NO SALE

The Retail Industrys Failure to Address

Health Equity

A Report by
ISAIAH
Minnesotans for a Fair Economy
Centro de Trabajadores Unidos en Lucha (CTUL)
Service Employees International Union (SEIU) Local 26
Able, But Not Willing

November 2014

Contents
Summary and Introduction ........................................................................... 4
The Health Impact of Poverty Wages ........................................................... 7
Wage Theft .............................................................................................................................................. 10
Retailers Opposition to Minimum Wage and Increased Sick Time .......................................................... 11
Stress ...................................................................................................................................................... 12

Working Conditions.....................................................................................13
In the U.S. ............................................................................................................................................... 13
Overseas Factories.................................................................................................................................. 13
Bangladesh ............................................................................................................................................. 15

Health Insurance.........................................................................................16
Sick Days ...................................................................................................17
Recommendations ......................................................................................19
About Us ....................................................................................................20
Endnotes ....................................................................................................21

Summary and Introduction

The Minnesota Department of Health (MDH) released two reports earlier this year that reframed how we
view health.1 While the traditional view is that health is created by individual behavior and health care, the
MDHs reports presented research showing the central role that social, economic and environmental factors
also play in determining ones health. The MDH documented the enormous disparities in health between
white Minnesotans and Minnesotans of color and the connections between poverty and quality of health.
Put simply, people with higher income are more likely to live longer, healthier lives than those at lower
income levels an average of eight years longer.
There are approximately 60,000 retail sales people in the Twin Cities metropolitan area, more than any other tye
of job. There are another 32,000 people working as cashiers and 13,000 front-line supervisors of retail sales
workers.2 These are also jobs in which there are large
concentrations of women and people of color. Women account for
over two-thirds of all cashiers in the Twin Cities, and people of
For individuals, income
color make up a quarter of the cashiers.3
Retail department stores play a very important role in the Twin
Cities since they are such large employers, and they are a large
determinant in the quality of life in the metro area. Retail
department stores have fallen short when it comes to having a
positive impact on the well-being of workers and their families
and of seizing the opportunity to be a leader in health equity.

is one of the strongest

and most consistent
predictions of health and
disease . . .
Minnesota Department of Health

Poverty Wages: According to the Bureau of Labor

Statistics, the typical retail sales person earns just $10.29 per hour.4 Cashiers earn even less an
average hourly was of $9.12.5 The wages at big box retail stores, such as JC Penney, Kmart, Kohls,
Sears, Target, TJ Maxx, and Walmart are even lower, between $8-$9 an hour on average for both
sales associates and cashiers.6 Full-time workers at these wages earn less than $19,000 a year
well below the poverty line and not nearly enough to provide food, housing, health care,
transportation and other basic needs.
-

Janitors in Minnesota who work for sub-contractors cleaning retail department stores are
also paid just $8-$9 an hour with no benefits. These contractors have been the subject of
numerous lawsuits and Department of Labor investigations for violating minimum wage
and overtime laws.7

Retailers have opposed raising any increase in the minimum wage on the state or federal
level and in Minnesota are opposing a bill that would provide

Chronic Stress: Workers report that having to work two jobs due to the low pay is taking a severe
toll on their bodies through sleep deprivation, stress and more. According to the MDH, chronic
stress is the first domino in a chain reaction that can lead to cancer, hypertension, diabetes,
heart disease, and stroke.8

Lack of Health Insurance: Retail workers are the least likely to have access to job-based health
benefits compared to employees in other fields.9 In the retail sector, just 45 percent of workers
receive health insurance through their employer.10 In state after state, Walmart and other
retailers are among the employers with the most employees receiving publicly subsidized health
coverage. This places a significant burden on state public assistance programs to cover the costs
related to poverty wages and health concerns of low wage workers.11

Unsafe Working Conditions: The janitorial contractors that clean big box retail stores in
Minnesota have also been cited for numerous health and safety violations.12 The overseas
factories that supply these stores have been found to have very dangerous conditions, resulting
in thousands of fatalities of their workers.13

In the Minnesota Department of Healths

first report, Advancing Health Equity in
At Best Buy, we believe the
Minnesota, the MDH defines health as physical,
success of our company depends
social and mental well-being. In MDHs view, health
on the overall well-being of our
is not created by individual behaviors (healthy food
and exercise) or health care alone as it has
employees . . . a healthy, engaged
traditionally been seen but rather that health is
and committed workforce is our
created through social, economic, and
competitive advantage
environmental factors as well as individual
14
behaviors and biology. According to the report,
factors such as neighborhood, income, race,
economic mobility, and access to housing all have a greater impact on health than any individual decisions
or medical interventions.
The MDH report shows that although Minnesota is overall a very healthy state, the health disparities
between white Minnesotans and Minnesotans of color are larger than in many other states and exist in
numerous indicators of overall health and well-being. From obesity to infant mortality to chronic disease to
life expectancy, people of color do worse than their white counterparts.
The MDH released a second report shortly after, detailing the connections between poverty and quality of
health.15 According to the report, people living in poverty face conditions that lead to poor health
including unsafe housing, lack of access to nutritious foods, less leisure time for physical activity, poorer
education and more overall stress.

