Warehouse Workers Abused By Walmart and Others
The struggle that workers face at the NFI warehouses in Chino, Calif.
A growing industry of temp agencies supplies -- and exploits -- workers that move the products sold by big box stores like Walmart. In sprawling warehouse areas in places like California and Illinois, a new wave of so-called 'logistics' companies hire temp workers to run warehouse distribution facilities that get products from manufacturers -- mostly overseas -- to stores like Walmart. The logistics companies hire large workforces on a daily basis, paying them low wages, giving them no benefits and putting them in grueling working conditions that lead many of the best workers to suffer from debilitating injuries that end their careers. The jobs are frequently given to African Americans and immigrants from Latin America.
Companies like Walmart hire logistics companies who then subcontract out to smaller companies who directly employ the warehouse workers, adding layers of bureaucracy that prevent the big box companies from suffering any negative blowback if the workers exploited or treated illegally.
Walmart may have been the end beneficiary of Dickerson's sweat, but the big-box retailer wasn't directly responsible for her low pay or her aching body. That's one of the many benefits to an employment arrangement based on outsourcing and subcontracting: The corporation at the top indemnifies itself from any unpleasantness at the bottom, thanks to the smaller corporate players in the middle. Many American companies have woken up to this fact, with broad implications for the future of blue-collar work.
"It seems to be spreading like wildfire," Nelson Lichtenstein, a professor of American labor history at the University of California, Santa Barbara, says of such outsourcing, particularly as it relates to temp workers like Dickerson. "All of these companies, wherever they possibly can, they want to create a workforce that doesn't work for them. The question is, Why? What is the incentive?"
"They're smart," he says. "They run the numbers."
...
Such subcontracting enables corporations to essentially take workers off their books, foisting the traditional responsibilities that go with being an employer -- paying a reasonable wage, offering health benefits, providing a pension or retirement plan, chipping into workers' compensation coverage -- conveniently onto someone else. Workers like Dickerson, of course, aren't accounted for when Walmart touts that more than half of its workforce receives health coverage.
Many of the workers are assigned individual truck to unload during a day and are paid based on how many items they unload, regardless of how heavy the boxes on the truck happen to be. Supervisors closely watch over the workers and demand faster and faster work under the threat of loss of work, particularly during the holidays. Jobs rarely have any security and workers that call in sick or injured frequently lose their jobs and most have no sick or vacation days. Because of the piece rate for pay, workers have no stability in wages and can be sent home with no pay if there aren't enough trucks to unload. Because of the high unemployment rate, any workers that complain, try to unionize or don't work hard enough are quickly replaced.
Female workers face additional obstacles, including sexual harassment and work conditions that don't provide enough break time, creating conditions that lead to increased chances for bladder infections.
Some companies, like Costco, refuse to use temp workers in their warehouses:
Costco's well-earned reputation for treating its in-store employees well carries over to its warehouse. The Costco warehouse does not rely on temp workers. It hires employees directly, it pays pretty well and it has a safety representative and even stretching classes. Despite all that, the company still manages to provide some of the lowest prices available to consumers.
"We tend to not outsource even if we could save money by doing it," says Richard Galanti, Costco's chief financial officer. "We recognize it might cost more but we think it's the right thing to do. ... Everyone in the building feels like they're employed."
Many hoped that the warehouse industry would replace the well-paid manufacturing jobs that have been shipped overseas in recent years. The rise of the temp worker has prevented that from being as widespread as it could've been.
There are now more than 125,000 direct-hire, full-time jobs in the Inland Empire's logistics industry. Available data makes it difficult to know just how many temp jobs there. Husing doubts it's more than 10,000. Others believe it's several times that number -- perhaps even half of all jobs in logistics, according to Warehouse Workers United, a union-backed group that now advocates on behalf of the area's lowest-paid warehouse workers. (Husing dismisses the group's numbers: "The people who throw that stuff around are ideologues. They don't want that sector to survive because they consider it to be dirty.")
