Subject: Labor Relations Issues 2025: Trump, RTO Mandates, DEI Rollbacks, and Tech: LRI INK

January 30, 2025

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Labor Relations Issues 2025: Trump, RTO Mandates, DEI Rollbacks, and the Impact of Tech

by Michael VanDervort

The workplace isn’t just evolving—it’s being rewritten in real-time. Employers face many challenges that demand careful navigation: the pushback on return-to-office mandates, the federal government dismantling its Diversity, Equity, and Inclusion (DEI) and affirmative action programs, pressuring the private sector on DEI, and the unstoppable march of AI and automation into our workflows. Each issue hits a nerve with employees; together, they paint a complex picture of modern labor relations.


AI, Automation, and the Existential Threat to Unions

The rise of self-driving technology, robotics, and automation has shifted from an abstract concept to an imminent reality, particularly in the logistics and delivery sectors. Companies like Amazon are investing heavily in automation to streamline operations, from drone deliveries to robotic warehouses. While these tech innovations promise efficiency, they represent an existential threat to unions like the Teamsters and the International Longshoremen’s Association (ILA), whose strength has long been rooted in representing workers in these labor-intensive industries.  Similar efforts are underway in other industries, including the food service and healthcare sectors.


Self-driving trucks, for example, could drastically reduce the need for human drivers, undermining the job security of thousands of unionized workers in the transportation industry. Robotics in warehouses threaten to replace fulfillment roles, which have historically been a key domain of unionized labor. For unions, this isn’t just a battle for jobs—it’s a fight for relevance. The Teamsters have aggressively targeted Amazon to organize its workforce, but the company’s automation efforts could significantly diminish the potential bargaining unit and, by extension, the union’s power.


Unions are sounding the alarm on these changes. They argue that unchecked automation risks creating a workforce without workers—a scenario where profits climb while livelihoods evaporate. Legislative protections and worker-driven AI governance will be crucial in balancing technological progress with preserving good jobs. Without intervention, unions fear a future where the promise of automation comes at the expense of the working class.


Government officials are taking note of labor concerns and passing or considering different types of legislation at the federal and state levels, including an “AI WARN Act” under consideration in New York.  Under this bill, employers would be required to notify the state when job losses are related to artificial intelligence.


Return-to-Office Mandates: The Unfinished Tug-of-War

The cozy couch, the pet that’s now an emotional support co-worker, and the silence of not sharing space with Gary from accounting are reason enough for some employees to resist return-to-office (RTO) mandates. Post-pandemic, the fight for flexible work has become a full-on rebellion.


The Great RTO Experiment has been met with worker anxiety, which can propel them into “protected concerted activities” under the NLRA concerning essential terms and conditions of employment. Surveys show that one in five employees don’t listen to RTO policies. Some even seek protection from a labor union.

And this isn’t just a free-for-all. Unions like the Communication Workers of America (CWA) have zeroed in on this topic, arguing that RTO policies are a mandatory subject of bargaining. Translation? Employers can’t just issue a memo and hope for compliance—they may need to sit at the table and hash it out.

 

The DEI Dilemma: From Progress to Backpedaling

The pendulum is swinging hard. Diversity, Equity, and Inclusion programs are under fire, with the federal government rolling back affirmative action and declaring many corporate DEI efforts legally suspect. What was once a cornerstone of modern workplaces is now a legal minefield.

For employers, this means reevaluating everything from recruitment practices to employee training and balancing compliance and their commitments to diversity. It’s not just about avoiding lawsuits but also protecting workplace culture from the erosion of representation and inclusivity while complying with new government mandates.


The Trump Factor: Policy Shifts Stir the Pot

Enter President Donald Trump’s recent policy blitz. He’s signed executive orders that sent shockwaves through the labor landscape in days. By dismantling federal DEI initiatives and placing related staffers on leave, he’s signaled a seismic shift in how diversity efforts are viewed at the national level. This stance forces employers to reassess their DEI programs, balancing legal compliance with the desire to maintain inclusive workplaces.


On the RTO front, Trump has mandated that federal employees return to the office full-time, ending remote work arrangements that became the norm during the pandemic. This sets a precedent that could influence private sector policies, pushing employers to reconsider their stances on remote work, which has already been underway.


Labor's Response to Mass Deportation Policies

In addition to these challenges, labor unions are confronting the implications of the federal government's intensified immigration enforcement policies. The passage of the Laken Riley Act, which mandates the detention of undocumented immigrants charged with theft-related crimes, has raised concerns among progressive organizations, including organized labor.  According to reports, crackdowns have already begun, resulting in detention and job loss.