Similar to MDH, some retailers recognize that there are a number of factors that affect how we feel, for
instance, Best Buy states, At Best Buy, we believe the success of our company depends on the overall wellbeing of our employees. . a healthy, engaged and committed workforce is our competitive advantage.16
Yet, as pointed out in the following report, the actions of retailers appear to contradict both MDHs and the
companies own principles leading to greater structural racial inequities in health and wealth.
Retailers view themselves as having a very limited role in their employees health. They see their
responsibility, as Best Buy puts it, to provide employees and their families with a number of resources to
enhance their physical, financial, and emotional wellbeing. Its up to each individual to take action. 17
They define health narrowly as individual decisions, but MDHs report shows that healthy behaviors
only account for thirty percent of what creates health. 18
Through defining a narrow role for themselves in supporting healthy lives, retailers ignore this recent
research from MDH that shows there are large health impacts from work policies like income, access to
benefits, and flexibility in scheduling to allow for family priorities. Retailers neglect their own role in creating
health for their employees in these areas.
As discussed in this report, retailers themselves are a major determinant in workers health, and poverty
wages and minimal benefits have a devastating impact on the well-being of workers and their families. The
recent reports from MDH demonstrate an opportunity for retailers to lead through acknowledging the role
they play in creating health and well-being not only for all their employees but for their employees families
and for the entire state of Minnesota.
Through taking a more holistic view of what creates health; and through taking a proactive stance in
being a champion for eliminating health disparities across the state, retailers are in a position to improve
health and decrease health costs across Minnesota.

The Health Impact of Poverty Wages

The Minnesota Department of Healths alarming report about the connections between poverty and
quality of health found that people with higher income are more likely to live longer and healthier lives
than those at lower income levels. According to the report, people living in poverty face conditions that
lead to poor health including unsafe housing, lack of access to nutritious foods, less leisure time for physical
activity, poorer education and more overall stress.
The report provided a detailed analysis of health disparities based on the departments research, and its
findings included that:

Residents in the wealthiest Twin Cities neighborhoods live an

average of 8 years longer than those in the poorest neighborhoods.

One in five Minnesotans with incomes below $20,000 a year was

uninsured in 2011, compared to just one in thirty-three who earned
over $75,000 a year.

One-fourth of Minnesotans who earn less than $20,000 reported

their health to be fair or poor, in contrast to just three percent of
people who earn more than $75,000.

The health effects of

poverty accumulate
over the years,
leading to poorer
health and shorter
lives.
MN Department of Health

The report also pointed out that the correlation between income and health goes both ways. Changes in
economic resources result in changes in health, while poor health can lead to the loss of economic resources
through fewer job opportunities and increased medical bills.
Given the association between lower income and poorer health, the report noted that policies that
contribute to increasing income levels, especially among those with the lowest incomes, would be
expected to have a positive impact on their health. The report further pointed out that income is not only
strongly associated with health directly, but it is also associated with factors that create the opportunity to
be healthy, such as job opportunities, transportation options, and quality of housing.
Low-wage earners are not the only people affected by poor health. The families of low-wage earners also
suffer. Children are able to be more productive in school if they have adequate nutrition, and early
childhood experts all agree that having the time to establish a relationship between parents and infants is
key to the development of a healthy child. Low-wage earners are more likely to have to work more than
one job and often have to make the difficult and costly decision of having to provide for their children rather
than spending time bonding with them. In light of these impacts, employers should see their responsibility
not only to the health of their immediate employees but to their families as well.

The MDH report forces us to view in a new light the poverty wages that retail stores pay their workers. On
average, the wages for sales associates and cashiers at Big Box retail stores, such as JC Penney, Kmart,
Kohls, Marshalls, Sears, Target, TJ Maxx and Walmart are between $8-$9 an hour.19 Full-time workers at
these wages earn less than $19,000 a year well below the poverty line and not nearly enough to provide
food, housing, health care, transportation and other basic needs for their families.20
However, over half of the workers in these positions
dont even earn this much since they are part-time,
involuntarily for many of the workers.21 Nationally the
number of involuntary part-time retail workers (those
who would rather have full-time hours) has increased
144 percent from 644,000 in 2006 to 1.5 million in
2010.22

Its not just workers employed directly by retail stores who are paid
poverty wages. In order to cut costs and avoid responsibility, many Big
Box retail stores often contract out their janitorial work. Janitors in
Minnesota who work for sub-contractors cleaning department stores
are also paid just $8-$9 an hour with no benefits.

