Unfair and infuriating

[blas]

Going against what I used to believe in, which is employees sharing their hourly wages with each other and comparing, I recently found out some information that not only pisses me off, but is sure to piss off senior employees (and senior means seniority, not age!).

They are now paying temps more than they are paying employees who have worked at the factory for a few years. That's right, temps.

Now, I can see paying temps a little (and I stress a LITTLE) more than direct hires, because the company doesn't have to purchase an insurance policy and they don't have to provide benefits. That I can understand. I can understand temps being paid maybe 10-30 cents more, considering they are temps and not direct hires.

But this is where I get confused. The whole idea behind the company having a partnership with the temp agency is so that the company saves money. The temp agency hires on temps, which saves the company money vs hiring direct hires and having to buy lots of insurance policies. Well, if the sole purpose of that is to save money, hear this, save money, why contradict that and start paying them $11 or more an hour, which is about what an employee who has worked there for 2 years or so makes? That defeats the whole purpose of saving money.

And above all, it isn't fair. Not when everyone else has had to work their way up and patiently wait for their yearly raises. Not when everyone has waited years to make it to $11, $12, and more an hour. My boyfriend has been there for 4 years and still doesn't even cut the $11 an hour range.

On top of that, knowing this, temps are refusing to be hired on as regular employees because they then get paid less.

I'm really mad, to say the least.

[Broomjockey]

Wait. The temps themselves are getting that much money? It's not, say, they pay that much to the temp agency, and then the agency pays the temps a bit less than that? Because in that case, while still stupid because the factory is wasting money, it's still understandable. But from what you're saying, it's completely retarded. You're right. There's very little incentive to become full time for the temps. Probably some benefits, but that's it. Aren't temps exempt from overtime? That alone is probably enough to make up for no benefits.

[blas]

My boyfriend explained to me already how that works, how much each temp is "worth", so to speak, what the agency gets paid for providing the temps. But no, I'm dead serious. They are making at the very least a dollar and a half if not more than what direct hires start out at. And yes, that's correct, they don't do overtime. And yes, you heard it right, most refuse to be hired on since they'll lose pay. They work full time hours, just no overtime, no benefits....yet get paid more? No way.

[csdrone]

How much are your benefits including a 401K worth? Yes Temps and consultants DO make a higher hourly wage BUT when you factor in the benefits, holiday pay and other goodies that temps are ineligible for, you guys come out pretty far ahead. Holidays suck for a temp: no work means NO pay. And temps can be fired any time with no warning or severance.

[Banrion]

The standard calculation in the business world is that benefits ( insurance, retirement, vacation & holidays) are 30% of your base compensation. You are talking the $12.00/hour range. If you are making $10.00/hour + benefits that is equivalent to $13.00, so the temps do still come out behind.

[digilight]

Blas, my wifes company does the same thing (they don't pay the temps more though). Heres how I've heard her explain the breakdown of the temp fee's

The company pays a fee to the temp agency, this fee is a percentage of the temps hourly rate. It really varies from agency to agence but around here with the ones they use it runs from about 50%-75% (with the 75% being a ridiculously high rate). So while they are paying the temp 11 bucks an hour, they amount actually being paid is $16.50 an hour ($11 + $5.50 {based on 50% markup).

If you were to take all the fee's, taxes, workers comp, and benefits that get payed to existing employee's on the actual payroll you would most likely find that a worker on the payroll who is making $10 an hour is probably costing the company close to $20 an hour after all the other costs involved. You have your workers comp (which depending on what they are doing can be very high, some rates can actually hit over 200% the hourly rate for certain jobs like a confined space wielder Welder (no Arnold tossing porto crappers LOL), Your unemployement tax, your FICA (employer has to contribute to that), and other payroll taxes. Then you have benefits, do they cover a portion of insurance, do any type of 401K matching or proffit sharing.

I actually tried to argue with my wife that the temp agencies were a rip off until she showed me how the cost savings breaks down between a temp employee and a permenant one. Theres not a big savings, but you have the fact that they are covered by the agencies workers comp (so if a new hire who is a dumb shit gets hurt while a temp they don't effect your rates), or if they don't work out and you have to fire them you don't get a rise in unemployement rates.

