>>> THIS WEEK ON "NJ BUSINESS BEAT."

THE IMBALANCE OF POWER CAN HAVE ON THE ECONOMY.

NCG JOINS THE CLIMATE CONFERENCE TO REDUCE EMISSIONS.

>> NEW JERSEY IS THE MORE HIGHLY UNIONIZED STATES.

WE PUT THE INFLUENCE OF UNIONS IN FOCUS HIGHLIGHTING UNION EXPANSION IN NEW JERSEY AND HOW UNIONS ARE AT RISK OF LOSING THEIR BARGAINING POWER DESPITE RECENT GAINS AT MAJOR CORPORATIONS.

THAT'S AHEAD ON "NJ BUSINESS BEAT."

♪♪ ♪♪ >>> THIS IS "NJ BUSINESS BEAT WITH RHONDA SCHAFFLER.

>> HELLO.

I'M RHONDA SCHAFFLER.

THANK YOU FOR JOINING US ON NJ BUSINESS BEAT.

WE WAIT FOR FINAL VOTE COUNTS IN A NUMBER OF RACES, WE KNOW REPUBLICANS HAVE PICKED UP SEVERAL HOUSE SEATS INCLUDING ONE IN NEW JERSEY IN ONE OF THE MOST HOTLY CONTESTED RACES OF THE ELECTION CYCLE, REPUBLICAN TOM KANE JR.

DEFEATED MALINOWSKI TO BECOME THE NEXT CONGRESSMAN FROM CONGRESSIONAL DISTRICT 7, AND IN A RACE WE HIGHLIGHTED HERE ON "NJ BUSINESS BEAT," INCUMBENT DEMOCRAT ANDY KIM HELD ON TO HIS SEAT IN CONGRESSIONAL DISTRICT 3 DEFEATING BOB HEALY.

VOTERS WENT TO THE POLLS WITH THE ECONOMY AND INFLATION THEIR MINDS.

SO HOW MIGHT ECONOMIC POLICY IN THE U.S. CHANGE WITH THE NEW CONGRESS?

WELL, THE GOP AND DEMOCRATS WORKED TOGETHER.

THESE ARE QUESTIONS I ASKED CHARLES STEINDEL AND THE CHIEF ECONOMIST AT THE TREASURY DEPARTMENT.

>> THANK FOR JOINING ME ON "NJ BUSINESS BEAT."

>> GOOD TO BE HERE.

NICE.

THANK YOU.

>> WE STILL HAVE ELECTIONS ON OUR MIND AFTER A VERY INTERESTING TUESDAY EVENING.

IT LOOKS LIKE THERE WILL BE A DIVIDED CONGRESS IN WASHINGTON HOW MIGHT THAT CHANGE THE DISCUSSION ON WHAT TO DO WITH THE U.S. ECONOMY?

>> I DON'T THINK IT WILL HAVE A GREAT DEAL OF DIFFERENCE FROM NOW BECAUSE I DON'T THINK THE ISSUES IN TERMS OF ADDRESSING THE ECONOMY ARE LEGISLATIVE.

I THINK IT'S MOSTLY THE FEDERAL RESERVE AND SEEING WHAT HAPPENS TO THINGS LIKE ENERGY AND FOOD PRICES WHICH IS CONNECTED TO THE WAR IN UKRAINE.

I DON'T THINK ANY MAJOR ECONOMIC INITIATIVES ARE GOING TO BE OFFERED OR PASSED IN THE NEXT YEAR OR TWO.

>> THAT'S INTERESTING.

WHY?

DO YOU THINK IT WILL BE A SITUATION WHERE IT'S WATCHING FOR INFLATION BECAUSE WE HAVE HEARD FROM THE HOUSE MINORITY LEADER, FOR INSTANCE, THAT GOVERNMENT SPENDING IS AN ISSUE THAT HE WOULD LIKE TO SEE ADDRESSED.

>> YES.

I THINK WHAT'S GOING TO HAPPEN THERE AND THIS IS, I THINK THE BIGGEST CONCERN INVOLVES THE DEBT LIMIT.

AS YOU PROBABLY KNOW, WE HAVE THE STRANGE SYSTEM WHERE CONGRESS APPROPRIATES MORE OF THE TAX REVENUE WHICH OBVIOUSLY INVOLVES ISSUING DEBT.

BUT THE SAME TIME IT HAS TO BE A SEPARATE VOTE IN RAISING THE DEBT LIMIT AND OVER THE LAST CLOSE TO 30 YEARS, REPUBLICANS HAVE TRIED TO FORCE POLICY AND DEMOCRATIC PRECEDENCE BY REFUSING TO RAISE THE DEBT CEILING UNTIL SOME AGREEMENT IS REACHED.

