Additional Justice System Reforms Could Help
BY: CEO Action for Racial Equality
CEOARE is a fellowship of over 100 companies from across America, ranging from retailers to accountants, manufacturers and other suppliers, that mobilizes business leaders with diverse expertise to advance public policy.
For more information, contact Felicia Williams at felicia.williams@ceoactionracialequity.com
Labor shortages are a large challenge to retailers today as demand for consumer services outgrows the supply of workers.
Efforts like the passage of the 2020 Clean Slate legislation in Michigan, which MRA and other organizations supported, helped increase the talent pool by expunging criminal records of many Michiganders. However, other justice system policies that criminalize poverty continue to contribute to mass criminalization and many of the workforce challenges faced by retailers.
Justice system policies exacerbate workforce challenges
With historical turnover rates in retail over 50% and as high as 70% in 2020 per the Bureau of Labor Statistics, retailers need to continuously attract talent, while retaining current employees. Absenteeism goes beyond turnover and its related costs impacting the ability to provide quality customer service and impacting brand and long-term profitability.
Unfortunately, Michigan’s current policies around court fees and cash bail worsen these workforce challenges. These policies create additional consequences for those arrested and even jail time due to a lack of wealth. They also lead to recruitment, absenteeism and turnover challenges for employers. In a story shared on ACLU Michigan’s website, a young man was arrested the day before he was starting a new job in customer service. It took his family two days to source funds for bail. Missing his first day of work as a no-call, no-show, he was fired leaving his new employer to deal with the consequences most likely incurring recruiting costs to replace him.
A substantial number of individuals employed by retailers are likely impacted by these policies. A recent survey by Public Sector Consultants and the Buy Nearby program reports that Michigan’s retail industry employs 758,000 workers. Furthermore, the United Way’s ALICE in Michigan 2021 reports that 38% of Michigan households earn less than the basic cost of living. Two-thirds of these are employed, many in retail jobs like cashier at the local supermarket, sales at a big box store, office clerk, cleaning and maintenance staff and others that support everyday retail operations.
Employees in this category may struggle to pay a fine, fee or bail of any amount, and in turn, suffer consequences ranging from poor attendance, under performance, and possibly termination.
Michigan legislative solutions
Two bill packages could help mitigate these issues. Both were introduced in the Michigan House in 2021 and await a hearing in the Judiciary Committee. The Juvenile Justice Fees bill package (HB 4987-4991) eliminates many fees associated with juvenile courts that have been keeping families in debt far after a youth has served their punishment. The Pretrial Fairness bill package (HB 5436-5443) addresses recommendations from Michigan’s bipartisan Joint Task Force on Jail and Pretrial Incarceration that include upholding speedy court timelines and prioritizing non-monetary release conditions for people charged with non-serious offenses.
Retailers need their workforce to show up daily. Reforms like those before the Michigan Legislature can help reduce employee absenteeism and help retailers retain their talent.
1 Copyright 2021 ACLU of Michigan. Originally posted by the ACLU of Michigan at https://www.aclumich.org/en/stories-broken-bail-system
2 Used with permission of United Way of Northern New Jersey
