Reynolds praises child labor bill, hits back at critics in ABI speech

Governor Kim Reynolds highlighted her pro-business record — including recent passage of a bill that loosens child labor protections — during the Iowa Association of Business and Industry (ABI) annual conference at the DoubleTree by Hilton Hotel Cedar Rapids on June 14. The Republican govenor signed the controversial child labor bill into law last month, with the intention of helping business owners address the workforce shortage plaguing their companies. Under the new law, one of several new provisions allows 16- and 17-year-olds to work in manufacturing, possibly operating power saws, through a work-based learning program, and allows them to serve alcohol when working in restaurants with permission from parents or guardians, the AP reported. Previous iterations of the bill would've allowed 14- and 15-year-olds to work in jobs deemed dangerous for minors. During her remarks, Ms. Reynolds said the criticism from national media surrounding what she calls her youth employment bill was "ridiculous, and quite frankly, downright bizarre." "I have never seen anything like it," she said. "But of course, if we let hysteria stop us, we might still be taxing like a blue state and we're not. It was a common sense bill. On the national level, they just don't understand what we're trying to do here." Critics have said Iowa, and other states with similar ambitions, is valuing corporate business interests above the welfare of children rather than offering increased wages or better benefits to attract adult applicants. A letter from the U.S. Department of Labor says the child labor legislation may not comply with federal law, because the bill's language could conflict with federal requirements, reported the Iowa Capital Dispatch. Democratic Senator Nate Boulton said the bill encourages businesses to break federal law. “Protections against unsafe and exploitative child labor are there for a reason, and failed measures to address Iowa’s workforce crisis is no excuse to undermine those safeguards, said Mr. Boulton in a press release at the time.” An investigation from the Washington Post shows a Florida-based think tank has pushed for relaxed child labor regulations around the country. The think tank has hired 115 lobbyists in 22 states since 2016, according to nonpartisan watchdog group OpenSecrets. In Iowa, that effort was led by the Iowa Workforce Development Board and the Iowa Restaurant Association, as uncovered in an investigation by More Perfect Union. It found that lobbyists for the Iowa Grocery Industry Association, Association of Iowa Builders, Iowa Hotel & Lodging Association, National Bureau of Independent Businesses, and ABI all pushed for the bill. Many major corporations in eastern Iowa are members of these associations and could benefit from relaxed regulations. "The records, scant as they are, show Governor Reynolds' office and Workforce Development had a far larger role in crafting the bad child labor legislation than they have let on publicly or has previously been reported," said David Goodner, a reporter with Truthout and In These Times, in a tweet from March. “We are not forcing them into slave labor, we’re not selling our children. We’re not even requiring them to work,” GOP state Sen. Adrian Dickey said on the Senate floor during debate in April. In June, Iowa OSHA fined the general contractor at Cedar Rapids' $49 million Banjo Block development for violation of safety standards, The Gazette reported. That follows KCRG's reporting of concerns from Democratic Representative Sami Scheetz that the construction site may be employing one person under the age of 18, after on-site video from Carpenters Union Local 308 was released.

Ms. Reynolds says Iowa's economy is leading the way

Pointing toward a 2.7% unemployment rate, top five labor participation rate in the country and a business tax rate approaching a 25-year low, Ms. Reynolds said Iowa's business climate fosters innovation and success. "We continue to make investments in broadband, housing, and child care to strengthen the workforce and help employers attract and retain top talent," she said. During EntreFEST 2023, Iowa Economic Development Authority and Iowa Finance Authority Director Debi Durham said the state has spent more than a billion dollars investing in broadband opportunities. https://corridorbusiness.com/7-key-takeaways-with-debi-durham-at-entrefest/ In Iowa, Ms. Reynolds said 33,300 new businesses were started in 2022, and that nine of 10 exports were up year-over-year. The state welcomed more people than it lost (+6,300) for the first time in a decade last year, while other states experienced a negative net migration. In Illinois, the state lost more than 230,000 people in the same time period, she said. She also said cutting 21 agencies from her cabinet, from 37 to 16, will conservatively save the state $213 million over four years. The administration is now looking to continue cutting administrative code that is a deterrent to business-friendly policies in the state. "If it's a barrier, if it impacts you, it's out of here," she told a supportive crowd. In the last legislative session, the Reynolds-led agenda passed property tax reform that provided $100 million in savings to owners. It also pushed forward a controversial school choice program, a bill that allows state education funding to be available for students who attend private school. Ms. Reynolds was proud to acknowledge that Iowa is a leader in work-based learning and registered apprenticeship programs under her watch. "Last year, we added more registered apprenticeship programs than any other state in the country," she said, adding that she was in the Quad Cities several weeks ago for a signing ceremony of high school students declaring their intent to work for manufacturing companies directly after graduating. She began her remarks by noting a recent agreement between Across Wind Towers, MidAmerican Energy and SSAB Americas to discuss sustainability solutions in Iowa. She said the collaboration will help the companies manufacture wind towers using zero carbon steel to power more renewable energy for the state.