The Obama administration is going to redefine the word “employer” which will end up giving more jobs to labor lawyers than to less-skilled workers. It will destroy or damage some private businesses. Thousands of companies will be exposed to new liabilities because of this new ruling.
Private Businesses will be held responsible for how subcontractors and temporary agencies treat their employees.
Industries will have to change dramatically to avoid the damage this ruling will inflict.
The National Labor Relations Board (NLRB), run by leftists who are tied to Big Labor, will rule on Browning-Ferris Industries, a waste-disposal firm in Houston. Part of that ruling will determine what an “employer” is.
Workers for Browning-Ferris are provided by a staffing agency and the unions claim they are a joint employer with the temp agency. The company will probably be forced to collectively bargain with those employees or face serious and costly labor violations.
When the unions aren’t destroying companies, their government partners in the democratic party are.
Every industry imaginable will be affected. The union-tied Obama administration is claiming they want to protect temporary workers but what they really want is to grow unions and redistribute money from the companies and better-paid employees to low-level and part-time workers.
It will seriously damage private industry which Barack Obama has never supported.
“It has the potential to change the entire way businesses operate in this country,” said Rob Green, executive director of the National Council of Chain Restaurants.
“There are so many business relationships in the economy that rely on companies providing services to other companies,” he added. “So you can imagine that any business sector could be impacted by the decision.”
Browning-Ferris will be made responsible for the treatment of its contractor’s employees. The company hired Phoenix-based Leadpoint Business Services to staff a recycling facility in California.
A regional NLRB director initially ruled in favor of Browning-Ferris, which opposes the joint-employer designation. But the Teamsters union, which is representing the workers, appealed the case to the National Labor Relations Board.
Many businesses will immediately cut ties with staffing agencies and subcontractors and will bring the jobs in-house.
“Every company will have to reexamine their business relationships,” said Michael J. Lotito, an employment and labor attorney. “I’d rather be responsible for my own company than someone else’s.”
Restaurants could suffer the biggest hit from the ruling. Franchise owners who take on the risks of opening up local branches of restaurants, like McDonald’s and Burger King, could go from “being their own boss to being a glorified manager,” said Angelo Amador, senior vice president of the National Restaurant Association.
Currently, corporations like McDonald’s take care of the marketing, but leave decisions about wages, hours and hiring to the local franchise owners, business groups contend.
“This is the model franchises have been based on in our country since the time of Benjamin Franklin, who was the first franchisor,” said Robert Cresanti, executive vice president of government relations at the International Franchise Association.
This ruling will destroy the concept of the franchise, a very popular business model for private investors in the United States.
There is a case before the NLRB that is considering whether or not McDonald’s is a joint employer. They want McDonald’s to be held responsible for labor complaints from franchises.
The union wants that to be the case and they will undoubtedly get their way thanks to the crony socialism between the Democrat administration and the unions.
The ruling is supposed to keep companies from hiring “permanent temps” which is not the government’s business in any case. It’s another way for the federal government to control and unionize private enterprise.
It will destroy entire industries that provide these services and keep less able and less skilled people from acquiring many of the jobs they now hold. If companies are forced to hire permanent employees in lieu of temps, they’re going for the better qualified candidates. Temporary jobs have served to provide people with experience and job training so they can become the better qualified candidates.