Contracted Out: Findings from a National Voter Survey

Transcription

1 Cntracted Out: Findings frm a Natinal Vter Survey Survey amng vters cnducted nline frm August 17 t 23, 2016 Cnducted n Behalf f: Natinal Emplyment Law Prject By Hart Research Assciates Octber 19, 2016 Intrductin: The prprtin f wrkers in alternative wrk arrangements temprary help agency wrkers, n-call wrkers, cntract wrkers, and independent cntractrs r freelancers increased frm 10% in 2005 t 16% in Cntracting ut wrk thrugh these alternative arrangements is nt inherently bad. Hwever, the increased use f these arrangements can result in fewer permanent and direct emplyees, and labr researchers have dcumented negative cnsequences fr wrkers in these arrangements, including unpaid wages and a lack f benefits. 1 On behalf f NELP, Hart Research has undertaken the first extensive examinatin f public attitudes regarding these changes in wrk arrangements. Fr this study, we cnducted 1,000 nline interviews with registered vters frm acrss the cuntry t understand natinal sentiment specifically abut the use f cntract wrkers and independent cntractrs. The vting public believes that the increase in the cntracting ut f wrk thrugh the use f subcntractrs and the misclassificatin f wrkers as independent cntractrs is a serius prblem. By wide margins, vters see bth f these trends as negative changes in the wrkplace. Vters see the increased reliance n subcntracting and its effects as bad nt nly fr wrkers, but als fr the ecnmy in general. There is significant supprt acrss the electrate fr plicy prpsals that aim t hld cmpanies accuntable fr the ptential harm t wrkers that may result frm 1 Fr additinal infrmatin n these issues, see Cnnecticut Avenue, NW, Washingtn, DC

2 Hart Research Assciates cntracting ut. By wide margins, vters favr increasing penalties fr cmpanies that misclassify wrkers as independent cntractrs and hlding cmpanies legally respnsible if their subcntractrs fail t pay wages r make the apprpriate cntributins t Scial Security, unemplyment insurance, and wrkers cmpensatin funds. The public als favrs varius specific prpsals that aim t imprve the safety and fairness f wrkplaces that cntract ut wrk. Vters negative reactin t cntracting ut is cnsistent with and likely cntributes t their brader wrries abut emplyment cnditins fr wrking peple and the lack f fairness in tday s ecnmy. Mrever, they feel that crpratins and CEOs are mainly respnsible fr the adverse ecnmic cnditins facing wrking peple. Indeed, a perceived lack f emplyer lyalty and diminishing availability f gd jbs have severely erded Americans traditinal cnfidence that hard wrk and persnal initiative will be rewarded. Key Findings: 1) Vters are deeply cncerned abut the increase in subcntracting f jbs and the effect it has n ur ecnmy. By five t ne, vters say that the increase in subcntracting where a cmpany hires an utside firm t supply wrkers r uses anther firm t d wrk instead f hiring emplyees directly ver the past 10 years is a bad change. Fifty-nine percent (59%) f vters say that the increase in subcntracting is a bad change, including 19% wh say it is a very bad change, while just 12% say it is a gd change (29% say it is neither gd nr bad). Americans acrss the electrate, regardless f party affiliatin, agree n the matter. While cncern is particularly high amng lder vters, wh have been part f the labr frce lng enugh t experience the decline f direct, permanent emplyment, yunger vters als say that the use f subcntracting is a negative change. Demcrats (59% bad change/14% gd change/27% neither), Republicans (58%/9%/33%), and independents (61%/13%/27%) agree at similar levels that the shift tward subcntracting is bad. Older vters (50 and lder) are mst likely t say that the increase in subcntracting is bad, with mre than tw-thirds (68%) f vters in this chrt saying it is a bad change and just 7% saying it is a gd change; ne-quarter (25%) f vters say it is neither a gd nr bad change. Nearly half (45%) f yung vters (age 18 t 34) say the increase in the use f subcntracting is bad, while 22% say it is a gd change and a third (34%) say it is neither gd nr bad. Page 2