POLITICALLY, THAT'S BEEN VERY BAD FOR THE REPUBLICANS BECAUSE THERE'S BEEN A SHUTDOWN OF THE FEDERAL GOVERNMENT AND PEOPLE START COMPLAINING, BUT I'M FEARFUL THAT IT WILL HAPPEN AGAIN.

>> HOW WELL DO REPUBLICANS AND DEMOCRATICS TYPICALLY WORK WHEN IT COMES TO HELPING THE ECONOMY PROPEL ITSELF FORWARD.

>> THEY GOT TOGETHER IN LATE 2008 TO PASS THE T.A.R.P.

ACT.

I KNOW PEOPLE CRITICIZED THAT AND IT WAS SOMETHING THAT HAD TO BE DONE TO ADDRESS THE FINANCIAL CRISIS AND IT DID QUITE WELL IN EARLY 2020 WITH THE INITIAL COVID RELIEF PACKAGES.

SO THEY COULD GET TOGETHER AND OF COURSE, LAST WEEK THEY GOT TOGETHER ON THE INFRASTRUCTURE BILL.

>> DO YOU THINK THERE MIGHT BE ANY ATTEMPT TO ROLL BACK SOME INITIATIVES UNDER THE BIDEN ADMINISTRATION?

FOR INSTANCE UNDER THE INFLATION REDUCTION ACT, SOME OF THE MONIES THAT WERE EARMARKED FOR CLEAN ENERGY.

DO YOU SEE ANY KIND OF POLICY TWEAKING THAT WAY?

>> I DON'T SEE ANY.

I CERTAINLY SEE PROPOSALS AND I'M NOT CERTAIN THAT THE BIDEN ADMINISTRATION CAN AGREE AND THERE COULD BE COSMETIC THINGS THAT SOME THINGS CAN HAPPEN AND NOTHING SUBSTANTIVE.

>> HOW MIGHT WE SEE CHANGES THAT IMPACT NEW JERSEY.

AS YOU PROBABLY KNOW THERE WERE SOME OF THE REPUBLICAN CONGRESSIONAL CANDIDATES THAT HAD A NEWS CONFERENCE.

THEY TALKED ABOUT TRYING TO LIFT THE SALT CAP WHICH YOU REPUBLICANS CURRENTLY IN CONGRESS WERE NOT IN FAVOR WITH.

IS THAT A DEAD ISSUE, DO YOU THINK?

>> I THINK THE SOLE TAX IS A DEAD ISSUE.

ONE INTERESTING THING ABOUT IT IS THE CEILING AUTOMATICALLY EXPIRES IN ABOUT THREE YEARS.

WE REQUIRE LEGISLATION TO INCREASE IT DUE TO PUT IT BACK.

THAT'S REALLY AN ISSUE FOR THE NEXT PRESIDENTIAL TERM.

>>> WHAT IS, IN YOUR VIEW, THE BEST THING THAT COULD HAPPEN OUT OF WASHINGTON THAT WOULD ACTUALLY BENEFIT NEW JERSEY'S ECONOMY?

>> I THINK THE BEST THING WOULD BE ACTUALLY MOVING ON THE INFRASTRUCTURE.

THAT'S MOSTLY UP TO THE REGULATORS AS OPPOSED TO CONGRESS, BUT I THINK THAT'S THE FIRST THING I WOULD THINK OF IN NEW JERSEY AND GET THE MONEY IN AND GET IT GOING.

>> IT'S BEEN GREAT CHATTING WITH YOU AND THANK YOU SO MUCH FOR YOUR INSIGHTS.

>> OKAY.

BYE.

>> THIS WEEK, WE LEARNED THAT INFLATION IS EASING.

A REPORT THAT SENT THE STOCK MARKET SOARING 1200 POINTS ON THE DAY OF ITS RELEASE.

MORE GAINS COULD BE AHEAD.

THE STOCK MARKET TYPICALLY RALLIES AFTER MIDTERM ELECTIONS ACCORDING TO SAM STOVALL WHO IS THE CHIEF INVESTMENT STRATEGIST AT CFRA.

>> IN THE 12 MONTHS FROM OCTOBER 31 OF THE MIDTERM ELECTION YEAR UNTIL A YEAR LATER, THE MARKET HAS RISEN EVERY SINGLE TIME AND THE AVERAGE TOTAL RETURN WAS AN ADVANCE OF 21%.

SO HISTORY BASICALLY SAYS THE MARKET IS VERY HAPPY TO BREATHE A SIGH OF RELIEF ONCE THIS UNCERTAINTY HAS ENDED.

THE TWO BEST PERFORMING SCENARIOS ARE UNDER A DEMOCRATIC PRESIDENT WITH EITHER A FULLY REPUBLICAN CONGRESS OR A SPLIT CONGRESS.

