SF Banana Republic store hires 39 foreigners, says not enough U.S. applicants

[Newsjock]

Source: KPIX

Like most big retail stores, Banana Republic is hiring seasonal workers for the holidays. But CBS 5 has learned that 39 of the freshly-hired employees at the Grant Avenue store are from outside the country.

They have been ordered not to talk to reporters, but we met workers inside the store from South Africa, Brazil, and Japan. One worker who told CBS 5 he is from South Africa, said he is working for minimum wage and staying at a downtown hotel.

A spokesperson for The Gap, Inc. - which owns Banana Republic - told CBS 5 the store aims to hire locally, but can't seem to get enough applications for the Grant Avenue store, saying "We have found it harder to fill that capacity."

... Skip Pas owns West Coast Leather and has been a neighbor of Banana Republic for more than a decade.

... "To bring in people from all over the world, it sounds like a nice program for the international aspect. But you know, this is San Francisco and right now people are having to work two or three jobs just to make ends meet," Pas said.

Read more: http://cbs5.com/local/banana.republic.hiring.2.1335192.html

[DJ13]

1. We have found it harder to fill that capacity."....he is working for minimum wage

Cheap bastards.

No residents can afford to work for minimum wage in SF, the cost of living is too high.

Raise the pay, then you'll find more than enough citizens that would be willing to work there.

[Fumesucker]

2. What does it cost to live in a downtown hotel in SF?

More than you'd make on minimum wage I'd wager..

[Luminous Animal]

16. I suspect it is a SRO hotel at about $75 a week.

[Fumesucker]

24. There are no Americans living in the same places in SF?

I find that hard to believe in this economic climate.

[Luminous Animal]

40. Not likely employable ones. SROs are where people, generally, go to die.

[diane in sf]

50. $75 a day more likely

[dysfunctional press]

30. it depends- how many people are sharing the room?

it might be quite affordable.

[Luminous Animal]

37. SROs usually only allow one person per room.

And, given that security is pretty tight, it is difficult to break the rules on a regular basis.

[dysfunctional press]

45. are they definitely in an sro, or is that an assumption?

:shrug:

[Luminous Animal]

46. There is absolutely no way that a minimum wage worker could afford

a regular tourist downtown hotel at $175.00+ per night. The only downtown hotels that a minimum wage worker could afford would be an SRO. And if that worker could afford a $175.00 per night downtown hotel room, why the the hell are they working at Banana Republic for minimum wage?

[dysfunctional press]

47. "assumption" will do just fine.

if multiple people are sharing the room in a crappier hotel, it can become much more affordable- that's my point.

[Luminous Animal]

48. I think I understand. But downtown, there are no crappier hotels

in which you can share a room. You have either posh hotels or SROs. Given that SROs are generally prohibited by law from converting to a tourist hotel and that SROs generally do not allow more than one occupant per room, the best bet would be an SRO.

[dysfunctional press]

49. we stayed at a fairly dodgy place not too far from union square a few years ago...

i don't remember the name- it had 'pacific' in it, and it definitely wasn't posh. it was recommended as an inexpensive place in a guide for airline employees(which i was at the time), and the room had a particularly musty smell and really bad carpeting.

[intheflow]

54. I'm wondering if the workers are paying for it,

or if housing is part of their work agreement with BR.

[Luminous Animal]

55. I don't think so. The workers have J1 Visa status and are hired through CCUSA

and part of their contract is that they pay for their airfare, program fee and have $900-$1500 USD on hand when they get here.

http://74.125.155.132/search?q=cache:30GD6uhDhdkJ:footprints.ccusa.com/global/docs/we/international_staff_handbook_summer.pdf+CCUSA+RELIGION+JOBS&cd=3&hl=en&ct=clnk&gl=us&client=firefox-a

Given their J1 Visa status, the GAP does not have to pay Social Security or Medicare taxes on their wages. This is a significant savings for the corporation.