3 Hart Research Assciates Vters say there are valid reasns fr cmpanies t use subcntractrs, such as t fill a shrt-term need, try ut new wrkers, r t perfrm jb functins utside f the cmpany s cre business. Hwever, they believe cmpanies ften d this by aviding prviding benefits r lwering wages t save mney, and that is nt an acceptable reasn t stp prviding gd jbs thrugh direct emplyment. They especially bject t having peple wrk lng term in the same psitin as an stensibly temprary emplyee, rather than a permanent emplyee. Nearly three-quarters (73%) f vters say that using subcntractrs in place f direct emplyees t save mney by nt prviding emplyee benefits is a bad reasn t use subcntractrs; just 12% f vters say it is a gd reasn, while 15% say it is neither gd nr bad. Aviding the cst f emplyee benefits is the primary reasn vters believe cmpanies chse t use subcntractrs. Fully 43% f thse wh cnsider it a bad change ffer that cmpanies are ding s in an effrt t avid prviding benefits particularly health insurance t wrkers. Similarly, 72% f vters say that saving mney by reducing wages is a bad reasn t use staffing agency and cntract wrkers; 13% say it is a gd reasn and 15% say it is neither gd nr bad. Seventy-tw percent (72%) f vters als say that using subcntractrs t make it easier t terminate wrkers r reduce hurs is a bad reasn t d s; 12% say it is a gd reasn and 15% say it is neither gd nr bad. Fully 70% f vters including 73% f lder vters (50 and lder) say that filling a shrt-term need fr wrkers, such as during Christmas shpping seasn, is a gd reasn t use staffing agency r cntract wrkers in place f direct hires; 59% say that trying ut wrkers befre hiring them directly is a gd reasn t use staffing agency r cntract wrkers. And 43% say that using staffing agency r cntract wrkers t perfrm tasks that are utside the cmpany s cre business is a gd reasn t cntract ut wrk. Seventy-ne percent (71%) f vters say that mre peple wrking as lng-term temprary emplyees rather than permanent emplyees is a bad change. The public understands that cntracting ut may benefit the cmpanies that d it, at least in the shrt term, but feel that wrkers are mstly hurt by this trend. Mrever, they say subcntracting is bad fr the ecnmy in general, because it means lwer wages and less cnsumer spending. A majrity f vters acrss nearly all demgraphic grups gender, incme, educatin level, and plitical Page 3

4 Hart Research Assciates party affiliatin recgnize the negative cnsequences f the increased use f staffing agency and cntract labr n bth wrkers and the verall ecnmy. Vters say that the shift results in less jb security, is bad fr mrale, and implies that emplyers cnsider wrkers dispsable. Cntracting Out Seen as Bad fr Wrkers, Ecnmy Perceived impact f shift frm direct hiring t cntracting ut Bad change Neither gd nr bad Gd change Fr wrkers 70% 20% 10% Fr the ecnmy 58% 30% 12% Fr custmers 42% 43% 15% Fr cmpanies 31% 23% 46% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Seventy percent (70%) f vters say that the increase in subcntracting has a negative effect n wrkers. This includes strng majrities f vters acrss the electrate men, wmen, and vters f all ages, incme levels, educatin levels, and plitical idelgies. Just 10% f vters say the increase is gd fr wrkers and ne in five (20%) says that it has been neither gd nr bad. In their wn wrds, survey respndents say that subcntracting results in less jb security and lwer wages and indicates a lack f cncern fr wrkers wh are treated as thugh they are dispsable. Nearly three in five (58%) vters say that the shift tward subcntracting is bad fr the ecnmy in general. This includes majrities f nearly every demgraphic grup, including bth men and wmen, and vters frm all incmes, educatin levels, and plitical leanings. Thirty percent (30%) f vters say that the change is neither gd nr bad and just 12% say the change is gd fr the ecnmy. At the same time, vters acknwledge the ptential benefits fr cmpanies, with a plurality (46%) f vters saying that the increased use f subcntractrs is gd fr cmpanies; 31% say that it is bad fr cmpanies and 23% say that it is neither gd nr bad. Vters have mixed pinins f the effect that subcntracting has n the public as custmers. Just 15% f vters say that the shift tward subcntracting is gd fr custmers, but a similar prprtin say Page 4

