President Trump’s recent Monday Night Massacre at the NLRB included not only the expected move of firing General Counsel Jennifer Abruzzo but also the surprise removal of member Gwynne Wilcox. This has, as our own Michael VanDervort pointed out, left both unions and employers in an odd limbo where labor disputes may not be resolved.
Trump has since installed William B. Cohen as Acting General Counsel, but the board remains a member short of the quorum required to issue decisions on labor disputes. The president could eventually replace Wilcox, but for now, the chaos remains, and we are observing real-time effects over an April 2024 union vote at a Chicago-area Trader Joe’s location.
What transpired during that vote is complicated, but the outcome is a prime example of a case suited for the board, given that the result was 70-70, with one contested vote remaining sidelined. A previous hearing indicated that the board would lean toward counting the vote of Brandi Hewitt, who made clear that she voted in favor of joining the union. However, the company announced plans to appeal because Hewitt was reportedly a temp worker from another Trader Joe’s location and wasn’t eligible to vote.
And now? No NLRB decision will be forthcoming until Trump fills Wilcox’s spot. He’s given no hints of doing so, and on its face, this move might seem friendly to business, but a lack of agency guidance places employers in grey legal territory, which could backfire in the long run.
A few more updates from this industry:
King Soopers: In Colorado, a five-city strike is over after the company and UFCW agreed to a 100-day “period of labor peace.” The union previously rejected the company’s offer of $4.50 per hour raises across-the-board.
Costco recently raised non-union workers’ pay, thereby bumping top hourly clerks up to $30.20 per hour with annual $1 raises to follow. Predictably, this has irritated the Teamsters due to these raises landing during contract renewal negotiations for their representation of only 8% of Costco’s workforce. The Teamsters want credit for these non-union raises that are separate from the newly reached deal, but Costco also delivered $1 raises a year ago, and the company is known for top-tier retail wages.
Stop & Shop: The northeastern U.S. chain is embroiled in a Teamsters battle, which could lead to permanently shuttering a Massachusetts distribution center. According to the company, that will be the case if the Teamsters push ahead with a strike threat rather than agree to place hourly workers on the same health plan used by Stop & Shop management.
A bit of history: Back in 2019, an 11-day strike by 31,000 workers reportedly cost $345 million in damages for Stop & Shop. At this point, the company considers closing the location to be less of a financial strain than another strike, which is certainly one way to deal with a union.
