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Andy Puzder, J.D., Senior Fellow, Pepperdine University School of Public Policy and former CEO, CKE Restaurants



https://podtail.com/en/podcast/drilled/the-anti-esg-campaign-gets-a-boost-from-raga/

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The Anti-ESG Campaign Gets a Boost from RAGA - Transcripts

June 13, 2023

Ever since the Securities and Exchange Commission announced its intention to make Environmental Social and Governance metrics actually mean something to investors, polluting industries have suddenly turned on ESG. Now that fight has a legal strategy, being carried out by the Republican Attorneys General Association.

Transcript: https://www.steno.ai/drilled/the-anti-esg-campaign-gets-a-boost-from-raga

Hello and welcome back to Drilled, I'm Amy Westervelt. We've talked before on this show about the growing backlash against taking environmental, social, and governance, or ESG, factors into consideration when it comes to investing. The watchdog group Documented first revealed last year that state treasurers were getting in on the action, kicking woke investment firms likeBlackRock out of their states. Back then I wondered when the attorneys general would show up to join the fray, and now sure enough, they are here. The Republican Attorneys General Association, RAGA, our old favorite, has come to play in the anti-ESG space. But first, a quick reminder, why all this upset about ESG all of a sudden in the first place? Good question. For a really long time, oil companies actually kind of loved ESG. It was all very loose and self-reported, and it gave them a way to unlock so-called green capital. But in 2021, the Securities and Exchange Commission, the SEC, looked around and went, huh, there are all these different SEG ratings, and some of them seem a little scammy, and no one knows what these disclosures even really mean. These are the kinds of things it's our job to clean up. So we are going to provide formal guidance on climate risk disclosure.

And that is when you start to see corporate interests, fossil fuel companies, and right-wing politicians lose their minds over ESG. Because all of a sudden, they couldn't just write whatever they wanted to in a report, they might have to actually disclose what their real climate risks are.

Speaker 5  00:02:16

Here is Jesse Coleman withDocumented. I think that a lot of this, both the legislative side, this legal strategy, the strategy of using state treasurers to pressure asset managers into attack climate disclosure, all of this is really mostly aimed at SEC scope three emissions disclosure requirements coming, you know, supposedly coming soon

Speaker 4  00:02:43

in the next couple of months, even. Wait, sorry, I'm gonna pause to define scope three. That means how your product's actually being used, not how you're making it, which is a big deal for especially heavy polluting industries

Speaker 5  00:02:58

like oil and gas companies, for example. Yeah, yeah, it's a really big deal. Whereas ESG, having a non-standardized ESG disclosure is no big deal to a major company. The SEC coming and saying, how much carbon emissions are you really responsible for? Not just, you know, what you're claiming you're responsible for, but if you're an oil company, for example, how much carbon are you actually putting in the atmosphere from everything that you've gotten from underground? What is your real impact? And that is a really big deal. It's probably one of the biggest climate policy issues in play right now. So, you know, in my opinion, a lot of this anti-ESG stuff, which doesn't make a lot of sense on its face, you know, these state bills that have passed in some states and been introduced in a ton of states, the actual thing that those bills are gonna do, they're not gonna have a really big impact. And sort of this antitrust stuff is very similar in the sense that, you know, the claims are kind of weak and it's hard to say exactly what the impact is gonna be specifically. But at the same time, it's building up all of this pressure and it's building up all of this political inertia that is all aimed at opposing, disclosing climate emissions. And that's what this SEC rule would do when it comes out, is that it would require publicly traded companies to disclose those emissions.

So, you know, in my opinion,

that's the real goal, is to keep that from happening. You may have heard Jesse mention there the words antitrust. That is where the Republican Attorney's General Association comes into the picture. Back in June, 2021, a guy named Jason Isaac, who spearheads the Texas Public Policy Foundation's work on energy, went to a meeting of the American Legislative Exchange Council, ALEC, with an idea for a legal strategy that he thought could take ESG down.

Speaker 7  00:05:04

Documented shared audio from that meeting with us. Yes, so earlier, a couple months ago,our state affairs committee voted nine to nothing. So, broad bipartisan support, every single member voted in support to give the committee subpoena authority.