Unions argue that such policies threaten immigrant workers and undermine the solidarity and strength of the labor movement as a whole. In response, labor organizations are mobilizing to protect their members by negotiating contract language and encouraging other steps that safeguard immigrant workers, providing legal assistance, and organizing community support networks.


Where Employers Go From Here

So, what’s the playbook? Transparency, collaboration, and adaptability. Whether it’s rethinking RTO policies with employee input, navigating DEI rollbacks without gutting workplace culture, or involving workers in decisions about AI, employers must do the hard work.


The stakes are too high to wing it. If you handle these shifts wrong, you’ll face protests, turnover, bad press, and potential workplace disruptions from union organizing. If you handle them right, you'll set your organization up as a model for the modern workplace.

The landscape is messy, yes. But with the right moves, it’s also manageable. So, grab your map—there’s still a way forward.

Retail Roundup: Impending Strikes, A CEO Shuffle, And DEI Updates

by Kimberly Ricci

Fresh off the holiday season, the retail sector can’t catch a break in this roundup full of labor updates.


King Soopers’ President Joe Kelley believes that a strike is likely at the grocer’s Denver-area grocery stores. Workers will vote this week on whether to walk out in five cities, including Denver, Colorado Springs, and Boulder. UFCW rejected the company’s “last, best and final offer,” including $4.50 per hour raises ahead of the Feb. 15 contract expiration date. 


Costco is staring down the possibility of a Teamsters strike if the union’s national master agreement expires on Jan. 31 without a new deal. A month ago, union president Sean O’Brien claimed that Costco refused acceptance of 98% of Teamsters' proposals. Still, O’Brien is once again exaggerating the impact of his union striking against a company. The Teamsters represent 18,000 Costco workers out of the wholesale club operator’s 300,000 total workers. A “national” strike would mainly be felt in California, where 40 of the 56 unionized Costco’s are located.  


Whole Foods workers in Philadelphia voted this week to unionize, which is a first at the Amazon-owned grocery chain. In doing so, the workers joined UFCW, with 130 workers in favor and 100 workers against the decision.


REI CEO Eric Artz announced his retirement, and the co-op named Mary Beth Laughton as replacement president and CEO. She will take the helm on Mar. 31, and her career history includes years as a Nike executive, a CEO stint at Gap brand Athleta, and a leadership role at Sephora. Laughton’s experience suggests that she has felt the effects of unions at Sephora, and both Nike and Gap have unionized suppliers and factories. For what it’s worth, REI Union declared that they are looking forward to working with Laughton, although it remains to be seen how her arrival could impact ongoing union activity at the co-op, where 10 REI retail locations are unionized with the UFCW-affiliated REI Union.


Meanwhile, REI Ski Shop workers in NYC are nearing the two-month mark for a strike that began on December 4.


Retailers are reacting to Trump’s dismantling of DEI programs in the federal government, a move that is reverberating through the private sector. As such, several companies have announced or reaffirmed their stances over the past week. Those employers who have declined to scale back their DEI policies include Apple, Microsoft, and Costco, the latter of which announced that their board overwhelmingly voted to retain DEI efforts following a think tank’s proxy proposal to disband the program. Whereas retailers who have chosen to do away with DEI include Walmart and Target.


As we have discussed, Trump’s DEI-focused executive order empowers the Justice Department to work with agency heads to scrutinize private sector companies for “potential civil compliance investigations” of their DEI hiring or training practices if they are deemed to run counter to Trump’s new guidelines. Legal challenges could arise with the long-term effects of this sweeping executive order to be determined.

Negotiating a First Collective Bargaining Agreement

by Michael VanDervort

In this episode of The Left of Boom Show, Phil McMann and Dave Sapenoff take us inside the room to explore the tactics and strategies behind bargaining a first collective bargaining agreement.


Building on the previous episode’s focus on preparation, this installment dives into the practical, day-to-day dynamics of sitting at the table and getting the deal done.


Key topics include:

  • Setting ground rules and managing table etiquette to ensure productive discussions.

  • The importance of written proposals and organized documentation.

  • Build trust and manage emotions to foster a collaborative atmosphere despite initial tensions.

  • Reading the room and understanding committee dynamics on both sides of the table.

  • Strategies for passing proposals, responding to counterproposals, and navigating non-economic and economic issues effectively.

