Friday, August 28, 2015
Labor relations board gives W-2 contractors more rights against "real" employer; shortages in trade jobs
A federal labor board (the National Labor Relations Board) has voted to modify the relationship among a personnel company, employee of the company, and contracting customer, allowing employees more right to unionize with respect to the “actual” employer in some cases. Lydia DePillis has a front page “Wonk Blog” story in the Washington Post today, link here. Reuters has another story that says this is a "game changer", here.
That would mean when a staffing company sends a lot of employees to a major employer but the employees are paid by the staffing company (common in IT, especially in mainframe) the employees might have some legal bargaining rights with the “real” employer, who usually makes the decision anyway when the staffing company first hires the employee. I had many telephone interviews for such situations after my end-of-2001 layoff.
But it could compromise other kinds of situations, such as when people hire caregivers from agencies but don’t want to have the legal responsibilities and possible conflicts of “employers” (a situation I also had).
Here’s a story that the labor movement will like. Paul Davidson of USA Today reports Thursday on a labor shortage in the construction industry – both trade skills and hard physical labor (what my father extolled), link.