The Impact of Temp Workers on Productivity and Auto Industry Jobs

The United Auto Workers (UAW) strike against Detroit automakers is highlighting the issue of temporary workers, with the union demanding an end to tiered labor and automatic permanent status for temps after 90 days. Temporary workers are common in the manufacturing sector, comprising 1 in 10 workers on the factory line. While companies argue that temps provide flexibility and cost savings, research suggests that their use can decrease overall productivity and job performance of permanent employees. The UAW claims that temps currently earn half as much as permanent employees under the current contract.