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Posts Tagged ‘additional pay’

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

Monday, February 13th, 2017

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.

United Workers Win WARN Act Victory in Baltimore ESPN Zone Case

Wednesday, January 23rd, 2013

kari-lydersenWhen the ESPN Zone restaurant in Baltimore’s touristy Inner Harbor development closed abruptly on June 16, 2010, about 150 workers lost their jobs. Most were paid low hourly wages with few benefits, barely making ends meet and relying on the busy summer tourist season to get them through the slow winter months. Because they’d only found out about the closing only a week earlier, they had little chance to find new employment for the summer.

In October 2010, United Workers, a grassroots advocacy group running a larger campaign for economic justice and human rights at Inner Harbor establishments, helped some of the laid-off workers file a federal lawsuit alleging violations of the Worker Adjustment and Retraining Notification (WARN) Act. The lawsuit named the Walt Disney Company—which owned the Inner Harbor ESPN Zone, as well as four other locations around the country that also closed in summer 2010—and its subsidiary Zone Enterprises of Maryland LLC, which operated the Inner Harbor location. On Jan. 3, 2013, more than two years after the lawsuit was filed, a U.S. District judge issued a ruling that United Workers see as an important victory, stressing the importance of the federal WARN Act and launching a process wherein workers will be able to collect additional pay due to them under the act.

The WARN Act requires that companies give workers at least 60 days’ notice of mass layoffs and mandates that if a company fails to give adequate notice it must pay workers 60 days’ worth of wages from the date notice is given. The amount is to be based on the worker’s average wages over the last three years or their pay rate at the time of closing. When the Inner Harbor ESPN Zone closed, Disney gave the workers “notice pay”—in the form of weekly paychecks and an end lump sum—and based the amounts on the employees’ earnings during the previous six months. But since the restaurant closed in June, that meant the notice pay was based on a slow season, not the much higher pay for long summer hours they would have actually received had they worked in June, July and August.

The lawsuit argued that this was a violation of the WARN Act, and U.S. District Judge Catherine C.  Blake agreed that workers were due additional pay, launching a second ongoing legal phase in which the pay due to each individual worker will be determined. Andrew D. Freeman, the attorney representing the workers, said they will also seek class action status, meaning all the laid-off workers could be eligible for compensation.

Emanuel McCray, who was a host at the Inner Harbor ESPN Zone, told In These Times that he loved his job and that it had inspired him to want to open his own sports bar and restaurant some day. But he felt betrayed and disrespected by his employers in the way the closing was carried out. “I felt disgusted with them,” McCray told In These Times. “I grew up as a kid watching Disney movies and dreaming of going to Disneyland. What happened killed all that. Now when I see Mickey Mouse or anything to do with Disney, I get really upset.”

Emanuel said that the not only was the pay rate unfair, but the company’s failure to give the workers advance notice was devastating because they couldn’t seek other jobs for the summer. By the time ESPN Zone closed, he said, “all the summer restaurant jobs were already locked up.”

McCray said some workers lost their homes and had to move to other cities with their families after the closing. He has struggled to find steady work since—he does D.J. gigs and was a service manager at Wal-Mart. He also does work with United Workers and the Waterfront Partnership, a company that works with city officials and business owners to promote sustainable development along Baltimore’s waterfront.  (A silver lining in the ESPN Zone situation has been that McCray thinks he’s found his true calling as a social justice activist, building on his college major in political science. He is considering running for elected office and otherwise working to improve the local community.)

Freeman, the workers’ attorney, told In These Times that the situation laid bare larger disturbing truths about “the disrespect this country shows to hardworking people in low wage jobs.”

“What Disney failed to pay these workers is a couple hundred thousand dollars,” he said. “Disney has probably paid more than that to its lawyers to fight this case—and to my firm in attorneys’ fees. So the lawyers end up making more money than the workers this law was intended to benefit, who have been waiting for two-and-a-half years and will wait some substantial additional time, when they’re the ones who really need the money.”

Freeman told In These Times that about 35 ESPN Zone workers showed up to United Workers’ initial meeting about the situation, and he realized that all of them combined probably made less per hour than he charges as an attorney. “There’s something wrong with our society,” he said, “when you can hire 35 of those workers for the cost of one hour of my time or the time of Disney’s lawyers.”

In its response to the lawsuit, Disney argued that the WARN Act allows temporary pay reductions of up to 50 percent without notice, and said the workers got more in notice pay than they would have in such a situation. But Freeman noted that the pay reduction provision of the WARN Act is only supposed to apply during a temporary downturn when the business is ultimately remaining open—not in a closing situation like ESPN Zone’s. In her decision, Judge Blake agreed with Freeman that the provision did not apply to the case at hand.

Blake also agreed with the plaintiffs in finding that Disney illegally tried to get out of paying some workers the full amount due under its own corporate severance pay provisions, by essentially subtracting the WARN Act pay from the additional severance due the employees (Disney’s written severance pay policy specifically says that notice pay given under the WARN Act will count toward the severance pay the company owes workers). “I found that one of the most offensive parts of this,” Freeman told In These Times.  “They wrote their severance plan in a way that explicitly compensated violating the WARN Act. As the judge said, that’s a violation of both the letter and the spirit of the law.”

Freeman said Blake’s decision should help strengthen the WARN Act for future litigation. “There’ve been arguments that ESPN Zone and some other employers have tried to rely on to avoid giving workers notice that the Act requires, or paying them less than their full wages if they did violate the Act,” he said. “The court in this case made clear that the Act means what it says.”

This article was originally posted on Working In These Times on January 15, 2013. Reprinted with Permission.

About the Author: Kari Lydersen, 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.

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