The Rise of the Permanent Temporary Workforce

Monday, January 11, 2010

The recession has prompted companies to create just-in-time labor forces that can be turned on and off like a spigot. Tammy DePew Smith is an example, working from her Ormond Beach, Fla., home as a LiveOps call center worker. She's paid 25 cents a minute -- only for the time she's on customer calls -- and has no health insurance, no retirement benefits, no sick days, no vacation, no severance, and no access to unemployment insurance. And she's grateful. "LiveOps was a lifesaver for me," she said.

Posted by Whatsleft at 09:01 AM | 36 COMMENTS | permalink | Comment on This Entry

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Welcome to corporatist utopia.

#1 | Posted by Whatsleft at 2010-01-10 05:01 PM | Reply | Flag:

Capitalism is dead. US employment will NOT recover for a very long time.

#2 | Posted by Ray at 2010-01-10 05:13 PM | Reply | Flag:

With businesses worrying how they will be affected by the coming 'health care' costs they are not willing to take on many new employees.

Now add the worries of the costs to them if 'Cap & Trade/Tax" is pushed through by the dem administration and you find a wary business climate shying away from any major expansion till they see what's coming.

End result is that dems have managed to singlehandedly put our economy on hold.

#3 | Posted by MSgt at 2010-01-10 05:19 PM | Reply | Flag:

"With businesses worrying how they will be affected by the coming 'health care' costs they are not willing to take on many new employees."

The problems in employment started long before any health care bill was ever proposed. That is just a bunch of crap. If businesses have customers to buy their products or services they will hire the emplyees to do so, problem is they don't. The dishonest will try to tell you now that unemployment is based on health care reform, it's not, never has been, never will be because it will effect all employers the same so competitive markets will remain exactly as competitive as they are now. What does effect it is lack of demand for products and services.

#4 | Posted by danni at 2010-01-10 06:54 PM | Reply | Flag:

End result is that dems have managed to singlehandedly put our economy on hold.

#3 | Posted by MSgt

What a retard. Chimpy's 'ownership society' coupled with tax cuts during wartime gives Dumya the deed to the worst economy since his grampa Prescott made his fortune by being Hitler's favorite American banker.

#5 | Posted by reinheitsgebot at 2010-01-10 07:41 PM | Reply | Flag:

If businesses have customers to buy their products or services they will hire the emplyees to do so, problem is they don't. The dishonest will try to tell you now that unemployment is based on health care reform,

#4 | Posted by danni at 2010-01-10 06:54 PM | Reply | Flag:

Once again, Danni displays her vast knowledge of economics, which can be boiled down to "nuhhh-uuuuh!"

Businesses are hiring people -- on a temp basis, because the health care bill is a huge, unknown variable.

It's kinder to hire someone on the front end with the understanding that it's temporary, rather than let them settle in and then give them a pink slip because Obama has just doubled the cost of doing business.

#6 | Posted by vernon at 2010-01-10 08:06 PM | Reply | Flag:

With businesses worrying

Yeah sure. What explains the previous 8 years?

#7 | Posted by JimmyWallback at 2010-01-10 08:49 PM | Reply | Flag:

Businesses are hiring people -- on a temp basis, because the health care bill is a huge, unknown variable.

Once again Vern, your corporate apologizing is without par.

Businesses won't hire full time permanent workers due because they can pay less and do not have to provide benefits such as health insurance, disability, vacation, holidays or retirement.

God Vern you are such a dumbshit.

#8 | Posted by JimmyWallback at 2010-01-10 08:51 PM | Reply | Flag:

#6 | Posted by vernon

Hey stupid, even the article basically says that the trend started several years ago. Just so ya know.

#9 | Posted by Whatsleft at 2010-01-10 08:59 PM | Reply | Flag:

You've got 2 choices...be a temp, or be outsourced.

#10 | Posted by LetUsPrey at 2010-01-10 09:35 PM | Reply | Flag:

Vernon is the stupidest fuck on the retort. Aflac is close, but still can function IN THIS COUNTRY.

#11 | Posted by LetUsPrey at 2010-01-10 09:37 PM | Reply | Flag:

How is lurking in libraries a functioning life?

#12 | Posted by dxlingr at 2010-01-11 01:43 AM | Reply | Flag:

#8 | Posted by JimmyWallback

Businesses don't pay temporary workers - they pay the agencies that provide said workers.

Temporary workers are used for a variety of reasons, and oftentimes, the good ones get hired on as full-time employees (although certain contractual obligations to the temp service companies have to be met first). Hiring a 'temp' in order to avoid paying bennies (in Michigan if a temp is consistently working 40 or more hours per week the temp service actually provides some benies and charges a higher hourly rate the the business as a result) is no different than hiring a part-time employee or an independent contractor. Of course temps, contractors, part-timers, etc. all come with certain drawbacks.

