Hiring workers off welfare has presented challenges for many L.A. companies

Thanks to a strong economy and an ever-tightening labor market, many L.A.-area companies have found success among those they hire off welfare.

But it’s not always a smooth process.

At Rosemead-based Edison International, only three dozen former welfare recipients have been hired since welfare-to-work began in L.A. 20 months ago.

The reason for the low number is that all Edison applicants must first complete a rigorous training program and those who complete the training have no guarantee of a job. So out of every class of 25, only about two or three actually get work.

Edison has been restructuring to become more competitive in the local utility market and hasn’t hired all that many people over the last few years.

Another large company, Harman International, has hired a similar number of welfare recipients about 30 in all at its Northridge speaker manufacturing plant that employs 1,500. But last week Harman announced plans to downsize its U.S. operations, laying off about 100 workers. While those cuts are not expected to affect its former welfare recipients, it does mean that fewer new jobs will be added.

Contrary to the expectations of many, hiring people off welfare has not translated into higher workers’ comp costs for Harman. “We’ve only had one claim from all the workers we hired off welfare, and that person was back to work full-time in three or four days,” said Human Resources Director Paula Stern.

Among the more aggressive hiring is being done by Sears, Roebuck & Co. In the South L.A. County region alone, more than 200 people have been brought on, nearly 10 percent of the company’s total workforce in that region.

Workers typically start out in part-time, entry-level positions, like assistant sales reps or merchandise carriers who are brought on at $6-$7 an hour, according to District Human Resources Manager Nancy Meraz.

“We have found that almost all have the skills they need, and they tend to advance fairly rapidly,” Meraz said. Many already have progressed to more senior positions and are earning at least $5 or $6 above the minimum wage.

While much of the attention has focused on larger companies, most of the hiring appears to be coming from small companies, which in general have been doing most of the hiring throughout the ’90s.

At Auto Data Sciences in Santa Monica, three people were brought on from welfare in the last 18 months. One is still there; the other two went back to school.

“The one worker who is still here has been an outstanding success story,” said Rena Burns, Auto Data’s president. “She has shown great creativity, even outside of the area in which she was hired. She wanted to open up a new market for our products; we gave her the chance and it has really worked.”

But some businesses have not had even this modest success. Vivian Seigel, executive director of the Jewish Vocational Service, cited one small garment manufacturer that approached the nonprofit job placement service twice in an attempt to hire on an employee.

“The first time, the employee lasted about five or six weeks before quitting,” Seigel said. “He came back to us and hired someone else; that person lasted only about nine or 10 weeks. After that, he said he wanted nothing more to do with welfare recipients.”

Howard Fine