Subject: The Snake Oil Is Even Stronger Than Usual: LRI INK

March 6, 2025

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The Snake Oil Is Even Stronger Than Usual With The Effort To Unionize Rideshare Drivers

by Kimberly Ricci

The labor laboratory of California frequently acts as a predictor, but are we surprised to learn that unions would ignore their previous flubs that ended up harming workers in the Golden State? Nope. The union bureaucracy is only out for self-preservation, and today, we are talking about Big Labor’s goal to unionize rideshare drivers in Minnesota and other states.


Lessons not learned: In California, Service Employees International Union (SEIU) lobbied for AB5, a law that claimed to improve working conditions for rideshare drivers but ended up causing independent contractor layoffs. Last year, the deep-pocketed union pushed for a similar law that also made Massachusetts the first state that allows rideshare drivers to unionize, and the union wants to do the same in Minnesota.


The new union in Massachusetts: The App Drivers union has aimed to organize Uber and Lyft drivers by card check. The organization is jointly affiliated with SEIU and International Association of Machinists and Aerospace Workers (IAM), and the App Drivers union claims to have thousands of drivers within reach, although actual “membership” numbers remain fuzzy. Also, no first contract exists or is in the works.


The Minnesota dilemma: A complicated situation exists here, particularly in Minneapolis, where Uber and Lyft threatened to cease operations over the city’s “unsustainable” legislated wage boosts for app-based drivers. Democratic Gov. Tim Walz even vetoed an effort to make those wage boosts official statewide. He did so out of concern that this “could make Minnesota one of the most expensive states in the country for rideshare.”


Fast forward to 2025, and a deal was struck, but impending wage boosts would still bring rideshare drivers up to $34 per hour and push Uber fares up by 25% throughout Minnesota. It doesn’t take a stretch to see how this will lead to decreased demand from rideshare customers and hurt drivers.


So, short-term benefits will lead to long-term harm to workers. Still, Big Labor is now attempting to coast on wage-related goodwill to modify Minnesota state law and allow rideshare driver unionization.


The ultimate union goal: Big Labor wants to organize drivers for purposes of sectoral bargaining to exercise control over an entire industry. That’s precisely what SEIU did with California fast-food wages and creating an overarching council where their lobbying interests will be strong. In this case, the organization of rideshare drivers would be disastrous for companies and the drivers themselves.


Even worse news for workers: These laws would not change the fact that rideshare drivers are independent contractors and therefore not covered by the NLRA. And unions do know this reality. They realize these drivers would remain ineligible for protections and benefits like overtime pay, unemployment insurance, or employer-based health insurance. Yet Big Labor will always promise the moon for what they cannot deliver. So even if rideshare drivers “unionize,” they would end up paying dues while reaping little to no bargaining advantage.


These workers would also end up living under a union constitution, negating any freedoms associated with being independent contractors.

The takeaway: The usual brand of union snake oil is even more odious when it comes to their targeting of rideshare drivers. And as we speak, the  IAM is also attempting to sell their wares to New Jersey rideshare drivers, who would be wise to drive far away from those union lies.

 “Running Government Like A Business”? The Chaotic Purge And Responses By Leaders, Employees And Unions

by Kimberly Ricci

Typically we don’t enter into the labor relations of the public sector, but there is so much going on with federal employees, the executive branch, labor law, labor policy and federal labor unions that we thought it would be worth some analysis. There are definitely some things to keep an eye on.


The question of whether a government should be run like a business has been asked plenty, both during Trump’s first administration and the current one. The current quest for streamlining the federal bureaucracy, however, has run amuck. That isn’t a partisan take but one that can be gleaned by watching waves of rollbacks, lawsuits, and incoming union responses.


The Rollbacks Begin: Tens of thousands of probationary workers and decades-long employees were laid off with reports soon surfacing that essential nuclear weapons experts and infectious disease scientists were accidentally fired by the U.S. Office of Personnel Management (OPM) on a mandate from the Department of Government Efficiency (DOGE). 


Cue the scrambles from the multiple federal agencies to attempt rehires. Then this week, the Centers for Disease Control emailed 180 laid off workers and told them to come back to work. Talk about push and pull.


A lawsuit avalanche: Workers are taking legal action. That includes a pair of fired Equal Employment Opportunity Commission commissioners, presumably let go over Trump’s executive order rolling back DEI, and ousted NLRB board member Gwynne Wilcox, for whom a reinstatement could present a Catch-22 dilemma for the currently paralyzed board itself. 


Late this week, a federal judge called out the Trump administration for firing Wilcox without cause in an “extreme” attempt to expand presidential power. The judge also indicated that she is leaning in favor of reinstating Wilcox while acknowledging that her ruling would be “merely a speed bump for you all to get to the Supreme Court." If Wilcox receives her job back, this will restore the quorum needed for the NLRB to begin ruling on workplace disputes again, albeit in a less “activist” capacity than under Biden.


Additionally, a district judge reversed the “illegal” firing of Merit Systems Protection Board member Cathy Harris, whose job actually involves handling agency-and-worker disputes including appeals of firings. 


Labor unions have also sued over job losses, and another judge deemed probationary firings illegal regarding several federal agencies. That judge further ruled that the OPM doesn’t hold Congressional authority to hire or fire within other federal agencies.


And The Rollbacks Continue: Are you ready for a real head scratcher? On March 4, OPM abruptly altered their own memo on the large-scale reduction of probationary employees to insert this disclaimer: “Please note that, by this memorandum, OPM is not directing agencies to take any specific performance-based actions regarding probationary employees. Agencies have ultimate decision-making authority over, and responsibility for, such personnel actions." It looks like OPM is attempting to back away from the fact that these firings have happened at all.


