The Trump administration is poised to impose broad tariffs and/or quotas on imports of steel and aluminum products. As the issues are being pondered, battles are raging between metal-producing and consuming industries, and between the United States and its trading partners. Trade restriction in these sectors could relieve near-term pressure on thousands of jobs and, if done well, could buy valuable time that could lead to global solutions to chronic dumping and overcapacity problems centered in China and a few other countries. But tariffs and quotas in a few industries will never be sufficient to structurally rebalance U.S. trade or rebuild U.S. manufacturing, goals that have been clearly identified by the president and other members of his administration. In order to achieve these goals, the United States needs to realign the dollar to reverse the effects of more than two decades of unfair trade and currency manipulation on world trade and the global economy.

The conclusions in this post are based on the following key observations:

• U.S. steel and aluminum industries have been heavily injured by massive growth of excess capacity and overproduction in China and other countries. More than 13,000 U.S. jobs have been lost in aluminum since 2000—and 14,000 steel jobs disappeared in last two years alone.
• Surging imports of steel and aluminum and diminished domestic production capacity in these industries are a threat to national security because access to reliable sources of these metals is critical to supply of military equipment and critical infrastructure. If current trends persist, in time of war or other national emergency, the United States would find itself dependent on unstable import sources.
• Tariffs and quotas will save jobs in these industries from near-term threats and help domestic producers recover from unfair trade. In the best of cases, tariffs can be used to encourage other importers to develop common policy to address overcapacity and overproduction by China and other major exporters. But trade remedies can have negative consequences too. Increasing costs of steel and aluminum may reduce the competiveness of other domestic producers (both downstream producers of steel and aluminum products, as well as other users such as automakers and aircraft manufacturers), hurting consumers and reducing exports. Imposing trade restraints can also lead to retaliation by other countries, further reducing U.S. exports.

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Yesterday, the Consumer Financial Protection Bureau (CFPB), an independent agency that serves as a watchdog for consumers, issued a rule that would ban companies from using mandatory arbitration clauses to deny Americans their day in court. The rule would restore consumers’ ability to band together in class-action suits. Without the ability to pool resources, many people are forced to abandon claims against financial institutions and other powerful companies. Consider that hundreds of millions of contracts for consumer financial products and services include mandatory arbitration clauses. Yet, the New York Times found that between 2010 and 2014, only 505 consumers went to arbitration over a dispute of $2,500 or less. By prohibiting class actions, companies have dramatically reduced consumer challenges to predatory practices.

Mandatory arbitration clauses are also used by employers. Employees are forced give up their right to sue in court and accept private arbitration as their only remedy for violations of their legal rights. Private arbitration clauses tilt the system in the business’s favor: the company is often allowed to choose the arbitrator, who will thus be inclined to side with the business; arbitration also cannot be appealed, leaving workers and consumers in much worse shape than if they had access to the courts. As such, employees who bring grievances against their employers are much less likely to win in arbitration than in federal court. Employees in arbitration win only about a fifth of the time (21.4 percent), whereas they win more than a third (36.4 percent) of the time in federal courts.

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Today’s report from the Bureau of Labor Statistics showed the economy added 222,000 jobs in June. If this rate of growth keeps up, we should see the economy heading faster toward full employment over the next year. Meanwhile, the overall unemployment rate ticked up slightly to 4.4 percent. This slight increase happened for the “right” reasons as the labor force participation rate rose slightly to 62.8 percent percentage points and the employment-to-population ratio also rose slightly to 60.1 percentage points. As the economy continues to inch towards full employment, we should expect the recovery to reach all corners of the where workers including young and old, and workers of all races can fully benefit from the economy.

One particularly bright finding in today’s report is the noticeable drop in the black unemployment rate. While the unemployment rate for black workers remains far higher than for white workers (7.1 percent versus 3.8 percent), the black unemployment rate has been falling faster than overall unemployment over the last year. It’s important to not put too much attention on one month’s data because it can be misleading as the black unemployment rate displays a fair amount of measurement-driven volatility. Looking at the longer term trends, black unemployment has fallen 1.5 percentage points over the last year, compared to a 0.5 percentage point drop overall. Previous estimates indicate that the black unemployment rate tends to be more volatile with respect to aggregate labor market changes than the white rate. Still, this improvement is quite a bit stronger than the historical average of roughly a 2 percentage point change in the black unemployment rate for every 1 percentage point change in the overall rate.

