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Surprising Labor Secretary Nomination by Trump Leaves Unions and Businesses on Edge

Organized labor cheers as Trump selects Chavez-DeRemer, raising hopes for a new era of cooperation between unions and Republicans

The selection of Rep. Lori Chavez-DeRemer as Labor secretary by President-elect Trump has garnered enthusiastic support from organized labor while prompting concern among business groups. This choice marks a notable shift that could indicate a more favorable attitude towards unions from Republicans, who have traditionally resisted labor’s demands.

Chavez-DeRemer’s appointment reflects the increasing political relevance of labor, particularly after a surge in support from working-class voters for Trump and the GOP in the recent election. Her backing by unions follows a noteworthy appearance by Teamsters President Sean O’Brien at the Republican National Convention in July.

Business leaders voice apprehension as Trump chooses a labor advocate, setting the stage for possible conflicts over workers’ rights

Although she lost her reelection bid in Oregon’s 5th Congressional District, Chavez-DeRemer stands out as one of only three Republicans in Congress to endorse the PRO Act, a comprehensive labor law aimed at regulating the gig economy and enhancing workers’ rights to organize. Additionally, she co-sponsored a bill designed to strengthen public-sector unions, a move that has drawn criticism from conservative factions, including the Heritage Foundation’s Project 2025.

Labor experts have pointed out that while these legislative initiatives may struggle to advance in a Republican-controlled Congress, appointing one of the few GOP supporters to head the Labor Department signals a potential shift in power dynamics. Arthur Wheaton, director of labor studies at Cornell University, remarked on Trump’s transactional approach, noting that labor support played a role in his electoral success and suggesting that O’Brien’s influence might have guided this decision.

Following her nomination, O’Brien expressed strong support for Chavez-DeRemer, congratulating her and thanking Trump for the choice. He asserted, “North America’s strongest union is ready to work with you every step of the way,” highlighting the cooperative potential between labor and her office.

Leaders within organized labor have echoed O’Brien’s sentiments, with American Federation of Teachers President Randi Weingarten calling the nomination “significant.” She emphasized that Chavez-DeRemer’s track record suggests genuine support for workers’ rights and expressed hope that the Trump administration will respect collective bargaining.

Despite this optimism, some labor groups have adopted a cautious stance, questioning whether Chavez-DeRemer will be able to champion a pro-worker agenda within an administration perceived as “dramatically anti-worker.” The AFL-CIO stated, “Donald Trump is the President-elect of the United States — not Rep. Chavez-DeRemer — and it remains to be seen what she will be permitted to do as Secretary of Labor in an administration with a dramatically anti-worker agenda.”

Labor advocates see various policy areas where Chavez-DeRemer could make a positive impact. The Economic Policy Institute identified key issues such as wage theft enforcement, OSHA safety inspections, overtime pay thresholds, and protections based on immigration status as critical focuses for her potential agenda.

The institute criticized the payroll auditing program established during Trump’s first term, arguing that it allows employers to evade consequences for wage theft. They urged Chavez-DeRemer to take a firmer stance against such practices, advocating for stronger protections for workers.

Teamsters President Sean O’Brien praises Chavez-DeRemer’s nomination

While unions have had mixed reactions to Chavez-DeRemer’s nomination, business groups have expressed significant concern. The Coalition for a Democratic Workplace, which represents various trade associations, voiced alarm at her nomination, with chair Kristen Swearingen citing her support for the PRO Act as a major point of contention.

Right-to-work organizations, which oppose union power, reacted strongly against the potential nomination, with the National Right to Work Committee claiming it does not align with long-term Republican interests. They cautioned that while some union leaders may support her, organized labor would continue to actively campaign for Democrats in future elections.

Chavez-DeRemer’s previous endorsements of Democratic labor laws place her at the center of regulatory debates that have shifted between the Trump and Biden administrations. Her recent vote with her party to block a joint employer rule further complicates her position as Republicans seek to reverse Biden’s labor regulations.

Labor lawyers are particularly interested in her views on employee classification policies, which underwent changes during the Trump administration and were made more stringent under Biden. Camille Olsen, a labor and employment partner at Seyfarth Shaw, remarked on the significance of whether she would align more with Trump’s 2021 regulations or adopt a different stance as Labor secretary.

Should Chavez-DeRemer align more closely with traditional Republican views on labor issues, there may still be a notable evolution in the party’s approach to labor relations. Trump has indicated a desire to appear pro-union, particularly in response to a recent dockworker strike, stating that “American workers should be able to negotiate for better wages.”

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