This story examines the issues surrounding the proposed Labor Standards Board and why the Minneapolis City Council may be unqualified to enact it.
Buca di Beppo
Buca de Beppo recently filed for Chapter 11 bankruptcy. Earlier this year, Red Lobster did the same. According to an August 7 Fast Company article:
“Both chains’ reasons for doing so are similar. Both have cited downward economic and upward inflationary pressures on consumers who have thus reduced spending on dining out in order to save money.”
Buca di Beppo will be closing 18 stores, though none are reported to be in Minnesota. This news prompted us to consider whether more bureaucracy and regulations would truly benefit Minneapolis restaurants and their employees.
What is the Minneapolis Labor Standards Board?
We don’t know yet, and neither does the city council. Although the idea was introduced several years ago, the actual ordinance proposal has yet to be made public despite repeated promises in recent months. This delay is the first indication of how its introduction, and more importantly, its implementation, might unfold.
Ward 12 Council Member Aurin Chowdhury, one of the authors, claims the board will create a forum for workers and employers to discuss issues. However, it’s more than a forum; it’s a committee whose membership is still unknown, that will make recommendations to the council regarding regulations.
On Wednesday, August 11, Chowdhury blurred the lines between her role as a council member and that of a union organizer by leading a workers’ march aimed at “highlighting multiple groups of workers who have seen their work standards decline while the cost of living continues to rise.” This board is not an impartial arbitrator designed to foster business while supporting workers. Instead, it is being designed to “propel workers’ rights in areas such as minimum wages, paid leave, and scheduling.”
It’s understandable why restaurant owners would unite in opposition before the ordinance is released. There is no indication from Chowdhury or City Council Vice President Aisha Chughtai that this board will streamline regulatory burdens for small business owners, help train and retain employees, or keep the streets clean, crime-free, and open for business. Chughtai, a former political organizer for the Service Employees International Union (SEIU), is now bringing their ideas to the city council. Neither of these council members has run a business or worked outside of political and community organizations. However, they are not about to let their lack of experience keep them from dictating how business must be conducted.
In Conclusion
There are already regulations in place to ensure minimum wages and time off. The city council could spend more time figuring out how to provide oversight of existing programs and ways of enforcing the regulations currently in place. Neighborhood Safety Director Luana Nelson-Brown claims she is “severely understaffed and under resourced,” which means that, “we are worth over $17 million dollars and don’t have a single staff to count that money.”
Adding a new dysfunctional system to an existing dysfunctional system will not create a functional one. The Labor Standards Board can be put on the back burner until more pressing city issues are resolved.
The city council could start with the Neighborhood Safety department to show residents that they can be effective regulators before initiating new programs that will require city staff and resources to oversee. They can clean their own house before telling others to clean theirs.
This piece has been edited from its original publication in the Better Minneapolis newsletter.
