Mayor Frey Vetoes Proposed Labor Standards Board, Rankles Progressives

MINNEAPOLIS — Minneapolis Mayor Jacob Frey on Thursday vetoed the City Council’s proposed Labor Standards Board, saying it did not include enough representation from the city's business community.

Frey said that while he supports the idea of a standards board to recommend private sector regulations, the council's arrangement is so "lopsided" that hundreds of businesses and nearly all major business organizations won’t participate in the board at all.

"Under the Council’s proposal, business participation is negligible– and everyone knows that’s not going to work," Frey said in a statement.

"One Council Member recently said that businesses should be ‘thankful’ they are getting a seat at the table. Neither businesses nor labor should have to be ‘thankful’ to get a seat at the table in our city, they always have one. These businesses are part of what makes our city vibrant and unique."

Responding to the veto, advocates for the proposal accused Frey of standing with "big business" instead of city residents.

Under the proposal, there would be 15 board members, with 12 being nominated by the city council. They would be designated as the following:

1. An employer association representative
2. A large employer representative
3. A small business owner representative
4. A micro business owner representative
5. A representative of employees in the city which include low-wage employees and/or
6. employee organizations representing the workplace interests of low-wage employees
7. A representative of employees in the city which include low-wage employees and/or employee organizations representing the workplace interests of low-wage employees
8. A representative of unionized employees
9. A community stakeholder representing non-profit organizations serving people in the city
10. A community stakeholder representing consumer advocacy
11. A community stakeholder representing a governmental or regulatory employer or employee representative
12. A community stakeholder representing academics or experts in the field of workplace policy.

Three seats would have been nominated by the mayor, as follows:

1. An employer association representative
2. A representative of employees in the city which include low-wage employees and/or employee organizations representing the workplace interests of low-wage employees
3. A community stakeholder representing either non-profit organizations serving people in the city; consumer advocacy; governmental or regulatory employer or employees; or academics or experts in the field of workplace policy.

In his notice of a veto, Frey provided the following alternative proposal for a standards board:

• Equal representation: A 50/50 split between employees and employers on the board, ensuring both sides are equally heard and represented
• Balanced appointments: An equal number of appointments made by the City Council and by the mayor, aligning the board's structure with the City's governance model and ensuring fair input from both branches of city leadership
• Supermajority consensus: A requirement that a supermajority of board members must agree on recommendations before they are presented to the City Council, ensuring board support and alignment.

City Council passed the proposal last week by a vote of 9-3, which would be enough for a potential override of Frey's veto.