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Groundbreaking Bill in Illinois Would Give Temp Workers Equal Pay and Rights as Direct Hires

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Sweeping legislation introduced in the Illinois state legislature last month would dramatically improve pay, benefits and working conditions for almost a million of the state’s temp workers toiling in factories, warehouses and offices.

The Responsible Job Creation Act, sponsored by State Rep. Carol Ammons, aims to transform the largely unregulated temporary staffing industry by introducing more than 30 new worker protections, including pay equity with direct hires, enhanced safety provisions, anti-discrimination measures and protection from retaliation.

The innovative law is being pushed by the worker centers Chicago Workers’ Collaborative (CWC) and Warehouse Workers for Justice (WWJ), which say it would restore the temp industry to its original purpose of filling short-term, seasonal labor needs and recruiting new employees into direct-hire jobs.

Across Illinois, there are nearly 850,000 temp workers every year. Nationally, temp jobs are at record highs, with more than 12 million people flowing through the industry per year.

“Instead of temps just replacing people who are sick or coming during periods of higher production, they’re actually becoming a permanent staffing option,” says CWC executive director Tim Bell. “There’s nothing ‘temporary’ about it.”

Mark Meinster, executive director of WWJ, says there has been “an explosion” of temp workers in recent decades, especially in manufacturing and warehousing. “Those sectors are part of large, global production networks where you see hyper competition and an intense drive to lower costs. Companies can drive down labor costs by using temp agencies.”

CWC activist Freddy Amador worked at Cornfields Inc., in Waukegan, for five years. He tells In These Times the company’s direct hires start off making at least $16 an hour, but later get raises amounting to $21 an hour. As a temp, however, Amador was only making $11 an hour after five years on the job.

“As a temp worker, you don’t have vacation days, sick days, paid holidays”—all of which are available to direct hires, Amador says.

In These Times reached out to Cornfields to comment on this story. It did not immediately respond.

“Once a company is using a temp agency, it no longer has to worry about health insurance, pension liability, workers’ comp, payroll and human resources costs,” Meinster explains. “It also doesn’t have to worry about liability for workplace accidents, wage theft, or discrimination because, effectively under the law, the temp agency is the employer of record.”

This arrangement drives down standards at blue-collar workplaces, Bell says. “The company itself doesn’t have to worry about safety conditions because these workers aren’t going to cost them any money if they’re injured.”

“The safety for temp workers is really bad,” Amador says. “Temp agencies send people to do a job, but nobody trains them. Sometimes temp workers are using equipment they don’t know how to use, and they’re just guessing how to use it. I’ve seen many accidents.”

Under the new bill, temps like Amador would receive the same pay, benefits and protections as direct hires.

“This is landmark legislation,” Bell says. “There’s nothing like it in the United States.”

Last year, the Center for Investigative Reporting found a pattern of systemic racial and gender discrimination in the temp industry nationwide. Industry whistleblowers allege that African-American workers are routinely passed over for jobs in favor of Latinos, who employers consider to be more exploitable.

Discrimination can be hard to prove because staffing agencies aren’t required to record or report the demographics of who comes in looking for work. As Bell explains, applications often aren’t even filled out in the temp industry, but rather “someone just shows up to go to a job.”

The new bill would require temp agencies to be more transparent about their hiring practices by recording the race, gender and ethnicity of applicants and reporting that information to the state.

Furthermore, the bill includes an anti-retaliation provision that says if temp workers are fired or disciplined after asserting their legal rights, the burden is on the company and temp agency to prove that it was not done in retaliation.

“There’s this fundamental imbalance in the labor market that leads to a whole range of abuses and then non-enforcement of basic labor rights,” Meinster explains. “The changes we’re proposing in this bill get at addressing that structural issue.”

To craft the bill and get it introduced, CWC and WWJ received research and communications support from Raise the Floor Alliance, a coalition of eight Chicago worker centers. The Illinois AFL-CIO, National Economic and Social Rights Initiative, National Employment Law Project, Latino Policy Forum and Rainbow Push Coalition are among the legislation’s other supporters.

