Real Change
 
   
 
 
Home
About
Get Involved
Giving
Advertise
Subscribe
Search
Archive
Links
Contact
 
 
 
Unsteady Labor Ready
Temp Workers want a fair deal; unions want to help them get it
by Manny Frishberg

It's been many years since I had to do temp work - a long time since I had to get up before dawn, line up with a bunch of other guys, and watch my breath condense under the glow of the streetlamps while waiting for a chance to spend several hours at hard labor for little more than minimum wage.

A long time has passed since those days, but the impressions are still strong in my mind: the feeling in the pit of my stomach from not being sure that there would be enough work to go around that day; the realization that not getting on meant not enough cash for food that week, or not being able to pay the light bill before the electricity was turned off.

So it wasn't just because I am a reporter and there was a story to cover that I got up at 4 in the morning a couple of weeks ago to meet up with members of the AFL-CIO's local organizing arm, Seattle Union Now, and ask Labor Ready's temporary employees how they like their work.

We got to the White Center Labor Ready office just after 5 a.m., before any of the roughly two dozen workers who came in for a job before 7 a.m. turned up. In less than a half-hour the place was, if not bustling, at least reasonably active. Workers coming into the store didn't fit any single stereotype. Judging by appearances, they ranged in age from their early 20s to well past 50 or older. Some came by bus, others were dropped off by friends or came in their own cars and trucks. The men (almost all were men, at least in this location) were of every race.

Their stories were as varied as their appearances. One man who talked to me said he was working at Labor Ready as a second job. He'd come in at 5 a.m. for dispatch to construction laborer jobs after spending the night shift working on the phone lines for a local airline. "I have two kids that I have to feed," he explained, "and they eat every day." He had no problem with the wages they were paying him because he was on a "PW job," meaning that he was working under a government contract that guaranteed him the prevailing wage for the industry in this area. He said he was getting $12.67 an hour.

Most of the other guys who answered the survey either did not know what they would be paid, or were getting around $6.50 or $7.00 an hour. For those that knew, the pay rate was not too much of an issue, although they indicated that they would not turn down an additional dollar or two an hour in their paycheck.

The paycheck itself was another matter. Some people complained that instead of being given cash as promised, they were issued vouchers that had to be redeemed through the Labor Ready ATM, at a cost of $1.50 per transaction plus whatever change is left over. The machines only dispense whole dollar amounts. If you don't have a bank account, the cash machines are the only practical way of getting money. Labor Ready spokespeople defend the system as "a convenience for their employees." This summer, the practice was upheld in a Georgia state court.

The same survey was being conducted at other Labor Ready locations around the city. Gretchen Donart, who coordinated the surveying for Seattle Union Now, says each different locations has its own unique character. At one site, most of the laborers were regulars. At another, most were new in town, living out of their vehicles. Often, they indicated that this was their first day at the day-labor agency, and they did not know what to expect.

Regardless of their individual circumstances, they could expect more or less the same. For starters, their wages for the day would be roughly half what the contracting company paid Labor Ready. The starting wage for new workers was $6.50 an hour, with raises of 50 cents to $1 for consistent work. Men who knew said Labor Ready usually got $13.75 an hour for their work.

Labor Ready has had its ups and downs in the ultra-fast roller-coaster economy of the last decade. Begun in Tacoma in 1989 by former Dick's Restaurant owner Glenn A. Welstad, today the company has an estimated 840 dispatch offices in North America and Great Britain, including all 50 states, Canada and Puerto Rico. In 1998, Labor Ready hired (and at the end of each day, let go of) some 533,000 workers in fields such as construction, landscaping, and light manufacturing, who were dispatched by Labor Ready to about 255,000 customers.

Between 1997 and 1998, Labor Ready's revenues nearly doubled, from $335 million to $607 million. Stock prices went through the roof, rising an explosive 1400 percent from 1995 to 1999, before dropping by 400 percent in the last year as same-store sales also took a sharp dip, as a result of cuts in the company's own office staff. Welstad, who still owns an 11 percent stake in the company, resigned as chairman earlier this year after taking an unauthorized loan of $3.5 million from the company to cover his own stock losses.

Donart says the surveying will continue, both in Seattle and in Tacoma, along with a petition drive to get workers to sign on to demands for safer working conditions and better wages. The effort will culminate in Tacoma on October 25, where organizers hope to bring hundreds of Labor Ready's workers to deliver the petitions to the annual stockholders' meeting. The AFL-CIO, which owns over 500 shares of company stock, has the right to be heard there.

Organizing workers in a business where the employees are hired anew each day and where the vast majority see themselves as moving on in a couple of months is obviously a daunting task. But members of the building trade unions, concerned about the increasing use of day laborers to replace their members, are hoping that by standing up for these workers now, eventually, they will all stand together.
 

 

 

 

       
Real Change News
2129 2nd Ave.   Seattle, WA 98121
Tel: 206.441.3247    Email: rchange@speakeasy.net
Real Change is a member of the North American Street Newspaper Association
and the International Network of Street Papers.
Problems with the site? Contact webmaster@realchangenews.org