Reflecting on the labor market on this Labor Day, we note that many economists are predicting that, unlike prior recessions, employment and wages will not bounce back after the current economic downturn that began in 2008.  Employers will retain significant bargaining power in US and overseas labor markets, likely leading to diminishing job security and real wages.  Benefit cuts are sure to accompany this trend.   However, the legal structure designed to protect workers, wages, and benefits remains in place,which could mean not a labor peace born of fear, but an era of increased tension and legal conflict between employers and employees.  Of course, none of this is news to those of us in the trenches.  An article in this morning’s Washington Post by Robert Samuelson surveys the landscape and economists’ predictions about it.

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Photo of Richard C. Shea Richard C. Shea

Richard Shea is immediate past chair of Covington’s Employee Benefits and Executive Compensation practice. Richard is widely regarded as the nation’s leading authority on cash balance, pension equity, and other complex benefit plan designs. His practice spans the full breadth of activities needed to help his…

Richard Shea is immediate past chair of Covington’s Employee Benefits and Executive Compensation practice. Richard is widely regarded as the nation’s leading authority on cash balance, pension equity, and other complex benefit plan designs. His practice spans the full breadth of activities needed to help his clients resolve novel, sensitive, or intractable issues. His approach focuses on developing important new legal insights and ideas, and then combining them into effective litigation, legislative, regulatory, and benefit design strategies for his clients. The representative matters described below offer a sampling of the important and challenging assignments he has handled.

Before joining Covington in 1991, Richard served as Associate Benefits Tax Counsel at the Treasury Department, where, together with his colleagues at the Treasury Department and the Internal Revenue Service, he was responsible for developing federal tax legislation and regulations governing employee benefits and executive compensation.