#13 | Posted by JeffJ at 2010-01-11 05:55 AM | Reply | Flag:

Businesses don't pay temporary workers - they pay the agencies that provide said workers.

It depends on the company -- Mine rarely hires from a temp agency unless it's for a specific task like needing labors for a week to help move to a new building.

But we still have both full time temporary and part time temporary employees. They're usually brought on for a specific contract and are laid off when the contract is fulfilled (we do environmental consulting). After 6 months of full time work in a year, they're automatically bumped up to permanent status due to state law. This rarely happens because projects are intentionally furloughed in June to prevent it. This is pretty much SOP in my field and the same thing was done when I worked for the federal government.

#14 | Posted by katieberry at 2010-01-11 06:41 AM | Reply | Flag:

Ray,

Capitalism is dead? Don't you mean those with the most Capital never had it so good and all at the expense of working schmucks? Capitalists have successfully taken over the Government, shifted the tax burden to labor and through the miracle of compound interest and multigenerational inheritance are in the process of taking over ownership of everything. Its playing out exactly like a game of monopoly. The only problem is the USA will not be able to compete with China. But, how could that possibly mean Capitalism is dead? Maybe you mean the bar for entraprenuership entry keeps getting higher and higher. Capitalism doesn't require doing much of anything except shuffling papar, as Wall STreet proves daily.

#15 | Posted by nutcase at 2010-01-11 09:31 AM | Reply | Flag:

"20% of American men do not have jobs"

"You are familiar of course with the unemployment rate, which would be at 10.4%, had not the labor force decreased by 661,000 in December. You may not be familiar with the employment rate, that percentage of the US adult population that has a job. The employment rate is now 58.2%, the lowest since August of 1983. Even more disturbing is the employment rate among men"

"According to an analysis done by TIME Magazine's Justin Fox, almost 20% of 25-54 year old men are unemployed today, a receord since the Bureau of Labor Statistics started keeping track of the data just after World War II."

www.dinocrat.com

#16 | Posted by KBM at 2010-01-11 09:34 AM | Reply | Flag:

"How is lurking in libraries a functioning life?

#12 | Posted by dxlingr"

Touche'.

#17 | Posted by LetUsPrey at 2010-01-11 11:37 AM | Reply | Flag:

Capitalism is dead. US employment will NOT recover for a very long time.

#2 | Posted by Ray

You forgot to point out why.

Government regulation, with the favortism that goes along with it is one big factor. New laws that seem to be comming up have a lot to do with it. The healthcare issue is a great example of that.

It seems to me that the libs cry for freedom when it comes to higher learning but cry for more government controls on business. Seems to me what is good for one is good for the other.

#18 | Posted by Sniper at 2010-01-11 11:47 AM | Reply | Flag:

Outlaw temp work services. No one should be able to profit from anothers' labor, and, by point of fact, the wages these temp. services pay themselves is profit, skimmed from the value of those they rip off.
Any business that needs a worker, temp or permanent, long term, short term, whatever, should be compelled to seek that worker themselves, through the open market, not hiding behind some 3rd party lazy fuckers whom wouldnt have a job themselves.
If your business uses a temp service to provide "workers", your head should be stuck on a pike in the middle of town, you are nothing but lying, thieving corrupt piece of human shit.
It is theft of labor.

#19 | Posted by gitmboy at 2010-01-11 11:53 AM | Reply | Flag:

When temp work is criminalized, only criminals will have temp work.

#20 | Posted by Diablo at 2010-01-11 12:06 PM | Reply | Flag:

#19 | Posted by gitmboy

You are whistling out of your fat ass. I have been a part-time worker since 2004 and I believe both the companies I work for and myself benifit from the arrangement. The arrangement is called consulting and it pays well. It gives a company access to a skill they only use once in a while and me an income that is larger than when I worked full time.

Seems to me you are the one that should be put on one of Dracula's sticks.

#21 | Posted by Sniper at 2010-01-11 12:17 PM | Reply | Flag:

The PERMATEMP issue began long before health care reform or cap and trade.

#22 | Posted by Monstman at 2010-01-11 01:01 PM | Reply | Flag:

"When employment in the U.S. eventually recovers, it's likely to be because American workers swallow hard and accept lower pay. That has been the pattern for decades now: Shockingly, pay for production and nonsupervisory workers 80 percent of the private workforce is 9 percent lower than it was in 1973, adjusted for inflation."