In response to this edited memo, the American Federation of Government Employees, which claims to represent 800,000 workers, has accused OPM of essentially admitting that these firings were illegal. 


The takeaways: The current attempt to run the government “like a business” might be demonstrating how not to run private labor practices.


For example, most companies wouldn’t think of sending a Saturday night email instructing workers to list weekly accomplishments or lose their jobs. Sure, several agencies, including the FBI, told their workers to ignore that very real email, although this hasn’t lessened the confusion and fear felt by federal workers, who were already privy to messy ROI procedures.


Along with the mass firings, these actions, if taken by private employers, would sow enough distrust that workers could jump at a union coming along to volunteer their assistance. What has transpired in the government could easily  lead to  more union activity in the private sector.

Pre-Order the Leader-Shift Playbook Today

Gratitude in Action – Phil Wilson's Insights Featured in EO’s Blog on Employee Appreciation Day

by Michael VanDervort

Our own Phillip B. Wilson, President of LRI Consulting Services and author of the upcoming Leader-Shift Playbook, was recently quoted in a recent Entrepreneurial Organization (EO) blog post, Gratitude in Action: How Top Entrepreneurs Recognize Their Teams on Employee Appreciation Day.” In the article, Wilson and other experts shared actionable strategies for leaders to build a culture of authentic appreciation that goes beyond surface-level gestures.


The Power of Authentic Appreciation
Wilson emphasized that the most effective appreciation isn’t about extravagant rewards but about answering the unspoken questions every team member has:

  1. Do you like me?

  2. Do you think I have what it takes?

  3. Do you think I’m worth the effort?

“Your interactions should answer one or more of those questions—but don’t just blurt out ‘I like you’—that’s creepy,” Wilson quipped. “Instead, share specific feedback that highlights how their actions make people like them. It’s a great way to show appreciation.”


This practical approach to appreciation aligns with insights from other entrepreneurs in the EO article, who highlighted the importance of recognizing employees in a way that feels both personal and meaningful.


Wilson Unveils the #1 Foundational Behavior of Successful Leadership on Monday Morning Radio

by Michael VanDervort

Are you the kind of leader people want to follow — or the one they avoid at all costs?


This week, Phillip B. Wilson, CEO and General Counsel of LRI Consulting Services, joins Monday Morning Radio to reveal the secret to “Approachable Leadership” and why it’s the cornerstone of successful teams. As a nationally recognized leadership and labor relations expert, Phil shows how being accessible and down-to-earth can transform your leadership style and boost business performance.


In this episode, Phil also gives listeners an exclusive preview of his highly anticipated book, The Leader-Shift Playbook (now available for preorder on Amazon). From practical tips on closing the power gap with your team to insights that can prevent employees from turning to unionization, this conversation is packed with actionable advice.


Why You Should Tune In:

  • Discover the #1 behavior that separates leaders who inspire loyalty from those who breed resentment.

  • Learn why accessibility isn’t just a “nice-to-have” but a strategic necessity in today’s workplace.

  • Get a sneak peek into the transformational strategies outlined in The Leader-Shift Playbook.

Whether you’re managing a small team or leading a company, this episode is a must-listen for anyone who wants to master the art of approachable leadership.


🎧 Listen now: Phillip B. Wilson Reveals the #1 Foundational Behavior of Successful Leadership

Don’t miss out—this episode could redefine your leadership style!


Books by Phillip B. Wilson:

The Leader-Shift Playbook

The Approachability Playbook

Left of Boom


BREAKING NEWS: On February 27th, HR Acuity, the enterprise leader in case management and investigations software, announced the partnership between its empowER™ community and Labor Relations Institute Consulting Services (LRICS) to launch a new professional segment specifically focused on labor relations. (Read the news release here.)


We Just Dropped The Last Two Episodes Of the Managing During Status Quo Series

by Michael VanDervort

Host Phil Wilson is joined by Gail Wolfe, LRI Consultant, to tackle one of the most challenging scenarios for employers: preparing for a potential strike.


Together, they break down the critical steps managers must take to safeguard their operations, communicate effectively, and navigate legal complexities.


What You’ll Learn:

  • The legal groundwork for strike preparation

  • Key stakeholders to be involved in planning

  • How to develop robust contingency plans

  • Site security strategies to protect physical and operational assets

  • Managing logistics, deliveries, and picket line disruptions

  • Communication strategies to maintain transparency and reduce employee anxiety

  • How to protect non-union employees and those crossing the picket line

In this episode of The Left of Boom Show, we dive into the critical groundwork for bargaining preparation with Phil McMann and Dave Sapenoff, two experienced consultants who have negotiated hundreds of labor agreements.


This is the first of two episodes focusing on the bargaining process. This installment highlights the essential steps for planning and preparation.


Phil and Dave share actionable insights on:

  • Aligning leadership and setting clear goals for negotiations.

  • Building your bargaining team and defining roles for success.

  • Gathering critical information, from operational data to financial cost analyses, to guide your strategy.

  • Navigating the legal intricacies of labor negotiations, including mandatory and permissive subjects of bargaining.

  • Managing logistical elements, like choosing the negotiation site, setting timelines, and
    establishing communication protocols.

Whether preparing for your first contract or refining your approach for a follow-up agreement, this episode is packed with practical tips to help you start strongly.


Stories You May Have Missed:


Punching In: NLRB Top Cop Wants 'Traditional Jurisdiction' Focus 

Link


California fast-food workers could see another pay increase

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Barnes & Noble workers win historic first union contract at NYC stores 

Link


Organizing the Battery Belt 

Link


UAW members at Rolls Royce's Indiana unit reach tentative agreement 

Link


20% pay raise in Volkswagen's latest offer to UAW for Chattanooga plant

Link


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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