Newsroom

Tuesday, February 05, 2008
Foundation Funds Certification Plan for Low-Wage Service Workers
Author: Elaine Shannon


The Public Welfare Foundation has made a grant of $125,000 for an initiative spearheaded by the National Employment Law Project to monitor and enforce workplace standards for contract service workers such as janitors, security guards, groundskeepers, food service personnel and parking attendants. The plan, known as the Workplace Investment Partnership, aims to fill an enforcement gap created by the increasingly common practice among American companies of outsourcing low-wage service jobs to contractors.

"The Workforce Investment Partnership (WIP) will create a mechanism to ensure that workers who provide contracted services for some of the richest companies in America are paid a living wage, provided employer-based health insurance and afforded the protections of state and federal workers' rights laws and international human rights guarantees," says Catherine K. Ruckelshaus, litigation director of the National Employment Law Project, a founder of the Partnership initiative.

"Workforce Investment Partnership certification will become the ‘Good Housekeeping Seal of Approval’ for companies wishing to publicize their commitment to the rights of workers in these low-wage sectors," says Ruckelshaus.  Eventually, she says, scrutiny of contractors providing service workers to other firms could "raise the workplace standards for all workers in what is now largely an underground economy."

At its Feb. 1 meeting, the Board of Directors of the Public Welfare Foundation approved the $125,000 grant under its new Workers' Rights Program, which seeks to improve wages and basic job protections and rights for low-income workers.  The grant is intended as major seed money for the Partnership.  Other foundations and corporate partners are expected to supply the remaining start-up costs. 

According to Ruckelshaus, the Partnership initiative will encourage major American companies that are large employers of contractor-supplied service personnel to agree to hire only contractors that have been certified by the Partnership for guaranteeing basic workplace standards for fair wages and working conditions. 

Ruckelshaus believes that companies will see the advantage of embracing the plan on grounds it will enhance their reputations as good corporate citizens and help alleviate their financial and legal risks of litigation over labor standards.  And, she says, as the demand for certified "responsible contractors" grows, contractors themselves will realize that earning a certification will give them competitive business advantages over labor brokers who cannot pass rigorous inspections and monitoring.

 In time, the initiative is designed to become self-sustaining.  Participating corporations will be asked to contribute a small fraction of their expenditures for contracted labor to the Partnership to cover monitoring and enforcement costs.