5 Hart Research Assciates subcntracting is bad fr custmers (42%) as say it is neither gd nr bad (43%). 2) The public says the increased use f independent cntractrs is a bad change and strngly ppses the misclassificatin f emplyees as such. Vters say the trend f hiring wrkers as independent cntractrs, rather than direct emplyees, is a bad change by five t ne. Cllege- and nn-cllegeeducated wrkers bth say that this is a bad change, indicating that this is nt just an issue fr blue-cllar vters r white-cllar vters. There is als widespread agreement that wrkers are better ff when they are emplyed directly by a cmpany rather than as an independent cntractr. By significant margins, even yunger vters, wh are least likely t say the increased reliance n independent cntractrs is bad, say that it is better t be a direct emplyee. Fully 62% f vters say that the increased reliance n independent cntractrs is a bad change, including 18% f vters wh say it is a very bad change; just 13% say it is a gd change and ne in fur (25%) says it is neither gd nr bad. Negative View f Shift frm Direct Emplyment t Independent Cntractr Status An increasing number f cmpanies tday hire wrkers as independent cntractrs, rather than as emplyees f the firm. In the past 10 years, the prprtin f wrkers emplyed as independent cntractrs has grwn substantially. 62% 13% A gd change 25% Neither gd nr bad Very bad 18% A bad change Nearly tw-thirds (64%) f cllege-educated vters and 58% f nncllege-educated vters say that using mre independent cntractrs is a bad change; just 14% and 15%, respectively, say it is a gd change, while 22% and 27%, respectively, say it is neither. Mre than three in fur (78%) vters agree that wrkers are better ff when they are emplyees f a firm as ppsed t independent cntractrs, with 41% saying it is much better t be a direct emplyee. Just 12% say it Page 5

6 Hart Research Assciates is better t be an independent cntractr and 10% say it des nt make much f a difference either way. Vters f all ages (by margins ranging frm mre than five t ne t mre than seven t ne) say that wrkers are better ff as direct hires. There is surprisingly high awareness that emplyers ften illegally misclassify wrkers as independent cntractrs when they shuld be classified as emplyees. Furthermre, verwhelming majrities f vters acrss the electrate say that cmpanies engaging in this activity is a serius prblem. Tw-thirds (67%) f vters have heard abut the issue f emplyers misclassifying wrkers as independent cntractrs, allwing them t avid certain csts, such as paying the minimum wage, prviding benefits, and making Scial Security r Medicare cntributins. Abut ne in three (33%) vters say they have nt heard abut the issue. Misclassificatin Seen as Serius Prblem Misclassifying wrkers as independent cntractrs is: 84% Very serius 49% 16% A very/fairly serius prblem Just smewhat/ nt a serius prblem Fully 84% f all vters say that cmpanies misclassifying wrkers as independent cntractrs is a serius prblem, with abut half (49%) f vters saying it is a very serius prblem; 13% say that it is just a smewhat serius prblem and just 3% say it is nt that serius a prblem. Page 6

7 Hart Research Assciates Apprximately fur in five vters amng every demgraphic say that misclassifying wrkers as independent cntractrs is a serius prblem. And at least 40% f vters in each f these grups say it is a very serius prblem. 3) Americans supprt plicies that wuld address the negative effects f cntracting ut and hld lead cmpanies accuntable fr these practices. Significant majrities f vters supprt plicies that wuld hld cmpanies accuntable fr misclassifying wrkers as independent cntractrs and fr their subcntractrs failing t pay wages r taxes. In bth cases, a sizable prtin f the electrate strngly favr the prpsed gvernment interventin. Even a strng majrity f Republican vters, wh typically ppse gvernment regulatins, say they favr plicies t address cntracting ut f wrk. Mre than three in fur (78%) vters favr a prpsal that wuld make it harder fr cmpanies t classify wrkers as independent cntractrs and increase fines and penalties fr misclassificatin, with 44% strngly favring the plicy; just 7% say they wuld ppse such a plicy and 15% say they neither favr nr ppse it. Supprt is similarly strng amng Republican vters, with 73% saying they favr the prpsal and just 9% saying they ppse it; 18% say they neither favr nr ppse the measure. And nearly tw in five (39%) say they strngly favr it. Fully 71% f vters favr a prpsal that wuld hld the lead cmpany legally respnsible if its subcntractrs fail t pay earned wages, unemplyment insurance cntributins, wrkers cmpensatin cntributins, and Scial Security taxes, with 41% strngly in favr f the prpsal; just 11% say they wuld ppse such a plicy. Amng Republican vters, 67% favr the prpsal and just 14% ppse it; 19% say they neither favr nr ppse the measure. Nearly tw in five (39%) say they strngly favr it. Page 7