Average wages
for sales
associates and
cashiers at Big
Box retail stores
are between $8 $9 an hour.

There is fierce competition among the janitorial companies for these

contracts, with each company trying to underbid the other. Since labor
is by far the largest and most costly expense in a cleaning contract, the company with the lowest labor
costs tends to win the contract. In some cases, the janitorial companies try to reduce their costs with
practices that are outside the boundaries of labor law, such as paying below minimum wage or not
paying overtime, workers compensation, or unemployment insurance.
Between January and March 2014, Centro de Trabajadores Unidos en Lucha (CTUL) conducted a health and
safety survey with janitors who clean retail stores in the Twin Cities metro area.23 The results of the survey,
which are included throughout this report, provide important insight into the recent studies of the
Minnesota Department of Health, providing both statistical analysis and anecdotal evidence of the
connection between poverty wages and quality of health within one low-wage industry in the Twin Cities
metro area.
Cleaning companies are stealing years of workers lives by paying sub-poverty wages. Workers in this survey
repeatedly state that because of their low wages they cannot afford to provide basic needs for their families
including going to the doctor, and that having to work two jobs is taking a severe toll on their bodies
through sleep deprivation, stress and more.

In addition, these surveys provide a disturbing insight into the potentially dangerous conditions that
retail janitorial companies place both upon hundreds of janitors and their children, and hundreds of
thousands of consumers who shop at stores in the metro area. Often times, working conditions seem to
contradict the social responsibility vendor policies of the corporate retail chains that are cleaned.

Low wages deeply affects my

health and the health of my
family. Sometimes we cant
even afford to buy milk. I am
always tired and I cant take my
children out to play or get
exercise.
- Maricela Flores
We need higher pay. We are working the
night shift and it is hard on the body.
- Bonifacio Salinas

I dont have time with my new baby because I have to work so much. I would work five
days (instead of seven) if they paid more and gave more hours.
It is not enough because it doesnt cover for clothes for my child, or food and many other
things.
If I want to buy other things, I dont have enough - not even for gas. Sometimes its only
$500 in two weeks, not enough for one person and I have children.
Having two jobs makes me overwork my body. Especially working at night - your body
needs to rest more, but I cant because I have to work two jobs.
We need higher pay. We are working the night shift and it is hard on the body.
I dont sleep because someone has to work. There is a lot of stress because when you
dont sleep well you get angry and when my kid is sick I have to find someone to watch
him.

Earlier this year, the Target Corporation took a leadership role in the retail industry when it adopted an
unprecedented Responsible Contractor Policy that will be implemented with new cleaning contracts at its Twin
Cities stores. Some of the key components of the policy include:

Ensuring that workers are no longer required to work seven days a week;

Guaranteeing workers right to form a safety committee in the workplace made up of at least 50%
workers, selected by their co-workers; and

Protecting and ensuring workers rights to form a union and engage in collective bargaining in
order to improve wages, benefits, and working conditions.
9

Wage Theft
In some cases, workers dont even receive the money they are legally entitled to from their work for
contracted companies cleaning retail department stores.
These janitorial contractors have been the subjects of numerous lawsuits and Department of Labor
investigations for wage theft illegally depriving workers of millions of dollars in overtime pay. The
contractors count on the predominantly Latino immigrant workforce not being aware of their rights or
being afraid of retaliation if they complain.
Diversified Maintenance has settled 10 private lawsuits and six investigations by the
Department of Labor, alleging violations of minimum wage and overtime laws, in the last ten
years.24 Just last year, the company paid $675,000 to settle a class action suit brought by
workers who cleaned Kmart and Sears stores in Minnesota.25
Prestige Maintenance has been investigated by the Department of Labor at least three times,
resulting in more than 400 violations for failing to pay overtime to workers.26
Carlson Building Maintenance was investigated by the Department of Labor which found
that the company owed back wages to 242 employees.27
Eurest Services is the subject of the most recent case.28 A new lawsuit was filed in March
2014 by three workers who supervised the cleaning of stores in the Twin Cities metro area for
Eurest. The supervisors allege that they worked approximately 70 hours a week, for which
they were only paid $350, resulting in an hourly wage of $5, well below even minimum wage.