Speaker 6  00:05:16

So, they have sent out a couple months ago,

Speaker 7  00:05:24

our state some paper documents to find out where this collusion is happening. We anticipate truckloads of documents being delivered. And so, we look forward to the Texas Public Policy Foundation to going through those meticulously, because we believe that there is, and we actually partner with C. Boyden Gray, Boyden Gray Associates law firm out of Washington, D.C. Corporate collusion, liability risk for the ESG agenda to charge higher fees and rig the market. We believe that there's antitrust violations. This is really kind of geared towards our attorneys general to lay the foundation for antitrust violations on this corporate collusion. Find out the connections with the Glasgow Financial Alliance for net zero, which has over, I think, $100 trillion under managed assets in there. And there are the connections with the glad zero, this Paris Accord, which is net zero. So, I hope our committee gets a ton of paper back

Speaker 1  00:06:23

from these large financial institutions.

Speaker 7  00:06:28

Hope our committee gets in the courts and our attorneys generalaround the country filed antitrust violations.

Speaker 4  00:06:34

So, yeah, cartels colluding for decarbonization.What the hell is he talking about here?We're gonna try to answer that question right after this quick break. And we're back. So, after COP26 in Glasgow, insurers and asset managers, both formed groups focused on ESG. In both cases, these firms were saying, look, all sorts of environmental and social factors can impact our bottom line, and we would like to know what those risks might be so we can factor that into our decision-making around what to ensure and what to invest in. But according to Isaac, these firms talking to each other, issuing joint statements about what kind of information they'd like to see from companies, that's colluding to rig the market. In the wake of that 2021 ALEC meeting you heard Isaac talking at before, not only did Texas continue with the investigation Isaac mentioned, but Arizona Attorney General, Mark Bernovich, opened an investigation into ESG investing. And Raga coordinated a letter to various asset managers and politicians with more than a dozen attorneys general signed on, stating their concern that ESG investing might actually be an antitrust violation.

Speaker 5  00:08:13

Here's Jesse Coleman again. We started to see some of the bright lights of the Republican Attorneys General Association file various kinds of legal attacks on ESG issues, whether that's going directly after asset managers and asking them questions about their net zero commitments, or that's going directly after ratings agencies

Speaker 4  00:08:38

and saying that you're boycotting fossil fuels. And they seem to have coalesced around this idea of painting ESG as some sort of corporate collusion, you know, building an antitrust case. Can you explain what the thinking is there,

what they're trying to prove?

The allegation is that a lot of large asset managers get together in a shadowy cabal and they plan to collude to reduce carbon emissions. The reason these groups are alleging antitrust violations is that antitrust violations are very scary to companies. If a jury finds you guilty of an antitrust violation, it's very expensive. And it's a pretty hard bar to meet. And most experts are saying that the antitrust allegations that are coming from these people that are opposing climate policy, they probably don't have a leg to stand on, but a lot like slap suits and other kinds of legal tools that are used to silence people, just defending against the antitrust allegation is very, very expensive. So, you know, you see companies really backing away from participation in these kind of global groups that are trying to address climate emissions and trying to address investment

10:08

in the fossil fuel industry by large asset managers. In 2022, Alec once again held a meeting with a session on how to handle ESG at the state level. And again, the antitrust strategy was front and center. This time, Isaac was in the room cheering on new proponents of the strategy, including Will Hild with Consumers Research, which is funded by former Federalist Society President Leonard Leo, Paul Watkins, who used to work in the Arizona Attorney General's office and now runs an outfit called Fusion Law, advising on these sorts of strategies. Andy Puzder, former CEO of the Food Conglomerate that is home to Wendy's and Hardee's, and Catherine Gonzalez with the Heritage Foundation. Puzder kicked things off by comparing ESG investors

11:03

to, not kidding here, the Nazis. I wanna tell you, ESG investing is socialism in sheep's clothing. I mean, this is the challenge of your generation. My father's generation's challenge was the Nazis, who, by the way, were, of course, very proud socialists. The challenge of my generation was the communists, who were, of course, very committed socialists. The challenge of your generation is ESG investing, and it's more insidious than communism or the Nazis. It's the thing they're doing it. So ESG, Environmental Social and Governance. Like, how bad could that be, right? It sounds so innocuous, but it's a ruse. It's a ruse to conceal the fact that it's a direct threat to our founding principles.

