Trump picks fast-food CEO as labour secretary - Action News
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Trump picks fast-food CEO as labour secretary

U.S. president-elect Donald Trump names fast-food executive Andy Puzder to head the Department of Labor, drawing criticism from labour advocates worried about his opposition to a higher minimum wage and government regulation.

Hardee's and Carl's Jr. boss Andy Puzder has long opposed higher minimum wages

CKE Restaurants CEO Andy Puzder speaks at a news conference in Austin, Texas in August 2014. Puzder has frequently argued in the media against higher minimum wages. (Jack Plunkett/ CKE Restaurants/ Associated Press)

U.S. president-elect Donald Trumpnamed fast-food executive Andy Puzder to head the Department of Labor on Thursday, drawing criticism from labouradvocates worried about his opposition to a higher minimum wageand government regulation of the workplace.

Puzder, chief executive of CKE Restaurants Inc., which operates the Carl's Jr. and Hardee's fast-food chains, has frequently argued in the media that higher minimum wages would hurt workers by forcing restaurants to close.

He will save small businesses from the crushing burdens of unnecessary regulations. Donald Trump

He has bashed a new Labor Department rule aimed at extending overtime pay to more than four million U.S. workers and has praised the benefits of automation in the fast-food industry.

Fast-food workers, who are largely not unionized, areengaged in a multi-year campaign known as the "Fight for $15,"which is supported by labour unions, to raise minimum wages to$15 per hour. They have had state-wide successes in New York andCalifornia and in cities and municipalities such as Seattle.

Trump, in a statement released by his transition team,praised Puzder for a "record fighting for workers" and said hewould ensure occupational safety standards.

"He will save small businesses from the crushing burdens of unnecessary regulations that are stunting job growth and suppressing wages," Trump said.

In the same statement, Puzder, 66, said he agreed with Trumpthat "the right government policies can result in more jobs andbetter wages for the American worker."

'Talking a good game'

The Labor Department regulates wages, safety anddiscrimination in the workplace.

The Republican president-electwon lastmonth's election by carrying swing states and sometraditionally Democratic states in the U.S. Rust Belt afterpromising to create jobs and to review or cancel trade dealsthat he said were bad for workers.

National labour leaders had urged their rank-and-file membersto back Democratic candidate Hillary Clinton, saying Trump's appointments and policies wouldnot align with his promises to workers.

Labour leaders have been girding for Trump to appointpro-business regulators at the Labor Department and the NationalLabor Relations Board (NLRB), and to roll back key regulatoryinitiatives of the Obama administration such as the LaborDepartment rule that extended overtime pay.

"He was talking a good game when he was running forpresident, as far as helping workers and leveling the playingfield for them, but with the nominations he's made it's just theopposite," said Lee Saunders, president of the public employeesunion AFSCME.

U.S. fast-food workers, who are largely not unionized, are engaged in a multi-year campaign, which is supported by labour unions, to raise minimum wages to $15 per hour. (Paul Beaty/Associated Press)

'Wipe out unions'

Shakeups are expected under Trump at the Equal Employment Opportunity Commission (EEOC), which enforces federal anti-discrimination laws. Trump will have an early opportunity to shape the EEOC when he replaces its general counsel, Obama appointee David Lopez, who is leaving the agency this month, and a vacancy on the commission.

Trump will also be able to fill two current vacanies on thefive-member NLRB early in his term, likely tipping the agency toa more business-friendly posture.

Although just 11.1 per cent of U.S. workers were representedby a union in 2015 down from 20.1 per cent in 1983, the firstyear government statistics were kept labour unions are apowerful force in Democratic politics. But union members'support for Clinton at the election was lower than it had beenfor President Barack Obama four years ago.

About 51 per cent of voters from union households backedClinton, with 42 per cent supporting Trump, a CNN exit pollshowed. Obama won 58 per cent of the same voters in his 2012re-election win against Republican Mitt Romney.

Business groups welcomed the appointment of Puzder. RobertCresanti, president of the International Franchise Association,an industry group, praised him as an "exceptional choice" whowould bring "business experience and policy acumen on so manyissues impacting employers and employees."

But Democrats were critical.

"In Andrew Puzder, Trump found a labour secretary that wouldhelp him roll back the minimum wage, end the overtime rule thatwill raise wages for millions, weaken safeguards for workers,and to wipe out unions," said American Bridge, a liberaladvocacy group.