Trump Pick for Labor Secretary Comes With Unexpected Twist: Unions Like Her. -- Barrons.com

Dow Jones03:01

By Avi Salzman

Donald Trump's choice for Secretary of Labor is the latest sign that his second term may be trickier for businesses to predict than his first.

Trump picked Congresswoman Lori Chavez-DeRemer, a Republican from Oregon, for the role, which oversees and enforces labor laws across the country.

Chavez-DeRemer is a rare Trump appointee who has won plaudits from labor unions. Her appointment comes at a time when major corporations, including Starbucks and Amazon.com, have faced pressure from up-and-coming labor unions.

Chavez-DeRemer supported the Protecting the Right to Organize $(PRO)$ Act, a bill pushed by the Biden administration that would have strengthened federal labor laws. Few other Republicans have backed it. The bill passed the House of Representatives when Democrats controlled the chamber in 2021, but didn't make it through the Senate because it would have needed 60 votes and Republicans didn't support it. It hasn't made it out of committee in the current Republican-controlled House.

The PRO Act would make it easier to organize unions and punish employers who retaliate against workers. The AFL-CIO, the largest federation of unions in the U.S., called it "landmark worker empowerment, civil rights and economic stimulus legislation." But business groups oppose it. The National Retail Foundation even called it the "worst bill in Congress," claiming it would hurt businesses by allowing for things like "ambush" union elections and weakening "right to work" laws that make it harder to unionize in several states.

Chavez-DeRemer also supported the Public Service Freedom to Negotiate Act, a bill that would have made it easier for public sector workers to organize in states that make it difficult.

Trump's two secretaries of labor from his first term were more traditional Republican appointees. Both Alexander Acosta and Eugene Scalia were lawyers who had previously worked for President George W Bush. Chavez-DeRemer, who had been mayor of the small city of Happy Valley, Ore. before joining Congress, owns a business with her husband that runs medical clinics, according to Trump's announcement. Trump said he picked her because she has "worked tirelessly with both Business and Labor to build America's workforce, and support the hardworking men and women of America." Chavez-DeRemer lost her reelection campaign for her congressional seat this year.

The AFL-CIO gave a mixed response to the choice. "Lori Chavez-DeRemer has built a pro-labor record in Congress," the statement said, pointing to her support of the legislation. But the union doesn't think her appointment outweighs Trump's other personnel moves, including his elevation of people associated with Project 2025, a document written by conservatives that outlines a right-wing vision for Trump's term. "Despite having distanced himself from Project 2025 during his campaign, President-elect Trump has put forward several cabinet nominees with strong ties to Project 2025," the statement says. Among them is Russ Vought, whom Trump just tapped to lead the White House Office of Management and Budget. Vought wrote part of the Project 2025 blueprint.

The National Education Association also had positive things to say about Chavez-DeRemer, noting that she "voted against gutting the Education Department, against school vouchers, and against cuts to education funding." The NEA, however, also expressed wariness about Trump's intentions given his other appointments and past actions.

"Educators and working families across the nation will be watching Lori Chavez-DeRemer as she moves through the confirmation process and hope to hear a pledge from her to continue to stand up for workers and students as her record suggests, not blind loyalty to the Project 2025 agenda," the statement says.

The Trump transition team didn't immediately respond to a request for comment.

In some ways, Trump fits the mold of a traditional Republican, given his support for broad corporate tax cuts and deregulation. His appointees to the National Labor Relations Board in his first term were considered very pro-corporate, and included lawyers who had defended businesses. But he's also attempted to appeal to working-class voters, and has started to make some inroads with organized labor. The president of the Teamsters union spoke at the Republican Convention this year, though the Teamsters didn't endorse either candidate.

If Chavez-DeRemer is confirmed by the Senate, the question will be whether she gets a front-row seat in Trump's administration or is pushed to the sidelines.

Write to Avi Salzman at avi.salzman@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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November 23, 2024 14:01 ET (19:01 GMT)

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