The fissured workplace: Implications for Closing the Gaps
CSTE Occupational Health Surveillance Subcommittee Meeting
Washington, DC: April 18, 2013 David Weil
Boston University
Four goals for Closing the Gaps affected by the fissured workplace
To identify the industries and occupations where
intervention is most needed; To identify new or emerging hazards (new hazards; old
hazards in new settings); To identify individual workplaces (departments within
workplaces) where intervention is warranted; To identify potential, previously undocumented risk
factors (e.g. inadequate supervision) that require further etiological research.
Source: CSTE Closing the Gaps meeting, April 2009. 2 David Weil, Boston University
Fissured formula
Provider of management
service
Third party management co.
Brand management co.
Provider of cleaning service
Franchisees L/S business Subcontractor Labor contractor
Provider of landscaping
service
Multiple parties / multi-levels
FISSURED RECIPE: Focus on core competencies Brand / Coordination / Cost
Shed employment to lower level providers in competitive markets
Develop standards & create structure to protect core
RESULTS FOR LEAD FIRMS: Capture rents from revenue side Lead firms face a schedule of prices for services rather than wages for labor
Reduce costs but creates agency dilemmas
3 David Weil, Boston University
Consequences of fissured employment RESULTS FOR SUBSIDIARY ORGS: More competitive markets and price for services Labor a significant share of costs Downward pressure on labor costs and conditions
4
SOCIAL CONSEQUENCES: Externalities: Increased costs from
coordination problems Compliance: Increased incentives for violating standards
Income distribution: Impact of taking shifting wage setting
25.7%
22.3%
12.7%
18.2%
23.5%
12.4%
83.4%
62.6%
70.5%
67.7%
65.0%
73.6%
62.7%
70.0%
72.2%
74.2%
75.2%
87.5%
0.0% 50.0% 100.0%
Retail and drug store
Security, bldg., grounds
Residential construction
Restaurant and hotels
Grocery stores
Home health care
Off the Clock Overtime Minimum wage
Source: Bernhardt et al. 2009
Non-compliance with workplace
standards
David Weil, Boston University
From iPhone to advanced subcontracting: Fissured cell towers
5 David Weil, Boston University
Fissured supply chains: Schematic of WalMarts nerve center
6
Incoming dock Outgoing dock Conveyer system
Intl. Shipments
Individual stores
Information
Products (shipments)
David Weil, Boston University
Schematic of employment
Incoming dock Outgoing dock Conveyer system
Intl. Shipments
Individual stores
Premier Warehousing Ventures
Schneider Logistics Impact Logistics Inc.
When widespread violations were found, who is the
employer?
7 David Weil, Boston University
Franchising as a fissured form: Fast food
8
4 2 6 3 5 1
Franchisee (Single-unit)
Franchisee (Multi-unit)
David Weil, Boston University
Fissuring and complianceTop 20 branded fast foods
9 David Weil, Boston University
Industry Lead firm / organization Lower level entity Eating and drinking Limited service (fast food) Full service
Brands (franchisors) Franchisees / outlets
Hotel and motel Brands (franchisors) Brand / independent operators
Hotel / motel properties; Contractors; Labor brokers
Residential construction Major homebuilders Contractors / subcontractors
Janitorial services Building service providers / Franchisors
Contractors / franchisees
Moving companies / logistics providers
Branded national moving companies
Subcontracted local movers; interstate trucking companies; warehouses
Telecommunications Media and telecomm companies (e.g. Time Warner; Verizon)
Contracted installation providers and services
Retail food stores (prepared foods)
Major food retailers Franchised prepared food providers
Home health care services Major purchasers of home health care services
Franchised home health care providers
Fissured employment in assorted industries
10 David Weil, Boston University
Key questions on injury and illness surveillance How are injuries / illnesses currently recorded in fissured
workplaces in different industries? Whose log(s)reflect workplace incidents?
How does fissured work contribute to injuries and illnesses, arising from coordination problems (cell); shifting liability (petrochemical); training (construction)?
How do injuries / illnesses vary across different fissured structures?
How should injuries / illnesses be recorded given the joint / multi-party nature of employment and responsibility?
11 (c) David Weil, Boston University
Policy responses
David Weil, Boston University 12
Rebalancing the fissured workplace: Strategic enforcement
13
Policies to rebalance the fissuring decision:
Refocus enforcement to the top of fissured structures
Transparency and connecting the dots
Rethink enforcement procedures on the ground (deterrence / worst offenders)
Engage workplace advocates
Core competency
Shifting out work
David Weil, Boston University
Advanced subcontracting: Focusing at the top
Traditional approach
Mended approach
14 David Weil, Boston University
Examples of policies / opportunities
Hot-goods authority (WHD) Food industryfresh produce
Enterprise-wide agreements (WHD / OSHA) Monroe Muffler / National Roofing Hotel initiative
Multi-employer citation policy (OSHA) Summit Contractors decision
Misclassification initiatives (Federal and state) State / federal collaboration
Transparency / connecting the dots (WHD / OSHA) Eat / Shop / Sleep
15 David Weil, Boston University
Rebalancing the fissured workplace: Public policies
16
Public policies to rebalance the fissuring decision:
Redefining employer in
workplace laws
Misclassification and egregious fissuring
Broaden notions of liability
Expand transparency requirements
Core competency
Shifting out work
David Weil, Boston University
The fissured workplace: Implications for Closing the GapsCSTE Occupational Health Surveillance Subcommittee Meeting Washington, DC: April 18, 2013Four goals for Closing the Gaps affected by the fissured workplaceFissured formulaConsequences of fissured employmentFrom iPhone to advanced subcontracting: Fissured cell towersFissured supply chains: Schematic of WalMarts nerve centerSchematic of employmentSlide Number 8Fissuring and complianceTop 20 branded fast foods Fissured employment in assorted industriesKey questions on injury and illness surveillance Policy responsesRebalancing the fissured workplace: Strategic enforcement Advanced subcontracting: Focusing at the topExamples of policies / opportunitiesRebalancing the fissured workplace: Public policies
