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A Clean Break: Fuerza Laboral's Quest to Incubate A Clean Break: Fuerza Laboral’s Quest to Incubate a Cleaning Cooperative in Rhode Island A thesis submitted by JANAKI K. BLUM In partial fulfillment of the requirements for the degree of Master of Arts in Urban and Environmental Policy and Planning TUFTS UNIVERSITY May 2017 Advisor: Prof. Penn Loh Reader: Dr. Ann Rappaport Abstract The aim of this thesis is to examine the challenges and opportunities facing Fuerza Laboral, a Latino immigrant worker center, in its efforts to found a building cleaning worker cooperative in Rhode Island, so as to assist similar endeavors in future. The inquiry explores the crucial pre- launch phase by employing a case study approach with a centerpiece feasibility analysis for a potential building cleaning cooperative. In addition to a review of the relevant literature, the backstory and critical issues are examined through interviews with professionals concerned with the cleaning industry and with worker cooperatives in RI and elsewhere. Research and observation indicated that a worker center could assist low-income immigrants establish building cleaning cooperatives to the extent that it can overcome internal impediments as well as the challenging industry, regulatory, technical, and social conditions in RI. The thesis concludes with thoughts on ways that educational establishments might help further the process. ii Acknowledgements This thesis would not have been possible without the support of many people. First, my heartfelt gratitude goes to Fuerza Laboral for allowing me to conduct the feasibility study for its putative cleaning worker cooperative, and thus the idea for the thesis. Thanks are owed specifically to Heiny Maldonado, Fuerza Laboral’s Executive Director, who responded so enthusiastically to my many requests for information and whose confidence in me has helped me so much. I am indebted to the interview participants, whose observations and opinions helped me to ground my work in reality. I wish to thank my thesis committee, especially my advisor Penn Loh for the patient and insightful guidance and encouragement that helped shape and realize this opus. Thanks are a due to Anne Rapport for her willingness to part of this endeavor and for her perceptive comments and questions. My appreciation also extends to my Thesis Groups, Sharon Cho, Jaissa Feliz, Danielle Ngo, Rachel Nagin, and Sarah Jimenez, for their solid support during the initial stages of the thesis. I owe much thanks to UEP staff Maria Nicolau and Michael Flanary for their extraordinary administrative assistance. Last but not least, I thank my family, John, Justine, Eric, Rohan McDonald, and Vinod Moonesinghe, not forgetting Jessie the dog and Kitsel the cat, for sustaining me with affection and humor. iii Table of Contents Abstract ............................................................................................................................................ii Acknowledgements......................................................................................................................... iii Table of Contents ............................................................................................................................ iv List of Tables .................................................................................................................................... v List of Figures .................................................................................................................................. vi Chapter 1 : Introduction ................................................................................................................. 1 Chapter 2 : Methodology ................................................................................................................ 4 Chapter 3 : Literature Review ......................................................................................................... 9 Chapter 4 : Introduction to Case ................................................................................................... 25 Chapter 5 : Feasibility Study ......................................................................................................... 33 Chapter 6 : Findings and Recommendations ................................................................................ 86 Chapter 7 : Conclusions ................................................................................................................ 97 Appendices .................................................................................................................................. 103 References .................................................................................................................................. 109 iv List of Tables Table 3.1: Summary of Latino cleaning worker coop Initiatives .................................................. 24 Table 5.1: Occupational employment and wage estimates: Cleaning workers, USA, Rhode Island, and Providence Metro Area (May 2014) ...................................................................................... 50 Table 5.2: Number of Rhode Island cleaning establishments, employees, and size (2013) ........ 51 Table 5.3: Clients per worker ........................................................................................................ 52 Table 5.4: Clients per coop size .................................................................................................... 52 Table 5.5: Target clients in 20 miles ............................................................................................. 54 Table 5.6: Target communities with market shares required by a coop of 5 or 10 members ..... 56 Table 5.7: Competitor client service capacity in RI ....................................................................... 57 Table 5.8: Market saturation of target households ($100K income) in Rhode Island ................. 58 Table 5.9: Market saturation of all households (all incomes) in Rhode Island ............................ 58 Table 5.10: Market saturation of target households ($100K income) in RI -MA 3 counties ........ 59 Table 5.11: Market saturation of all households (all incomes) in RI-MA 3 counties.................... 59 Table 5.12: Commercial clients per worker .................................................................................. 61 Table 5.13: Number of clients needed for cooperatives of varying sizes and frequency of cleaning ......................................................................................................................................... 61 Table 5.14: RI Market share of clients for cooperatives of varying sizes and frequency of cleaning ......................................................................................................................................... 62 Table 5.15: Competitors client capacity in RI ............................................................................... 63 Table 5.16: Market saturation of target commercial clients in Rhode Island .............................. 64 Table 5.17: Competitors client capacity RI+MA............................................................................ 64 v Table 5.18: Market saturation of target commercial clients in RI and 3 MA counties ................ 65 Table 5.19: Residential pricing ...................................................................................................... 76 Table 5.20: Clients required for full time work ............................................................................. 80 Table 5.21: Five year financial summary without hired manager ................................................ 83 Table 5.22: Five year financial summary with hired manager ...................................................... 83 Table 5.23: Differences between residential and commercial cleaning ...................................... 85 List of Figures Figure 4.1: Fuerza Laboral, partners, the CBI Program and cooperative network ....................... 32 Figure 5.1: Janitorial services Rhode Island: Total employees ..................................................... 49 Figure 5.2: Janitorial services Rhode Island: Number of establishments. .................................... 49 Figure 5.3: Median incomes of households around Central Falls, RI ........................................... 54 Figure 5.4: National commercial market segments ...................................................................... 68 Figure 5.5: RI total target commercial market composition by industry ..................................... 68 vi Chapter 1 : Introduction The aim of this thesis is to examine the challenges and opportunities facing an immigrant worker center in its efforts to found a building cleaning worker cooperative in Rhode Island (RI), in order to assist similar endeavors in future. It focuses on the early pre-launch phase as this is when crucial decisions regarding a cooperative are made, including the type of industry, legal form, and viability. The introductory chapter briefly outlines the motivation behind the thesis, and the need for the cooperative, and hence for the feasibility study. Labor abuses (such as low wages, wage theft, and unsafe work conditions) are pervasive in industries that employ immigrant workers. The building cleaning industry is one of the severest offenders, and the foreign-born Latino workforce the most affected ethnic group. Traditionally, workers countered exploitation by organizing, notably through institutions such as workplace-
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