>> YOU CAN TRACK ALL OF THE LATEST ELECTION RESULTS AND GET ANALYSIS FROM POLITICAL EXPERTS ON THE NJ DECIDES PAGE ON NJ SPOTLIGHT NEWS.ORG.

LAWMAKERS IN NEW JERSEY ARE CONSIDERING A BILL THAT WOULD LEGALIZE ONLINE CASINO GAMBLING FOR ANOTHER TEN YEARS.

THE LAW FIRST ALLOWING ON-LINE GAMING WAS ENACTED BY FORMER GOVERNOR CHRIS CHRISTIE IN 2013.

NOW RENEWAL LEGISLATION WOULD BE ADOPTED TO ENSURE ON-LINE GAMBLING CAN CONTINUE UNINTERRUPTED IN NEW JERSEY THROUGH 2023 FROM ONLINE GAINING GOING STEADILY AND JOHN WRIGHTMEYER REPORTS THE BIPARTISAN LEGISLATION WOULD HAVE A TWOFOLD BENEFIT FROM NEW JERSEY.

>> ONE WOULD BE THE TAX REFER NEW THAT COMES INTO THE STATE THROUGH LEGALIZED ONLINE GAMBLING AND THAT'S REACHING NOW INTO A COUPLE HNDZ MILLION DOLLARS ANNUALLY WHICH IS NOT SOMETHING TO BLINK AT AND THEN ALSO, YOU KNOW, WE HEAR FROM OFFICIALS IN ATLANTIC CITY ABOUT THE WAY THIS IS HELPING TO SUSTAIN THE CASINO INDUSTRY IN ATLANTIC CITY.

>> A NEW JERSEY EXECUTIVE IS TAKING PART IN THE INTERNATIONAL CLIMATE CHANGE CONFERENCE UNDER WAY IN EGYPT AT COP27 THE CONVERSATIONS CENTER ON HOW TO REDUCE CARBON EMISSIONS, BUT THIS YEAR'S GATHERING COMES AS RUSSIA'S INVASION OF UKRAINE PROMPTED COUNTRIES TO SECURE AND INCREASE PRODUCTION OF FOSSIL FUELS.

I TALKED TO PUBLIC SERVICE ENTERPRISE GROUP RALPH IZZO ABOUT THIS YEAR'S CONFERENCE AND WHAT THEY'RE DOING ON THE CLEAN ENERGY FRONT HERE ON NEW JERSEY INCLUDING INVESTMENTS IN WIND POWER.

>> GREAT TO TALK TO YOU, AND I'M VERY INTERESTED TO HEAR WHAT YOU EXPECT WILL COME OUT OF THE CONFERENCE THIS YEAR.

WHAT GOALS SHOULD BE SET AND WHAT PROGRESS SHOULD BE MADE.

>> OBVIOUSLY, CLIMATE CHANGE CONTINUES A PACE AND THE NEED TO MINIMIZE THE AMOUNT FOR CARBON EMISSIONS THAT'S GREATER THAN EVER BEFORE.

REGRETTABLY ONLY 20 OF THE ROUGHLY 180 OR 200 COUNTRIES THAT PARTICIPATED LAST YEAR HAVE INCREASED THEIR ASPIRATIONS FOR CARBON REDUCTIONS.

THE BIGGEST REASON FOR THAT, OF COURSE, IS WHAT'S GOING ON IN EASTERN EUROPE.

THE RUSSIAN INVASION OF UKRAINE HAS CHANGED ENERGY MARKETS DRASTICALLY THIS YEAR AND QUITE CANDIDLY, CLIMATE CHANGE IS COMPETING WITH THE PRICE THAT PEOPLE ARE CLAIMING FOR ENERGY AND THE RELIABILITY AND SECURITY OF ACCESS TO ENERGY SUPPLY.

>> CLIMATE CHANGE IS SUCH A BIG ISSUE IN NEW JERSEY.

THERE HAVE BEEN COUNTLESS STUDIES OUT OVER THE PAST YEAR ABOUT HOW OUR SHORELINES ARE REALLY RETREATING AND HOW OTHER AREAS OF THE STATE ARE THREATENED.

>> HOW CONCERNED ARE YOU ABOUT WHAT'S HAPPENING HERE IN JERSEY?

>> IN ADDITION TO THE EFFECTS OF CLIMATE CHANGE, NEW JERSEY IS NOT IMMUNE TO THE EFFECTS OF GLOBAL MARKET BEHAVIOR AND ENERGY PRICES AND ENERGY PRICES SHOW UP MORE THAN THE GAS PUMP AND MORE THAN THE UTILITY BILL.

THEY SHOW UP IN OUR FOOD.

THEY SHOW UP IN OUR CLOTHING AND ALL SORTS OF PRODUCTS THAT WE PURCHASED.