10

Retailers Opposition to Minimum Wage and Increased Sick Time

Although individual retailers may say they do not take positions on legislative issues such as a higher
minimum wage or paid sick days, their political contributions and leadership in industry trade associations
make it clear that they oppose these improvements.
The board of the Minnesota Retailers Association is made up of lobbyists from retailers, including
Target, Walmart, Home Depot, Sears, JC Penney, and Macys. The lobbyist for Best Buy is the
chairperson of the Associations board. The Retailers Association:
-

Opposed raising the state minimum wage above

the federal amount and opposed indexing the wage
to inflation for future increases.29

Lobbied against a bill that would require businesses

to provide paid time off if their employees or their
relatives become ill. The Association believes that
retailers are best suited to establish wages and
benefits in the workplace, and opposes a workplace
sick leave mandate.30

In the U.S. House of Representatives last year, Rep. John Kline (R-MN) led the opposition to raising the
minimum wage. Kline said, We need jobs out there. The best approach right now is to get federal spending
under control and government out of the way of the nations job creators.31
-

Kline has received almost $250,000 in campaign contributions from the executives
and Political Action Committees of Best Buy, Home Depot, JC Penney, Sears,
Target, and Walmart. 32

The Retail Industry Leaders Association (RILA) describes itself as the home of the worlds largest and
most successful retail and consumer product companies. RILAs board includes CEOs from Best Buy,
Home Depot, Kmart, Lowes, Sears, Target, and Walmart. RILA opposes any increase in the minimum
wage and does not believe that states and localities should impose a patchwork of employment regulations
on employers.33
-

Since 2010, RILA has contributed almost two and a half times more to the U.S. Representatives
who voted against raising the minimum wage in 2013 than to the ones who voted for it.34

Minnesota Forward was created to elect Tom Emmer governor. In 2010 Best Buy gave the PAC $100,000, and
Target gave $150,000. One of Emmers main proposed economic policies was to lower the minimum wage
for waiters and waitresses.35

11

Stress
The Minnesota Department of Health report also discusses how low income leads to greater stress in ones
life, resulting in health problems for the whole family. As the report notes, low wages often means working
more hours, which in turn means limited parenting time. This is combined with the stress of trying to make
ends meet and limited access to family recreation. The stress is multiplied for single parents.
According to the report, chronic stress causes elevations of cortisol and adrenal hormones which cause
chronic inflammation -- the basis of the most common diseases, such as cancer, hypertension,
diabetes, heart disease, and stroke.36
In addition, children are impacted especially hard by poverty wages, according to research that indicates a
connection between the daily stress of poverty on parents and the negative effects on the lifetime health of
children.37
Best Buy, Kohls, Marshalls, Target, and TJ Maxx all have social responsibility policies that require their
vendors to give workers at least one day off every week. 38 But more than half the surveyed janitors who work
for contractors cleaning retail stores in the Twin Cities report that they work seven days a week. Over twothirds of those respondents state that given the choice, they would like to work the same total number of
hours, but fewer days a week, in order to have free time for themselves and their families.

I would like to have days

off every week, because
one week I work 7 and
the other I have the
weekend off. When I work
7 days that makes me
very tired and its hard to
do my best. I get very
little sleep and thats
unhealthy.
- Leroy Graham

One job is not enough

with the low wages,
and because of the
schedule at night it is
a little tough to have
a second job. Getting
sick costs a lot."

$8 is not enough. I work two jobs. Im very stressed. I cant focus on any one thing.
I barely see my son. I barely sleep, like 5-6 hours a day, and there is a lot of stress.
It is always tough to pay bills and it causes a lot of stress at home. For example, the
person who takes care of our children is not the same quality as a day care center.
I cant sleep well, and my body gets tired. Im worried that Im destroying my body.

12

Working Conditions
In the U.S.
Janitors who work for contracted companies cleaning retail stores in Minnesota have become increasingly
concerned about their health and safety in the workplace. The same contractors that have been the
subject of frequent wage and hour investigations have also been cited for numerous health and safety
violations. In just the past year, the Occupational Safety and Health Administration (OSHA) has uncovered
at least twelve serious violations by these four companies in Minnesota, exposing 700 workers at ten
different stores to conditions causing a substantial probability that death or serious physical harm could
result.39

Over half of the surveyed janitors report that their workload is too heavy due to understaffing.
Sixteen percent of the surveyed janitors who clean big box stores report theyve been hurt on the job
Almost half of the surveyed janitors responded that there is a lack of safety equipment (first aid kit,
eye protection, etc.) or that they need more training about the chemicals or machines they work
with.

Minnesota state law requires all employers with more than 25 employees to have a health and safety
committee composed of at least half worker representatives who are elected by their co-workers.40 Out of
concern for the health and safety of their co-workers, workers at all four companies approached
management in October 2013 about forming Health and Safety Committees, since none of the companies
had a committee at the time. Yet according to workers, one year later none of the four companies have
fully complied with the law.

