Minneapolis City Council votes to create new Labor Standards Board

The Minneapolis City Council voted 9 to 3 Thursday to create a new Labor Standards Board of workers and employers to recommend industry regulations for pay, safety and equity.

Labor unions support the idea, and some council members say it would be a more democratic way of considering workplace standards. But the proposal has faced strong pushback from local and national industry groups who oppose creating another layer of government to give workers a say in business regulations.

It’s unclear if Mayor Jacob Frey will support or veto the plan. Based on Thursday’s vote, the council appears to have enough votes to override a veto.

More than two years ago, Frey and a majority of council members said during a news conference that they supported the idea of creating a labor board, but now there’s disagreement over the details.

After a council committee passed the plan last week, the mayor’s office said Frey would support a board with a 50/50 split between employers and employees, a 50/50 split between mayoral and council appointments and a requirement that at least two-thirds of the board support a recommended policy before it could advance to the City Council. The plan approved Thursday does not include those provisions.

“Mayor Frey has been clear and consistent in his support for a Labor Standards Board that is balanced and fair, but the council’s proposal was never that,” Frey’s office said in a statement Thursday.

“He will be meeting with stakeholders from both the business and labor communities over the coming days to determine next steps.”

The board would be made up of an equal number of business owners, employees and other community stakeholders who would create work groups for various industry sectors and recommend policies to the City Council.

National organizations this year ran an ad blitz opposing the board and have since been joined by a growing number of Minneapolis business groups. Small restaurateurs of color are also opposed, saying that since the city adopted a $15 minimum wage and sick time ordinances, they can’t take any more regulations

In a joint statement after Thursday’s council vote, four business groups — the Minneapolis Regional Chamber, the Mpls Downtown Council, Hospitality Minnesota and Minnesota Retailers — criticized the plan and vowed not to take part.

“Today’s vote confirmed everything we have been saying about the Minneapolis City Council not listening to the business community,” the statement said in part.

“... By choosing this path, the Council has made Minneapolis a place where investment and development will be stifled, hindering efforts to revitalize our city and reopen shuttered businesses.

“We will not be participating in the Minneapolis Labor Standards Board in its current form,” the statement said.

Council members had promised to OK the board by the end of the year, but some on Thursday tried to slow approval and schedule a public hearing. That effort failed by 6-6 vote.

Council Member Jamal Osman tried to amend the plan to raise the voting threshold for recommended policies to pass the board to two-thirds rather than a simple majority, as Frey wanted. That motion failed 5 to 7.

The debate over amendments became heated among several council members, prompting City Clerk Casey Carl to remind them of Robert’s Rules on decorum.

Opponents said the new board will help workers at the expense of businesses.

Council Member Michael Rainville said it wouldn’t do anything to help fill empty storefronts, but instead would give businesses another reason not to do business in Minneapolis.

Supporters have championed the board as step toward improving the lives of lower-wage, nonunion workers.

Council Member Jason Chavez said he’s doing it for workers like his mother, who worked three jobs and barely made ends meet.

Council Member Emily Koski said Donald Trump’s re-election as president makes such a board more essential.

“Our commitment to labor rights will soon be put to the test,” she said, referring to a concern among pro-labor sectors that the president-elect will weaken worker protections.

But Council Member LaTrisha Vetaw called that fear mongering. She noted that the board would be only an advisory body to the council.

“This council is gonna make sure that he doesn’t have an impact on this city,” she said.

The resolution was supported by Koski, Osman and Chavez, as well as Jeremiah Ellison, Andrea Jenkins, Aurin Chowdhury and Katie Cashman. Council Vice President Aisha Chughtai and Council President Elliott Payne also voted in favor.

It was opposed by Rainville, Vetaw and Linea Palmisano.

Council Member Robin Wonsley was absent.