11:53

It's a threat to our democracy. How bad could that be, right?

Speaker 4  00:11:55

It's a threat to our democracy.

Speaker 6  00:12:02

Hild and Watkins kept it focused on the litigation strategy. They get in rooms and they talk about they're gonna set a policy across the market. Now, it's been a while since I was in law school,

but when I was there, that was antitrust 101. And that's why you see U.S. senators saying this is potentially criminal antitrust liability.

Speaker 4  00:12:22

You see AG saying that they're going to investigate. And again,I have yet to speak with a single legal expert who thinks that this strategy could actually win in court. But like we said before, that is not necessarily the point. It's already having a chilling effect on investment firms and insurance companies in these net zero groups. And now that Republicans have control of the House, it's the focus of a series of oversight committee hearings too. The first one happened back in May and featured the attorneys general of Utah and Alabama as witnesses.

Speaker 1  00:13:00

Here'sSean Reyes, attorney general of Utah. But ever since the signing of the Paris Agreement, there's been anopen conspiracy to bypass Congress using the power of horizontal agreements by key players in our financial system. Some of these groups are Climate Action 100, the Glasgow Alliance for Net Zero, which include the largest asset managers, banks and insurance companies globally. These horizontal organizations seek to use their collective market power over tens of trillions in assets

to force burdensome changes on American companies.

amy: The Democrats witnessed during this hearing, Illinois State Treasurer Michael Frerichs gave a great and completely non-climate related example

of where ESG can safeguard profits. The more data we as investors have, the better informed our decisions are when selecting investments over the long term. ESG is about looking at a wider range of risks and value opportunities that could have a material financial impact on investment performance. For example, if you're investing in apharmaceutical company, it's thinking about whether that company has exposure to massive lawsuits because of its role in the opioid epidemic. Our approach is to integrate material ESG factors into investment decisions along with many other considerations. We are not ignoring traditional financial factors like profitability and credit worthiness. We are integrating more data into our decisions

to give us a better idea of risk and growth prospects. Frerichs also pointed out that limiting the information investors can get about the companies they're investing in

is the exact opposite of a free market idea. This pushback is anti-free market and anti-investor. It is misleading and it is harmful. It harms retirement savers, pensioners, working people, businesses, and it harms America. This coordinated campaign is focused on ESG investing. Most people don't know what ESG is. ESG is data. ESG is simply additional information that investment professionals use to assess risk and return prospects. It is about value, not about values. In order to maximize returns, an investor must be able to manage and mitigate risk. The more data we as investors have, the better informed our decisions are when selecting investments over the long term. ESG is about looking at a wider range of risks and value opportunities.

It could have a material financial impact

on investment performance. Last week, the House Oversight Committee held its second hearing on this subject,

calling on none other than Jason Isaac himself to testify. I'm Jason Isaac. I'm the director of LifePowered, a national initiative of the Texas Public Policy Foundation to raise America's energy IQ. And I live a high carbon lifestyle. And I think the rest of the world should too. That's why I refer to the ESG agenda as the China ESG agenda. It does very little to help Americans. It does everything to help the Chinese Communist Party. And again, making energy expensive, scarce and government controlled. This body, the United States Congress has not ratified the Paris Treaty. It is not the law of the land here in the United States, butto force an American entrepreneur to admit that his company will comply with that

is just mind blowing to me.

Whether the committee will hold a third hearing remains to be seen. I'm not sure the anti-ESG bench of experts rolls that deep. Plus, while these ideas might get folks at an ALEC meeting riled up, they're remarkably unpopular with American voters, including the majority of Republican voters. New Mexico rep Melanie Stansberry

made that point at last week's hearing. What I find particularly strange about this conversation is that over 63% of American voters actually oppose, directly oppose, any kind of government interference in investing strategies. And the vast majority of Republicans oppose it as well. And when you look at the bigger picture, when you look at what the American people are actually asking Congress to do, asking businesses in the private sector to do, almost 70% of Americans are in support of actions to address climate change,

to transition to a clean energy economy. Whether the SEC will be swayed by the antitrust argument remains to be seen.

