Filling factory jobs through temporary-staffing agencies the new normal
The biggest problem with this type of hiring is, as everyone knows, poor product, because the worker is not qualified enough and is no longer dedicated to the job or the company, just a 9 to 5 paycheck, the quality of the product is dropped to the same quality as outsourcing to countries like China!
Outsourcing to staffing agencies hides declines in manufacturing pay because staffing workers’ wages are not counted as part of the industry, according to a report recently released by the National Employment Law Project, a worker advocacy group.
The report found that 1 out of every 4 manufacturing workers make less than $11.91 per hour.
But if staffing agency workers were counted, it said, those wages would be significantly lower.
For example, staffing agency workers in the auto manufacturing industry on average make 29 percent less than people employed directly by companies, according to the report.
Companies hit hard by the recession have been hesitant to make permanent hires, even as the economy and their prospects have improved. Instead, many have continued to outsource hiring to staffing agencies, which supply temporary workers at low wages and without benefits. Manufacturers, in particular, like the arrangement because it reduces their labor costs and staffing can be quickly adjusted to meet demand for parts or products.