[intheflow]

56. We know for a fact they were hired through CCUSA?

When I was in Mississippi after Hurricane Katrina, they were using J1s to bring in workers for cleanup, and their work agreements included housing. Granted, they were housed up to 30 people in a mobile home, and they certainly couldn't get away with that kind of cramming people in downtown SF, but I don't see anything in the OP story that definitively states through what agency they were hired. If they came in through another program, they could have have housing be part of their contract.

[Luminous Animal]

57. Yes. We know for a fact.

It's in the article. Quote: "
So the spokesperson said Banana Republic contracted with a company called CCUSA and hired 39 graduate students with visas, from outside the United States, looking for international experience."

[intheflow]

59. Thanks.

I obviously need more coffee to improve my reading comprehension this morning! :donut:

[treestar]

65. If it's an exchange program

Could there be Americans working abroad on it too?

[Luminous Animal]

66. It isn't an exchange program.

[dmallind]

4. And what would that do to store prices?

[Luminous Animal]

18. There are plenty of people willing to work for $9.79 an hour in SF.

That is minimum wage. Do you think that every one who lives here is rich? I know plenty of independent young adults who work minimum wage and plenty more who've been trying to find steady work for quite a while. They may have to stay with their parents or live 7 people to a 2 bedroom apartment or live in a windowless basement or in an illegal space above a toxic spewing car painting company, but they do it.

[dmallind]

3. ... so there are two options

1) The company is being mostly honest. Few native born SF people want to work for $7 an hour or so sucking up to yuppies when the average rent is far and away above what you can make working at that level full time.

2) They are lying through their teeth and want to have people with less sophisticated English skills representing their business. They are ignoring the huge numbers of SF area native born Americans desperate to work for tiny wages in a demeaning capacity for some unguessable reason.

Which is more likely?

[Newsjock]

5. SF minimum wage for 2009 = $9.79/hour

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/12/25/BAAP14UAG2.DTL

An ordinance approved by city voters in 2003 ties the annual wage increase to the percentage change in the Consumer Price Index, a measure of the average price of goods and services. San Francisco will have the second highest minimum wage in the United States in 2009, behind only Santa Fe, N.M., which is scheduled to mandate $9.92 an hour in 2009.

[gateley]

10. I'll take Door Number Two, Monty. People in SF are hurting as bad as people

everywhere else, and wouldn't turn down the opportunity, IMO.

[Cessna Invesco Palin]

19. Uh, the people they hired *were* in SF.

They didn't import them from all over the world. They were in the country legally on visas that permitted work of this type.

[Luminous Animal]

22. Not according to the article.

"So the spokesperson said Banana Republic contracted with a company called CCUSA and hired 39 graduate students with visas, from outside the United States, looking for international experience."

[Cessna Invesco Palin]

28. I stand corrected.

Looks like they are working with CCUSA, which is actually not a bad organization.

[gateley]

23. Uh, sorry. Thanks for enlightening me. I'm so dumb sometimes. nt

[Luminous Animal]

26. Well, the poster might be wrong, so no need to apologize. See my reply.

[Cessna Invesco Palin]

31. Yes, I was incorrect in my assertion that the employees came from SF.

[dmallind]

51. To what advantage?

What is the advantage in seeking out foreign workers if natives are willing to do the job? Rertail work is low wage work anyway so it's not like they can save a whole lot of $$.

[Luminous Animal]

58. Because, as I have posted numerous times on this thread...

The workers have J1 Visa status and that status exempts them and the company from Social Security and Medicare contributions. This is a significant saving for the company.

[Luminous Animal]

11. What the fuck!? I could deliver 50 local applicants tomorrow.

100 more in a few days. Young adults here are desperate for a job no matter who they have to suck up to.

[PassingFair]

63. Hmmmmm....THIRD OPTION: J1 Visa status. From post 55 above....

"Given their J1 Visa status, the GAP does not have to pay Social Security or Medicare taxes on their wages. This is a significant savings for the corporation."

[Luminous Animal]

6. Fucking lying bastards.

My 19 year old daughter and her friends have been trying to find steady work for 2 years. There are dozens and dozens of applicants for every retail job or entry service job. There are placement programs for teenagers and young adults in the high schools, community colleges, and volunteer community organizations in this city. If they were hiring, they didn't post the jobs and they didn't contact any of the organizations that could have provided them with ample and eager local applicants.

