Biden's labor nominee puts Alaska’s small businesses at risk

In my former life, I was a labor relations consultant to management. Under our guidance, our clients prevailed in every instance. So believe me when I say Mat-Su residents should take note of labor shenanigans taking place in Washington, D.C. In an unprecedented and highly partisan move, President Biden has announced the early renomination of Lauren McFerran as chair of the National Labor Relations Board (NLRB), months before her term expires. This decision raises major concerns about the fairness of the nomination process and the impact of her leadership on small businesses across the U.S. but particularly in states like Alaska.

The timing of this renomination appears to be just one more attempt to weaponize the agency. Traditionally, the NLRB's composition reflects a balance of power between the incumbent president and the opposition party. By nominating McFerran prematurely, Biden is effectively pre-empting the possibility of a future Republican administration—potentially led by Donald Trump—from nominating their own candidate. This move can be perceived as an attempt to pack the NLRB with members sympathetic to the current administration’s labor policies, thus ensuring a prolonged influence over labor regulations. Such actions challenge the democratic process, where each administration should have an opportunity to influence key regulatory bodies during its tenure.

Moreover, McFerran's track record as chair has been contentious, especially for small businesses. Her decisions have often leaned heavily in favor of labor unions, which can impose significant burdens on small businesses already struggling to navigate complex regulatory environments. In states like Alaska, where small businesses are a critical component of the local economy, the implications of McFerran’s policies are particularly pronounced.

Alaska’s unique economic landscape, characterized by its geographic isolation and reliance on small, locally owned businesses, makes it especially vulnerable to sweeping labor regulations. McFerran’s support for extreme labor laws, such as expanded collective bargaining rights and increased penalties for labor violations, can strain these small businesses, which may lack the resources to comply with such regulations. The increased costs associated with compliance, potential litigation, and union negotiations can stifle growth, reduce profitability, and ultimately threaten the survival of these businesses.

Additionally, McFerran’s tenure has seen the NLRB shift from its role as a neutral referee to a pro-union agency that often infringes on the rights of workers. Look at the NLRB’s Cemex decision, in which the Board essentially imposed card check through government fiat. This decision could deprive workers of a secret ballot election during union organizing campaigns and expose them to harassment, intimidation, and coercion.

The essence of a fair and balanced regulatory environment lies in its ability to consider the perspectives and needs of all stakeholders. By renominating McFerran prematurely, President Biden is not only sidelining the rightful opportunity for future administrations to shape the NLRB but is also endorsing a regulatory approach that does not consider the challenges faced by small businesses.

The early renomination of Lauren McFerran risks imposing undue hardships on small businesses in states like Alaska, undermining the democratic principles that ensure fair representation and governance. Lauren McFerran’s nomination should be put to an early and swift end.

Dee McKee serves the Mat-Su Borough Assembly District 3, and is a retired, award-winning teacher.