Labor leaders praise Mamdani's Economic Development Corporation picks

Labor leaders are welcoming Mayor Zohran Mamdani's appointments of former First Deputy Mayor Anthony Shorris as president and chief executive officer of the New York City Economic Development Corporation and former Federal Trade Commission Chair Lina Khan as chair of its board, saying the selections signal a new direction for an agency long associated with major real estate deals and corporate investment. 

The appointments, announced July 22, come after months of speculation over how Mamdani would reshape the city agency responsible for overseeing many of New York's largest development projects. The administration has said it wants EDC to focus more heavily on affordability, public investment and ensuring economic development benefits working New Yorkers.

New York City Central Labor Council president Brendan Griffith praised the selections, saying they represent a meaningful shift in the agency's priorities.

"Mayor Mamdani's appointment of Tony Shorris and Lina Khan demonstrates New York City EDC moving in a positive direction," Griffith said in a statement. "Their leadership, often focused on those who have been left behind in our economy, is crucial for a city focused on affordability. We look forward to collaborating with Tony Shorris and Lina Khan to lift the floor, create family-sustaining union jobs, and grow the economic activity of communities across the five boroughs."

The appointments also drew praise from the city's construction unions.

"With the expertise of President Shorris and Chair Khan at the helm of NYC EDC, New York City has a real opportunity to redefine its vision for economic development to one more actively rooted in economic justice for working people across the five boroughs," said Gary LaBarbera, president of the Building and Construction Trades Council of Greater New York. "The Building Trades look forward to bringing this new era to life to ensure public investment delivers meaningful public benefit and creates opportunities for our members and all New Yorkers working to support their families and maintain roots in their communities."

The endorsement reflects organized labor's hope that EDC will place greater emphasis on job quality and labor standards when financing development projects and distributing public subsidies. 

One immediate priority for the agency will be helping implement Mamdani's plan to open one city-operated grocery store in each borough, part of the administration's broader affordability agenda.

'Make life materially better'

Khan, who became nationally known for aggressively pursuing antitrust cases as chair of the Federal Trade Commission under President Joe Biden, will lead the EDC board in an unpaid role. Khan said she hopes to ensure the city's economic development strategy advances affordability and resilience, adding that EDC can help "make life materially better for New Yorkers."

Her supporters have argued that stronger competition can benefit workers by expanding employment opportunities and preventing dominant companies from using market power to suppress wages or limit worker mobility. 

During her tenure at the FTC, the agency sought to restrict noncompete agreements and pursued cases against several of the country's largest corporations.

Although Khan will not have direct authority over federal antitrust policy in her new role, labor advocates see her appointment as a sign the city may place greater scrutiny on whether publicly supported development projects benefit workers and small businesses rather than reinforcing corporate concentration.

'Mixed message' for business groups

Shorris, who will oversee EDC’s day-to-day operations, previously served as first deputy mayor under Bill de Blasio, overseeing roughly 350,000 municipal employees and a $100 billion budget. During his tenure the city implemented paid parental leave for municipal workers and expanded paid sick leave protections for millions of New Yorkers.

"I'm honored to take on this role at a moment when New York is asking bigger questions about who its economy is for," Shorris said. "I look forward to working with businesses, labor and communities to grow an economy that all New Yorkers can share in."

Shorris' appointment has also drawn scrutiny because of his recent work as a partner at McKinsey & Co. He joined the consulting firm in 2021 after leaving City Hall, and during the de Blasio administration helped oversee a $27.5 million McKinsey contract to develop an algorithm intended to reduce violence at Rikers Island.

The program was abandoned in 2022 after violence at the jail complex continued to rise.

The juxtaposition between the two hiring choices is particularly notable because Khan has publicly criticized governments' reliance on outside consultants, arguing that excessive dependence on firms like McKinsey can weaken the public sector's ability to build its own expertise.

Steven Fulop, president of the Partnership for New York City – a nonprofit that facilitates business between city government and the private sector, praised Shorris as “well-suited” for the role but said Khan’s appointment created uncertainty among business leaders.

"The announcement of the new chairperson of the NYCEDC today sends a mixed message to the business community," Fulop said. "Lina Khan's reputation has been built on an adversarial approach to large enterprises at the federal level, whereas NYCEDC's mission has always been to support the growth and investment in NYC."