[Banrion]

(which depending on what they are doing can be very high, some rates can actually hit over 200% the hourly rate for certain jobs like a confined space wielder)

Why am I picturing Arnold Schwarzenegger swinging a port-a-potty over his head?

[Yfandes]

Where I work, the actual "cost" of an employee including sick, vacation, holiday, health insurance and retirement is figured at hourly wage +50%, at least - sometimes more.

No sense in being mad that the person next to you is making $X more per hour when they dont have any benefits and can be terminated at will.

[Hobgoblin]

I worked for a temp agency a while back. And by a while back, I mean about 3 years ago. So things are probably a bit more expensive now. Also, I was working as a chemist at the time, so that might be part of it.

I was making $13.50 an hour, and the temp agency was gettin paid about $20 an hour. I think that's right, but it has been a while at this point, so I could be mistaken. If I am, I'm only off a couple bucks/hour.

I had benefits through my temp agency.

When I got hired permanant, I went to $15/hour + benefits (and my new benefits were MUCH better). From that viewpoint, the company had an extended trial period with me (6 months) for which they paid probably $3-4 less per hour than after I was hired (That's a total guess, as I have no idea how much I was costing with the benefits but it was a VERY good package that I received).

As for temps making more than the permanants, that's not something I'd say is acceptable, but I would imagine that is driven by the agency, not the factory. The agency makes sure that the temp is getting paid "X" wages per hour, while the factory is paying its permanants based on a different scale. Sounds to me like the factory's pay scale needs some updating.

[Rahmota]

Back long long ago when I was a temp I was getting paid 1-2 bucks an hour less on the hour than the regular employees. Not really too bad I guess as my benefits, while worse, where still through the temp agency and cheaper.

Also as a temp I was not exempt from overttime legally. AFAIK if a worker works the time the company has to pay them regardless. One reason why when I was temp the manager paid very close attention to my weekly hours.

[Boozy]

I agree with the comments already made about job security and benefits being valuable. There's also another possibility:

Sometimes companies will be forced to start paying higher wages for new hires or temps due to the changing job market. If the area you live in has seen an economic upsurge in recent years, the going rate for labour will be higher. This doesn't mean that management is going to give their existing employees raises - especially if they know that they have reasons to stay beyond wages (ie they've gotten comfortable in the job, they are invested in the benefits and pension plans, they like the hours, etc.)

Most companies will always pay as little as possible for labour. They are not paying the temps a higher wage out of the goodness of their hearts. They are paying what they have to in order to get the labour they need.

[pyxee]

Slightly off topic, but I have found it is a very bad idea to discuss what co-workers make. I worked for a gas station company that had about 90 stores, but was bought out during bankruptcy. A few months after the new company took over Some new hires were discussing what they made, and they asked me out of curiosity what everyone made under the old company. Now I am not stupid and I knew that it was against policy to discuss our wages, so I told them I was not going to tell them what I made, but they pushed the issue, so I told them what starting wages were for the old company, which were standard wages so everyone who was hired with old company usually knew them anyways. It was a big mistake, one of the two girls went straight to the store manager and said that I had told them what everyone made at the store. I was written up and informed never to discuss wages ever again, even though the manager knew that all the info I gave them was based on public info that was common knowledge, but the girl just pushed the issue

[blas]

I USED to be against it, pyxee. Until I found that information out. We have some pretty pissed off workers right now.

[XXDarrienX]

With the amount of mandatory OT and the Double OT, can't say I do not blame them about the whole not wanting to be permament.

[Banrion]

I USED to be against it, pyxee. Until I found that information out. We have some pretty pissed off workers right now.

This is exactly why companies don't want people to talk about it. Were you happy with what you were making before you knew what anyone else was making? Why is it different now? You will never work somewhere that everyone gets paid the same there are just too many variables that go into the equation. If it really upsets you that much, quit the full time gig, give up the benefits and steady work, and go to the temp agency and try to get hired back as a temp. Then you make the higher $$ too.