goal over my almost three 30 years at at the agency has has always been to educate workers about their rights and employers and unions about their obligations under the statute and to protect workers rights to freely
▶ 1:41:28associate with one another to improve their circumstances. I thank the gentleman for yielding. Now I recognize Mrs. Lee of Pennsylvania for your questions. Thank you, Mr. Chair. Um, I'm always a bit worried about the misinformation and in the propaganda that it uh exists and floats around, not just in just this hearing, but also just from the administration as a whole about unions and about what the NRLB is.
▶ 1:41:54Um, especially using the phrase restoring balance when we're talking about the power dynamics between, you know, a corporate conglomerate and a conglomerate of bus drivers or nurses or fast food workers. I think that is nasty work. There is a blatant attempt to mischaracterize what a union is and why they're necessary in the first place. So to clear it up, we all understand that an individual worker has very little if any power at all over a corporation or a CEO and any other framing is disingenuous.
▶ 1:42:25People in power in this country would never answer to the needs of a individual say janitor alone. But when all the janitors come together in a union and work as a group, that's when the power, the boss, the worker or the the the corporation has to respond. Power attacks unions because they create a more fair imbalanced economy in favor of working-class people over the 1%. Unions help us address the racial and gender race gap.
▶ 1:42:52Um, and right now nothing is more frightening to uh a wannabe autocrat than organized labor and an educated electorate. Corporations have grown accustomed to having an open lane uh to influence politics however they see fit. And they want you to think that it's unfair that their political influence might be challenged by some workers, by workingclass people who've come together to advocate for themselves. Organized labor in this country isn't about big business versus big gang. And there's no such thing as big union.
▶ 1:43:23It's workingass people versus the people in power or David and Goliath as some of us know it. But that's why they don't want you to unionize. That's why uh they want it to divide union workers versus non-union workers because their biggest fear is that all the Davids recognize that we're on the exact same team and they realize that if we were to work together against the Goliath, then we would be significantly stronger.
▶ 1:43:49So, it makes a lot of sense why the rich and the powerful people want to attack unions and NLRB who enforces workers rights to form a union. It's not because they think working-class people have more power than a corporation, but it's because they're terrified of what would happen if they actually did. So, over the last 20 years, regional NRB offices across the country have lost 50% of their staff while cases have skyrocketed. In my district, Pittsburgh NRB region 6 office have experienced 30% decrease in staff without any reduction in the case load.
▶ 1:44:17and then do uh Trump administration of course deputized Doge to cut worker protections and removed the board member to prevent the board from maintaining uh or establishing a quorum. Um nurses at the University of Pittsburgh Medical Center McGee Hospital have consistently advocated for investing in bedside nursing, retaining qualified nurses, more direct care for their patients. UPMC met their concerns with mass layoffs and their and they paid their former uh CEO $30 million and then leasing a $50 million private jet.
▶ 1:44:45At the end of May, the nurse has filed for a union uh election, but UPMC, our state's largest private employer, is trying to exploit uh the national NRB's Trump induced dysfunction to claim our local NRB office, can't hold a union election. Legal precedent in practice affirm that local labor boards are fully authorized to hold elections even if the national board lacks a quorum. Mr. Brutzo, is that your understanding? Yes.
▶ 1:45:12uh the the regional offices can of course conduct elections and certify the results. The the issue is that there's too many employers out there that abusing the processes and then pushing it to the board by appealing uh when a union wins an election and that appeal then gets stuck at the uh board because there's no quorum. I have two questions. We have one minute.
▶ 1:45:37So just very quickly if you can speak to the broader impact the NRB understaffing has had on workers over the last decade and what the further cuts may do and also if you could compare the NRB's record on fairness and transparency during your time in your tenure to now would be very helpful. Thank you. Uh and so in terms of the funding, so you know uh we have um the this uh I say we the NLRB has the same case intake that is now or around that than they had in uh 2011.
▶ 1:46:08And yet the staffing in the field offices has decreased by 62%. So that means that these really dedicated, talented board agents are doing more with less. They are trying to process cases as fast as they can, but they just cannot keep up because of the chronic understaffing.
▶ 1:46:25And I don't understand the two current uh agency heads asking for less money uh when the agency needs even more money to ensure that they can protect workers in this country. I appreciate that. I think we could all go on and on about the power imbalance, but I will yield back and thank you for the time. I thank the gentle lady for yielding. Now I call on my friend ranking member Scott for your question. Sir, thank you Mr. Chairman.
▶ 1:46:55Um Mr. Brusso, is it true that um members of unions tend to get higher wages, work in safer workplaces, and get better better benefits? Yes, it's absolutely true. Um, do union members does membership in a in a union reduce the racial and gender disparities and pay? Yes.
▶ 1:47:20And um do in a right to work state if a person is not a member of a union but a union pays for experts to negotiate a good contract do the non-UN members who didn't pay any dues get the benefits of higher wages and the other benefits? They absolutely do. Um Mr.
▶ 1:47:44King, if a union wins an election fair and square, um what happens if an employer just stonewalls and refuses to effectively uh without the fine provisions in the Holly legislation? What What happens? Well, right now, Mr. Scott, a section 85 charge would be filed by the union for failure to bargain in good faith.
▶ 1:48:13and and that charge is then processed by the agency. I I I just want to make one comment. We're the HR policy association and employers in gerally want a quorum on the board. We want the board to function. Uh Mr. Scott, and in the case you just mentioned, we want the board to expeditiously proceed. We urge in our testimony that the president fill two vacancies on the board at present.
▶ 1:48:39But even with those vacancies, if the without a requirement, then you're up to what is good faith. And if the employer really doesn't want a contract, winning the election didn't do much good. Isn't that right, Mr. Scott? I would agree with you. Unless unless you get that nice language that Mr. Holly is Senator Holly is proposing that he took right out right out of the proact. I think Mr.