  • Leveraging information requests to gain insight and counter union claims.

  • Balancing leverage, trust-building, and education to craft agreements that work for the business and its employees.

With decades of experience negotiating hundreds of labor agreements, Phil and Dave share invaluable insights, real-life examples, and best practices to help employers navigate the complexities of first-contract negotiations. Whether new to bargaining or looking to refine your approach, this episode offers actionable advice to achieve successful outcomes.

NLRB Monday Night Massacre: Firings Throw the NLRB Into Chaos

by Michael VanDervort

Donald Trump just dropped a bombshell on the labor world.


Trump fired NLRB member Gwynne Wilcox (possible paywall) and General Counsel Jennifer Abruzzo in a move might as well have been dubbed the Monday Night Massacre. This wasn’t your run-of-the-mill political shake-up. It’s a calculated—and legally questionable—power play that could grind the National Labor Relations Board to a halt and reshape labor relations as we know them.


Why This Is a Big Deal

Let’s start with the basics: Trump’s firing of Gwynne Wilcox blatantly ignores the National Labor Relations Act (NLRA). Section 3(a) of the Act clearly states that a president can only remove NLRB members “upon notice and hearing, for neglect of duty or malfeasance in office, but for no other cause.” Wilcox—a Senate-confirmed board member whose term was set to run through 2028—doesn’t fit either criterion.


Her response? She’s not going quietly. Wilcox has already announced plans to sue, calling the firing a violation of federal law.


"I will be pursuing all legal avenues to challenge my removal, which violates long-standing Supreme Court precedent.” – Gwynn Wilcox


A Conservative Legal Strategy in Action

Here’s where it gets even more interesting. This isn’t just a one-off move—it’s part of a broader conservative legal theory that’s been picking up steam. The idea? Article II of the Constitution, which says the president must “take Care that the Laws be faithfully executed,” gives presidents the authority to fire independent agency officials at will.


Sound familiar? Federal courts in the Fifth Circuit have already been playing with this argument, using it to block NLRB proceedings against employers. Trump’s decision to fire Wilcox fits right into this narrative, signaling an attempt to erode the board’s independence and consolidate executive power.


The Fallout: A Paralyzed NLRB

With Wilcox gone, the NLRB is down to just two members—Chair Marvin Kaplan (Republican) and David Prouty (Democrat). That’s one short of the quorum needed to issue decisions, as ruled by the Supreme Court in New Process Steel.


Translation? The NLRB is effectively out of commission. No rulings. No rulemaking. A lot of unresolved labor disputes. And here’s what we don’t know yet: will Trump choose to leave the vacancies unfilled, sidelining the agency for the rest of his term?


What This Means for Labor Professionals

  • For Employers: Welcome to regulatory limbo. On the one hand, the lack of an active NLRB could stall cases against your business. On the other hand, this legal chaos means navigating workplace disputes without clear guidance—hardly a comforting prospect.

  • For Unions and Workers: The board’s paralysis could slow down unfair labor practice complaints and union election certifications. But it doesn’t stop the processing of NLRB petitions, and we should not underestimate the potential for grassroots organizing to step into the void.

Looking Ahead

This Monday Night Massacre is more than a political spectacle—it’s a direct challenge to the structure of independent agencies like the NLRB. Wilcox’s lawsuit could bring the issue of presidential removal authority straight to the Supreme Court, with outcomes that ripple across labor law and beyond.

For now, the message is clear: buckle up. Whether you’re an employer, a union leader, or a labor attorney, the labor landscape just became more unpredictable—and potentially more volatile. In this environment, staying ahead of the curve isn’t just smart; it’s necessary.


The only thing certain? This story is far from over.

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by Michael VanDervort

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About Labor Relations INK

Labor Relations INK is published weekly and is edited by LRI Consulting Services, Inc. Feel free to pass this newsletter on to anyone you think might enjoy it. New subscribers can sign up by visiting here.


If you use content from this newsletter, please attribute it to Labor Relations Institute and include our website: http://www.LRIonline.com 


Contributing editors for this issue: Greg Kittinger, Michael VanDervort, and Kimberly Ricci.


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About Labor Relations Institute

LRI exists to help our clients thrive and become extraordinary workplaces. We improve the lives of working people by strengthening relationships with their leaders and each other. For over 41 years, LRI has led the labor and employee relations industry, driven by our core values and our proven process, the LRI Way.

 

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