[Cessna Invesco Palin]

14. Maybe they don't want teenagers. n/t

[Luminous Animal]

15. And young adults.

I said that in my post.

[Cessna Invesco Palin]

17. You also said they were trying to find steady work.

This isn't steady work. This is temping, more or less.

[Luminous Animal]

21. They've been trying to find steady work but they'll take anything.

And they have been taking any type of temporary work available... digging in water systems, cleaning houses, licking stamps, baby sitting, playing music on the street ... anything. Getting on a regular work schedule even for a month and a half would be better than scrambling for work each and every day.

[Cessna Invesco Palin]

34. What's their educational background?

I know the bay area economy is hell right now, but if anything they've done scans well with the people I know, I can always pass along a rec. It would mostly be in the tech field and environmental non-profits (Acterra, POST, etc.)

[Luminous Animal]

39. Most of them are still in school.

With the cutbacks in classes and 50-60 students trying to get admission to the same class, it is taking significantly longer to make it through a semester with a full load. It took my daughter 3 semesters to get admitted to an into statistics class that she needed. Most of her friends are going to community college because it is cheaper than 4 year colleges in order to put their "core" classes behind them and then transfer to a 4 year college for their junior and senior years.

And thank you for the offer. One of my daughter's friends has worked for Acterra! She's the one who is studying to be micro-biologist. My daughter is majoring in psychology with a minor in acting but she has extensive experience with clerical work. She signed onto a temp agency but they rarely call her because of her school schedule.

All these kids want is what I had when I was young. A part-time job with regular hours so that they can schedule their classes around work. They want to work, like I did, with other students so that, when scheduling classes, they can commiserate with their workmates to switch shifts.

I apologize about getting so upset about this but when I see so many young people having such a difficult time becoming independent productive citizens in both their scholastic pursuits and with employment, it pisses me off.

[MidwestRick]

64. Can you ask her

or her friends if they actually applied for these jobs?

I'd be curious to know if they did and BR overlooked their resumes when trying to fill these positions. Most retailers are posting jobs on the internet, so one doesn't even have to walk store to store to apply for these types of jobs.

[Luminous Animal]

67. Yes. She and several of her friends have applied to all the stores

that The Gap owns in the city, both in person and on the internet. The Gap is flat out lying here. There are numerous agencies, schools, universities, that have job placement departments. If the Gap needed employees, it would have been a snap to find locals.

Given that I've been a controller for businesses for many years, I'm pretty secure in assuming that the Gap decided to hire J1 visa applicants in order to avoid paying Social Security and Medicare taxes.

If I had the time, I'd investigate how many other corporations are substituting J1 visa employees for seasonal temp workers.

[gateley]

7. We need to take it to YouTube and the supportive Media (I'm thinking Rachel,

Ed, KO, etc.) That seems to be the only thing that works these days - and it DOES seem to work well. Put them under a microscope.

[Nikki Stone1]

8. Is Grant Ave. Chinatown?

?

[Cessna Invesco Palin]

12. More like Union Square area.

Chinatown is further north on Grant.

[Luminous Animal]

13. Near Union Square.

[Nikki Stone1]

20. Thanks.

.

[Hannah Bell]

42. "grant avenue, san francisco, California, U.S.A, Looks down from Chinatown

Over a foggy bay.
You travel there in a trolley,
In a trolley up you climb,
Dong! Dong! You're in Hong Kong,
Having yourself a time.

You know you
Can't have a new way of living
Till you're living all the way
On Grant Avenue. --Where is that?--
San Francisco, That's where's that!
California U.S.A.


I thought it was in chinatown too....

[Retrograde]

62. Parts of it

Grant Avenue extends from Union Square through Chinatown and on into North Beach. I doubt the store's in Chinatown (at least it wasn't last I looked)

IMHO, the key is that the company may not have to pay Social Security on these employees or provide other benefits. That all adds up. If they just said they're bringing in foreigners for the experience that would be one thing. Not being able to find US citizens or people with green cards in an area with 10% unemployment rates just doesn't sound plausible.

