the center for a changing workforce 1 are good jobs compatible with a contingent workforce? the...

The Center for a Changing Workforce

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Are Good Jobs Compatible with a Contingent 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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