The group says the number of temp jobs in the region has skyrocketed in the last two decades, thanks largely to the explosion in the number of warehouses. The industry relies so heavily on temp work that many temp agencies actually have offices inside the warehouses themselves.
Sheheryar Kaoosji, an organizer with Warehouse Workers United, says a decade ago, the ratio of direct hires to temps was 80 percent to 20 in many warehouses.
"Now, it's the opposite. And it's accelerated with the [economic] crash," Kaoosji says. "The way that these guys work -- the way a Walmart operates -- every year they're going to push costs down on each of their contractors. Every year, they're coming back, 'This is going to cost less.' Every year you do that, it's going to have an effect. The conditions are going to go down.
"At this point, the wages in some of the facilities have gone down below the federal and state minimums," he says.
Many of the logistics companies, it seems, want a high turnover rate in order to keep wages down:
But about six months in, he says he started to understand how everything worked by design. He was shocked by the warehouse's turnover rate, as new workers constantly came and went, often leaving under bad terms. He guesses the average worker lasted three months, many of them eventually being "pointed out." As in many of Joliet's warehouses, he and his colleagues were working under a demerit system, receiving points for being tardy, missing shifts or not "making rate." Once you hit 10 points, you're gone, he says.
He now argues that workers don't last in part because they're not supposed to. New workers, after all, are cheaper workers. And he also says the little-known temp agencies are there largely to facilitate the churn.
As with many other aspects of corporate greed seen in recent years, there is no reason for the companies to pay workers as poorly as they do:
"Despite the fact that these workers are paid poverty-level wages, we estimate that about a trillion dollars comes through Chicago on an annual basis," says Meinster. "That's about $6 million per warehouse worker. Each worker is responsible for moving $6 million worth of goods through that supply chain. These are the workers who, collectively, if they don't show up for a day, these companies would stand to lose a lot of money.
Workers responsible for millions of dollars of goods moving through the supply chain are given sub-living wages to do backbreaking work under terrible conditions.

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Hasa Diga Eebowai
Is and should be are 2 different questions. And actually, it's not always legal.
but this time I do. Walmart doesn't own a damn thing until it is delivered to them. The people running these supply chains are suppliers and not the merchants. I note that Mr Quinnell is, as always, prepared to assign these things to "corporate greed" by-passing completely the consumers who inevitably select the lowest cost option when selecting point of purchase. It is consumers who are driving this. I wonder where these low wage workers themselves choose to shop?
Hasa Diga Eebowai
Yes, consumers ultimately drive it by choosing lowest cost options. But as a society, we have some say in what the floor for how people are treated and compensated by thier jobs is, and in turn, just how low the floor on prices can go.
And I can tell you from personal experience that the subcontracting web that has developed over the past few decades is written and directed by the end user companies, not the subs. The subs are set up to cater directly to the needs of the master corps, usually with only the barest minimum formalities in terms of reporting chains and HR. The principles control hiring and firing in every way but on paper, and the subs cease to exist if the principles stop using thier services. The subs are means of cutting as many corners and costs when it comes to how workers are handled as possible while giving the principles plausible deniability and the ability to say they "never" do layoffs, they just end contracts with subs.
Labor standards and a proper minimum wage and the enforcement to match are key to answering these problems. That's what good government is for. In your industry I could see a further problem. It's not as if the government could set any sort of wage scale beyond the minimum wage and make it work. Until demand for knowledge workers drives up wages then the competition for jobs will be cut throat.
Hasa Diga Eebowai
The problem is that in almost every industry but education and maybe construction, employers have offloaded all the early career spin up and training to the worker. The job won't train you; you have to incur massive debt in school, then slog through 5-10 years of low wage treadmill jobs before being concidered worthy of a job that treats you like a human. The thing is, not everyone is cut out or lucky enough to make it off the treadmill. You no longer have apprentices and journeymen, you have disposable contractors and the 'jobbed', if you will. This is why things are so messed up, and why government needs to get involved in returning humanity to the low end of every career path.
Tell me brother. My engineering degrees were worthless when I graduated into the middle of a recession. I like the way the Germans and some of the other Europeans run their apprenticeship and technical training programs. Much more sensible.
