WSJ What’s News - Trump Courted Blue-Collar Workers. Will His Policies Favor Them?

Episode Date: November 22, 2024

A.M. Edition for Nov. 22. The WSJ’s Paul Kiernan says the incoming administration will have to reconcile Republicans’ traditional resistance to unions and workplace rules with a “New Right” that says it wants to empower workers. Plus, Trump picks Pam Bondi to run the Justice Department hours after Matt Gaetz withdraws from consideration. And Huawei plans to roll out its most advanced made-in-China phone chip, challenging Apple in its second-largest market. Kate Bullivant hosts. Sign up for the WSJ’s free What’s News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

Light up Black Friday with Freedom Mobile and get 50 gigs to use in Canada, the US and Mexico for just 35 bucks a month for 18 months. Plus get a one-time gift of 5 gigs of Rome Beyond Data. Condition supply details at freedommobile.ca. Donald Trump picks Pam Bondi to lead the Justice Department after a botched first AG nomination. Plus, Trump made big gains among blue-collar workers. We'll take a look at how his campaign trail promises might translate into policy. The Republicans, for now at least, are the party of the working class,

and if they want to remain the party of the working class, they might need to change some of these policy positions. And Huawei makes strides in chip technology and threatens the iPhone in China. It's Friday, November 22nd. I'm Kate Bulevant for the Wall Street Journal, filling in for Luke Vargas. And here is the AM edition of What's News, the top headlines and business stories moving your world today. Donald Trump has chosen former Florida Attorney General Pam Bondi to run the Justice Department, just hours

after Matt Gaetz withdrew from consideration for the role under a cloud of sexual misconduct allegations. By selecting Bondi, journal reporter Sadie Gurman says Trump has chosen a close ally who presents a more conventional choice than Gates. Her background experience as Florida's former attorney general and somebody who's worked as a line prosecutor for years might make her more appealing to senators who have to

confirm her. But at the same time, she is somebody who is extremely loyal to Trump and has signaled in a variety of ways that she is 100% on board with his agenda. We saw her taking a more prominent role in the campaign as it neared its end, making several appearances at campaign rallies in November. And she is somebody who's been with him, including during his first impeachment. And in fact, she was considered as a possibility for attorney general when Trump was president the first time. Selecting an attorney general has been Trump's top personal priority as he looks to bring the

Justice Department, which he has clashed with for years as it investigated him and his allies, under close presidential control. And as Trump continues to make his cabinet picks, we're exclusively reporting that he's floated the idea of nominating financier Kevin Warsh as his Treasury Secretary. The idea comes with the understanding that Warsh could later be nominated to lead the Federal Reserve when Jerome Powell's term ends in twenty twenty six. The president elect is also thinking about appointing investor Scott Bessend to lead the National Economic Council

with an eye toward nominating him as Treasury Secretary later if Warsh becomes Fed Chair. Warsh, whom Trump had considered to lead the Fed during his first term, has previously spoken out against protectionist trade policies. According to a person familiar with the matter, Trump asked Warsh about his past stance on tariffs during a meeting this week. Representatives for Besant, Warsh and Trump's transition team didn't respond to requests for comment. The Biden administration plans to add 29 Chinese companies to a trade blacklist today

over their alleged links to forced labour in the country's Xinjiang region. It's the largest ever expansion of the so-called entity list that took effect in 2022, bringing the number of companies on it to more than 100. Most of the newly banned companies are in the agricultural sector, though some come from other industries, including mining and smelting. China has denied accusations of human rights abuses and has said the US law interferes in its internal affairs. And despite American sanctions, China's Huawei continues to advance its semiconductor technology. According to our reporting, the company is set to roll out its most advanced domestically

made phone chip to date when a new series of devices goes on sale next week. Huawei hasn't given details of the phone's features or the chips inside them, an area of interest for US policy makers who have tried to hold back Huawei's technology. And journal reporter Lisa Lin told us the new chips are also a concern for Apple, which has been losing ground in China. Huawei had always been a big contender in China's smartphone market, but when export controls got slapped on Huawei, it was unable to procure the smartphone chips needed for cutting-edge smartphones.

And because of that, there was a gap of a couple of years when it stopped releasing premium smartphones. And that meant that Apple had a lot of space to claw ahead in the Chinese smartphone market. What happened last September was Huawei surprised the market by unveiling three smartphones with the same sort of cutting edge abilities that you see with the most advanced iPhone handsets these days. And partly due to nationalistic buying and partly due to the merits of the Huawei phone itself, Huawei managed to get market share back from Apple.

