Former Boston Mayor Marty Walsh was confirmed on a bipartisan basis Monday by the Senate as the 29th Secretary of Labor, handing him the reins of a Department of Labor that is central to the goals of President Joe Biden’s worker-friendly agenda.
“I am incredibly honored and privileged to serve as the United States’ next Secretary of Labor. I am grateful for the bipartisan support of members of the Senate, and I want to thank President Biden and Vice President Harris for their confidence in my ability to lead the Department of Labor during such a critical time in our nation’s history,” Walsh said in a statement upon his confirmation.
“As the son of immigrants and a former union laborer, I share their deep commitment to building an economy that works for all. I have been a fighter for the rights of working people throughout my career, and I remain committed to ensuring that everyone—especially those in our most marginalized communities—receives and benefits from full access to economic opportunity and fair treatment in the workplace,” Walsh continued. “I believe we must meet this historic moment and, as the nation’s Secretary of Labor, I pledge to help our economy build back better.”
The 53-year-old Walsh is the first Labor Secretary to come from a union background in nearly 50 years. Despite his union ties, Walsh sailed through relatively uncontroversial confirmation hearings. A number of Republicans on the HELP committee joined Democrats to vote 18-4 to send his nomination to the Senate, where he was confirmed with a 68-to-29 vote.
He succeeds Eugene Scalia in the position, and will now have a role in reviewing the Labor Department’s recent rulemaking, as well as determining whether the DOL reopens other regulatory projects finalized recently by its Employee Benefits Security Administration.
Prior to Walsh’s confirmation, the DOL did make news by announcing it would allow a Trump-era exemption for investment advice fiduciaries to move forward. The move drew support from the American Retirement Association, which said it contains “important protections for plan participants and certainty for plan advisors who want to work with those participants.”
The EBSA also announced earlier this month that it will not enforce recently published final rules on ESG investing (“Financial Factors in Selecting Plan Investments”) and “Fiduciary Duties Regarding Proxy Voting and Shareholder Rights.”
The confirmation hearings shed little light on Walsh’s appetite to address retirement security issues, focusing instead on topics such as unemployment benefits, raising the minimum wage, regulating contract and gig work and pandemic-related safety compliance issues at the workplace.
The American Council of Life Insurers and the Insured Retirement Institute were quick to congratulate Walsh on his confirmation, releasing statements in support of the new Labor Secretary.
“His experience with retirement security issues and leadership for working families, diversity and racial equity will be important as the department, through the EBSA, implements policies that help secure Americans’ workplace benefit plans and financial peace of mind through retirement,” said ACLI President and CEO Susan Neely.
“Secretary Walsh will take office at a time when momentum is building across the country for the adoption of enhanced consumer protections for retirement savers. New best interest laws and regulations have been adopted in eight states, and more are expected. These laws and regulations align with the SEC’s Regulation Best Interest. Unlike a fiduciary-only approach, they make sure savers, particularly financially vulnerable middle-income Americans, are not discriminated against and have a clear shot at long-term security through retirement.”
IRI President and CEO Wayne Chopus said his organization stands ready to work with Secretary Walsh on “common-sense, bipartisan legislation and policies to help our nation’s workers and retirees achieve economic equity by strengthening their own financial security and protecting their income to sustain them throughout their retirement years.”
He added that IRI also looks forward to partnering with the DOL to complete implementation of the SECURE Act.
[Editor’s Note: This article was updated to include reaction from the IRI and ACLI]
SEE ALSO:
- Biden Picks Boston Mayor Walsh for Labor Secretary
- Biden’s DOL Scraps Trump Era ESG Rule
- Biden’s DOL to Implement Trump Fiduciary Rule
- GAO to DOL: ‘Provide 401k Cybersecurity Guidance’
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