Hasa Diga Eebowai
people choose to be poor so they can only afford crap.
Ah yes, the wonderful neo-liberal blaming the victi... err I mean "empathy"
CTHULHU 2012 "Why vote for a lesser evil?"
Not only is Walmart protected from any responsibility for these abuses, they can blame the consumer for driving the whole filthy system. Thanks, Pete!
"Someday somebody related to some of these sufferers, these victims, these collaterally damaged souls, may try to kill you. And I have to tell you, I think you’ll have it coming." - Christopher Cooper
those low waged assholes forced him to write that about them.
CTHULHU 2012 "Why vote for a lesser evil?"
Their logic dictates that an unpaid or underpaid consumer trying to make a budget is to blame for poor Walmart being forced at the point of a gun to to subcontract to these nefarious, unknown companies.
"Someday somebody related to some of these sufferers, these victims, these collaterally damaged souls, may try to kill you. And I have to tell you, I think you’ll have it coming." - Christopher Cooper
No, simply that the point of corporations is to seek economic effeciency within the system of laws they exist in, and that consumers are similarly motivated by cost above almost anything else when making purchasing decisions, so untill these things are made illegal, they will happen. The whole point of a corporation is to reduce costs as much as possible. We need to change what is possible through law.
corporations exist to maximize profit.
Efficiency is usually an implication/expectation derived from that definition. Which more often than not it is disproved by reality. So yes, Wal Mart is a very profitable corporation, but it is far from being a maximizer of efficiency.
CTHULHU 2012 "Why vote for a lesser evil?"
Well, maximizer of economic effeciency, not necessarily human effeciency.
"economic" and "efficient" are technically synonym. Which sort of invalidates a big chunk of the modern "science" of economics. ;-)
CTHULHU 2012 "Why vote for a lesser evil?"
The notion that "the greedy" consumer is to blame is laughable . There is a culture of greed in this country alright , and it starts at the top , the ones at the bottom of the chain suffer for it . The haves are the ones benefiting form cheap labor , from part time , minimum wage , no benefit , jobs . The shareholders demand more $ , the corporate board members demand more, they lay it on the managers who in turn demand more from those positioned under them , right on down the line , the powerless worker at the very bottom suffers and pays for it . In most cases the extra profits do not make for cheaper / better quality goods and services for the consumer but for more $ in the pockets for those at the top of the chain .It was a long time ago but there was a time when people at the top of the chain ( and people in general ) had a conscience , a sense of shame and they had ethics , they had self restraint and limits , today if you exhibit those characteristics in your business decisions you are considered a bad CEO , a bad manager , your job is in jeopardy . Balls out unregulated Capitalism at it's worst .
"The poor have sometimes objected to being governed badly; the rich have always objected to being governed at all."
There is a big difference between one who is greedy and one who is needy . The
greedyneedy consumer who is struggling just to survive , struggling to support his family , he ( or she ) has no option but to go as cheap as he can , that is not being greedy , that is common sense , it's survival . The greedy haves , they do have options , they opt to do what ever it takes to get / have more , no matter who they hurt , they cannot get / have enough . It's a sickness ."The poor have sometimes objected to being governed badly; the rich have always objected to being governed at all."
I pay my workers a living wage so that they can
afford to buy the cars they manufacture for me!
So you approve. Nice.
This is probably legal too: "Each tree had 56 oranges. If eight slaves pick them equally, then how much would each slave pick?"
far left loon >.<
you make the logical leap into empty space. I neither approve nor disapprove. I noted above that whether you call it corporate greed or not doesn't change the fact the consumer demand for the lowest price (inevitable in times of financial hardship) that is driving this process. The greedy consumers want to pay less and won't shop at places that cost more. Now any given merchant could stand on principal and refuse to compete. Very noble. They can sell that to their own employees when they are laying them off further down the line.
Hasa Diga Eebowai
I'm only basing my conclusion on your perpetual propensity to defend scumballs for just about anything and everything they do if you think it's legal.
