Tuesday, February 7, 2023: U.S. Labor Secretary Walsh Expected to Resign to Take National Hockey League Players Association Director Position
Official Announcement Still Lacking as Walsh Continued Work as Secretary
Deputy Secretary Su Widely Viewed as Frontrunner to Replace Walsh
While no official announcement has yet been issued, a legion of press reports this past week stated that Marty Walsh will resign as Secretary of Labor to become the Executive Director of the National Hockey League Players’ Association (NHLPA). Even prior to this week’s reports, speculation had been brewing when press stories emerged that Walsh was a “top contender” for the NHLPA Director spot (for a couple of examples, see here and here). Should Walsh resign as anticipated, he would be the first Cabinet secretary to depart during Biden’s presidency. As of our WIR publication deadline, neither the White House, the Department of Labor, Secretary Walsh, nor the NHLPA has issued any statement confirming these reports. Indeed, Walsh actively engaged in his DOL work through the end of this past week.
How We Got Here
Joe Biden nominated Walsh, who at the time was mayor of Boston, for Labor Secretary on the first day of his presidential administration in 2021. The Senate confirmed the nomination that following March.
On Tuesday, prior to President Biden’s State of the Union (SOTU) address that evening, hockey news publication the “Daily Faceoff” reported that the NHL Players’ Association would formally install Secretary Walsh as its next Executive Director sometime in the days following the SOTU. That article was quickly picked up and cited by the Boston Globe, beginning an avalanche of similar reports which then dominated the news channels in the hours running up to the President’s big moment at the Capitol to deliver his SOTU address. According to Tuesday’s Daily Faceoff article, Walsh was waiting to make the move until after President Biden’s SOTU address despite distracting press attention away from Biden as The President prepared to deliver his major speech of the year to the American people. Also of note, Walsh suddenly did not attend this year’s SOTU because the White House unexpectedly and at the last minute designated Secretary Walsh as the ”Designated Survivor” for the SOTU.
The Daily Faceoff further reported that the NHLPA search committee presented Walsh as its top choice for the Executive Director position during an Executive Board meeting held in Miami on Friday, February 3rd only four days before Biden’s SOTU. After Walsh introduced himself virtually via Zoom, the 32-member Executive Board approved Walsh to move to the next stage of the process, including negotiating an employment contract, according to the Daily Faceoff. Moreover, the Executive Board is expected to unanimously approve Walsh in an upcoming formal vote, according to Tuesday’s report.
The Boston Globe reported that Walsh would replace Donald Fehr, the former executive director of the Major League Baseball Players Association who assumed the same role at the NHLPA in December 2010. Fehr’s salary at the NHLPA is believed to be at least $3.5 million annually, apart from lavish perks. Walsh’s annual salary as Secretary of Labor is approximately $235,600.
Walsh Still on the Job at USDOL
As late as Friday, February 10, Walsh continued working as Secretary of Labor, issuing a statement condemning the December 2022 and January 2023 sentencings of six trade union leaders in Belarus. On Thursday, he went to Tulsa, Oklahoma to highlight “the need to promote economic justice for people in Black and other underserved communities,” according to a DOL press release. Walsh also spoke to the largest U.S. railroad operators urging them to reach an agreement to secure paid sick leave for workers, an issue that contributed to threats of a national railroad strike. President Biden signed legislation to block a strike over the leave issue that would have shut down the railroads nationwide this past December.
Also on Thursday, White House Press Secretary Karine Jean-Pierre told reporters, “[I am] not going to get ahead of any personnel announcements from here. As far as we know, as far as I know, as far as you all know, Marty Walsh is still the Secretary of Labor.”
Deputy Secretary of Labor Julie Su Most Likely Replacement
Should Walsh resign as anticipated, Deputy Secretary of Labor Julie Su will take over as Acting Secretary, until the President nominates, and the Senate confirms, a new Secretary. Before joining the Biden administration in July 2021, Su had led the California Labor and Workforce Development Agency amid great controversy over her administration of California’s Unemployment Insurance fund which lost an estimated $20 Billion in unemployment money stolen by foreign criminals and by prisoners sitting in prisons in California.
Deputy Secretary Su is widely considered the front-runner to replace Walsh as Labor Secretary, although other candidates are reportedly in the mix.