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Obama’s Recess Appointments—A Win for Workers

January 13, 2012

(from left) AFL-CIO President Richard Trumka, Richard Cordray, Brian Baker, director IBEW Political Legislative Department

IBEW members in Ohio are praising President Barack Obama’s appointment of Richard Cordray, the state’s former attorney general, to direct the Consumer Financial Protection Bureau. Says Fourth District International Representative Dave Moran:

Richard Cordray is a friend of the IBEW. During his service as attorney general, he did a lot of what President Obama appointed him to do in Washington—keeping seniors, workers and consumers from getting ripped off. I don’t know of an IBEW business manager who hasn’t met Cordray. And they all respect him.

Republicans in Congress are criticizing the appointment of Cordray and three new members to the National Labor Relations Board as unconstitutional, saying Congress was not in recess. The president’s legal counsel determined that Congress was in recess, with Republicans gaveling in brief 30-second sessions strictly to block appointments. Obama then announced Cordray’s appointment in a speech outside of Cleveland on Jan. 4. He said:

When Congress refuses to act, and as a result, hurts our economy and puts our people at risk, then I have an obligation as president to do what I can without them.

The consumer protection bureau, established with bipartisan support, has drawn fire from Wall Street financial firms and many Republican leaders who say that “over-regulating” the financial sector will hurt the U.S. economy. Without a director, the agency would have been prevented from taking steps to monitor banks, lending institutions and credit card companies.  Prior court decisions have also determined that the NLRB would also be prevented from operating if new members were not appointed. 

Moran says Cordray’s track record underscores the administration’s commitment to seeking reasonable regulation of corporations that will preserve competitiveness, reward companies that play by the rules and protect local communities.

Says Moran:

Richard Cordray was very proactive in prosecuting prevailing wage and worker misclassification cases. He introduced seminars for public agencies where he showed how municipal tax bases and communities were hurt when contractors failed to pay workers properly.

International President Edwin D. Hill says Obama’s appointments of Sharon Block, Terence F. Flynn and Richard Griffin to the NLRB demonstrate, like the appointment of Cordray, a commitment to a more level playing field between powerful companies and workers. Hill denounces moves to declare Obama’s recess appointments as unconstitutional.  He says:

Some of the president’s opponents, like Sen. Lindsay Graham (R-S.C.), have openly stated that they want to stop the financial bureau or the NLRB from functioning. We cannot stand by while workers are denied protection by vital governmental agencies because of delaying tactics by some members of Congress who care more about their donors on Wall Street than their constituents at home.