Edit: I meant, "and it's all perfectly legal."
Here are a couple of articles for your perusal (gratis)
Wage Theft at Wal-Mart Warehouses? Fourth Lawsuit in Two Years Filed on Behalf of Underpaid Workers
Warehouse workers at a subcontractor for the country's largest retailer were paid less than minimum wage in some cases for their labor.
http://www.alternet.org/story/153226/wage_the...
The Nasty Truth About the Online Retailers You Probably Used for Your Holiday Shopping
The workers who box the stuff we order online are often treated terribly.
http://www.alternet.org/economy/153556/the_na...
far left loon >.<
seems to offend you quite a lot. Is anything I said untrue about consumer behavior? Are the consequences of not being competitive in the retail sector not the loss of jobs to more competitive organizations? You recall, no doubt, what happened to American Airlines when they didn't get their cost structure in line with industry standards? They tried for years to operate with more favorable union contracts than the rest of the industry. And the consumers killed them. What I don't get is why you and some of my other critics think I'm evil for pointing out the truth. I solve problems for a living and you don't do that by sticking your head up your ass and recognizing where the real problem is and the real solution lies.
Hasa Diga Eebowai
Are the consequences of not being competitive in the retail sector not the loss of jobs to more competitive organizations?
So you're saying they (big box stores) have to do it (even if not all of it is legal), to retain shoppers, so they can retain employees. It's a win-win all the way around. Wow.
far left loon >.<
More of a lose-lose, really.
Although the vague allusions to illegality are ridiculous. Absent a union contract that forbids it you can outsource any function you like. A lot companies haven't handled their own payroll or accounts payable and receivable for years. They contract those functions out. Even with a union contract it isn't "illegal". It's a breach of contract.
Hasa Diga Eebowai
Although the vague allusions to illegality are ridiculous.
And this is how I reach my conclusion that you tacitly approve.
far left loon >.<
You are confusing illegality with imorality. They are not synonymous. The laws need to be changed, created, and enforced to bring them in to closer alignment.
I understand it's legal, or they've skirted laws well enough to give everything a facade of being legal, or difficult to prosecute, and they have an army of highly paid lawyers. It's the gymnastics Peter uses to make his points I question. I'm very curious how his mind works.
far left loon >.<
.
to pay an equal wage to women because it Discrimated Against Too Many to bring a viable lawsuit before the court.
Couldn't be the greedy owners and shareholders who are making the demands could it ? Nahhhhhhhhhhh , it's "the greedy consumers " driving this , the consumer who is struggling just to feed his or her family , struggling just to survive ... it's their greed . Interesting perspective .
"The poor have sometimes objected to being governed badly; the rich have always objected to being governed at all."
The pension plans where people vest the money they hope to retire on. Those greedy buggers?
Hasa Diga Eebowai
having a pension fund as its major/principal stockholder? I am curious to know.
CTHULHU 2012 "Why vote for a lesser evil?"
And guess what? Pension fund managers like nice fat profits and put their investment funds where they find those profits. What do you think they do invest in? How many of them got caught with their pants down when their high yield collateralized mortgage investments blew up in their faces. Everybody bitched about AIG getting a bailout but AIG was the insurers of all those investments and without the TARP funding they got pension funds all over the world would have been wrecked or had to curtail their payouts. Tell that to the pensioners.
Hasa Diga Eebowai
I thought my question was rather simple and straightforward.
Should I repeat it?
CTHULHU 2012 "Why vote for a lesser evil?"
http://www.calpers.ca.gov/eip-docs/about/boar... It did take a whole thirty second to find the quarterly report for this large public pension fund. Those equities they speak of is stock in traded companies. And every pension fund has at least some money in equities.
Hasa Diga Eebowai
So let's try this again: Do you know any example of a publicly traded corporation having a pension fund as its major/principal stockholder?
I am simply asking for an example of a publicly traded corporation whose stock is held in a major or principal position by a retirement fund.