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ProPublica recently reported that the Department of Labor (DOL) and the Department of Homeland Security (DHS) are being pressed to “find the data” to justify an interim final rule (IFR) to increase the number of visas in the H-2B guestworker program before the end of the fiscal year, as means of securing votes in the Senate for repealing the Affordable Care Act. Such an action would compromise the integrity of what should be an exhaustive and transparent rulemaking process.

There is no good reason for any increase in the H-2B annual numerical limit (also known as the “cap”), but if the administration is set on expanding a flawed guestworker program that leaves migrant workers exploitable while undercutting U.S. workers, it makes sense for DHS and DOL to promulgate an IFR. At present there is no established process or procedure set up for lifting the cap in the way it might play out in the coming weeks as a result of a legislative rider to a government spending bill that gave DHS discretion to raise the cap. Simply publishing a statement or policy directive might be questionably legal or be challenged in the courts, and an IFR will at least offer the public a more transparent process and methodology. DHS should also consider offering the public an opportunity to offer input on any published regulation or IFR on H-2B, even if it is provided after the rule goes into effect.

But first, it is important to remember that the long term labor market trends and indicators do not suggest the United States is experiencing national-level labor shortages in the top H-2B occupations. There is however, ample evidence that the H-2B program needs major reforms to protect migrant and American workers. At present, employers have an incentive to hire indentured and underpaid H-2B workers from abroad who have little power in the workplace, and who have no hope of a path to permanent residence and citizenship.

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While inaction on paid sick days at the national level continues to erode families’ economic security, cities and states are stepping up for working people and serving as models for jurisdictions throughout the country. Rhode Island is the latest example—legislators there have been working to pass legislation to guarantee a minimum amount of paid time for eligible workers to care for themselves or their family when they are sick or need medical care. While there are important differences in the proposals, both the Rhode Island House and Senate have passed measures which would significantly expand the ability for workers there to earn paid sick time. If the governor signs a bill, it will be a big win for working people and their families in Rhode Island, as the state will join Connecticut, California, Massachusetts, Oregon, and Vermont in guaranteeing that working people have the ability to earn paid sick time.

In a paper released earlier this week, Jessica Schieder and I highlighted some of the costs to workers and their families when they are not given the opportunity to earn paid sick time. By examining estimated spending on essential items for families who lack paid sick days today, we quantified how this lack threatens the economic security of low- and moderate-income families.

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OSHA has officially announced a proposal to delay the reporting requirements of its “Improve Tracking of Workplace Injuries and Illnesses” recordkeeping rule that was issued last July.

The recordkeeping rule simply requires employers already covered by OSHA’s recordkeeping requirements to send the form 300A (Summary of Work-Related Injuries and Illnesses) to OSHA and then OSHA would publicize the information on its website. The rule also prohibits employers from retaliating against workers for reporting injuries or illnesses.

Employers were originally required to send their information in to OSHA by July 1. OSHA announced its “intention” to delay reporting last month. The non-retaliation part of the standard, which generated intense industry opposition, may not fare as well. That part of the regulation is in effect, but OSHA states in this proposal that it “intends to issue a separate proposal to reconsider, revise, or remove other provisions of the prior final rule.” So stay tuned for that.

OSHA justifies the delay by stating that it “will allow OSHA an opportunity to further review and consider the rule” and that the delay “will allow OSHA to provide employers the same four-month window for submitting data that the original rule would have provided.” OSHA had originally planned to post a website last February so that employers would have four months to submit the data to meet the original July 1 deadline, but the new administration refused to put the website up.

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Summer has officially arrived, and with it an influx of interns has come to the nation’s capital. Many of these young men and women will spend the summer working in congressional offices for no pay. While information on the use of unpaid interns is not available for every congressional office, EPI conducted an informal survey and found that at least three-quarters of all House offices use unpaid interns. More than half of all Senate offices, meanwhile, have unpaid interns, according to a survey by the advocacy group Pay Our Interns.