SO WE NEED TO MITIGATE CLIMATE CHANGE TO PROTECT NEW JERSEY'S COAST AND PROTECT NEW JERSEY'S CLIMATE AND AT THE SAME TIME WE NEED DO IT IN A RATIONAL WAY SO WE CAN MITIGATE THE EFFECT ON PEOPLE'S BILLS.

>> THE ECG LAST SUMMER ACCELERATED ITS GOALS TO MOVE TO CARBON-FREE POWER IN THE STATE.

CAN YOU GIVE US A PROGRESS REPORT IN TERMS OF HOW THINGS ARE PROGRESSING AT PSG30.

WE WILL NOT E MISS CARBON DIRECTLY OR INDIRECTLY ASK THOSE SCOPE 1 AND SCOPE 2.

IN THAT CASE THE ENVIRONMENT IS NOT BETTER OFF.

SOMEONE ELSE IS OPERATING THOSE PLANTS AND WE ARE NO LONGER OPERATING THEM.

WE ARE GOING INTO THE BOARD OF PUBLIC UTILITIES FOR THE ENERGY, FISH ENZI PROGRAM WHICH IS IS THE BEST WAY TO REDUCE CARBON BECAUSE AT THE SAME TIME YOU'RE REDUCING CARBON, YOU'RE REDUCING THE CUSTOMER'S BILL, WE WILL FILE WITH THE UNITED NATIONS SCIENCE-BASED TARGET INITIATIVE TO REDUCE WHAT WE CALL SCOPE 3 EMISSIONS AND THOSE ARE THE EMISSIONS THAT RESULT FROM THE SUPPLIERS THAT SELLS THEIR PRODUCTS AND THE NATURAL GAS.

>> CAN YOU TELL US THE ROLE THAT WYNN WILL PLAY AND I WILL ASK WHAT PSCG WILL BE CONSIDERING WHEN IT DECIDES WHETHER OR NOT TO CONTINUE THEIR INVESTMENT.

>> WHETHER OR NOT GIVEN THE FIXED PRICE THAT WAS AGREED TO BY ORSTEAD, BUT THE RISING COST OF BUILDING THESE FACILITIES DUE TO THE INFLATIONARY PRESSURES THAT WE'RE ALL FEELING, WHETHER OR NOT THE DIFFERENCE BETWEEN THOSE TWO ALLOWS US TO EARN A RETURN THAT IS EQUAL TO A GREATER THAN OUR COST OF CAPITAL AND WE'RE STILL ANALYZING THAT AT THIS POINT.

>> ANY TIME ON WHEN THE DECISION WILL COME?

>> WHAT WE'VE TOLD PEOPLE IS IT WILL LIKELY BE EITHER THE END OF THIS YEAR OR THE FIRST QUARTER OF NEXT YEAR.

>> IT'S BEEN GREAT CHATTING WITH YOU.

I HOPE YOU ENJOY THE CONFERENCE.

THANKS FOR YOUR TIME.

>> MY PLEASURE.

>> FOR MANY NEW JERSEY BUSINESS E THE ROAD BACK FROM THE DARKEST DAYS OF THE COVID-19 PANDEMIC HAS BEEN A LONG ONE.

SMALL BUSINESSES IN THE STATE SAW PROGRESS IN 2021, BUT MOST HAD NOT YET RECOVERED TO LEVELS THEY SAW BEFORE THE PANDEMIC, AND A NEW REPORT FROM THE FEDERAL RESERVE BANK OF PHILADELPHIA FINDS BUSINESSES OWNED BY PEOPLE OF COLOR ARE LAGGING BEHIND.

I SPOKE ABOUT THIS WITH ASHLEY PUTNAM, DIRECTOR OF THE ECONOMIC GROWTH AND MOBILITY PROJECT AT THE PHILLY FED.

>> ASHLEY, A RECENT REPORT LOOKED AT HOW BUSINESSES WERE COVERING POST-PANDEMIC AND FOUND THERE WAS SOME PROGRESS BEING MADE AND THERE ARE ALSO SOME DISPARITIES WHEN WE LOOK AT BUSINESSES OWNED BY PEOPLE OF COLOR.

GIVE ME SOME OF THE TOP-LEVEL FINDINGS OF YOUR REPORT.

>> THANK YOU, RHONDA.

OVERALL, WE FOUND THAT NEW JERSEY SMALL BUSINESSES, WE DID SEE SOME IMPROVEMENTS FROM 2020 TO 2021, BUT THERE ARE DISPARITIES AND PARTICULARLY DISPARITIES FOR BUSINESSES OWNED BY PEOPLE OF COLOR AND FOR BUSINESSES WITH LESS THAN TEN EMPLOYEES.

WE FOUND THAT THEY WERE LESS LIKELY TO APPLY FOR FINANCING.