8 Hart Research Assciates Strng Supprt fr Plicies Addressing Misclassificatin and Subcntracting 7% 11% 44% 41% Strngly favr Smewhat favr Oppse Make it harder fr cmpanies t classify wrkers as independent cntractrs, and increase fines and penalties fr cmpanies that misclassify emplyees as independent cntractrs Allw wrkers t hld lead cmpanies legally respnsible if their subcntractrs fail t pay Scial Security taxes, unemplyment insurance cntributins, r wrkers cmpensatin cntributins, r fail t pay wrkers their legally earned wages 71% 78% Significant majrities f vters f all idelgical affiliatins als favr varius plicies t specifically address sme f the negative cnsequences f cntracting ut. In particular, vters supprt effrts t ensure that cntract wrkers are apprpriately trained t avid injury, t rectify perceived inequalities in the wrkplace, and t limit the use f lng-term temps. Fur in five (80%) vters say that cmpanies shuld be required t prvide in-persn safety training fr temprary and cntract emplyees cmparable with that prvided fr direct hires befre they start new assignments; just 4% ppse the measure and 16% say they neither favr nr ppse it. Nearly three-quarters (74%) f vters say cmpanies shuld be required t ffer additinal hurs t current part-time emplyees befre turning t subcntractrs; just 7% ppse the prpsal and 19% neither favr nr ppse it. Fully 73% f vters say that direct hires and cntract wrkers shuld be similarly cmpensated including benefits fr similar wrk; 10% f vters ppse such a requirement and 17% neither favr nr ppse it. Seventy-ne percent (71%) f vters say that nce a temp wrker has been n the jb fr six mnths, the cmpany shuld be required t ffer that wrker a permanent psitin; 11% ppse the measure and 18% are neutral. Page 8

9 Hart Research Assciates 4) Vters negative reactin t cntracting ut is cnsistent with and likely cntributes t their brader wrries abut cnditins fr wrking peple and the lack f fairness in tday s ecnmy. Three in five (60%) vters are dissatisfied with the availability f gd jbs that prvide fair wages and benefits (40% feel satisfied). An even larger majrity (75%) vices dissatisfactin when it cmes t wages and salaries keeping up with the cst f living, with just 25% expressing satisfactin. Fifty-five percent (55%) say that a lack f gd-paying jbs with benefits is a serius prblem. Just 35% say that gd jbs that pay well and prvide benefits are available if yu are willing t wrk hard, while 65% say that such jbs are difficult t find. Americans feel that crpratins and CEOs are mainly respnsible fr the adverse ecnmic cnditins facing wrking peple. They clearly see that the stry is very different fr thse at the tp, with three-quarters vicing cncern that CEO cmpensatin cntinues t rise, while pay fr average wrkers stands still. Just three in 10 (30%) vters nw say they trust emplyers t treat their emplyees fairly. Three in fur (74%) vters are very cncerned that salaries and bnuses f crprate CEOs cntinue t rise, while pay fr the average wrker is standing still. Sixty percent (60%) say that cmpanies cnsidering wrkers t be dispsable, rather than valued assets, is a serius prblem facing ur ecnmy. Fifty-tw percent (52%) say that cmpanies nt being lyal t their emplyees is a serius prblem tday. This lack f emplyer lyalty and diminishing availability f gd jbs has severely erded Americans traditinal belief that hard wrk and persnal initiative will be rewarded, a crucial underpinning f the American dream. By 14-pints, vters agree that wrking hard ften isn't enugh anymre, because cmpanies aren't lyal t their emplyees (57%) rather than if yu get a gd educatin and wrk hard tday, yu can really d well and get ahead (43%). This view is embraced by a majrity f men and wmen, Demcrats and Republicans, all regins f the cuntry, and all age grups. Page 9