Though the Illinois government is still paralyzed by an unprecedented budget stalemate between the Republican governor and Democratic legislature, organizers are optimistic about the bill’s prospects.

“There’s potential for huge movement around this bill,” Bell says, citing the popularity of the presidential campaigns of Bernie Sanders and Donald Trump, which both touched on the theme of economic insecurity. While Trump focuses on jobs fleeing the country, Bell notes that “jobs here in this country have been downgraded.”

“We need to be talking about job quality, not only ‘more jobs.’ Both are important,” Meinster says. He believes existing temp jobs “could and should be good, permanent, full-time, direct-hire, living wage jobs with stability, respect and benefits.”

The author has worked with WWJ in the past on issues related to the temp industry.

This blog originally appeared at Inthesetimes.com on February 9, 2017. Reprinted with permission.

Jeff Schuhrke is a Working In These Times contributor based in Chicago. He has a Master’s in Labor Studies from UMass Amherst and is currently pursuing a Ph.D. in labor history at the University of Illinois at Chicago. He was a summer 2013 editorial intern at In These Times. Follow him on Twitter: @JeffSchuhrke.


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JOBS!

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The title of this post sounds great, doesn’t it? “JOBS!”

That is what I thought when I saw the headline on a Tea Partier’s facebook status; however, my initial excitement faded when I read the attached story (which appears to be a press release from Kohl’s that has not been modified by the AP):

MENOMONEE FALLS, Wis. (AP) — Kohl’s Department Stores says it plans to hire more than 52,000 holiday employees nationwide this season, up more than 10 percent from last year.

Kohl’s expects hiring an average of 41 employees per store. The Menomonee Falls department store chain has 1,146 stores in 49 states. Kohl’s will also hire about 5,700 seasonal employees for its distribution centers and credit operations unit.

The company says the 52,700 seasonal employees will work anywhere from a few hours to more than 20 hours per week. It plans to fill the jobs by mid-November. Typical jobs include cash register sales, stocking, freight processing and unloading trucks.

Seasonal temp jobs—that most likely do not pay anywhere close to a living wage. If you are hired as a cashier you would likely earn a little over $16k a year working at Kohl’s. As a seasonal temp employee you would not even earn that. You would earn around $8.00 an hour and maybe some commissions. Hardly what one would consider a “good job.”

But 52,000 new jobs … that sounds like a lot doesn’t it? Forty-one jobs per store. In Madison, Wisconsin, where I live, that amounts to 123 part-time jobs. Madison, over the last 20 years, has typically had an unemployment rate of between 2 and 3 percent and the rate is currently at 5.4 percent. Adding 123 part-time temp jobs is not going to impact the unemployment rate in Madison all that much.

The bottom line, not all jobs are created equal. We cannot get excited about seasonal temp jobs with low pay. We need good jobs that pay a living wage to get out of the economic morass brought on by trickle-down economics.

This blog originally appeared in Daily Kos Labor on September 20, 2012. Reprinted with permission.

About the Author: Mark Anderson, a Daily Kos Labor contributor, describes himself as a 44 year-old veteran, lifelong Progressive Democrat, Rabid Packer fan, Single Dad, Part-time Grad Student, and Full-time IS worker. You can learn more about him on his Facebook, “Kodiak54 (Mark Andersen)”


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Warehouse Workers Allege Wage Theft, Demand Pay Stubs

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kari-lydersenEmployees will march into Reliable Staffing office to demand billing records, highlight mistreatment

When Reginald Burnett started working in a warehouse unloading trucks of goods destined for Wal-Mart, he said he was told he’d make at least $10 an hour. But he soon realized that figure hinged on unloading a truck in three hours. Depending on how many things are in a truck and how heavy and unwieldy they are, unloading a truck can take two days.

Burnett, 32, soon found himself working 12-hour days, seven days a week, and taking home only $90-100 a day – less than $9 an hour, not counting copious overtime to which he should have been entitled under the law. He said he wasn’t the only one who realized his Friday paycheck from the agency Reliable Staffing “didn’t add up.”