▶ 1:49:07Scott, but that that comes right out of the NL. A we're supposed to be encouraging collective bargaining. Mr. Scott, we would agree with you that contract negotiations first contracts could be done better. The holiday approach is not the way to go. Um Mr.
▶ 1:49:25Brusso, if someone is if a business is committing an unfair labor practice like firing a person for organizing unions, what are the Well, currently uh there are no sanctions because there is no functioning board.
▶ 1:49:43So, uh workers that are fired and we see this or the agency has seen this quite often that when employers uh get wind of an organizing drive, they try to nip it in the bud by firing the main union activists, for example. And right now without a qu without a full quorum uh workers, fired workers can't get the relief that they deserve. And even if there were if even if there were to be a quorum, what would be the sanctions?
▶ 1:50:13If there were to be sanctions, they would then have to come back, you know, they would be uh uh an offer of reinstatement would have to be made and they would get whatever back pay that they were owed as well as any direct or foreseeable pecuniary harms that resulted from their us what they made in the in the meanwhile. Correct. Right. While they had to work elsewhere, that would be deduct the interim earnings would be deducted. And I do just want to say one other thing. You know, whether there becomes a quorum as I as Mr.
▶ 1:50:43King just said that he also the HR policy wishes there to be a quorum as well. Um when you don't have independent decision makers, that quorum can be lost at any time because the president could just fire a decision maker who uh whose decision uh he doesn't agree with and that just creates chaos at workplaces where you could just keep losing quarums because the president doesn't like the decisions being made.
▶ 1:51:10Um can you say a word about captive audience meetings, how extensive they can be? Yes. uh when I was at the agency uh so first of all I mean knowledge is power and employers bank on the lack of knowledge of uh especially during nation organizing drives uh and violate their rights by firing them by holding these captive audience meetings where they are uh subjected to
▶ 1:51:40anti-UN rhetoric by their employer often combined with threats or interrogation and the like. Whose choice is it to join a union? Is it the employees or the employer? It's the employees choice of course. And what did the employees employers have to say about it? Nothing. Thank you, Mr. Chairman. I thank the gentleman for yielding. Um I believe that concludes our questions.
▶ 1:52:09Uh thank you panel for uh your expert testimony today. Uh, now I would recognize myself for a closing state. Would you like to make a closing statement, Mr. Scott? Sure. Okay. All right. I recognize our ranking member, Mr. Scott, for a closing statement. Thank you, Mr.
▶ 1:52:30Chairman, and once again, I'd like to thank everyone for coming and thank our witnesses for speaking with us today, particularly Miss Abuso for specifically for her testimony and good work on the NLRB. Committee Republicans would have you believe that labor unions are the enemy of workers, but as Mr. Bruo just testified, they do much better when they join a union. The fact is that the game has been rigged against workers, union and non-union.
▶ 1:52:58For decades, unions are popular with the American people because they enable workers to more strongly advocate for higher wages, safer workplaces, and better benefits. Right now, the fundamental right to unionize is in danger. the Trump administration's relentless attacks against the NLRB, its staff, and its independence or attack on workers themselves. Without proper enforcement of the NLR and independence of the NLRB, workers rights are compromised.
▶ 1:53:28And these are the people who provide for their families and simply want to come home at the end of the day with their whole paycheck healthy and safe. and they deserve to be protected by an agency that works for them, not for lawbreaking employers. Forming a union must be protect must be a protected right, not an endless fight.
▶ 1:53:47By gutting the NLRB and eliminating its quorum, the Trump administration and congressional Republicans undermine working people, businesses, the economy, and America as a whole. Thank you, Mr. Chairman. I yield back. I thank uh the ranking member uh uh leader from yielding and now I will uh offer my closing statement.
▶ 1:54:14Uh on again on behalf of the members of the subcommittee I think our witness of giving your perspective on how the NLRB can fulfill its mission. restoring uh balance, ensuring fairness and transparency at the NLRB I think is a worthy cause and um I think uh we've made it clear today. We've got some work to do there.
▶ 1:54:39Um today's hearing marks uh makes clear that we need labor uh policies that put individual worker choice at the forefront of with reasonable expectation expectations for job creators. You know, it's hard to believe just six years ago, we had the best economy in my our workers wages were increasing at a pace uh not seen before.
▶ 1:55:06And uh you know, today we even have 7 million openings for pro for jobs in this country. I don't and I think uh in this golden age there's going to be great opportunity for workers uh if we can uh uh put the proper policies forward uh that uh will make us again the greatest economy in our lifetime.
▶ 1:55:37Because folks um it's all about uh jobs, jobs, jobs and opportunity. And uh I believe every American should be given that privilege and uh and also the privilege to be an entrepreneur as well. And uh so that's what we're fighting for.
▶ 1:56:03As our witnesses testified today, the NLRB should implement policies that allow employees the freedom to choose how they want to be representative represented through the use of secret ballot elections and clear predictable guidelines for employees employers. And I again uh emphasize secret ballot. The NLRB should also serve as a neutral authority on issues of joint employment and independent contractor status.
▶ 1:56:34The Biden Harris Board, however, was not a fair or neutral agency. It put the interests of big labor first at every turn, and workers across America are paying for it today. I look forward to working with the members of this subcommittee and the administration to find much neededed solutions that advance worker and employer freedom. This hearing is about the worker. It's not anti. It's about workers, the people who have made this country.
▶ 1:57:04We didn't, this body didn't create the greatest economy in our lifetime. It's our great workers that created the greatest economy in our lifetime. I would like to again thank our witnesses for taking the time to testify before this subcommittee today. Without Without objection, there being no further business, the subcommittee stands adjourned.