And in news that market watchers will have their eye on today, DirecTV has decided to walk away from its proposed merger with rival Dish Network. The decision came after rebuke from bondholders representing more than 10 billion dollars of debt in in dish and a subsidiary. The tie-up, which the two satellite TV companies have attempted several times, was dependent on the creditor's approval. And the dollar is strengthening against the euro and the British pound, after disappointing purchasing managers' indexes pointed to economic weakness in Europe.

US PMI surveys are due at 9.45am Eastern. Coming up, Donald Trump is called to confront a fight over labor policy unfolding within the Republican Party. What could that mean for workers? We'll look at that after the break. So what's it like to buy your first cryptocurrency on Kraken? Well, let's say I'm at a food truck I've never tried before. Am I gonna go all in on the loaded taco?

No, sir. I'm keeping it simple. Starting small. That's trading on Kraken. Pick from over 190 assets and start with the 10 bucks in your pocket. Easy. Go to kraken.com and see what crypto can be. Donald Trump has drawn swathes of working-class voters away from Democrats,

reaping the rewards of a campaign strategy in which he aggressively courted union members. Now the journal's Paul Kiernan reports his incoming administration faces the question of how to reconcile that new reality with the Republican Party's traditional stance, which favors low taxes and minimal intervention and is generally hostile towards unions. Paul joins me now from Washington. Paul, you write about this self-proclaimed new right that's challenging the sort of classic GOP approach and led by JD Vance. Where do they stand on Labour policy? Yeah, there's also a number of Republican senators who are aligned with Trump. So those

include Senator Marco Rubio, Senator Josh Hawley, and finally Vance. All three of them co-sponsored a bill in 2023 that aimed to improve safety for railroad workers following this big train derailment in Ohio. And Marco Rubio, who's now expected to be Trump's nominee for Secretary of State, backed the unionization push at an Amazon.com warehouse in 2021.

And it's not exactly clear how far they want to go, how interventionist they want to be. But in general, they're less skeptical of unions than the Republican Party has traditionally been. And a lot of these Republicans who are aligned with the new riot are also kind of skeptical of big tech. Do we know what Trump's labor policies might include at this stage and how much traction the ideas championed by this new right wing you've just described might gain? So far Trump has not provided a lot of detail on the labor policies that he might pursue

beyond his broader plans to restrict immigration and trade. Depending on who he picks for labor secretary there could be other things on the menu like continuing to pursue the Biden administration's goal of banning non-compete agreements for low wage workers, which in recent years it's come to light that businesses including fast food chains have made their low wage employees sign no poach agreements that eliminate their ability to go work at franchises that might pay higher wages. So that's an example of a labor policy that the US Chamber of Commerce sued to overturn, but that some of these new right figures would say, actually, that's a good idea. Sort of more narrowly, Trump has signaled that he wants to be able to fire more federal

government employees. So that's something that obviously the federal employees labor union is very upset about that and we'll fight that. You know, there's legal impediments. A lot of this stuff is going to be challenged in court and it's unclear how far it will go. But there's this famous interview with Elon Musk before the election in which he kind of praised Elon Musk for firing workers who go on strike. There was another appearance at a rally when he said that when he was in business, he used to hate giving overtime. He'd do anything he could to avoid paying overtime. Trump's critics will tell you that that shows how

he thinks about these issues. But the reality is that the Republicans, for now at least, are the party of the working class. And if they want to remain the party of the working class, they might need to remain the party of the working class they might need to change some of these policy positions. Paul remind us what Trump's approach to labor looked like during his first term. Are there any clues there? He largely stuck to the Republican Party's established positions toward labor and especially organized labor with the exception of his immigration and trade policies.

For instance, his Labor Department finalized a rule that set the salary threshold at which workers automatically become eligible for overtime pay lower than the level that the Obama administration had sought. Labor advocates complained that this would effectively make about 8 million workers ineligible for overtime under the Trump rule. And the National Labor Relations Board, which oversees union elections and stands between workers and companies, Trump appointed key officials who had either been lawyers for company management or kind of traditional Republican functionaries.

And so labor unions complained that Trump's National Labor Relations Board was unfriendly to unions that it tended to side with management. And union officials say that they anticipate that Trump is going to attack the working class and that it's in the words of the spokesman for the AFL-CIO, it's going to be a rude awakening for a lot of these blue collar people who wanted to take Trump in his word and voted for him and thought that he was going to make their lives better. That was Journal Reporter Paul Kiernan. Paul, thanks so much for your time.

Yeah, thanks, Kate. Well, speaking of Trump's campaign promises, we'd like to know your questions about how they might be implemented and what they mean for you. To weigh in, send us a voice memo to wnpod at wsj.com or leave a voicemail with your name and location at 212-416-4328. We might just use it on the show. And that's it for What's News for Friday morning. Today's show was produced by Daniel Bark with it on the show.