The Biden Administration sent some stock prices tumbling and left small businesses worried after taking sides on a hotly contested labor issue that critics say could threaten the jobs of millions of independent workers and thousands of small businesses.
In his address to the nation Wednesday evening, President Joe Biden called on Congress to pass legislation that would ban the use of freelance workers in most instances.
A report from the freelance site UpWork found that about 59 million gig workers make up $1.2 trillion of the U.S. economy.
The PRO Act, which passed the U.S. House Tuesday on a largely partisan vote, could eliminate most forms of independent contracting, gig work and freelancing – potentially impacting as many as 59 million freelance workers who represent 36 percent of the total U.S. workforce.
In 2020, the freelance community accounted for $1.2 trillion in earnings, according to a report published by UpWork.
A coalition of hundreds of top business groups slammed the pro-union Protecting the Right to Organize Act as House Democrats prepare to bring it to the floor.
The Coalition for a Democratic Workplace (CDW), which represents hundreds of thousands of employers nationwide, denounced the legislation in a letter written to Congress Thursday. The CDW said the Protecting the Right to Organize (PRO) Act threatens both the economy and workers’ rights.
U.S. House and Senate Democrats have reintroduced the PRO ACT, a sweeping pro-union bill that would wipe out right-to-work labor laws in 27 states.
Democrats argue the PRO Act will create safer workplaces and increase employee benefits by expanding union organizing. Those opposed to it argue it will force small businesses to close, cost an untold number of jobs and worsen the economy, and “impose a laundry list of other union boss power grabs.”
The Protecting the Right to Organize Act of 2019 (PRO Act) is a great illustration of just how radical and out-of-touch today’s Democrat Party is. The bill, which has 179 House Democrat cosponsors and 40 Senate Democrat cosponsors, would force millions of workers into unions they oppose and destroy jobs while lining the pockets of liberal fat-cat donors. Just when some workers finally begin recovering from the Great Recession is no time to be killing jobs in the franchise industry and the gig economy. For these and other reasons, the bill must be rejected.