Labor unions accuse administration of failing to protect workers under coronavirus relief package

Major labor unions are accusing the Trump administration of allowing some companies receiving federal aid to avoid payroll and other requirements under the coronavirus relief package.

The unions wrote a letter to Speaker Nancy Pelosi (D-Calif.), Senate Minority Leader Charles Schumer (D-N.Y.) and Sen. Sherrod Brown (D-Ohio), asking for more worker protections in future aid packages.

The letter was signed by seven groups, including the Communications Workers of America (CWA), the American Federation of State, County and Municipal Employees (AFSCME), and the Service Employees International Union (SEIU).

The Coronavirus Aid, Relief, and Economic Security (CARES) Act that Congress passed in March requires some businesses that receive aid to keep a certain amount of people on payroll or to spend a certain amount of loans on payroll costs. The unions suggest those worker protections are being waived for some recipients. 

“[W]e are alarmed that the Federal Reserve’s lending facility for large businesses does not require those companies to maintain workers on payroll, while the program for mid-sized businesses fails to include anti-outsourcing provisions or any provisions protecting workers’ right to organize. This means that, rather than protect good, family-supporting jobs as you intended, the funds can be used to enrich corporate executives and shareholders without regard for workers,” the letter read.

The unions applauded the CARES Act for its intent to protect jobs and make sure the funds were used appropriately by businesses.  But, they added that they have been “highly disappointed” that the Trump administration has “failed to implement” certain requirements. 

“As powerful voices and leaders in the U.S. Senate for working families, we urge you to take steps to ensure that the worker protection provisions are actually imposed on recipients of federal aid in response to the current pandemic,” the letter read.