Overseas Factories
The Big Box retailers discussed in this report have been the subject of repeated allegations of sweatshop
sourcing worldwide.
Best Buy imports its products from 142 overseas factories, most of which are in China. The company has a
Code of Conduct about what it expects from these factories. 41

Best Buys own internal audits found that ninety-eight percent of the factories were in violation of
the standards for working hours and time off, such as a maximum 60-hour work week, including
overtime, and no more than six work days a week.

Eight-two percent of the factories were in violation of Best Buys standards for protecting workers
from exposure to chemical agents.

Audits found violations at eighty percent of the factories for not paying workers legal wages for all
the hours worked.
13

Eighty percent of the factories were also found to be in violation of the requirements for having
emergency plans and response procedures, adequate exit facilities, and appropriate fire detection
and suppression equipment.

At least sixty-seven percent of the factories, violations were found regarding standards for
providing ready access to clean toilet facilities, potable water, and sanitary food preparation and
eating facilities.

There were violations at sixty-three percent of the factories for not having adequate controls for
potential safety hazards such as electrical and energy sources, fire, vehicles, and fall hazards.

Fifty-seven percent of the factories did not have the proper procedures and systems in place
regarding occupational injury and illness, such as providing necessary medical treatment and
correcting causes of injury and illness.

Target directly imports 30 percent of its owned-brand products from over 3,500 overseas factories in 50
countries. About 1,300 of these factories were found to have critical violations of provisions in Targets
Social Compliance Program regarding health and safety, payment of wages, excessive working hours, or
record-keeping violations in 2012.42
In 2012, Walmart required its suppliers to cease production at 214 factories because the violations of
Walmarts standards were so serious.43

14

Bangladesh
Bangladesh is second only to China as the worlds largest apparel exporter. The garment industry has attracted
many fashion brands and designers because the wages are lower than China and other developing countries.44
According to the Bangladesh Fire Department, there were over 230 factory fires between 2006 and 2010
killing almost 500 garment workers.45 Labor rights activists had been calling on US brands to
pressure Bangladesh manufacturers to improve factory safety conditions, but received little response,
and then things got even worse.
In December 2010, a fire broke out at a factory which was owned by the Hameem Group and which
supplied US retailers including JC Penney, Kohls, and Target.46 The fire started on the ninth floor due to
an electrical short-circuit and substandard wiring. With a number of the exits blocked, 29 workers were
killed. Some suffocated; others jumped to their deaths trying to escape or were trampled by their coworkers. Several dozen more suffered severe burns. The firefighters had ladders that only reached up to
the fifth floor.47
Two years later, 112 workers were killed at a fire at the Tazreen Fashions Factory, which produced clothes for
Walmart and Sears.48
Then in April 2013, over 1,100
workers were killed and more than
2,000 workers injured when the
eight-story Rana Plaza factory
building collapsed. The factory
produced clothes for JC Penney
and other retailers. A year and a
half later and JC Penney has still
not provided any funds to make
sure all the families of the dead
and the wounded receive the
much-needed compensation for
loss of income and medical
expenses.49
The Rana Plaza tragedy demonstrated the urgent need for retailers to adopt a common, legally binding
policy to ensure basic workplace safety and fundamental worker rights. It is clear that voluntary initiatives
and self-monitoring are not effective methods to protect workers hazardous and life-threatening
conditions. Yet big box retailers JC Penney, Kmart, Kohls, Sears, Target, and Walmart still have not
signed the Accord on Fire and Building Safety in Bangladesh.50

15

Health Insurance
Retail workers are the least likely to have access to job-based health benefits compared to employees in
other fields.51 In the retail sector, just 45 percent of workers receive health insurance through their
employer.52
In state after state, Walmart and other retailers are among the employers with the most employees
receiving publicly subsidized health coverage. This places a significant burden on state public assistance
programs to cover the costs related to poverty wages and health concerns of low wage workers.53

MASSACHUSETTS
In 2010, over 4,300 Walmart employees in
Massachusetts, a quarter of the companys total
workforce in the state, used subsidized health
care for themselves or family members, costing
taxpayers $14.6 million. Big Box retail chains
made up ten of the thirty companies with the
most employees on Medicaid in
Massachusetts.54

New Jersey
In New Jersey, Walmart was the employer with
the most employees enrolled in the states
Medicaid program, followed by many of the same Big Box stores as on the above Massachusetts list.55

16

Wisconsin
In Wisconsin, over 3,200
Walmart employees are
enrolled in Badger Care, the
states Medicaid program,
accounting for a total of
9,200 enrollees including
the children and adult
dependents of these
employees. Six other Big
Box retail stores were also
among the employers with
the most employees
receiving subsidized care.56