That's it for this week. Thanks for listening, and we'll see you next time. Drilled is an original critical frequency production. Our producer is Sarah Ventre. Sound design, mixing, and mastering are by Peter Duff, who also wrote our original score. Our first amendment attorney is James Wheatman at the First Amendment Project. And the show is reported, written, and hosted by me, Amy Westervelt.

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https://newrepublic.com/article/172636/esg-house-oversight-conspiracy

may 11 no lnx

QANON REBOOT

Republicans Are Truly Losing Their Minds Over ESG

Right-wingers at a House Oversight Committee hearing Tuesday insisted this boring investment strategy is some kind of global conspiracy.

Steve Marshall speaks at a podium in front of the Supreme Court building.

Alabama Attorney General Steve Marshall, who testified at Tuesday’s hearing on ESG, speaks to members of the press in October 2022.

On Tuesday, the House Oversight Committee convened a hearing on environmental, social, and governance, or ESG, investing criteria. For over a year now, Republicans have been trying to turn this obscure three-letter acronym into a full-fledged culture war.So far, the right has expressed its complaints about ESG via a word salad whose components don’t share much of a relationship either to reality or one another. This pattern persisted on Tuesday, when the word “cabal” was used at least three times in reference to allegedly “woke” investors.

ESG criteria, in reality, refer to the broad set of data that investors look at to determine a company’s impact on the world and the impact the world might have on it. In other words, it’s not just about whether a company is “good” according to some abstract set of values. It represents another way of factoring risk exposure into investment—something financiers have been doing for centuries.

“Elites from around the globe have formed alliances to coordinate together to implement woke climate policy.”

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The two witnesses Republicans summoned to this week’s committee hearing weren’t economists or investment professionals, who might be familiar with these criteria or risk assessment in general, but attorneys general from Utah and Alabama, respectively: Sean Reyes and Steve Marshall. Whatever ESG actually means, to them and other anti-ESG crusaders, is mostly irrelevant. For those trying to understand their crusade, the hearing showed that it’s best to think of ESG as a canvas onto which the right projects its own plans and anxieties.

If you’ve heard of Marshall, it may well be because he’s spent considerable time since 2020 trying to overturn the results of that year’s presidential election, and shield other Republicans from accountability for spreading lies about it. Both he and Marshall joined fellow red states attorneys general in filing a brief with the Supreme Court supporting Trump’s claims about election fraud. Marshall, for his part, was serving as head of the Rule of Law Defense Fund that year, which sent out robocalls encouraging Trump supporters to flock to the Capitol on January 6.RLDF—whose donors include the Edison Electric Institution and the Judicial Crisis Network—is also a sister organization of the Republican Attorneys General Association, or RAGA, which Marshall was appointed chair of after continuing to deny, in 2022, that Joe Biden won the 2020 election.

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Generous RAGA donors have included Koch Industries, Chevron, Exxon, Fox, andTikTok. ProPublica recently reported that companies that initially withdrew funds from RAGA over its role in the January 6 attack are back, including Amazon, Walmart, and JPMorgan Chase’s PAC. Overall, RAGA revenues jumped 68 percent in 2022.

In his testimony, Marshall—who chairs a secretive organization pushing a clandestine political agenda through undemocratic means—accused a “cabal of global elites” of being “clearly connected through various alliances” to try to force an ESG agenda onto an unwilling public. Reyes similarly accused “woke investors” like Blackrock of being part of an “organized syndicate of pressure” that is engaged in an “open conspiracy to bypass Congress.” Answering big policy questions like decarbonization, he argued, “is the role of the people’s elected representatives in a democracy—including each of you in Congress, state elected officials, and local leaders—not unelected bureaucrats or foreign governments.”

