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Storm brewing: Appointment of Hardee's CEO as labor secretary spawns debate

While several labor organizations have come out against Thursday's appointment of CKE Restaurants Holdings CEO Andy Puzder as President-elect Donald Trump's choice for Labor Secretary, a number of restaurant industry groups have chimed in with their support.

December 9, 2016

While several organizations that support the labor force have come out against Thursday's appointment of CKE Restaurants Holdings CEO Andy Puzder as President-elect Donald Trump's choice for labor secretary, some of the organizations that support growing the restaurant industry, including the National Restaurant Association and the National Retail Federation, have chimed in with their support.

"As an active member of the National Restaurant Association, Andy brings much-needed business experience to the Department of Labor. He has a proven track record of turning around businesses, and his background in the restaurant industry will help foster an environment for job creation," National Restaurant Association President and CEO Dawn Sweeney said in a press release. "The restaurant industry is the second largest private sector employer in the country, employing more than 14 million people and producing more than $780 billion in sales annually. It is encouraging [that] someone who has worked in the industry and understands its vast benefits to the American economy, as well as the challenges it currently faces, will serve in one of the highest posts in the administration."

The National Retail Federation released a statement that was equally enthusiastic about Puzder's pick.

"He has a proven track record of turning around businesses, and his background in the restaurant industry will help foster an environment for job creation."  — NRA

"Careers in retail and restaurants offer a path forward for millions of Americans, and hiring an employer from this sector for the important role of labor secretary would show that President-elect Trump knows the value of these opportunities," NRF Senior Vice President for Government Relations David French said in a press release. "Andrew Puzder is someone with the real-world experience to understand workforce issues and how jobs are created."

"Mr. Puzder has been an ally in our efforts to emphasize the dynamic careers available in the retail and restaurant industries, and he would bring to the job his experience in balancing the needs of all stakeholders in the American workforce. NRF is committed to long-term investments in workforce development and we look forward to working with him to advance a strong pro-jobs agenda in Washington."

CKE Restaurants, which Puzder leads, including the national fast food chains of Hardee's, Carl's Jr. and Green Burrito, is a member of NRF's National Council of Chain Restaurants division. The NRF is the world's largest retail trade association, and retail is this nation's largest private sector employer, supporting 1 in 4 U.S. jobs or about 42 million working Americans, according to the organization.

Labor's response: 'Fine choice ... [if] looking out for millionaires'

Many of the organizations representing those workers, however, were less than enthusiastic about Puzder's appointment, since many unions and other rights organizations see him as anti-labor and pro-corporate ownership.

"Andy Puzder, the CEO of CKE Restaurants, would be a fine choice to head a government agency responsible for looking out for millionaires. But Puzder has a record of public statements and action that demonstrates why he is a poor choice to head the agency responsible for promoting the welfare of wage earners, job seekers and retirees," said Chris Shelton, president of the Communication Workers of America, which represents many employees in restaurants and across the retail spectrum in the US. "Instead, Puzder opposes many of the policies and programs he would administer. … He objects to efforts to increase the minimum wage. He thinks government support programs for low-wage workers — like those who work at his own restaurant franchises — are a disincentive to work. …

"My union and the entire labor movement are more committed than ever. … We will be the advocates that working people need because, sadly, it's clear that help won't be coming from the Department of Labor."

"My union and the entire labor movement are more committed than ever. … We will be the advocates that working people need because, sadly, it's clear that help won't be coming from the Department of Labor."    CWA

The leadership of an organization that represents the interests of "more than 1 million mothers and their families" in the US, MomsRising, had less than glowing remarks about Puzder's choice. In fact, the organization's CEO called the appointment another sign of the incoming Trump administration's overall "aggressive anti-working family agenda."

"This is not the type of secretary of labor that our nation needs," said MomsRising CEO Kristin Rowe-Finkbeiner. "Throughout his career as CEO of CKE Restaurants, Puzder has also consistently disrespected the basic rights of working people — arguing that even 10-minute meal breaks for employees working an eight-hour shift constitute an 'undue burden' on employers. It's no surprise to find then that nearly half of the Carl's Jr and Hardee's restaurants run by Puzder have been cited with at least one wage-and-hour violation."

While a Bloomberg Law study found that 60 percent of investigations into Carl's Jr. and Hardee's since 2009 revealed one or more violations of the Fair Labor Standards Act, that record is actually better than many QSR chains, including Taco Bell, McDonald's and Arby's, according to Bloomberg.

Those numbers are still too high for many of the groups supporting working families, including MomsRising, which has called on its members to implore their federal legislators to reject Puzder's nomination.

"With two-thirds of minimum wage workers women, many of whom are moms, we need a leader at the Department of Labor who is fighting to boost up America's workers and economy, not hold them down."