Its not enough to

maintain my family. I
sleep around 4 hours
a day and I cant have
an appointment with
my doctor because I
dont have insurance.
Jose Cabrera

I cant buy things for

my daughter to make
sure she is doing
well and is healthy.
There is no insurance,
and at this wage its
not enough to get
insurance.
Sandra Miranda

I have another job, and it tires me out. During the week I only sleep 5 hours per day.
Sometimes I cant pay hospital bills for my children.
Its not enough to cover health insurance. Because of that I did not go to the doctor until my
sickness got really bad. Now my eye is bad and because of that I only work 3-4 days per
week. I have to go to the doctor regularly, and now I have to survive with less days.
It lowers my esteem. I have two jobs only sometimes. I dont have enough to go to the
doctor. I have debt from my electricity and gas bills because of my low wages.

17

Earned Sick Time

Approximately half of all retail workers do not have any paid sick days. Without paid sick days, parents are
often forced to choose between their familys financial stability and their childrens health, and too many
have no choice but to send a child to school sick or skip medical care.
Paid sick days reduce the risk of on-the-job injury. In fact, according to a study by the National Institute for
Occupational Health and Safety, workers who are able to earn paid sick days are 28% less likely to get
injured on the job.57
When workers have protected, paid sick time, it allows them to be good employees and good parents. Sick
children get better sooner and reduce the risk of spreading the illness to their classmates when their
parents are able to care for them at home.
Legislation was introduced in Minnesota in 2014 to allow workers to earn one hour of paid sick and safe
leave for every thirty hours worked. The bill, HF2461/SF2105:
Provided for broad use of paid leave to care for family illnesses and deal with the
consequences of domestic violence.
Allowed workers up to nine job-protected sick and safe days each year (five days for small
businesses)
Let workers carry over unused sick and safe time to the following calendar year
Barred retaliation against an employee who requested or used earned sick or safe time
Included remedies for employees who were denied their earned sick and safe time.
The Minnesota Retailers Association, lobbied against paid sick and safe leave legislation. The
Association believes that retailers are best suited to establish wages and benefits in the workplace, and
opposes a workplace sick leave mandate.58
Two-thirds of surveyed janitors who clean retail stores in the Twin Cities metro area said that they have gone
to work sick because they dont have paid sick days. According to some workers:

I tried to call in sick and they told me I have to come.

They get angry when you are sick. They say they dont have anyone to cover you and you have to
come into work.

If you call in sick, you have to give a doctors note so they wont say anything. But there is not
enough money to go to the doctor, so I have to work sick

18

Recommendations
1.

Retail stores should pay employees a living wage. Even if retailers passed the entire cost on to
consumers instead of paying for it by cutting CEO compensation or redirecting unproductive
profits, raising the pay of retail workers to $15/hour would cost consumers just pennies more per
shopping trip.59 Poverty wages mean poor health for workers and their families.

2.

Retailers should provide employees with affordable health insurance. This would ensure that
employees are able to get preventative care as well as diagnostic care when needed.

3.

Retailers should not interfere with their employees rights to speak out for better jobs. They
could listen to its employees calls for change, rather than retaliate against them for speaking
out. When workers have a say about their wages, benefits, and working conditions, they will
address the issues that are having a negative impact on their health and well-being.

4.

Big Box stores should follow Targets lead in the Twin Cities by requiring their cleaning
contractors to be responsible. Responsible contractors compensate workers fairly, seek to
maximize continuity at workplaces, prioritize worker safety, and respect their employees right to
organize and bargain collectively. This would have a positive impact on workers health.

5.

The State of Minnesota should pass legislation for paid sick days and family leave. The
Earned Sick and Safe Time bill (HF 2461/ SF 2105) was introduced in 2014 to allow workers to
earn one hour of paid sick and safe leave for every 30 hours worked. Retailers could also lead in
this area by voluntarily providing employees with paid sick days. In California, workers
contribute a portion of each paycheck to the state disability system, which also funds the Paid
Family Leave program, so that employees can focus on family responsibilities when needed.

6.

The Minnesota Department of Labor and Industry should increase penalties for health and
safety violations. The current penalties were set in 1991. The amounts of these penalties should
be adjusted for inflation and be high enough to serve as greater incentive for employers to
maintain safe workplaces. A requirement should be put in to law that the penalties would
automatically be adjusted in the future.

7.

Minnesota should enact legislation to hold companies that outsource certain services liable for
employment law violations by the subcontractor. HF 1013, which was introduced last year in
Minnesota would hold companies liable for violations by its subcontractors of minimum wage,
overtime, and health and safety violations, if the company knew or should have known that the
subcontractor did not have sufficient funds to comply with employment laws.