You apparently interpreted that question as a request for the financials of a pension fund for public workers. Sure, my original question had the keywords "public" and "retirement fund," the rest of the words in the question are needed to provide the correct/intended meaning, however.
CTHULHU 2012 "Why vote for a lesser evil?"
Walmart Blacklisted By Major Pension Fund Over Poor Labor Practices
http://www.democraticunderground.com/101419151
See, Peter, you may think I pull my opinions out of my ass, but I actually get around the nets quite a lot and read stuff.
far left loon >.<
European pension fund. And they weren't blacklisted by a whole lot more. Lots of pension funds won't invest in specific companies whose practices they don't like. Union pension funds won't sometimes. And sometimes they will depending on the yields they need to meet their obligations. I don't care either way. What I object to is your near constant characterization of me as supporting things without the slightest shred of evidence, because I happen to know shit about the way the financial systems work. You're too busy sometimes finding people to blame than bothering to understand how things actually work.
Hasa Diga Eebowai
Yes, a European fund. The point is, these practices stink and they're taking a stand. I think you know this stinks too. I wish sometime you'd actually say that. Once even.
People come to progressive blogs to discuss issues. Kenneth posted this thread because he thinks it's an issue worth discussing. So do I, and well beyond it's legal or it's not legal.
far left loon >.<
I'd direct you to his response to one of my posts made earlier.
Probably first of many to point this out, but this is standard practice in tech too. And call centers. If you call Verizon about your phone not working, you will probably talk to someone who works directly for Verizon initially (they tend to only let direct employees actually handle billing or orders), but when they escalate you to tech support, you are probably talking to a person working for a staffing firm that places workers at a subcnotracting call center that contracts with Verizon. Same goes for computers. Places like Microsoft (and probably Apple too) might have employees as the face of the company, but the majority of workers are contractors who have no benefits they don't pay for directly, no job security, and get treated like second class citizens. When I was there, I heard at one point that there were as many as 4 contractors for every actual employee.
Of course, this whole plausible deniability system that works for MS, Verizon, and Walmart works for the government too. I know someone who works in public mental health for a company that contracts for the state government. If the government paid as poorly, overworked workers as much, provided as poor benefits and job security, provided as poor client services, and violated so many employer and public health regulations as this company does, it would be front page news. But its just a private subcontractor, so for the state, its a low cost line item, and for the newspapers, its a private employer.
or so they say. sounds like some of that "shrinking the size of govt." baloney, how having a layer of profit on the top saves tax dollars is beyond me, but we all know, lower pay, no benefits. this is some real repub bullshit.
Buy local.
statusquObama, change you can only pretend in
been there done that, building tires, i'll admit it, didn't last six months. christ, it is just blatant. this is grapes of wrath territory, the wholesale exploitation and trashing of human beings. with cheap labor from overseas, and a glut of unemployed here at home workers will see more and more of this. the aristocracy had better keep the food coming, people with full bellies don't revolt, people get too hungry? that's a horse of a different color, pay no attention to that man behind the curtain.
I do, however, frequent Costco, mainly for my prescriptions (which tend to be cheaper there than at other places), but also for general shopping. And not just when I need a 55-gallon drum of pickles, either. :-)
"Whatever your particular problem is, I promise you, the Republicans are not the least bit interested in solving it. They are interested in two things, and two things only: making you afraid of it, and telling you who's to blame for it."
Though Costco did just engineer the wholesale takeover of the government liquor business in Washington this last election... If you want a model of corporate citizenship, they might not be the best place to start.
And the government in liquor sales is a good thing? I used to live in Wa., and now live in Ca.
n Wa. the liquor is 30-50% higher than in Ca. and the selection is twice as good in Ca.
When we have a party, we stock up at Costco....
And there is no reason to assume any of that will change in WA now. They effectively engineered a private monopoly out of a public industry, while simultaneously choking off more funds from the state right when it needs them the most. There's no incentive for them to improve selection or drop prices at all.
run by the state in Washington State?
Those COSTCO bastard!
CTHULHU 2012 "Why vote for a lesser evil?"