THEY WERE LESS LIKELY TO GET THEIR FORGIVENESS FOR THEIR PPP LOANS IF THEY DID APPLY FOR PPP AND THAT THEY WERE MORE THAN LIKELY TO USE THEIR PERSONAL FINANCES AND PERSONAL RESOURCES TO JUSTIFY THEIR ECONOMIC DOWNTURN.

>> THIS IS AN ISSUE THAT WE'VE TALKED ABOUT QUITE A BIT ON THIS PARTICULAR SHOW.

I GUESS THE QUESTION I ALWAYS COME BACK TO IS WHY DO WE CONTINUE TO SEE THESE DISPARITIES AND GIVEN WHAT WE LEARN DURING THE PANDEMIC, HOW CAN FINANCIAL SYSTEMS TAKE STEPS TO END SUCH DISPARITIES?

>> WHEN WE LOOK AT SOLUTIONS, WE'RE REALLY INTERESTED IN THESE INNOVATIVE PARTNERSHIPS AND THINKING ABOUT THE WAYS THAT COMMUNITY BANKS AND FINANCIAL INSTITUTIONS, SMALL BUSINESS DEVELOPMENT CENTERS AND OTHER PARTS OF THE SMALL BUSINESS ECOSYSTEM CAN WORK TOGETHER TO EFFECTIVELY SUPPORT THOSE SMALL BUSINESSES THAT HAVE BEEN MOST IMPACTED BY THE PANDEMIC.

>> AND YOU KNOW, I HAVE TO ASK, IS THIS FLAT-OUT SYSTEMIC RACISM OR IS THIS SOMETHING MORE NUANCED AND COMPLICATE SUCH AS LACK OF ACCESS OR LACK OF KNOWLEDGE?

>> I THINK THERE ARE QUITE A FEW FACTORS AT PLAY.

ONE OF THE ONES THAT ARE INTERESTING TO US IS THE CHALLENGE SMALL BUSINESSES HAVE TOLD US THAT THEY'RE FACING IN TERMS OF NAVIGATING THE LENDING ECOSYSTEM.

SO EARLIER THIS YEAR WE HELD A ROUNDTABLE IN TRENTON, NEW JERSEY AND WE SPOKE WITH SMALL BUSINESSES THEMSELVES AS WELL AS ADVOCATES AND OWNERS WHO DO WORK WITH SMALL BUSINESSESES AND WHAT WE LEARN SIDE THE COMPLICATED NATURE OF THE SYSTEM, THAT THEY DON'T KNOW NECESSARILY WHERE TO GO FOR THOSE RESOURCES, THAT THEY MIGHT NOT HAVE THAT ADMINISTRATIVE SUPPORT PERSON ON STAFF WHO IS A PAID ACCOUNTANT, THAT IS HELPING THEM TO NAVIGATE SOME OF THESE THINGS.

THERE'S A LOT TO DO TO HELP BOLSTER THE CAPACITY AND TO BUILD THAT TRUST WITH FINANCIAL INSTITUTIONS.

>> LET'S SEE IN ON THAT, WHAT IS THE TRUST ISSUE, EXACTLY?

>> DEPENDING WHAT THE OWNER HAS ON THE FINANCIAL INSTITUTION, DEPENDS ON WHETHER OR NOT IT TRUSTS THAT INSTITUTION TO BE A PLACE THAT WILL SUPPORT THEM AND WE DO SEE A LOT MORE TRUST IN SMALLER COMMUNITY EVENTS AND THE FINANCIAL INSTITUTIONS THAT I MENTIONED EARLIER.

I THANK YOU SHARING YOUR RESEARCH WITH ME.

I APPRECIATE, WE ARE HAPPY TO CONTINUE TO DO THE WORK THAT WE DO TO SUPPORT SMALL BUSINESS OWNERS.

>> IF YOU STARTED YOUR DAY WITH HAVE BEEN MADE BY A UNION WORKER.

TLRN UNION WORKERS AT SOME STARBUCKS LOCATIONS AND MEDIEVAL TIMES.

SOME HAVE BEEN MORE SUCCESSFUL THAN OTHERS.

THE LABEL EDUCATION ACTION RESEARCH NETWORK AT RUTGERS UNIVERSITY FINDS NEW JERSEY'S UNIONIZATION RATE INCREASED SLIGHTLY OVER THE PAST TWO YEARS, PARTICULARLY IN THE SERVICE INDUSTRY.

THE STATE'S UNIONIZATION RATE LOOKING AT A THREE-YEAR AVERAGE IS JUST OVER 16% COMPARED TO A NATIONAL RATE OF ABOUT 10%.

NO SURPRISE THAT MOST OF NEW JERSEY'S UNION WORKERS ARE IN THE PUBLIC SECTOR OVER 59%.

IN THE PRIVATE SECTOR, 8.3% OF WORKERS ARE REPRESENTED BY A UNION.

