The use of full-time seasonal workers is expanding as companies
seek to keep wage and benefit costs low, meet their peak demand cycles and avoid
some pitfalls of temporary workers.
Seasonal workers already are a staple of the retail,
hospitality and tourism sectors, as well as weather-related industries such as
construction and agriculture. Now manufacturers increasingly are turning to such
workers -- from concern about a shortage of skilled workers and a need to
sustain productivity gains.
Even with the economy growing, companies remain cautious about
hiring, particularly in the highly competitive goods-producing sector. In some
cases, workers who want full-time work year-round can only find seasonal or
temporary opportunities.
Indeed, from an employer's perspective, using seasonal
full-time workers lessens overall labor costs from having workers employed year
round. It also cuts the expense of recruiting and training new batches of
temporary workers and helps employers hold onto more experienced, skilled
workers who are retired or want to work only part of the year.
There are no firm numbers showing how many companies use
seasonal full-time workers. The Labor Department lumps them together with
year-round full-time workers. The number of temporary employees, which doesn't
include seasonal workers hired directly by companies, also continues to grow, as
it has for two years.
And anecdotally, employers and analysts say the use of seasonal
full-time workers appears to be gaining speed. "It's become much more acceptable
to have short-term working relationships," says Arne L. Kalleberg, a professor
of sociology at the University of North Carolina-Chapel Hill.
Daniel Meckstroth, chief economist with Manufacturers
Alliance/MAPI, a public-policy group in Arlington, Va., says there is a
labor-market niche for workers who don't want to work year-round but need
income. "The question is, 'Can you make that arrangement attractive enough?' "
he says.
Sony Electronics Inc., a unit of Tokyo-based Sony
Corp., plans to hire 500 full-time seasonal workers at its plant near Pittsburgh
during its peak season of August to January. Workers will be offered $8.25 an
hour, health-care benefits, paid vacation and the company's 401(k) retirement
plan. In the off-season, workers can extend health-care benefits through Cobra,
the program that provides continued health coverage at group rates to former
workers.
"The seasonals is a group that we hope will come back year
after year, and it's also the group from which we'll be picking full-time
staff," says Michael Koff, spokesman at Sony Technology Center.
Doing so will help Sony to meet increased demand for its
rear-projection television sets, while reducing the cost of temporary workers,
the company said. Last year, it hired about 1,900 temporary workers during its
peak season and had to bus in workers from Baltimore and Cleveland, paying their
transportation and lodging costs, on top of staffing-agency commissions.
Smaller companies, too, count on full-time seasonal workers to
help them through transition periods. For example, Lake Champlain Chocolates in
Burlington, Vt., plans to add a second shift but now only needs that shift
during the peak candy-buying season that runs roughly from Halloween through
Easter. Rather than hire full-time workers to whom it must pay wages and
benefits during slow months, the 100-employee company adds 20 full-time seasonal
production employees to work between August and March.
"We've been lucky there are people that are looking for a
seasonal job," says John Weishaar, production manager.
Even businesses that don't have much variation in production
schedules want full-time seasonal workers, because they can be more reliable
than temps. John Evans' Sons Inc., an industrial-spring maker in Lansdale, Pa.,
is hiring seasonal full-time workers to replace local students used in the past.
Students "are either at the shore" or seeking out internships,
says Allan Davey, president of the company. Full-time seasonal workers will be
used to produce parts for windows, trucks and elevators when year-round workers
take vacations. The company doesn't offer them benefits, but pays them 10% more
than starting full-time workers.