Mayor Frey vetoes Labor Standards Board, asks for ‘balanced’ proposal

Minneapolis Jacob Frey on Thursday vetoed the creation of a Labor Standards Board over concerns the City Council’s proposal didn’t adequately balance business and labor interests.

The 15-person panel would consider matters such as wages, benefits and workplace safety and present formal recommendations to the City Council.

Last week, the City Council passed the resolution by a 9-3 vote — a margin that could override Frey’s veto.

Business leaders have opposed the measure, fearing it could drive up costs in a city that already has a $15.57 minimum wage.

In his veto letter, Frey criticized the City Council’s proposal, saying it will not foster collaboration between employers and workers.

“I have long supported the creation of a balanced and fair Labor Standards Board, but the Council’s proposal is neither balanced nor fair,” he said.

After receiving feedback from “hundreds of businesses” and “nearly all major business organizations” saying “they won’t participate in the board at all,” the mayor urged the council to come up with a new model that he deems more equitable.

His proposal includes a 50/50 split of business and labor interests; equal appointments by the council and the mayor; and requiring a supermajority consensus before the board presents any recommendations.

“These recommendations are based on years of dialogue with business and labor representatives. If we want a Labor Standards Board that works for Minneapolis, we must listen to the concerns of all stakeholders and create a structure that encourages collaboration, not division,” Frey said.

In its current form, the Labor Standards Board includes 12 City Council appointments and three mayoral appointments:

• Four council nominations from the business community, including an employer association representative and employers from companies of various sizes
• Four council nominations representing labor interests, including two low-wage employee delegates, one unionized employee advocate and one representing non-unionized employees
• Four council nominations of community stakeholders representing nonprofits, consumers, government workplaces, and a labor policy expert
• Three mayoral nominations — an employer representative, an employee representative, and a community stakeholder

Labor representatives immediately slammed Frey’s veto but were hopeful the council would override it.

“It’s a shame Mayor Frey is standing with big business to stop this commonsense proposal that simply brings people to the table, but we’re looking forward to the City Council overriding this decision and getting to work making Minneapolis a better place for workers, business and community,” said Michael Rubke, a condo worker who has advocated for a Labor Standards Board.

View Mayor Frey’s full veto letter below: