The Center for a Changing Workforce
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Are Good Jobs Compatible with a Contingent Workforce?
The Center for a Changing Workforce
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What is the Changing Workforce?
Nonstandard or alternative work arrangements: temporary contract leased on-call independent contractors part-time
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How big is the Changing Workforce?
•25 million part-time workers•10 million independent contractors•1.2 million temp agency workers•800,000 contract workers•Totals 25% of workforce—over 30 million workers.
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Nonstandard employment is growing
Staffing firm employment grew 230% 1990-2007 to 2.6 million.
Staffing firms projected to add 3/4 million new jobs 2006-2016.
Contingent workforce has become a “cushion” for rest of workforce—growing first in expansions, cut first in recessions.
Temps Become Permatemps
Contingent—meaning short duration, but many workers are “permatemps”
34% of temp agency employees on same assignment for more than one year.
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Job Quality: Comparing Temp to Regular Jobs
Wage 1/3 average median income ($20,000 vs. $60,000)
8% have employer insurance vs. 56% of regular workers
4% are covered by employer pension vs. 48% of regular workers
Not eligible for other benefits: paid leave, childcare, etc.
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Do Temp Workers Prefer Temp Jobs?
56% of temp workers would prefer regular employment.
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Why employers use nonstandard workers
More flexibility Reduce costs Less responsibility for
employees
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COMFORCE has helped some clients cut labor costs by as much as 50%.
Your Costs without Comforce: Your Savings with Comforce:
How Payrolling is Sold to Employers:
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Kelly Services – less than 1% Insured?
In 2002, Kelly Services had approximately 500,000 US employees.
Kelly’s ERISA reports for 2002 claim a total of 3,606 insurance participants.
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Employer strategies to create a 2-tier workforce
“Payrolling” employees through staffing firms (called temp, contract, leased)
Short-term temporary employees. Mislabeled “independent contractors.” Moving to a part-time workforce. Outsourcing and insourcing
Contingent work and Warehousing
Use temp agencies and other staffing firms for payrolling.
Some use “Vendor-on-Premise” (VOP) strategies
Flexibility and cost savings
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Goods Movement Workforce: different models
Port drivers as “independent contractors.”
Warehouse workers – temp workforce.
Delivery services – Fed Ex’s “independent contractors”
Retail workforce – part-time
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Wal-Mart’s Part-time Army
1/3 part-time workforce – 400,000 employees
Defined as working less than 35 hours a week
12 months wait for insurance coverage and no family coverage
Key Legal Concepts
Common law employees – who’s the real employer?
Joint employer status – there can be two or more “employers” for legal purposes
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Federal Policy Options
Increase access to employer-provided insurance.
NLRB Action to allow “joint employer” status.
Examine ERISA policies on benefit plans.
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State Policy Options Employer health care “responsibility”
legislation. Modify state laws to limit “temporary”
employment. State crackdown on worker’s comp and
unemployment scams. Living wage legislation. Public subsidy/investment labor
standards.
Warehouse work doesn’t have to mean bad jobs
Industry has been hidden—time to bring it into the open.
Tools: workplace organizing, coalition-building, policy work, and legal challenges.
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