PRIOR TO THE PANDEMIC, MOST OF NEW JERSEY'S UNION MEMBERS WERE WOMEN.

MEN HAVE NOW POLLED EVEN AS A NUMBER OF WOMEN HAVE LEFT THE WORKFORCE.

>> THE REPORT FOUND WAGES WERE 10% HIGHER FOR UNION WORKERS COMPARED TO THOSE WHO ARE NOT IN A UNION.

>> 52% ARE IN PUBLIC ADMINISTRATION.

MORE THAN 3% WORK, AND ONLY 29% ARE EMPLOYED IN EDUCATION AND HEALTHCARE AND 24% WORK IN CONSTRUCTION.

ONE OF THE REPORT'S AUTHORS WAS TOM VISHAUN, AN ASSISTANT PROFESSOR OF EMPLOYEE RECESSIONS AND DIRECTOR OF THE RESEARCH NETWORK AT RUTGERS.

HE TOLD ME HOW IT HELPED FUEL THE GROWTH IN UNION LABOR.

>> THANKS FOR JOINING ME TODAY ON "NJ BUSINESS BEAT."

>> GREAT TO BE HERE.

>> WE'VE SEEN A LOT OF ORGANIZING IN NEW JERSEY OVER THE PAST YEAR.

WHAT HAS DRIVEN THAT AND IS IT SOMETHING THAT'S GOING TO CONTINUE?

>> IT REALLY STARTED COMING OUT OF COVID WITH A LOT OF THE WORKPLACE HEALTH AND SAFETY CONCERNS, DROVE A LOT OF EARLY EFFORTS TO COLLECTIVELY COME TOGETHER AND SOLVE WORKPLACE ISSUES AND THEN AS WEAVE BEEN GOING THROUGH THE COVID RECOVERY, WE'VE SEEN THE RISE OF INFLATION AND THE COST OF LIVING GOING UP AND WAGES NOT RISING TO MATCH THAT, AND ALSO JUST THE GREAT RESIGNATION.

A LOT OF WORKERS HAVE STEPPED OUT OF THE LABOR FORCE WHICH HAS EMPOWERED THE WORKERS THAT ARE STAYING EMPLOYED AND TO IMPROVE THE WAGES AND WORKING CONDITIONS.

>> GENERALLY SPEAKING, THE STATE OF UNIONS IN AMERICA IS NOTHING COMPARED TO WHAT IT WAS DECADES AGO.

WILL WE EVER SEE THOSE DAYS AGAIN?

OR IS IT JUST SOMETHING THAT WAS IN THE PAST AND FUTURE UNIONIZATION EFFORTS WILL BE MORE MUTED.

>> YES.

SO THE HIGH WATERMARK WAS IN THE 1950s WHEN YOU SAW 35% OF PRIVATE SECTOR WORKERS WERE UNIONIZED IN 1953.

TODAY THAT NUMBER WAS ONLY 6% NATIONALLY, BUT THERE'S A LOT OF VARIATION ACROSS THE 50 STATES AND NEW JERSEY IS ONE OF THE MORE HIGHLY UNIONIZED STATES AND EVEN HERE IT'S 8.3% OF PRIVATE SECTOR WORKERS, BUT IF YOU LOOK ON THE PUBLIC SECTOR SIDE, THE UNION RATES ARE 60% OF NEW JERSEY AND A BIG FACTOR THERE HAS TO DO WITH THE DIFFERENCE IN LABOR LAW AND THE OPPOSITION BY EMPLOYERS HAVE BEEN A PRIVATE SECTOR WHO UTILIZE THE WEAKNESS OF EXISTING LABOR LAW TO OPPOSE UNION FORMATION IN THE PRIVATE SECTOR.

THERE'S A DEMAND THAT WORKERS WILL GET UNION AND IT'S UNSUCCESSFUL TO ONE THAT HASN'T HAD ONE HISTORICALLY.

>> WHAT SURPRISE YOU WHEN YOU SAW THE ORGANIZATION HAPPENING IN NEW JERSEY OVER THE LAST FEW MONTHS LIKE STARBUCKS.

>> THESE ARE THE OK PAYINGS AND INDUSTRIES THAT WERE TRADITIONALLY THOUGHT OF VERY DIFFICULT TO ORGANIZE UNIONS IN BECAUSE THERE'S A LOT OF PART-TIME EMPLOYEES AND A LOT OF TURNOVER.