[neshanic still]

9. Stunning. Now this one takes the cake. I have friends ...

That have tried to get jobs at Home Depot in the Nursery...no chance.

I am currently unemployed. I would gladly work there part time, on call...whatever.

[RagAss]

25. Pieces of fucking shit !

[sabrina 1]

27. They're probably paying them less than minimum wage

which is why they don't want them talking to reporters.

Boycott the store. Greed should not be rewarded. They want Americans to finance their business but not to hire them.

Or how about finding Americans to go and apply for jobs and see what happens? This sounds like Boehner who 'never met anyone who was in favor of a public option'. Maybe they need some help finding Americans who need jobs right now.

[girl gone mad]

29. Yes, most likely.

Here is a picture of people lining up to apply for similar jobs at an American Apparel store in Manhattan:

http://www3.pictures.gi.zimbio.com/American+Apparel+Holds+Open+Call+Jobs+New+fdlGCT4ZWlDl.jpg

I'm guessing that if Banana Republic in SF put out an open call, they would get the same kind of response. They probably found a way to pay below the prevailing minimum wage by hiring foreign "students".

[Cessna Invesco Palin]

32. Unlikely.

They're not going to risk lawsuits over a couple of bucks an hour.

[sabrina 1]

53. Thanks for the information.

Yes, that's more likely as it is a lot of savings.

[dysfunctional press]

33. boycotting isn't enough.

in a place like san francisco- there had better be pickets & protests outside that store from now til christmas.

[Luminous Animal]

38. Probably not. The Feds monitor J1 Visa programs pretty carefully.

The benefit to the GAP is the saving on Social Security and Medicare taxes. And the savings are not insignificant. See my post below (link): http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=7185482&mesg_id=7185925

[Systematic Chaos]

35. For once I'm glad I'm too much of a fat fucking hippo to buy any of their shit.

May the motherfuckers in the ivory tower burn in hell.

:grr:

[Luminous Animal]

36. It's a tax savings to the GAP. These workers "save" the GAP a lot of money.

These young adults are hired as J1 Visa employees through CCUSA.

The employer will not have to pay Social Security or Medicare taxes.

http://74.125.155.132/search?q=cache:30GD6uhDhdkJ:footprints.ccusa.com/global/docs/we/international_staff_handbook_summer.pdf+CCUSA+RELIGION+JOBS&cd=3&hl=en&ct=clnk&gl=us&client=firefox-a

See page 34.

So, lets say that 39 employees working 4-8 hours a day. I'll compromise at 6. 39 workers x 6 hours = 234 working hours a day. 234 hours x $9.79 in wages = 2290.86 wages per day for 39 employees. $2290.86 wages x .0765 social security & medicare taxes = $175.25 in taxes saved per day. We'll assume 1 month of work (between Thanksgiving & Xmas) = 160 hours of work. 160 x $172.25 = $28,040.13 savings in payroll taxes.

[Hannah Bell]

41. another yuppie corp shows its true colors. guestworkers in retail, the new wave.

[Luminous Animal]

44. Yep. A scheme to avoid paying Social Security and Medicare taxes.

[NMMNG]

43. Fuckers

I'm glad to say I've never bought anything there and I never will. I don't buy their story for a minute. Unemployment around here is through the roof and people are desperate for work.

[PVnRT]

52. Christ, how much profit are they trying to squeeze here?

The clothes are already made in sweatshops in Asia and sold at massive markup, now we need to fly in workers from overseas to keep more costs down? Ridiculous.

[Bluenorthwest]

60. Hey they could have bussed people in from Oregon!

I could have found them 50 in an instant, who'd have hopped a bus or a car and been there in 8 hours. 12% unemployment here in their neighbor state. They are providing housing, I note. That's it for buying there stuff. I hear CA has large unemployment as well, so the next county over might have done the trick. What is wrong with these people?

[Luminous Animal]

61. I could have delivered 50 San Franciscans in an instant.

And they are not providing housing.

[Starry Messenger]

68. That's fucking bullshit.

People are desperate for work out here.