8.

U.S. retailers should sign the Accord on Fire and Building Safety in Bangladesh. This is a legally
binding agreement for independent safety inspections with public reports, mandatory repairs and
renovations to prevent future tragedies. Over 160 brands and retailers have signed the Accord,
including Abercrombie & Fitch, Adidas, American Eagle, Benetton, Fruit of the Loom and Puma.
19

About Us
Centro de Trabajadores Unidos en Lucha (CTUL) Center of Workers United in Struggle
We seek to empower low-wage workers to lead a movement achieving fair and equitable wages,
working conditions, and treatment.
2511 E. Franklin Ave.
Minneapolis, MN
55406
612-332-0663
www.ctul.net
ISAIAH
We are a coalition of 100 member congregations working together towards racial and economic
equity in the state of Minnesota.
2356 University Avenue W, Suite
405, St. Paul, MN 55114
612-333-1260
isaiah@isaiahmn.org
www.isaiahmn.org
Minnesotans for a Fair Economy
We bring together members of community, faith and labor organizations, and other Minnesotans
to fight for an economy that works for all of us, not just large corporations and the top one
percent.
345 Randolph Ave.
#100 St. Paul, MN
55102
www.mnfaireconomy.org
Service Employees International Union Local 26
We are Minnesotas Property Services Union, uniting more than 7,000 janitors, security officers, and
window cleaners in the Twin Cities metropolitan area.
706 N 1st St # 110
Minneapolis, MN 55401
(612) 331-8336

Endnotes
40.ml6.11.14

Advancing Health Equity in Minnesota: Report to the Legislature, Minnesota Department of Health, February 1, 2014 and
White Paper on Income and Health, Minnesota Department of Health, March 3, 2014
2
May 2013 Metropolitan and Non-Metropolitan Area Occupational Employment and Wage Estimates Minneapolis-St. Paul-Bloomington,
MN United States Department of Labor, Bureau of Labor Statistics.
3
Affirmative Action Data Statistics Packet, compiled from American Community Survey 5-Year Data 2006 to 2010, Minnesota
Department of Employment and Economic Development and Minnesota Department of Human Rights,
3
. MN DEED Employment Projections
4
Occupational Outlook Handbook, 2014-15 Edition, Retail Sales Workers, Bureau of Labor Statistics, U.S. Dept of Labor, Jan 8, 2014
5
Occupational Outlook Handbook, 2014-15 Edition, Cashiers, Bureau of Labor Statistics, U.S. Department of Labor, January 8, 2014
6
Glassdoor.com
7
U.S. Department of Labor Wage and Hour Division Case IDs 1448700, 1475681, 1479614, 1559190, 1571181, 1604946 . Te.
Wright v. Diversified Maintenance Systems, No. 9:07-cv-80983-KAM, U.S. District Court, S. District of FL;
Vergara v. Diversified Maintenance Systems, Inc. et al, No. 6:08-cv-00598-ACC-KRS, U.S. District Ct, Middle Dist of FL;
Sousa v. Universal Building Maintenance, Inc. d/b/a Diversified Maintenance Systems, No. 6:08-cv-00245-JA-DAB,
Munoz v. Building Maintenance, Inc. d/b/a Diversified Maintenance Systems, No. 6:08-cv-922-ORL-DAB, U.S. District Court
Arellano v. Diversified Maintenance Systems, Inc. No. 1:11-cv-01288-FB-JO, U.S. District Court, Eastern District of NY
8
Minnesota Department of Health, March 2014
9
Under Health Care Reform, Employers May Slash Workers Hours to Avoid Mandate, Jeffrey Young, November 10, 2012, Huntington
Post
10
Ibid
11
New Data Show How Big Chains Free Ride on Taxpayers at the Expense of Responsible Small Businesses, Stacy Mitchell,
June 7, 2013, Institute for Local Self-Reliance
12
OSHA Cases: 316940592, 316940857, 316940865, 316914407, 316913094, 316013318, 316913326, 316973023, 317347706,
and 316913300
13
Target 2012 Corporate Responsibility Report
14
Minnesota Department of Health, February 2014
15
Minnesota Department of Health, March 2014
16
http://www.mybbybest.com/index.php?option=com_content&view=article&id=439:i-commit&catid=82&Itemid=174
17
Ibid
18
Minnesota Department of Health, March 2014
19
Glassdoor.com
20
Federal poverty level for a family of four is $23,850. US Department of Health and Human Services 2014 Poverty Guidelines
21
Best Buy Fiscal Year 2014 Corporate Responsibility and Sustainability Report; Health and Productivity at JC Penney, Jim
Cuva and Paul Landry, November 7, 2008; Conditions for Workers at Target: Estimates for a Proposed California
Supercenter, Jeannette Wicks-Lin, University of Massachusetts, Political Economy Research Institute, April 2011; The LowWage Drag on Our Economy: Wal-Marts low wages and their effect on taxpayers and economic growth, US House
Committee on Education and the Workforce, May 2013
22
Discounted Jobs: How Retailers Sell Workers Short 2012, Stephanie Luce, City University of New York CUNY Murphy Institute
and Nooki Fujita, Retail Action Project
23
2014 Survey of Retail Janitorial Workers in the Twin Cities, CTUL collected a total of almost 100 health and safety surveys
from retail janitors who work for four of the largest retail janitorial companies that operate in the Twin Cities metro area:
Carlson Building Maintenance, Diversified Maintenance Systems, Prestige Maintenance USA, and Eurest Services.
24
See endnote 7
25
Alvarez et al. v. Diversified Maintenance Systems, LLC et al, No. 0:11-cv-03106-SRN-TNL, US District Court, District of MN
26
U.S. Department of Labor Wage and Hour Division Case IDs 1183955, 1351131, and 1147129
27
U.S. Department of Labor, Wage and Hour Division, Minneapolis Dist. Ofc, Case ID: 1561107, Local Filing No. 2010-250-04816
28
Pacheco et al. v. Compass Group PLC, et al. No. 14-CV-366 PJS/TNL, US District Court, District of Minnesota
29
2013 State Legislative Recap, the Retailers Edge, Minnesota Retailers Association
30
Retail at the Capitol, The Retailers Edge Minnesota Retailers Association, March 28, 2014
31
6 Democrats Betray 30 Million Workers on Minimum Wage, Daily Kos, Bud Meyers, March 19, 2013
32
Based on data from the Center for Responsive Politics and InfluenceExplorer.com
33
RILA 2006 Public Policy Agenda
34
Based on data from Center for Responsive Politics

