Breaking News
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GOP revolt over Puzder claims first Cabinet nominee of the new administration
Andrew Puzder withdraws as a labor secretary nominee
Story highlights
- Puzder is the first of Trump's cabinet nominees to withdraw before a Senate vote
- "Everyone knew he was in trouble weeks ago"
(CNN)Andrew
Puzder has withdrawn as President Donald Trump's choice for labor
secretary, a dramatic decision caused by a GOP revolt that claimed the
first Cabinet nominee of the new administration.
Puzder,
the CEO of the company that owns the Hardee's and Carl's Jr. fast food
chains, faced fierce opposition mostly from Democrats in part related to
his position on labor issues as well as the fact that he employed an
undocumented immigrant housekeeper.
But
Republicans too had grown weary of the range of liabilities facing
Puzder, and senior GOP officials informed the White House Tuesday night
and Wednesday that Puzder lacked a viable path for confirmation.
"After
careful consideration and discussions with my family, I am withdrawing
my nomination for Secretary of Labor," Puzder said in a statement
Wednesday afternoon. "I am honored to have been considered by President
Donald Trump to lead the Department of Labor and put America's workers
and businesses back on a path to sustainable prosperity.
"I
also thank my family and my many supporters -- employees, businesses,
friends and people who have voiced their praise and hopeful optimism for
the policies and new thinking I would have brought to America as
Secretary of Labor. While I won't be serving in the administration, I
fully support the President and his highly qualified team."
The
decision came as Senate Republicans told the White House he was losing
support, a senior GOP source said, adding there were four firm
Republican no votes and possibly up to 12.
Sen.
Tim Scott, of South Carolina, was one of those Republicans who planned
to vote against Puzder, saying he was worried about revelations
involving Puzder paying employees in cash and the nominee's comments about some of the American workforce.
In
a statement Wednesday afternoon, Scott said he shared those concerns
with Senate leadership and Tennessee's Lamar Alexander, chairman of the
HELP Committee.
"I look forward to meeting with a new nominee to lead the Department of Labor," Scott said in a statement.
Sen.
Johnny Isakson, a Republican from Georgia who was one of the firm "no"
votes on Puzder, offered a briefer statement. "I respect Mr. Puzder's
decision."
A third senator in the
group, Alaska's Lisa Murkowski, said she respects Puzder's decision to
withdraw. "This has been a difficult process for him and his family,"
she said.
Alexander said he was
still planning to vote in favor of Puzder before he dropped out. Asked
if he felt any of the concerns raised about Puzder were warranted,
Alexendar appeared to address Puzder's hiring of the undocumented
immigrant.
"He made a mistake,"
Alexander said. "And in my view, he discovered it, he reported it, he
took responsibility for it. He corrected it. And that's about all you
can do with a mistake. So I evaluate him and his whole life's work, so I
didn't think that mistake should disqualify him from being a cabinet
member."
His team subsequently
began to pull back from all their plans for the confirmation process.
Puzder was scheduled to do extensive preparation Wednesday afternoon for
his confirmation hearing before the Senate on Thursday, but canceled
the so-called "murder board" after top Republicans spoke to the White
House, a source close to Puzder told CNN.
Around
the same time, sources on Capitol Hill were told Puzder was expected to
cancel his confirmation hearing. And Puzder's team told the White House
that he did not want to go forward with the nomination if there was no
clear path forward.
White House press secretary Sean Spicer confirmed Puzder's decision, telling reporters simply, "he withdrew."
Senate Democratic Leader Chuck Schumer fanned the flames behind the opposition to Puzder in a statement Wednesday afternoon.
"No
matter how you cut it, there is no worse pick for labor secretary than
Andrew Puzder, and I'm encouraged my Republican colleagues are starting
to agree," the New York Democrat said. "He does not belong anywhere near
the Labor Department, let alone at the head of it. Puzder's disdain for
the American worker, the very people he would be responsible for
protecting, is second to none."
Fingerpointing among Republicans
The fingerpointing has already begun among Republicans.
GOP
sources are privately pointing the finger at business groups for not
giving political cover to Republicans. They say that they were swamped
by labor groups and progressive forces looking to derail Puzder, while
the business community sat on the sidelines.
A source said the unions have eaten "their lunch."
"They
literally were raising money in like $5,000 increments when millions
were being spent against them," one top GOP source says. "His entire
support network made one TV ad that looked like a welcome video for new
Hardee's employees, which referred to "her" and "she" while praising the
boss who hired them. Everyone knew he was in trouble weeks ago and even
his strongest supporters and biggest beneficiaries of his point of view
as labor nominee would not open their wallets."
Ran into problems immediately
Puzder
faced intense criticism since his appointment on December 8. Current
and former employees spoke out against him from the start, and Democrats
and labor activists attacked his record on worker rights.
The
fast food executive has a long history of fighting against government
regulation, a $15 minimum wage and the Affordable Care Act.
Decades
ago, Puzder's ex-wife, Lisa Fierstein, levied charges of domestic abuse
against him, which she later dropped. She also appeared in disguise on
Oprah Winfrey's TV show to talk about domestic violence in 1990. In
advance of Puzder's scheduled hearing, senators privately reviewed the
tape.
During the episode, Fierstein
said Puzder told her, "I will see you in the gutter. This will never be
over. You will pay for this," according to Politico.
Senators were shown the video in the lead up to Puzder's nomination fight.
In a letter to senators obtained by CNN, Fierstein said she regretted accusing Puzder of abuse during a rocky marriage.
Puzder has denied he abused his wife.
That
hasn't been the only issue. Last week, he admitted to having employed
an undocumented immigrant as a housekeeper. He later said that he and
his wife let the housekeeper go when they learned of her immigration
status, and he said they paid back taxes on the employee and offered her
help getting legal status.
Puzder's own employees were some of the first to cry foul when he was nominated.
Last month, current and former workers at Hardee's and Carl's Jr. announced that they had filed 33 state and federal complaints against their employers. Charges include wage theft, manipulated overtime, sexual harassment and unfair labor practices.
All
the complaints pertained to franchised locations that are independently
operated. But the workers said they reflected poorly on a chief
executive who hoped to lead the Labor Department.
A
spokesman for CKE Restaurants said the company does not comment on
pending litigation. The company also declined to comment on whether
Puzder will stay on as CEO now that he has rescinded his nomination.
Puzder once called some of his Hardee's employees "the worst of the worst," according to reporting by CNN's KFile. He was also criticized for past statements in support of replacing workers with robots.
"They're
always polite, they always upsell, they never take a vacation, they
never show up late, there's never a slip-and-fall, or an age, sex, or
race discrimination case," Puzder told Business Insider in March 2016.
It
took weeks for senators to get Puzder's financial disclosure
information. He had promised to step down as CEO of the company, CKE
Restaurants, if confirmed, and to divest his stake in 200 companies and
funds.
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