Has anyone heard about a potential round of turning full-time employees into contractors at non-union locations?
13 replies (most recent on top)
Are there any options or protections for the employee if this happens?
I was fired and then hired back 15 weeks later as a contractor. I hung around for about 8 months and left.
Why would they do this when they can and already have outsourced many to IBM, Accenture, Tech M etc. and these same employees are doing the same job for AT&T at the outsourced company? Unless this is what you mean? If so, this has been going on for years and obviously not breaking any employment laws as ATT has legal folks all over this stuff.
This is also against the Internal Revenue Code. An employer cannot change the status of an individual from an employee to an independent contractor if the duties and responsibilities have not materially changed. Employers try to do this all of the time to save on employment taxes (FICA and FUTA) and employee benefits. If caught during an audit this can lead to substantial penalties on top of the back taxes and interest.
They've been doing that with supply chain in the SW for years (at union locations).
att is a cesspool.
If you don't go with the new company/contractor, is there severance involved?
It is a tactic the company uses to hopefully keep you but not have to pay as much or pay for benefits. You either go with the new company/contractor or you will be out of a job.
When you think about it Kraft employees are already lot contractors every 3 months our contract is renewed. When it's not renewed that's referred to as a surplus.
Heard the plan is to have laid off employees compete to get jobs back, and the employees would pay the company to work there.
They call it rebadging.
that's illegal. there's a period time that has to kapse...like 6 months...before an employee can come back as a contractor.
No. But I've heard that senior management wants to hire only people named Terry for all positions in order to save on personalized supplies.
It's great because it's a gender-neutral name!