91果冻传媒

Prominent members of Arizona鈥檚 business community on Tuesday voiced their strong concerns over President Joe Biden鈥檚 nominee to be the next secretary of labor.

Julie Su became deputy secretary of labor under former Sec. Marty Walsh in 2021. After Walsh left to become the head of the NHL Players鈥� Association, the White House nominated Su to ascend to the secretary post.

But it鈥檚 Su鈥檚 tenure as secretary of the California Labor and Workforce Development Agency that has caused the most concern among employers due to Su鈥檚 support for policies long championed by organized labor, including her support for California鈥檚 AB5, which attempted to dramatically curtail employees鈥� right to classify themselves as independent contractors rather than regular employees.

In a press conference hosted by the International Franchise Association (IFA) on Tuesday, Arizona business leaders discussed the objections that the franchise industry and others have to Su鈥檚 nomination. 

IFA President and CEO Matt Haller addressed concerns that Su would want to revisit the joint-employer rule, which the Obama administration supported, saying that it would effectively turn a franchisee into nothing more than a middle manager.

Under the joint employer rule, there is little distinction or separation between a franchisee and a corporate parent. 

鈥淚f a franchise brand is now a joint-employer by statute, as the state of California has proposed for the restaurant industry in the Fast Act, it eliminates the equity the franchisee has built in that business and it eviscerates the franchise model,鈥� Haller said.

The Arizona Trucking Association also opposes Su鈥檚 nomination, citing her policies in California like AB5 that harmed independent owner operators. Tony Bradley, president of the Arizona Trucking Association, spoke to reporters on why the trucking industry depends on independent contractors instead of regular payroll employees.

鈥淭he biggest thing is capacity. Freight is not steady; it ebbs and flows and so we utilize independent contractors during those ebbs and flows. That is a critical part of a business structure and it has been since trucking began,鈥� Bradley said.

Su鈥檚 nomination was advanced by the Senate Health, Education, Labor and Pensions Committee last month on an 11-10 vote. Senate Majority Leader Chuck Schumer, D-N.Y., has not brought the nomination to a floor vote, however, due to the prolonged absence of Sen. Dianne Feinstein, D-Calif., and because of reported discomfort about Su鈥檚 progressive record among some Democrats who have not yet indicated whether they鈥檒l support the nomination, among them Sen. Kyrsten Sinema, I-Ariz., and Sen. Mark Kelly, D-Ariz.

Arizona 91果冻传媒 of Commerce & Industry President and CEO Danny Seiden said that while the 91果冻传媒 rarely weighs in on executive agency nominations, Su鈥檚 track record should concern anyone who cares about the small business community and the overall economy in this time of record high inflation.

鈥淭he 91果冻传媒 has reached out to the offices of Senator Sinema and Senator Kelly with our concerns over Ms. Su鈥檚 nomination. We found them in the past to be very receptive to issues of the economy and we鈥檙e hopeful they will take our members鈥� concerns into consideration. We encourage them and their colleagues in the Senate to give Ms. Su鈥檚 resume a very close look,鈥� Seiden said.

The AFL-CIO in April launched a paid digital media in Arizona in support of Su in hopes the state鈥檚 two senators will be swayed by the messaging in the labor union鈥檚 messaging.

鈥淭he AFL-CIO and our allies will fight tooth and nail to ensure Julie is confirmed because she鈥檚 the right person at the right time to move our nation鈥檚 workforce forward,鈥� AFL-CIO President Liz Shuler said. 

In the press conference on Tuesday, however, Haller reiterated concerns from the Arizona business community that Su鈥檚 nomination represents a threat to the franchise business model.

鈥淲e think that model should be championed and not something that should be dismantled to satisfy organized labor鈥檚 political objectives,鈥� Haller said.