We need to put American workers first — Senator Hawley's Remarks at HELP Nominations Hearing

[0:00] Thank you, Mr. Chairman. Thank you to the nominees for being here. Congratulations on your [0:04] nominations. Mr. Macy, Mr. Prouty, if I could just start with you. As you're probably aware, [0:10] there are major corporations, mega corporations in the United States who are currently trying [0:16] to block the efforts of their American employees, of whom they have too few, I might add, [0:20] from engaging in collective bargaining. And there's no worse example of this than Amazon. [0:25] Let me show you a picture here. These are Amazon workers on Staten Island who were voting to [0:30] unionize back in 2022. This was a huge landmark win for labor and for the employees. It took them [0:38] years to get to this vote. Amazon, of course, fiercely resisted it, did everything they could [0:42] to try and stop it, pulled out all of the stops. And yet the employees, as is their right, of course, [0:47] under the law, voted to unionize. Now, after they did so, Amazon proceeded to engage in a delay of [0:54] four years before they entered into negotiations for a first contract with management. Four years. [1:00] Now, as you know, federal law requires bargaining, good faith bargaining, to get to that first [1:04] contract. But Amazon delayed and delayed and delayed. And a few months ago, the Teamsters [1:10] president, Sean O'Brien, sat right where you two are sitting and explained that this is common [1:13] practice across the industry. And these multinational mega corporations, Amazon being one of the worst [1:19] offenders, they deliberately delay and hold up the process of getting to a first contract. [1:25] I was stunned to learn that the average time to a first contract is 465 days. Now, I emphasize, [1:32] this is after the employees have exercised their federal right to collectively bargain. 465 days. [1:38] In half of cases, just about, it is over two years before there is any kind of an agreement at all. [1:45] So let me just ask you, first of all, are you familiar with this issue? Are you concerned [1:48] about it? Mr. Proudy, go ahead. Thank you for the question, Senator. Um, yes, [1:52] I'm obviously aware of it and I'm concerned about it. Um, as I've said publicly, the, um, remedies [1:58] available under the act are somewhat limited. I'd invite the Congress to strengthen the act, but, [2:04] um, we, we process cases as expeditiously as we can. We have a huge backlog, as you know. [2:11] Absolutely. Mr. Macy, I want to come back to your point about what Congress should do, [2:14] but Mr. Macy, go ahead. Are, are you familiar with this problem you concerned about? [2:17] I am aware of it and I am concerned about it. Good, good. I'm glad to hear that. [2:23] Well, I, I agree with you, Mr. Proudy, that there's, there's steps for Congress to take here, [2:27] which is why I'm pleased that yesterday, the House of Representatives passed legislation that I wrote [2:31] and introduced on this side of the Capitol, along with my friend, Senator Booker, Senator Marshall's [2:36] a co-sponsor, a number of other, my colleagues on the other side of the dais, I called the Faster [2:41] Labor Contracts Act. And it just tries to actualize the requirements that are already in federal law, [2:46] namely that employers, once their employees have voted, as is their right to unionize and collectively [2:52] bargain, we put a shot clock on that bargaining process so we can get to a first contract. [2:58] As I said, that legislation passed the House. It would be enforced if it were to pass the Senate, [3:02] be signed by the President, enforced by the NLRB. Do you think that providing more of a framework, [3:08] creating a framework for a first contract, putting a, a timeline, putting a shot clock on those [3:14] negotiations, this bill also provides for arbitration, which parties can choose their arbiters and so forth, [3:20] but if they can't reach a contract within a certain amount of time, then we get arbitrators to help [3:24] them. Does that sound like the kind of thing that would help, again, give, give voice, give, give, [3:29] make actual and real this right that employees already have under federal law? Go ahead, Mr. Prouty. [3:36] Senator, I've got to put on my hat of board member. I really, it's not really appropriate [3:42] for me to comment on legislation either way on, on what would improve the act. My job is to enforce [3:49] the act as it stands. But you would enforce it if it were passed? I would. Good. Mr. Macy. Thank you, [3:55] Senator. At the same, I'm in a position that it would not be appropriate for me to, to comment on [4:00] pending legislation. But to answer the next question, I anticipate is if it were passed, [4:06] we would abide by the law. Good, good. Well, I hope that you'll soon have the opportunity to enforce it. [4:10] I'll do my best on, on my side of things here. But I think it's vitally important [4:15] that we make real the guarantees that are already in federal law. Let me just ask you one other [4:19] question here in my time remaining that's also related to Amazon. Let me show you another [4:23] Amazon related picture. This I think will be familiar to everybody in the room. We've got an [4:27] Amazon truck. We've got an employee here who is wearing an Amazon branded t-shirt and other logos, [4:33] hat, carrying an Amazon package. Now you might think that this person wearing all this Amazon gear, [4:40] carrying the Amazon package is an Amazon employee, but oh, lo and behold, she's, [4:44] she's not according to the company. The company runs a, a third party organization, a delivery service [4:51] provider that they also control and subcontract with for the purpose of avoiding having to pay [4:57] this good person, uh, full wages, healthcare benefits, giving her the benefits of other, [5:04] uh, rights that have been won in collective bargaining. My question to you is I'll let [5:08] you take a first stab at it and I'll follow up with some questions for the record. Don't you think [5:12] it's time that we put an end to th this kind of blatant attempt to avoid federal labor labor law? [5:18] Amazon has for years operated this program with the sole intent of avoiding having to pay these people [5:24] who they say are not really their employees, though they micromanage their schedule to the second [5:28] every day. Don't you think it's time that we put a stop to their attempts, Amazons and others, [5:33] to evade federal law and the requirements of collective bargaining by treating these people [5:37] as if they're not really their own employees? Mr. Prouty. Senator, as you may know, that very issue [5:43] is on my desk right now and so I can't really comment on it. And just tell us why it's on your desk, [5:49] because the NLRB has, has taken action on this. There is a proposed settlement of an outstanding case, [5:56] which is before us for review. Well, Mr. Chairman, I know my time has expired, so we'll leave it at [6:01] that. I'll have some follow-up questions for you. Can I just finish by saying I think that this is [6:04] outrageous, what is over my shoulder here. The idea that this employee, who is every moment of her [6:10] life practically is directed by Amazon, yet they don't have to pay her, they don't have to honor [6:14] the commitments under collective bargaining that might apply to her, I think is ridiculous. [6:18] And if the NLRB doesn't have the authority to do something about it now, [6:22] we should give you that authority. Thank you, Mr. Chairman.