Burnett is among workers who think they are victims of wage theft by the New Lenox, Ill., staffing agency. Reliable Staffing workers have contacted the group Warehouse Workers for Justice, which is trying to shed light on alleged wage and hour violations, unhealthy working conditions, extensive use of temporary labor and other unsettling aspects of the massive warehouse industry in Chicago’s southwest suburbs.

Today Burnett and other former or current Reliable Staffing workers and their supporters are marching into the company demanding copies of their pay stubs and billing records, to highlight what many workers say is erratic, deceptive or non-existent recordkeeping and transparency by the agencies that hire workers to staff warehouses for major multinational companies like Wal-Mart.

“It was everything that goes to Wal-Mart, from BBQ grills to tables to different types of book folders,” said Burnett. “A lot of it was heavy.”

George Johnson is among the former Reliable Staffing workers who never got straight answers about how much he was being paid. He said he was promised $9.25 an hour, but he said he sometimes got as little as $15 for a full eight-hour day during his three months at the company, paid piecemeal for unloading trucks, splitting pay with one or two other workers unloading the same truck. He said he was also told to report to the warehouse at 7 a.m., but wouldn’t start working until 8:30 a.m. or 9 a.m., without being paid for the waiting time.

“It was all screwed up,” said Johnson, 41, who struggled to support eight kids on the meager wages. “You spent all these hours working, unloading these big trucks, one after another after another. For nothing.”

Warehouse Workers for Justice, a campaign launched several years ago by the United Electrical Radio and Machine Workers of America (UE), last year released the study Bad Jobs in Good Movement: Warehouse Work in Will County that showed:

63 percent of warehouse workers were temps and that majority were earning below the poverty line…and one in four warehouse workers needed public assistance and many workers needed a second job in order to make ends meet.

Both Johnson and Burnett were temporary workers, and Johnson since then worked another temporary warehouse job. Burnett has been collecting unemployment since being laid off after about seven months, when his contract ended.

“When they want that order, they’ll say ‘that truck is hot,’” he said. “There are people waiting on the order, they need to complete it right away to get their money, so they make you work harder. But they don’t share the money with you. They are making big money, I kid you not.”

Warehouse Workers for Justice organizers have been meeting with Illinois state legislators to introduce legislation that would limit the number of temporary jobs in the industry, among other workers’ rights protections.
“People deserve permanent jobs,” said Tory Moore, a WWJ organizer who worked at the same warehouse for six years as a temp.

Burnett said he hopes more workers speak up about wage theft and other problems. He said many of the people working for Reliable Staffing have criminal records, something he thinks the company banked on.

“The job is so God-damned hard, most people they hire have felonies, they know most people won’t hire someone with a felony, so they know he’ll put up with it because he’ll have a hard time doing anything else,” Burnett said.

They are trying to prove to society that they’re capable of handling this kind of thing. Making their own money feels good, especially someone who came from the street, who never had anything in their lifetime. Now they don’t have to look over their shoulder, over their back, look out for the police.

They’re going to hold on to that job as long as they can. The people know they’re being cheated, but they don’t want to speak up because if you speak up, you lose your job.

About the Author: Kari Lydersen is an In These Times contributing editor, is a Chicago-based journalist whose works has appeared in The New York Times, the Washington Post, the Chicago Reader and The Progressive, among other publications. Her most recent book is Revolt on Goose Island. In 2011, she was awarded a Studs Terkel Community Media Award for her work. She can be reached at kari.lydersen@gmail.com.

This post originally appeared in http://www.inthesetimes.com on February 21, 2011.


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CNN Money Reporter Looking for Temp Workers

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When temporary hiring picks up, full time jobs are soon to follow. At least, that’s the way it’s supposed to work. But after this recession, that’s not happening. Temp jobs are booming, but where are the permanent jobs?

If you recently worked a temp job that you thought would become permanent, but didn’t, CNNMoney.com would like to hear your story. Email annalyn.censky@turner.com with your story and contact info, and you could be featured in an upcoming article about temporary jobs.


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