What You Need To Know About Andrew Puzder — Trump's Pick For Secretary Of Labor
Thursday, sources confirmed to various publications that Andrew Puzder, CEO of CK Restaurants (parent company of Hardee's and Carl's Jr.), will serve as Secretary of Labor in the Trump administration. The executive has little government experience and has been outspoken against President Obama's labor policies. Here's what you need to know.
Puzder Has Virtually No Experience In Government
Puzder has no real experience with government, but advised both Mitt Romney's and Donald Trump's campaigns:
Mr. Puzder will arguably have less experience in government than any labor secretary since the early 1980s, when President Ronald Reagan appointed a longtime construction executive named Raymond Donovan to head the department. Mr. Donovan's tenure was marked by an easing of numerous regulations.
Puzder Opposes A $15 Minimum Wage
Similar to Donald Trump, Puzder doesn't completely oppose increasing the minimum wage, but thinks $15 is too high:
Puzder has said he doesn't oppose increasing the minimum wage, but that raising it to $15 would lead to job loss and more automation. Earlier this year Puzder told Business Insider that he was exploring whether to automate Carl's Jr. restaurants because of rising labor costs from minimum wage hikes at the state and local level…Puzder followed up with an op-ed in the Wall Street Journal in which he wrote that minimum wage hikes, paid sick leave laws, and the Affordable Care Act forced restaurants to find ways "to reduce costs while maintaining service and food quality."
[Politico]
Puzder Has Also Been An Outspoken Critic Of President Obama's Overtime Reforms
In a Forbes op-ed, Puzder said:
The real world is far different than the Labor Department's Excel spreadsheet. This new rule will simply add to the extensive regulatory maze the Obama Administration has imposed on employers, forcing many to offset increased labor expense by cutting costs elsewhere. In practice, this means reduced opportunities, bonuses, benefits, perks and promotions.
[Forbes]
Puzder Believes That Government Assistance Programs Disincentivize Workers
In an op-ed for The Hill, Puzder argues that we should cut government benefit programs, claiming that his workers have turned down promotions to keep government benefits like food stamps:
But these programs have the unintended consequence of discouraging work rather than encouraging independence, self-reliance and pride…Consider that some of our crew members are declining promotions to shift leader positions because the increase in income would disqualify them for food, housing, medical or other government benefits.
[The Hill]
Puzder Is Credited With Turning Around The Hardee's And Carl's Jr. Brands
When the other burger chains were seeking ways to appeal to families, Andrew Puzder positioned stodgy Hardee's and its fraternal twin Carl's Jr. to attract heavy fast-feeders—young men. And what sells to this group? Hot chicks. But while following the new conventional wisdom of not fishing in the same waters as everyone else—blue oceans as opposed to the red waters where all the competition was feeding—it was a bit harder to sell sex to the franchisees.
But A Recent Investigation Found Labor Violations In 60% Of Hardee's And Carl's Jr.
Like other fast-food chains, Hardee's and Carl's Jr. restaurants are often investigated for possible minimum wage and overtime infractions. A recent analysis from Bloomberg found that officials discovered violations in roughly 60 percent of their investigations of those chain's locations. Most Hardee's and Carl's Jr. locations are operated by franchisees, rather than by CKE Restaurants itself, meaning the company itself is typically not considered responsible under the law.
Puzder Has Drawn Criticism For His Companies' Portrayal Of Women
In an interview with Entrepreneur, he brushed off criticism of his companies' use of scantily clad women in their ads, saying:
I like our ads. I like beautiful women eating burgers in bikinis. I think it's very American…I used to hear, brands take on the personality of the CEO. And I rarely thought that was true, but I think this one, in this case, it kind of did take on my personality.
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