35

Emmer: Lower wages for tipped workers, Star Tribune, Jackie Crosby, July 5, 2010
Minnesota Department of Health, March 2014
37
Minnesota Department of Health, March 2014
38
Kohls 2013 Corporate Social Responsibility Report, Targets Standards of Vendor Engagement, Best Buy Fiscal Year 2014
Corporate Responsibility and Sustainability Report, The TJX Vendor Code of Conduct
39
US Code 7.05 Sec 17(k
40
Minnesota Statutes 182.676
41
Best Buy Fiscal Year 2014 Corporate Responsibility and Sustainability Report
42
Target 2012 Corporate Responsibility Report
43
Walmart 2013 Global Responsibility Report
44
Cracked beams, exposed wires among safety flaws found in Bangladesh garment factory checks, Vancouver Sun, Kay Johnson
and Julhas Alam, March 11, 2014
45
Hazardous workplaces: Making the Bangladesh Garment industry safe, Clean Clothes Campaign, November 2012
46
Clean Clothes Campaign Thats It Sportswear fire: one year on workers still dying in unsafe buildings
47
Thats It Sportswear fire: one year on workers still dying in unsafe buildings, Clean Clothes Campaign, 12/ 15/2011
48
The cost of cheap clothes at Wal-Mart, Sears, Emily Jane Fox, November 30, 2012, CNN Money
49
Clean Clothes Campaign Who has paid and who is dragging their heels
50
http://bangladeshaccord.org/signatories/
51
Jeffrey Young, November 10, 2012, Huntington Post
52
http://reclaimdemocracy.org/walmart-health-insurance-program/
53
New Data Show How Big Chains Free Ride on Taxpayers at the Expense of Responsible Small Businesses, Stacy Mitchell,
June 7, 2013, Institute for Local Self-Reliance
54
Employers Who Had Fifty or More Employees Using MassHealth, Commonwealth Care, or the Health Safety Net in State Fiscal
Year 2010, Commonwealth of Massachusetts, Center for Health Information and Analysis, Feb 2013
55
2011 Annual Report on Access to Employer-based Health Insurance, New Jersey Department of Human services
56
The Low-Wage Drag on Our Economy: Wal-Marts low wages and their effect on taxpayers and economic growth, US House
Committee on Education and the Workforce, May 2013
57
Making the Case for Paid Sick Leave, July 30, 2012, Abay Asfaw, Regina Pana-Cryan, Roger R. Rosa
58
Retail at the Capitol, The Retailers Edge Minnesota Retailers Association, March 28, 2014
59
Retails Hidden Potential: How Raising Wages Would Benefit Workers, the Industry, and the Overall Economy, Demos,
Catherine Ruetschlin, November 19, 2012
36