Plan’s inclusion of PRO Act would devastate the U.S. economy and put many small, women- and minority-owned construction contractors out of business

 

Washington, D.C. – The Coalition for a Democratic Workplace (CDW), composed of hundreds of organizations representing millions of businesses that employ tens of millions of workers nationwide in nearly every industry, released the following statement today in response to President Biden’s promotion that his infrastructure plan would help small businesses which CDW says will harm America’s workers and small businesses with its inclusion of the Protecting the Right to Organize (PRO) Act.

The following statement is attributable to CDW Chair Kristen Swearingen:

“While President Biden attempts to cast his infrastructure plan as a boon for small business, the plan’s inclusion of a radical and overreaching proposal like the PRO Act combined with a corporate tax rate hike would devastate small businesses and our economy during a time of economic turmoil.

“Unfortunately, the inclusion of the PRO Act will force thousands of small, women- and minority-owned businesses and contractors to close permanently and lay off workers – missing out on any benefit of increased infrastructure spending.

“Franchised businesses, with over 30 percent being minority-owned, would be upended by the PRO Act and harm these owners from making a living as well as killing the dreams of budding entrepreneurs in the minority community of opening their own business.

“By enacting California’s failed ‘ABC test’ into law, the PRO Act would also hinder opportunities for individuals to work independently through traditional independent contractor roles or gig economy platforms by reclassifying workers as employees. As a result, many workers would lose their independent contractor status and the freedom and flexibility that comes with it, such as determining their own hours, what work they choose to do and how they perform that work.

“The drastic restructuring of the nation’s labor laws and resulting economic upheaval would cost millions of American jobs, threaten vital supply chains, and greatly diminish opportunities for entrepreneurs and struggling small businesses.

“At a time when thousands of small businesses are struggling to keep their doors open and employees retained during the COVID-19 pandemic, this bill would force businesses to close permanently and lay off workers. Bottomline, hundreds of thousands of Americans could lose their job and important employee rights if the PRO Act becomes law.”

Click here for more information on the negative impacts of the PRO Act.

 

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About The Coalition for a Democratic Workplace

CDW is a broad-based coalition of hundreds of organizations representing hundreds of thousands of employers and millions of employees in various industries across the country concerned with a long-standing effort by some in the labor movement to make radical changes to the National Labor Relations Act without regard to the severely negative impact they would have on employees, employers, and the economy. CDW was originally formed in 2005 in opposition to the so-called Employee Free Choice Act (EFCA) – a bill similar to the PRO Act – that would have stripped employees of the right to secret ballots in union representation elections and allowed arbitrators to set contract terms regardless of the consequence to workers or businesses.

 

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