Congress is not alone in its practice of offering unpaid internships—in fact, far from it. Unpaid internships are common in every sector, and have come to be considered a necessary prerequisite for getting a job—despite the fact that most unpaid internships are actually against the law. The Fair Labor Standards Act (FLSA)—the foundation of modern labor law in the United States—requires that anyone doing work for an employer, including interns, be paid at least the minimum wage.

The Department of Labor (DOL) is tasked with enforcing the FLSA and has developed a six-point test to determine whether an internship must be paid as employment covered by the FLSA or is, instead, training or education. In recent years, in a number of high-profile cases courts have upheld and applied the DOL’s test, and determined that an employer had violated the FLSA when it failed to pay its interns for their work. While Congress is exempted from the laws protecting interns, it sets a powerful example by not paying its interns, and the practice has a far-reaching impact on society as well as public policy.

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While the new administration in Washington appears to be in a rush to use its executive branch power to undo all the efforts of the previous administration to protect hourly paid employees, a more worker-friendly, forward-looking group in the U.S. Congress has decided it’s time to push back by offering a clearer, alternative approach—by re-introducing the Schedules That Work Act (SWT)—previously S. 1772 and H.R. 3071. The purpose is to address both the causes and consequences of the intensifying use of more unpredictable, last minute scheduling of work—well documented recently in an article in The New York Times.

The national bill attempts to create elements of what some other states and cities in the United States, and developed countries around the globe, have already proposed, legislated or implemented. The Schedules That Work Act entails three main features, with the overarching idea of setting a minimum floor standard that reduces any short-term cost advantage for employers who rely on scheduling practices that shift all the costs of uncertainty in their business on to hourly paid employees.

One, it grants an employee the right to request that his or her employer modify the number of hours or times the employee is required to work or be on call, the location of work, and the amount of notification time he or she receives of work schedule assignments. The process would ensure that employers give due consideration to these requests, in a timely, good faith, and interactive manner. And it protects against employer retaliation for making such adjustment requests. It outlines the grounds for denying a change, if there is a bona fide business reason for denying it, particularly if the request is made because of the employee’s serious health condition, caregiver responsibilities, or enrollment in a career-related educational or training program, or if a part-time employee requests such a change for a reason related to a second job. Such a right to request has worked well in countries such as the U.K. and Australia, and is so successful and harmless for employers that it has been expanded to cover all employees, not just those with caregiving responsibilities. With a recent national survey showing that almost half of U.S. workers have no input into their work scheduling—and only 15 percent can set their own daily start and end times for work—this will help provide workers some voice, if not say, in the scheduling of their daily and weekly work schedules.

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For millions of hourly workers, a predictable, stable work schedule is rare. Work hours can vary not just week to week, but even day to day for millions working in retail, restaurant, hospitality, and building cleaning jobs. Two scheduling techniques often used in these industries can wreak havoc on workers: just-in-time and on-call scheduling. Employers use just-in-time scheduling to account for predicted consumer demand, which often leaves workers with just a few days’ notice of their hours. On-call scheduling provides even less notice, as workers know the length of their schedule just hours before a shift starts. These methods make it impossible for people to balance their work with personal responsibilities like taking classes, maintaining another job, caring for a sick relative, or arranging child care. The Schedules That Work Act, which is being introduced today by Representative Rosa DeLauro provides hourly workers with protections they are not often given by their employers: advance notice of schedules and the right to request a schedule change.

Workers in retail and food services are less likely on average to be able to decide, or have any input into, their own schedules. Nearly half of low-wage and/or hourly workers have no input into their work hours, including the inability to make even minor adjustments. Nine-out-of-ten workers in retail and fast food service jobs report variable hours, and part-time workers are even more likely to have variable and unpredictable schedules. The lack of fair scheduling shifts the cost of uncertainty from employers to employees who already carry the burden of low wages and minimal benefits. At the same time, unpredictable schedules lead to higher turnover as workers leave to find a more stable work schedule or are fired due to the inability to meet on-call demands. This turnover is a significant cost to employers in terms of profitability, productivity, and service.

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