Not non-profits, but the profit went to the state. Now it will go to Costco, Safeway, and a few other large retailers that choose to put in a booze section. Small retailers are basically shut out; there's a provision in the law that no store under 10,000 sqft can sell liquor.
Washington State then?
Did liquor store employees over there have at least access to the same benefits/retirement plans as other state workers?
CTHULHU 2012 "Why vote for a lesser evil?"
Yup. I have a friend who's losing his job at a liquor store, actually. Costco said they would hire any and all state liquor store workers that applied. Of course, for less pay, fewer benefits, and with less job security.
Most stores were state owned and operated, but there were a few stores that sublicensed from the state (mostly in small towns where a full single-purpose liquor store would not have been economically feasible).
... or that they're model corporate citizens. I didn't just fall off the turnip truck yesterday, after all. (It was three days ago.) Like everything in this imperfect world, it's a matter of degree.
"Whatever your particular problem is, I promise you, the Republicans are not the least bit interested in solving it. They are interested in two things, and two things only: making you afraid of it, and telling you who's to blame for it."
I know for sure that Walmart routinely do physical visits to garment factories in Bangladesh to assess worker conditions and will cancel a contract if they find any abuses. So looks like workers in my country are worse off then workers in Bangladesh?? And what is my congressional delegates are doing to remedy it? No wait - they went to a fundraiser by the Walton's - they are unavailable!!! These members of congress are worse than the hooligans running a parliament in a 3rd world country!!
Well, it's been documented that when they do those visits, the offshore companies just send all the children home for the day...
The corporation at the top indemnifies itself from any unpleasantness at the bottom, thanks to the smaller corporate players in the middle
american corporatism, 21st century edition
outsource, domestically/internationally, whatever--this helps free up capital for the parent org to reinvest, issue dividends, supply executive bonuses, what have you.
and, in the end, we sink further.
until people on the bottom start to get more of a share of the pie our drain-circling will continue to make me dizzy
In almost every retail store the delivery trucks come and someone has to remove the pallets , unpack the boxes and stock the shelves and get the merchandise on the floor , minimum wage , part time , not a single benefit , totally at their employer's mercy ... they work their asses off . These people are invisible to the public .Years ago these were full time jobs with benefits , but no more .
"The poor have sometimes objected to being governed badly; the rich have always objected to being governed at all."
Amazon.com while you're at it.
My sister-in-law works at Ross's main distribution warehouse in SoCal, and they used to have all Ross employees at a little over min wage, but the last few years they are hiring all temps and turning them over while firing their employees if they don't meet their quotas. Their goal seems to be all temporary workers.
This is not a separate warehousing company, this is the parent.
21st century New Speak for "Slave Labor".
"Civilized men are more discourteous than savages because they know they can be impolite without having their skulls split, as a general thing." -- Robert E. Howard
And they have made no contribution to paying forward for the future of the country or growth in democracy. They are the embodiment of the saying "greed is insatiable" and it is never satisfied. They did not earn the money, they inherited it. By ignoring the needs of its workers, the Walton heirs demonstrate how hollow they are as human beings. Their legacy is one of greed, arrogance and lust for MORE. I haven't purchased anything from Amazon since I learned abt their abuse of warehouse wkers in PA? They made pregnant women work in a 100 degree warehouse with broken ventilation. Just who in the hell do these people think they are?? The cowards hiding behind the corporate shield will be accountable for their conduct. It is not busines as usual. It is person to person. I really feel sorry for these pathetic souls that make the decisions that harm people. But, then Hitler's minions all pleaded innocent because "they were just doing what they were told". In their case, there may have been an excuse. Hitler may have executed those who did not follow orders. But the warehouse admin have no such threats hanging over their heads. There are no excuses for them. As there is none who took the shortcuts that caused the deaths of 29 miners in w. Va. They committed industrial murder and the investigation continues.
CarmanK
"Middle class societies don't emerge automatically as an economy matures, they have to be CREATED through political action." Paul Krugman.
I seriously despise them and their business practices.
NOBODY 2012
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