March 28, 2024
Local News

Debate over warehouse job quality rages on

Business says jobs have improved; research not as optimistic

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As the number of warehouses and fulfillment and distribution centers continues to increase in Will County, there are a number of jobs that come along with them.

The quality of these jobs has been the subject of research and the focus of advocacy groups such as Warehouse Workers for Justice, based in the Chicago area.

John Greuling, president and CEO of the Will County Center for Economic Development, said historically there have been problems with low pay and poor working conditions, but locally that has changed in the past several years. Greuling specifically pointed to Walmart-owned logistic facilities in Elwood that Schneider, a third-party logistics company, staffs.

“I can tell you, if I took you into that facility today, you would be amazed at what you would see, and it’s not because of the technology ... but the place is clean,” Greuling said. “It’s lit. The employees all seem happy.”

Greuling added that these companies care about the environment in which their employees operate. He also said that now these companies care much more about labor retention, which, he argues, poor treatment and pay do not bolster.

He also highlighted the complexity of the logistics industry residents might not know about – specifically that big companies, such as Walmart, may own the buildings and products inside them, but the workers might not be their employees. The companies that staff the buildings, like Schneider, are referred to as third-party logistics companies.

Greuling said companies like Amazon also have raised the bar in terms of entry-level wages. Amazon employs 5,000 full-time associates in Will County at fulfillment centers in Joliet, Romeoville and Monee.

Salaries for their employees depend on prior experience, but, on average, Amazon pays at least
30 percent more than traditional retail work. While Amazon did not have the specific number of part-time employees it has in Will County, spokesperson Shevaun Brown said that throughout the year, nearly 90 percent of associates are regular, full-time employees.

But at least one expert, who has studied Will County warehouse jobs specifically in the past, said the research and outlook of the quality of these jobs is a mixed bag. Beth Gutelius, a senior researcher at the University of Illinois at Chicago’s Great Cities Institute, partnered with the Warehouse Workers for Justice on a 2010 study of warehouse work in the county and elsewhere.

“I don’t think we have much evidence that working conditions in Will County, or anywhere, have improved,” Gutelius said.

She cited the structural problems of the industry, specifically with issues like whether or not an employee directly is hired or hired through a temporary staffing service. This distinction is significant because, Gutelius said, the research shows a $3 per hour difference in pay, depending on how the worker is hired. Temporary workers typically get the short end of the stick.

Specifically for Amazon, Gutelius said there is a lot of debate about the quality of those jobs and the benefit to communities. She pointed to the working conditions Amazon workers are expected to endure in a fast-paced, high-pressure environment.

Gutelius said ultimately it is important to question the quality of warehouse jobs because low-paying jobs mean more people relying on the social safety net to pay the bills.

Residents should ask if it’s worth it for these companies to get incentives from taxpayers, when much of the profit does not stay within communities.

“I would really want these companies to have their feet held to the fire,” she said. “What are you really asking for in return?”

At least in general terms, Greuling agreed with this sentiment, but, with perhaps a more positive outlook.

“As a community, we don’t want to see wage theft,” Greuling said. “We don’t want to see people not paid overtime. That’s a lousy job, and so even though we can’t control the environment, I think the operators of these distribution centers in Will County have become much more sophisticated.”

Alex Ortiz

Alex Ortiz

Alex Ortiz is a reporter for The Herald-News in Joliet. Originally from Romeoville, Ill., he joined The Herald-News in 2017 and mostly covers Will County government, politics, education and more. He earned his bachelor's degree at the University of Illinois at Urbana-Champaign and a master's degree from Northwestern University.