In a dramatic policy shift that took just hours, the Trump administration reversed its position on reciprocal tariffs, caving to pressure from corporate America. In an unexpected retreat, President Donald Trump, Commerce Secretary Howard Lutnick, and Trade Advisor Peter Navarro reversed course on their “non-negotiable” tariffs, opting for a 90-day pause after facing a chorus of condemnation from CEOs and Wall Street titans. Despite the administration’s spin on the decision as a “win,” the retreat highlighted the deep sway that neoliberal elites hold over U.S. economic policy, even when faced with populist rhetoric.
While the immediate concern was the stock market plunge—$6.5 trillion lost in just two days—the larger narrative was the growing influence of corporate America in shaping trade policy. Business leaders from Jamie Dimon of JP Morgan to Larry Fink of BlackRock spoke out against the tariffs, urging the President to change course. In an organized show of power, corporate CEOs, including those from tech giants like Tesla and Ford, sided with the broader economic establishment over the administration’s protectionist policies.
However, what is not often discussed in these corporate circles is the broader attack on workers' rights and labor organizing taking place across the country—particularly in higher education, where private universities are increasingly using the courts and political arguments to undermine labor organizing efforts.
In a striking example of this trend, the University of Southern California (USC) has launched a direct challenge to the National Labor Relations Board (NLRB), an independent federal agency that has long protected workers’ rights to organize and bargain collectively. The university is attempting to block a unionization effort by its non-tenure-track faculty members, echoing the anti-union rhetoric pushed by corporations like SpaceX, Amazon, and Trader Joe’s, which have previously argued that the NLRB is unconstitutional.
In December, over 2,500 non-tenure-track faculty members at USC filed a petition to form a union with the United Faculty-United Auto Workers (UFW-UAW). This move came after a majority of faculty members expressed support for unionization. But ten days after the petition was filed, USC took the unprecedented step of arguing that the NLRB itself is unconstitutional. This argument hinges on claims that the NLRB’s structure—specifically, its independence and the protection of its members from presidential dismissal—violates constitutional principles.
This tactic mirrors the legal arguments advanced by corporations like SpaceX, which in 2020 challenged the NLRB’s constitutionality in court, claiming that the board's authority to issue decisions in labor disputes violated the separation of powers. Amazon, too, has tried to undermine the NLRB’s authority, arguing that the board’s structure infringes upon its rights as an employer.
While corporate interests have long resisted unionization—fearing the erosion of their unchecked power—USC’s stance is particularly noteworthy because it highlights how elite institutions, even those within academia, are increasingly willing to side with corporate interests to suppress workers’ rights. The university’s argument that non-tenure-track faculty cannot unionize because they are “managers” or “supervisors” is a familiar refrain in the corporate world, where businesses often claim that certain employees lack the right to unionize due to their purported managerial roles. This is despite the fact that faculty members have little to no influence over university policy.
Jennifer Abruzzo, former general counsel for the NLRB, emphasized that the university could voluntarily recognize the faculty union without needing to rely on the NLRB’s authority. She argued that USC’s challenge is a direct attempt to subvert workers' rights to organize, asserting, “Whether the NLRB is unconstitutional or not does not preclude USC from recognizing and bargaining with their workers’ chosen representative.”
The significance of USC’s challenge extends beyond the university itself. If successful, this legal strategy could have wide-reaching implications for labor rights in the U.S. In a climate where conservative forces are already pushing to dismantle federal regulatory agencies, a ruling against the NLRB’s constitutionality could decimate the labor rights of nearly 170 million American workers.
For faculty members at USC, the stakes are personal and immediate. Sanjay Madhav, an associate professor and union activist at USC, pointed out that the push for unionization is especially critical as the university faces budget cuts and hiring freezes in response to financial uncertainty. Faculty members like Madhav are advocating for greater bargaining power, particularly around merit pay and benefits—issues that have become more pressing as the economic landscape becomes increasingly volatile.
Ironically, the pushback from USC against unionization underscores the very corporate mindset that has driven much of the resistance to Trump’s trade policies. Just as CEOs have leveraged their financial and political influence to halt tariffs that threatened their profits, private universities like USC are wielding legal arguments and political influence to protect their control over faculty and suppress the possibility of meaningful labor negotiations.
This broader context of corporate resistance to workers’ rights—both in trade policy and labor organizing—raises critical questions for higher education. It signals a growing trend where powerful interests are not only challenging the rights of workers but are also attempting to reframe the debate around collective bargaining and labor rights as unconstitutional or undesirable. This echoes a deeper, neoliberal agenda that seeks to hollow out democratic mechanisms of worker representation, whether in trade, the workplace, or the classroom.
As faculty at USC and other institutions wait to hear whether they will be allowed to proceed with their union election, the broader question remains: What happens when the very institutions that are meant to foster critical thinking and social mobility also align themselves with forces that seek to dismantle workers’ rights? And what does it mean for the future of labor and democracy when both corporate America and elite universities are so aggressively working to undermine the rights of those who power their institutions?