Mayor Vetoes Mpls Labor Relations Board

After years of engaging labor and small business leaders, the mayor has put forward a proposal that would bring essential parties to the table

MINNEAPOLIS – Today, Mayor Jacob Frey vetoed the City Council’s proposed Labor Standards Board, offering a more equitable proposal that would benefit both workers and employers. The mayor has long advocated for a Labor Standards board that is fair and balanced, but the Council’s proposal is neither of those things. To help bring both parties to the table, the mayor has put forward a proposal that reflects the diverse perspectives and needs of both sides.

For a Labor Standards Board to succeed, businesses must participate. The Council’s proposal is so lopsided that hundreds of businesses, many of them BIPOC-owned, and nearly all major business organizations, have voiced their opposition and said they won’t participate in the board at all. Without their participation, there is no way for the Labor Standards Board to be effective.

“If we want this Labor Standards Board to work, business participation isn’t just important, it’s essential. Under the Council’s proposal, business participation is negligible– and everyone knows that’s not going to work,” said Mayor Jacob Frey. “Council must pass a board that is balanced and inspires collaboration from both labor and business.”

Mayor Frey continued, “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. Workers and businesses alike deserve a government that hears their concerns, shares their ambition to make our city’s culture brighter, and is willing to do the work to find policy that unites us.”

To move forward with a solution that works for both businesses and workers, Mayor Frey has put forward a new proposal. The proposal includes:

1. Equal representation: A 50/50 split between employees and employers on the board, ensuring both sides are equally heard and represented
2. 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
3. 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.

If the mayor’s veto is sustained, he will encourage Council Members to hold a public comment hearing so businesses and workers can provide feedback on his proposal.

To see the mayor’s veto letter, click here.

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We thank Mayor Frey for his decision to veto the Minneapolis Labor Standards Board resolution and for standing with the business community during this critical time for our city. The Labor Standards Board is an unbalanced and rushed policy that creates unnecessary hurdles for businesses, especially small, BIPOC-owned, and immigrant-owned businesses. At a time when Minneapolis is beginning to rebuild and revitalize, the city cannot afford to adopt policies that create uncertainty, deter investment and growth, and harm the businesses essential to its recovery.

A Labor Standards Board is not the right solution for Minneapolis. The stakes are simply too high for the future of our city. We urge the City Council to sustain the Mayor’s veto and make the right decision for Minneapolis businesses and the communities they serve.
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Tony Chesak
MLBA Executive Director
[email protected]