NEW EMPLOYEES COME AND GO AND THE FABRIC OF UNIONS IS BUILDING TRUST AND RELATIONSHIPS WITH CO-WORKERS AND IT WAS ALWAYS THOUGHT TO BE DIFFICULT IN THE OK PAYINGS WHERE THE TURNOVER IS SO FREQUENT, BUT THE FACTOR HERE THAT ALSO PLAYS, THERE ARE A LOT OF YOUNG WORKERS AND A LOT OF YOUNG WORKERS WITH COLLEGE DEGREES AND THEY'RE NOT MAKING THE MONEY THEY NEED TO PAY BACK THEIR COLLEGE LOANS AND THE JOB MARKET IS NOT PROVIDING GREAT OPPORTUNITY.

SO WHEN YOU DON'T HAVE AN OPPORTUNITY TO GO OUT AND GET A BETTER JOB, THE ALTERNATE SIV TO FIX THE JOB THAT YOU DO HAVE.

>> THE LABOR MARKET RIGHT NOW IS STRONG.

THERE ARE EXPECT EGGS THAT IT WILL WEAKEN IF IT SPUTERS A BIT HERE AND WILL THAT SHIFT THE POWER BACK TO BUSINESSES AND UNION EFFORTS WILL BE TOUGHER?

>> I DO THINK THERE'S BEEN A CHANGE OF SENTIMENT AND ATTITUDE AMONG THE AMERICAN WORKFORCE AND ESPECIALLY IF YOU LOOK AT THE APPROVAL FOR UNIONS, IT'S THE HIGHEST IT'S BEEN HISTORICALLY AND IT'S PARTICULARLY HIGH AND THE DEMOGRAPHICS OF WORKERS THAT ARE UNDER AGE 30 ARE HIGHLY APPROVING OF UNIONS AND WOULD LIKE TO SEE UNIONS IN THEIR WORKPLACES.

IT'S AN OPEN QUESTION AND WE'LL HAVE TO SEE HOW IT PLAYS OUT AS THE ECONOMY AND LABOR MARKET CHANGE.

>> PROFESSOR, THANK YOU FOR YOUR TIME TODAY.

THANK YOU, RHONDA, A PLEASURE, THE INDEPENDENT VOTED TO UNIEYED.

LAST MONTH, CLAIMING THAT ITS MEDIEVAL TIMES PERFORMERS UNITED IS INFRINGING ON ITS TRADEMARK.

LABOR EXPERTS SAY THE LAWSUIT WAS AN UNUSUAL TACTIC TO DISSUADE ORGANIZING EFFORT.

MEANTIME, THEY'VE FILED UNFAIR PRACTICE LAWS AGAINST THE COMPANY.

MONICA GARZA, ONE OF THE MEDIEVAL TIMES PERFORMERS, EXPLAINS WHY THEY WANTED TO BE A PART OF ORGANIZED LABOR.

>> WHEN WE GOT BACK FROM COVID W THE LACK OF STAFFING.

CONDITIONS WERE A LOT HARDER, LESS STAFF, SAFETY WAS AN ISSUE BECAUSE AGAIN, LACK OF STAFF AND ESPECIALLY BEING IN NEW JERSEY WHERE AS YOU KNOW AND ALMOST EVERYONE KNOW, THE ECONOMY'S HARD RIGHT NOW, AND IT WAS AFTER COVID AND BEING ABLE TO LIVE AND WORK IN THE AREA.

>> A CASE BEFORE THE U.S. SUPREME COURT COULD TILT THE BALANCE OF POWER BETWEEN UNIONS AND BUSINESSES TOWARD COMPANIES.

IN THE CASE, GLACIER NORTHWEST WITH THE BROTHERHOOD OF TEAMSTER, THE COURT WILL DECIDE WHETHER A COMPANY CAN SUE A UNION TO MAKE IT PAY FOR MONETARY LOSSES SUFFERED BY THE COMPANY DURING A STRIKE.

EXPERTS SAY A RULING IN FAVOR OF GLACIER NORTHWEST COULD CHILL THE USE OF STRIKES BY UNIONS AS A BARGAINING STRATEGY.

SEVERAL BUSINESS GROUPS INCLUDING THE U.S. CHAMBER OF COMMERCE HAVE FILED BRIEFS SUPPORTING THE COMPANY'S POSITION.

THE THREAT OF A FREIGHT RAIL STRIKE IS NO LONGER IMMINENT, BUT IT IS ALSO NOT OFF THE TABLE.

>> JUST DAYS AGO, THE BROTHERHOOD OF EMPLOYEES EXTENDED A COOLING OFF PERIOD FROM NOVEMBER 20th TO DECEMBER 4th ALLOWING TALKS WITH THE RAILROAD INDUSTRY TO CONTINUE.

THE ASSOCIATION OF AMERICAN RAILROADS IT STANDS READY TO REACH AN AGREEMENT TO AVOID A VIEK THAT CAN COST $2 A DAY.

THE UNION LEADERSHIP WOULD LIKE TO REACH AN AGREEMENT TOO, BUT IT IS PREPARED TO STRIKE IF ONE IS NOT REACHED.

