In 2005, Goodwill Industries of the Columbia Willamette (GICW), Goodwills Portland, Oregon branch, came under scrutiny due to executive compensation that the Oregon attorney generals office concluded was unreasonable.The President of the Portland, Oregon branch - Michael Miller, received $838,508 in pay and benefits for fiscal year 2004, which was reportedly out of line in comparison to other charity executives and placed him in the top one percent of American wage earners. After being confronted with the states findings, Miller agreed to a 24% reduction in pay, and GICW formed a new committee and policy for handling matters of employee compensation.[23][24] Goodwill Industries International has been criticized by some for using a provision of federal labor law to pay workers with disabilities less than the federal minimum wage. Under Section 14(c) of the Fair Labor Standards Act of 1938, organizations can obtain a special wage certificate to pay workers with disabilities a commensurate wage based on performance evaluations.[25] 7,300 of Goodwills 105,000 employees are paid under the special wage certificate program.[26] The National Federation of the Blind considers it unfair, discriminatory, and immoral.[27] Other disability rights advocates have defended Goodwills use of the special wage certificate to employ workers with disabilities. Terry Farmer, CEO of ACCSES, a trade group that calls itself the voice of disability service providers, said scrapping the provision could force [disabled workers] to stay at home, enter rehabilitation, or otherwise engage in unproductive and unsatisfactory activities. [28] Goodwill believes that the policy is a tool to create employment for people with disabilities who would not otherwise be employed.[29] Goodwill notes that Eliminating it would remove an important tool for employers and an employment option available to people with severe disabilities and their families. Without the law, many people with disabilities could lose their jobs. [30] Goodwill has urged Congress to support legislation that would strengthen the FLSA and increase its enforcement, and to preserve opportunities for people with disabilities who would otherwise lose the chance to realize the many tangible and intangible benefits of work. [31] A 2013 FLSA fact sheet from Goodwill states that Without FLSA Section 14(c), many more people with severe disabilities would experience difficulty in participating in the workforce. These jobs provide individuals with paychecks that they would be unlikely to receive otherwise, as well as ongoing services and support, job security, and the opportunity for career advancement. [32] A 2013 article on Watchdog.org reported that Goodwills tax returns showed that more than 100 Goodwills pay less than minimum wage, while simultaneously paying more than $53.7 million in total compensation to top executives.[33] The former CEO of the Goodwill of Southern California was the highest paid Goodwill executive in the country. He received more than $1.1 million in total compensation. In 2011, the Columbia Willamette Goodwill, one of the largest in the country, says it paid $922,444 in commensurate wages to approximately 250 people with developmental disabilities. These employees worked 159,584 hours for an average hourly wage of $5.78. The lowest paid worker received just $1.40 per hour.[33] A coalition of smaller charities in California have complained about Goodwills support for legislation encouraging greater regulation of donation boxes,[34] calling the efforts an “attempt to corner the clothing donation market and make more money.”[35] Local Goodwills have argued that donation boxes divert money from the community and contribute to blight, and have pushed for state legislation that requiree owners of a donation box to clearly display information about whether it was a for-profit or nonprofit organization.[34]
Posted on: Wed, 04 Dec 2013 01:39:37 +0000
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