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The state of the workforce and its impact on bakers

woman working on baked goods production line
BY: Annie Hollon

Annie Hollon

KANSAS CITY, MO — It’s no secret that among the slew of challenges the baking industry is up against, workforce is top of mind for many organizations. Whether it’s recruiting and retaining workers or keeping up with shifting regulations, decision-makers have a lot of factors to consider and balance.

Thomas Bailey, senior director of government relations for the American Bakers Association (ABA), noted that one major factor affecting workforce is policy. More specifically, shifts between the former and current administrations.

Under the previous administration, bakers were impacted by policy changes including a final rule clarifying the status of employees and independent contractors under the Fair Labor Standards Act and similar federal laws in 2024, as well as the Worker Walkaround Representative Designation Process outlined by OSHA.

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Bailey shared that while these factors hindered bakers’ ability to grow and adapt in terms of workforce issues, the current administration has indicated some change is on the horizon.

“They have signaled that they’re going to reverse some of the policies that the previous administration had in place,” he said.

In February, the Department of Labor’s Wage and Hour Division proposed a rule that would rescind the Biden-era employee and independent contractor status decision. The current administration is also reviewing a rule proposed in 2024 regarding heat in the workplace.

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Immigration’s impact

Bailey also shared the industry is facing some workforce challenges due to immigration enforcement policies.

“While we want to support a strong American workforce, our membership understands the need for additional solutions to supplement the workforce,” Bailey said.

Beyond regulations, the diminishing labor pool is a top consideration for leaders in the baking industry. A 2023 ABA study found that by  2030, the industry is projected to have more than 50,000 unfilled jobs. In addition to teaming up with other organizations, such as the American Society of Baking, to create more resources for current workers, ABA is making key decisions to support the next generation of baking.

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Workforce development

“We’re supporting federal policies that focus on technical career education, making sure high schoolers and individuals who don’t want to go through a four-year education understand the importance of and the careers that are open in manufacturing,” Bailey said.

One program ABA is keeping a close eye on is the Workforce Innovation and Opportunity Act, a federal program signed into law in 2014 that helps job seekers get the education and training they need to join the workforce. It also supports employers in identifying, hiring and retaining skilled labor.

To better serve its member companies and advocate for policies and regulations related to labor and more, ABA recently expanded its leadership team, strengthening its advocacy efforts.

With the midterm election mere months away, staying abreast of the latest policies and regulations can help industry members of all levels make critical business decisions.

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