>> CAN YOU EXPLAIN WHY YOUR UNION WAS ONE OF THE UNIONS WHEN THE OFFER WAS INITIALLY MADE BY THE RAILROADS TO REJECT IT.

SOME OF THE UNIONS ACCEPTED WHAT WAS HAPPENING IN TERMS OF THE PROPOSAL, BUT YOUR UNION AND ANOTHER DID NOT.

WHY THAT DISCREPANCY AMONG THE ORGANIZED LABOR GROUPS?

>> FIRST OF ALL, THE RAILROADS HAVE MADE RECORD PROFITS FOR THE LAST TWO DECADES AND DURING THAT TIME, RAILROAD WORKERS HAVE CONTINUED TO BE TRAMPLED ON, AND WHAT I MEAN BY THAT IS THEY'VE HAD THOUSANDS OF THEIR COWORKERS WERE SENT HOME WHILE LEFT TO MAINTAIN XIFRTING TRAIN STRUCTURE AND WITH THE SAME RAILROAD TRAFFIC.

SO THEY'RE DOING MORE WORK FOR THE SAME AMOUNT OF PAY AND WHILE THAT'S GOING ON, SHAREHOLDERS CONTINUE TO REAP MASSIVE REWARDS.

JUST IN 2022 AND THROUGH THE THIRD QUARTER, UNION PACIFIC, CSF AND NORFOLK SOUTHERN HAVE 11 $11.5 BILLION ON STOCK BUYBACKS.

WE ARE LITERALLY ASKING FOR 2% OF THAT AND PAID SICK DAYS.

>> WE'RE NOT ASKING FOR A LOT IN ADDITION TO WHAT WE'VE ALREADY GAINED THROUGH A TENTATIVE NATIONAL AGREEMENT.

WHEN YOU LOOK AT WHAT THE SHAREHOLDERS ARE GETTING AND WHEN YOU LOOK AT THE STOCK PRICES HAVE HIT TRIPLE DIGITS AND WHEN YOU SEE SHAREHOLDERS ARE REAPING PERCENTAGE INCREASES AND THESE MASSIVE STOCK BUYBACKS AND MEANWHILE, YOU'RE DOING MORE WORK FOR THE SAME RATE OF PAY WITH LESS PEOPLE AROUND YOU TO DO THAT WORK?

IT DISENFRANCHISES YOU AND FRUSTRATES WOW.

WHEN YOU ADD COVID PANDEMIC, THESE PEOPLE WERE TREATED LESS THAN HUMAN BEINGS.

>> PETER, I APPRECIATE THE PASSION WITH WHICH YOU DELIVERED THE STATEMENT.

I WANT TO CONCLUDE THE INTERVIEW WITH THE BIG QUESTION AND THAT IS, IF YOU CAN'T COME TO TERM, IS THE UNION PREPARED TO STRIKE EVEN AS THERE HAS BEEN WARNINGS FROM BUSINESS GROUPS THAT A RAILROAD STRIKE LIKE THIS WOULD POTENTIALLY HARM THE ECONOMY?

>> SO IT IS NOT OUR DESIRE TO STRIKE.

WE'VE SAID THAT MULTIPLE TIMES.

WE'RE ASKING FOR ONE PENNY, AND RECORD PROFIT.

THAT IS NOT A BIG ASK.

IT TAKES OUR GUYS TO WORK A WHOLE YEAR PLUS 900 HOURS OF OVERTIME TO MAKE WHAT ONE CEO MAKES IN TWO AND A HALF DAYS AND WE'RE NOT ASKING FOR A LOT AND WE'RE JUST ASKING FOR A VERY SMALL PORTION OF IT.

IT'S TIME FOR THE RAILROADS TO START WORSHIPPING MONEY AND IT'S TIME TO PUT THE EMPLOYEES HURT AND IT'S TIME TO SEE THEM AS WHAT THEY ARE AND THEY'RE THE PEOPLE.

>> OUR MEMBERS, AND THEY DON'T HAVE TO GO.

THANKS FOR TABING TIME OUT AS THE NEGOTIATIONS CONTINUE.

GOOD LUCK.

>> THANK YOU.

THANK YOU FOR YOUR TIME.

>> THAT DOES IT FOR THIS WEEK.

REMEMBER TO SUBSCRIBE TO THE NJ SPOTLIGHT NEWS YOUTUBE CHANNEL TO BE ALERTED WHEN WE POST NEW EPISODES AND CLIPS.

NEXT ON NJ BUSINESS BEAT WE FOCUS THE BUSINESS OF FEEDING NEW JERSEY FROM RISING FOOD COSTS TO INNOVATIVE FOOD BUSINESSES.

I'M RHONDA SCHAFFLER.

THANKS FOR WATCHING.

YOU ENJOY YOUR WEEKEND.

♪♪