Are Good Jobs Compatible with a
Contingent Workforce?
The Center for a Changing
Workforce
The Center for a Changing
Workforce
1
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
2
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
3
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.
The Center for a Changing
Workforce
4
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
How Payrolling is
Sold to Employers:
COMFORCE has helped some clients cut labor costs by as much as 50%.
Your Costs without Comforce:
Your Savings with Comforce:
The Center for a Changing
Workforce
9
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
10
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
The Center for a Changing
Workforce
11
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
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
The Center for a Changing
Workforce
14
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
Federal Policy Options



Increase access to employerprovided insurance.
NLRB Action to allow “joint
employer” status.
Examine ERISA policies on
benefit plans.
The Center for a Changing
Workforce
16
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.
The Center for a Changing
Workforce
17
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