I bet it's lower since the government's been playing with the inflation stats by changing the CPI methodology of measurement years ago--inflation has probably been higher the last few years---the only positive is eventually our wages related to purchasing power will be more competitive globally and manufacturing will start to be reborn in this country. The other factor affecting this scenario will be a depreciating dollar.

#23 | Posted by matsop at 2010-01-11 01:40 PM | Reply | Flag:

MATSOP,
If the American worker swallows hard and accepts lower pay, then the corporations will pressure American workers to except even lower pay till, at last, the American worker will be on par with his brothers and sisters in China; working 12 hours a day for a bowl of rice.

#24 | Posted by igmoramus at 2010-01-11 04:00 PM | Reply | Flag:

Technology is rendering the human obsolete. Robots/machines making robots/machines. Not alot left for hoardes of humans to do.

Don't worry though, we're all going to be social workers. I'll tell you how to live and you tell me how to live and then we'll both tell big brother how each of the other is living. It's gonna be great. The FEDS are looking for Census takers.

Taco Bell?

#25 | Posted by Washboard at 2010-01-11 06:32 PM | Reply | Flag:

My guys spend half of their day waiting in line, which means the same productivity could be acheived with half of the people.

Hmmmmmmm. Which half will step down?

#26 | Posted by Washboard at 2010-01-11 06:35 PM | Reply | Flag:

"The Rise of the Permanent Temporary Workforce"

Well, we've had a temporary permanent workforce for a while now.
I suppose one goes with the other.

#27 | Posted by TheTom at 2010-01-11 06:53 PM | Reply | Flag:

It seems to me that the libs cry for freedom when it comes to higher learning but cry for more government controls on business. Seems to me what is good for one is good for the other.

#18 | Posted by Sniper

It seems to me like you're talking about separate issues that require different solutions.

#28 | Posted by Whatsleft at 2010-01-11 10:18 PM | Reply | Flag:

Sounds like the hidden message is that only revisiting card-check/unionization will save us from the evil WalMarts (note: they are, but not because of a lack of unions).

Once again, Problem-Reaction-Solution.

#29 | Posted by L_RContrarian at 2010-01-11 11:03 PM | Reply | Flag:

Part of the problem is current tax policies, instigated or enlarged under the Bush administration, have made outsourcing far more profitable than it previous was for companies that are based in the United States. Its still expensive for a foreign company to ship goods here. But its not NEARLY as expensive for a US based company to bring goods it makes overseas into the US. For some industries, they actually see huge tax incentives to outsource.

And its occurring in ALL sectors. Thomson Reuters, the huge news agency and owner of Westlaw, is outsourcing large numbers of ATTORNEY positions. Yes, temp research attorney positions are being outsourced to India and the Phillipines. Sure, the quality is crap. But what do they care if they can hire 10 people there for the cost of 1 here (that's the actual ratio too).

#30 | Posted by Sycophant at 2010-01-12 12:59 AM | Reply | Flag:

Okay diaper sniper.
You're employed as a temporary, non-producing consultant, singing the praises of your 3rd party handlers that get paid for your work?

Classic.

You hit the trifecta.

Boy.

#31 | Posted by gitmboy at 2010-01-12 09:46 AM | Reply | Flag:

American worker will be on par with his brothers and sisters in China; working 12 hours a day for a bowl of rice.

#24 | Posted by igmoramus

I guess it's better to be unemployed and broke watching your wide screen TV and texting all of your buddies that are unemployed too. Where does that welfare check or unemployment check come from? obama?

#32 | Posted by Sniper at 2010-01-12 11:38 AM | Reply | Flag:

You are right git, I am non productive. I help thoes damn big companies asve money.

#33 | Posted by Sniper at 2010-01-12 11:46 AM | Reply | Flag:

Don't look for much, if any, improvement as long as both parties and their sycophants are more concerned with who gets the credit and who gets the blame. Spending and amassing debt got us here and the problem will be exacerbated by more and much more of the same.

#34 | Posted by MACV1972 at 2010-01-12 11:49 AM | Reply | Flag:

"I help thoes damn big companies asve money."

Let me guess: resident spell-checker?

#35 | Posted by Danforth at 2010-01-12 11:54 AM | Reply | Flag:

Businesses are hiring people -- on a temp basis, because the health care bill is a huge, unknown variable.
Like $30 a barrel oil, Vern swings and misses.

The temp phenomenon is neither new nor solely American. Us old farts who graduated in the 1970s were the last generation who could reasonably expect to retire from the same company you started with. Even Japan has dropped that ideal.

And Ray/Snippy, capitalism died when limited liability companies were formed-they created an ownership class with little personal risk and a management class with little personal investment in the company.

#36 | Posted by northguy3 at 2010-01-12 12:34 PM | Reply | Flag: