Temp Workers Do Not Save Taxpayers Money

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Commentary by Ove Overmyer

CSEA Local 828 VP
CSEA Unit President of the City of Rochester Library Workers 7420

Rochester, N.Y. -- Public worker unions and New York's Assembly are angling to curb the hiring of temporary workers and consultants instead of permanent state employees who Gov. David Paterson says saves taxpayers money. Any recent critical study about this issue would suggest that the Governor's assertions are not completely true.

The conflict here, besides him reneging on a promised moratorium of hiring practices and violating public labor laws, has serious implications for the 2010-11 budget. It means the Democratic governor faces another battle with us and the Legislature just as he appeared to end one that began in last December. Evidently, Paterson has nothing to lose in his fight against us. Governor Paterson leads the New York State history books in one category though-- never has an elected official had such low approval ratings.

NYS Assemblyman Sheldon Silver said to the Associated Press on January 14, "This practice not only contradicts the executive mandate of a hard hiring freeze, it also appears to allow state agencies to circumvent the Division of Budget approval process for new hires."   He went on to say, "Terminating temporary positions statewide would help close the budget gap, improve government transparency and help re-establish New Yorkers' confidence in their government."

According to the Bureau of Labor Statistics, there were approximately 1.2 million temporary help agency workers in February 2005. Every year since then, temp agency jobs increased by hundreds of thousands of workers. The trend to hire nonunion workers must be curbed if the rank and file public employee (and we are taxpayers too) is going to get any justice at all in his or her workplace.

With regard to the Paterson adminstration's heavy use of temp or contracted workers, the general public should not be fooled by the misguided talking points coming from the Governor's top staff.

If you've ever thought that temporary workers or consultants cost less than full-time workers on a daily basis — think again. Studies show that it generally costs the same or just slightly less to hire temporary employees compared to bringing on a full-time worker. Essentially, when you use temporary workers, you're paying a premium to have help available when you need it.

The rate you pay temporary workers is composed of many elements. Your entity does not assume the costs or the responsibilities of providing and coordinating the benefits program for temporary employees. All your government entity has to do is pay the employment agency for the services used. The temporary agency, in turn, will pay the temporary workers' wages and benefits.

While it's convenient for local governments to outsource or hire temporary and part time workers with no benefits, the taxpayers pay for that simplicity — part of the bill for a temporary worker goes to cover the temporary agency's administrative costs. The temporary employee receives only a portion of what you're charged for their services. The markup over wages paid to the temp worker depends on the assignment, job specialty, experience required, and any other special requirements stipulated by the government entity. Markups can range from as low as 25 percent to as high as 100 percent — or even higher!

New York State taxpayers should know about the consequences of the Paterson administration circumventing civil service law:

Training Needs

Every time a temp starts a new work assignment – no matter how skilled or unskilled – a certain amount of training is required in order for them to perform their assigned tasks to suit the specific needs of that entity.

Morale Issues

Morale and employee relations problems can arise when you have temps working alongside permanent employees for months, doing the same work and putting in the same hours, but not receiving the same benefits afforded their permanent employee coworkers. Workplace democracy becomes nonexistent and temp workers can be terminated without just cause.

Safety Issues

Certain types of jobs are inherently dangerous and require careful safety training. Studies show that frequency and severity rates of on-the-job injuries are significantly higher with temporary workers. No matter what a temp’s experience is, care must be taken to see that dangerous tasks are performed safely. Never assume a temporary worker is fully prepared to work unsupervised until you have taken the time to see that they can safely perform their work tasks.

Legal Concerns

Recent court decisions have highlighted the fact that state and local governments as well as businesses must be careful how they contract for temporary staff. There must be no doubt about the workers’ status and about the lack of eligibility for the benefits of permanent employees.

This commentary relflects the opinion of the author only.