The Center for a Changing Workforce 1 Are Good Jobs Compatible with a Contingent Workforce? The Center for a Changing Workforce

2 What is the Changing Workforce? Nonstandard or alternative work arrangements:  temporary  contract  leased  on-call  independent contractors  part-time

The Center for a Changing Workforce 3 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.

The Center for a Changing Workforce 4 Nonstandard employment is growing Staffing firm employment grew 230% to 2.6 million. Staffing firms projected to add 3/4 million new jobs 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. The Center for a Changing Workforce 5

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. The Center for a Changing Workforce 6

Do Temp Workers Prefer Temp Jobs? 56% of temp workers would prefer regular employment. The Center for a Changing Workforce 7

Why employers use nonstandard workers More flexibility Reduce costs Less responsibility for employees The Center for a Changing Workforce 8

9 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:

The Center for a Changing Workforce 10 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.

The Center for a Changing Workforce 11 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 The Center for a Changing Workforce 12

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 The Center for a Changing Workforce 13

The Center for a Changing Workforce 14 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 The Center for a Changing Workforce 15

The Center for a Changing Workforce 16 Federal Policy Options Increase access to employer- provided insurance. NLRB Action to allow “joint employer” status. Examine ERISA policies on benefit plans.

The Center for a Changing Workforce 17 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. The Center for a Changing Workforce 18