In other words, someone who’s spent the last several years attempting to overturn the results of a democratic election took to the Capitol on Tuesday to accuse an ill-defined set of actors of trying to sidestep democracy by asking companies if climate-fueled droughts, floods, and fires (for instance) might have some impact on their operations.And while claiming only to want investors to adhere to fiduciary duty, Republicans failed to mention that much of Wall Street’s wariness around investing in new fossil fuel production has nothing to do with a “woke” agenda: Before the pandemic, energy companies on the S&P 500 were underperforming every other sector on that index, and had spent a decade lagging behind as they binged cash on rapid drilling through the shale boom. Its fortunes have changed in recent years, but investors and oil and gas industry managers themselves are urging modesty on exploration and production precisely so that they can make more money.

“People don’t like men. People don’t like people with a European background, that sort of thing.”

“Elites from around the globe have formed alliances to coordinate together to implement woke climate policy,” Marshall said in his opening statement. “These schemes undermine our system of government because unelected elites are making policy decisions outside of democratic processes.” The footnote on that sentence in his pre-written testimony references Consumers Research, which is funded by millions of dollars in undisclosed donations and advised by right-wing legal guru Leonard Leo.

Republicans on the committee responded enthusiastically to this opening salvo. Wisconsin Republican Glenn Grothman asked Marshall whether “ESG” might influence decisions over who companies hire or put on corporate boards. “Right now there’s certain disfavored groups in our society,” Grothman mused. “People don’t like men. People don’t like people with a European background, that sort of thing. Could this be something where you’re encouraging businesses not to hire or promote people from certain unfavored groups.” In a moment dripping with irony, Texas Representative Pete Sessions decried “activist government making decisions on behalf of free people” in service of his larger point, supporting efforts to limit financial institutions’ decision-making power—and even what kind of data can be made available to them—in order to curb the spread of ESG.

It would be a fool’s errand to try to find much coherence in the right’s screeds against supposedly woke investors—who don’t really seem to exist. But today’s Oversight hearing might have accidentally illustrateda good rule of thumb: Whatever Republicans accuse the “ESG movement” of doing is something they’re probably already doing themselves.

Kate Aronoff @KateAronoff

Kate Aronoff is a staff writer at The New Republic.



moneyball lewis

That had been the first hint Christie had of trouble. He had asked Kushner what that was about, and Kushner had simply said, Trump ran a very unconventional campaign, and he’s not going to follow any of the protocols. The next hint that the transition might not go as planned came from Pence – now, incredibly, the vice-president-elect. Christie met with Pence the day after the election, to discuss the previous lists of people who had been vetted for jobs.The meeting began with a prayer, followed by Pence’s first, ominous question: “Why isn’t Puzder on the list for labour?” Andrew Puzder, the head of CKE Restaurants, the holding company for the fast-food chains Hardee’s and Carl’s Jr, wanted to be the secretary of labour. Christie explained that Puzder’s ex-wife had accused him of abuse (although she later retracted the allegation) and his fast-food restaurant employees had complained of mistreatment. Even if he was somehow the ideal candidate to become the next secretary of labour, he wouldn’t survive his Senate confirmation hearings. (Trump ignored the advice and nominated Puzder. In the controversy that followed, Puzder not only failed to be confirmed, but also stepped down from his job.)

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intercept

The American Apparel & Footwear Association, a trade group that lobbies largely on trade and labor standard issues on behalf of clothing manufacturers and retailers, lobbied in support of Andrew Puzder,Trump’s initial pick to lead the Labor Department — and, after Republican senators balked at the fast-food executive, in support of replacement nominee Alexander Acosta. The group’s filing showed it spent $176,485 on advocacy in the beginning of the year, though it did not specify how much of the lobbying total was spent on the confirmation efforts.

“Mr. Puzder has seen, firsthand, the impact of burdensome regulations promulgated by the previous administration, and he has seen both the negative impacts and unintended consequences they can have on employers and employees alike,” a group of business interests including the AAFA wrote in a letter to the Senate.

The National Roofing Contractors Association also lobbied in support of Trump’s labor nominees. The NRCA is a major construction trade group that has opposed new Labor Department rules that require corporations to disclose consultants and law firms hired to influence efforts by workers to engage in labor organizing.

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http://www.alternet.org/election-2016/andrew-puzder-hate-unions

Since President-elect Donald Trump's announcement that he has picked fast-food CEO Andrew Puzder [3] to be labor secretary, there's been lots of speculation that the administration could undo worker protections.

