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."
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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.