The single best window into Puzder's thinking may be an obscure book he wrote six years ago. It's a blistering attack on business regulations, unions, and the Obama administration's stimulus and health-care policies.

"I think first and foremost, he'll put in place everything we laid out in the book," Puzder's co-author, David Newton [4], told ProPublica in an interview.

The 160-page book [5] 2014 "Job Creation: How It Really Works and Why Government Doesn't Understand It." 2014 centers on a concept Puzder and Newton dub "The Certainty Factor," which they argue is key to business expansion and job creation.

"Less federal programs, reduced deficit spending, lower taxes, and cutting back on regulations improve The Certainty Factor," they write.

If confirmed, Puzder will have power to shape a wide range [6] of regulations that govern unions and employers, many of which are designed to protect workers.

Much of the debate in the Obama years has been around whether to push up the federal minimum wage 2014 which since 2009 has been at $7.25 [7] 2014 to $15. Newton, while stressing he was not speaking for Puzder, believes there should be no minimum wage at all, and that pay should be entirely left up to employers.

"When you mandate that anybody coming into your company has to be paid a certain minimum 2014 you're going to kill jobs," said Newton, a lecturer at the University of California, San Diego, business school. "It's one of the classic examples of government overreach with regard to regulation."

Puzder himself has expressed skepticism [8] about raising the minimum wage, while Trump has been all over the map on the issue, contradicting himself multiple times [9] in the course of the campaign.

Newton still has Puzder's ear: Newton said they have spoken several times in the past month and had contemplated writing a follow-up book, though Newton now thinks Puzder will be too busy. The two met in 2009 in Southern California, where Puzder's CKE Restaurants, the parent company of Hardee's and Carl's Jr., is based.

Puzder and the Trump transition team declined to comment.

In a statement [10] released Friday about how he views the cabinet position, Puzder said: "My job as a business person is to maximize profits for my company, employees and shareholders. My job as the Secretary of Labor, if confirmed, is to serve U.S. citizen workers 2014 that is my moral and constitutional duty."

The Department of Labor doesn't set the minimum wage, but it can go after employers who, for example, short their workers on pay. Puzder could also advise Trump on wages and other employment standards for federal contractors. President Obama, for example, issued an executive order in 2014 raising the minimum wage from $7.25 to $10.10 [11] for workers on federal construction and service contracts.

Labor advocates are also worried Puzder could roll back a new regulation, currently held up in court, that would expand eligibility for overtime pay [12].

Puzder's book proposes a "mutually beneficial relationship between employer and employee" and is sharply critical of labor unions: "As the no longer existent American garment industry or segments of the increasingly non-competitive American automotive industry well demonstrate, empowering unions can increase labor costs to the point of putting employers in or near bankruptcy." The book includes extensive criticism of the Obama administration's first-term push 2014 later abandoned [13] 2014 to change the law to make it easier for workers to form unions.

"We recognize all the workers have the right to unionize 2014 they also have the right not to," Newton told ProPublica. He praised Puzder as a "great guy" with "a tremendous amount of insight."

"We're all on the same page 2014 we know what it's going to take to grow the economy in terms of what business is looking for in terms of freedom to expand and hire people," he said.

Correction, Dec. 15, 2016:This story incorrectly described Andrew Puzder as Trump's nominee for labor secretary. Like all of his Trump's cabinet picks, Puzder hasn't been formally nominated yet.

ProPublica is a Pulitzer Prize-winning investigative newsroom.

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President-elect Donald J. Trump on Thursday chose Andrew F. Puzder, chief executive of the company that franchises the fast-food outlets Hardee’s and Carl’s Jr. and an outspoken critic of the worker protections enacted by the Obama administration, to be secretary of labor.

“Andy Puzder has created and boosted the careers of thousands of Americans, and his extensive record fighting for workers makes him the ideal candidate to lead the Department of Labor,” Mr. Trump said in a statement.

Mr. Puzder, 66, fits the profile of some of Mr. Trump’s other domestic cabinet appointments. He is a wealthy businessman and political donor and has a long record of promoting a conservative agenda that takes aim at President Obama’s legacy. And more than the other appointments, he resembles Mr. Trump in style.

He seems to delight in bashing elites — he complained that “big corporate interests” and “globalist companies” were supporting Hillary Clinton in the presidential election — and is prone to the occasional streak of political incorrectness.

On policy questions, he has argued that the Obama administration’s recent rule expanding eligibility for overtime pay diminishes opportunities for workers, and that significant minimum wage increases would hurt small businesses and lead to job losses.

He has criticized paid sick leave policies of the sort recently enacted for federal contractors and strongly supports repealing the Affordable Care Act, which he says has created a “government-mandated restaurant recession” because rising premiums have left people with less money to spend dining out.

Speaking to Business Insider this year, Mr. Puzder said that increased automation could be a welcome development because machines were “always polite, they always upsell, they never take a vacation, they never show up late, there’s never a slip-and-fall or an age, sex or race discrimination case.”

And on the political incorrectness front, Mr. Puzder’s company, CKE Restaurants, runs advertisements that frequently feature women wearing next to nothing while gesturing suggestively. “I like our ads,” he told the publication Entrepreneur. “I like beautiful women eating burgers in bikinis. I think it’s very American.”

Richard L. Trumka, president of the A.F.L.-C.I.O., said Mr. Puzder was “a man whose business record is defined by fighting against working people.”

http://www.nytimes.com/2016/12/08/us/politics/andrew-puzder-labor-secretary-trump.html

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http://www.citizensforethics.org/trump-labor-pick-favor-employers-influencing-employees-politically/

no link

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By Matt Corley

December 8, 2016

President-elect Donald Trump is expected to name Andy Puzder, the CEO of CKE Restaurants, which owns fast food chains Hardee’s and Carl’s Jr., as his pick to lead to the Department of Labor. Puzder, who is on the board of the International Franchise Association, has criticized many of the policies of the Obama Labor Department and is expected to roll back regulations if he is confirmed.

The fast food CEO’s nomination, which brings potential conflicts of interest, could potentially lead to federal support for business efforts to influence the political choices of their employees. Puzder is a member of the Job Creators Network (JCN), a non-profit organization started by Home Depot co-founder Bernie Marcus and former presidential candidate Herman Cain that seeks to equip businesses with tools to influence the political choices their employees make.

JCN, which issued a press release last month endorsing Puzder for the Labor position and praising his “understanding of how labor regulations prevent small businesses from hiring and thriving,” has developed an Employer to Employee (E2E) communications program to help companies enlist their employees as political advocates. Beyond speaking out on behalf of JCN on issues like the Affordable Care Act, Puzder has incorporated the organization’s materials into his own company.

According to presentation slides obtained last year by CREW, CKE’s Hardee’s used JCN’s E2E materials at its corporate headquarters and Puzder himself would personally encourage franchisees to implement the program as well:

Ortiz Presentation Puzder CKE

JCN presents its efforts as focused on “paychecks, not politics,” but the slides reveal that the organization, and its president Alfredo Ortiz, also promoted the E2E program as being influential on employee voter turnout and choice.

As CREW noted last year, Nipro Diagnostics, a medical device company now called Trividia Health whose CEO is also a member of JCN, allowed JCN to poll its employees before and after being exposed to JCN’s E2E materials.  Not only did the poll show that the E2E efforts shaped employee opinions on issues like whether the corporate tax rate should be lowered, but also their voting choices.  A quarter of the surveyed Nipro employees who voted in the 2014 midterm elections said that the E2E materials influenced how they voted, according to the presentation.

Ortiz CFAD Presentation Vote Impact Slide 2

Most of the organization’s materials focus directly on policy and only implicitly relate to politics, but the group has put out some aggressive materials in the past. In 2012, an early version of JCN created a voter guide that was distributed to employees of the Las Vegas Sands Corp. The pamphlet, which emphasized to employees that voting is important to “protect your job,” criticized Democratic candidates while praising Republicans.

It is unclear whether and how Puzder might use his position as Secretary of Labor to promote the use of such materials, but it is likely that with the agency under his watch American workers could expect to hear even more from their bosses about politics in the next four years.

Related Tags: Conflicts of Interest, Department of Labor, Donald Trump, Job Creators Network

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