The jan/san industry was thrust into the media spotlight in October and November when 250 illegal immigrants employed by building service contractors (BSCs) that service Wal-Mart stores were arrested for their illegal status. Federal agents raided 61 Wal-Mart stores across the United States in their investigation, and early evidence suggests that executives for the retail giant may have known that the workers were illegal immigrants.

Wal-Mart representatives reported that the company has its own cleaning crews in the majority of its 3,412 stores, but that it does contract with 110 building service contractors (BSCs) to clean approximately 700 stores.

Some cleaning industry experts are asking why Wal-Mart didn’t thoroughly check the legal standing of the BSCs it was contracting, but that may be easier said than done, says Del Chavis, owner of Genco Inc., a jan/san distributor in Myrtle Beach, S.C. “As long as a person has any kind of picture ID, he can get a driver’s license. Once you have a driver’s license, it isn’t difficult to get a social security card,” he says.

Recently, some of the illegal immigrants filed lawsuits against Wal-Mart for discrimination. Nine New Jersey-based cleaners sued Wal-Mart, stating that they were offered lower wages and fewer benefits because of their Mexican heritage and illegal status.

“The real problem isn’t the illegal workers, it’s the employers who keep hiring illegal workers because they know they won’t have to pay as much money,” says Nancy Brown, president of a Myrtle Beach-based BSC, Beach Interiors, and a long-time customer of Genco.

Chavis and Brown co-hosted an immigration law seminar for Myrtle Beach cleaners because the problem was so widespread. An official from the U.S. Citizenship and Immigration Services (USCIS) traveled from Washington to South Carolina, and explained what both distributors and BSCs can do to avoid any legal trouble. “She told us that as long as we’re taking out proper taxes, filing the I-9 forms and giving them fair benefits, we’re not doing anything wrong,” said Brown.

Distributors with locations along the southern border of the United States are more familiar with this kind of immigration law, says Harold Ettinger, a jan/san veteran and former owner of Regal Supply & Chemical, El Paso, Texas. “There’s more sensitivity on the part of employers in our area,” says Ettinger. “A distributor or contractor in Des Moines probably doesn’t think he needs to consider the immigration law, such as I-9, as much as we do right here on the border.”

As Wal-Mart’s legal imbroglio indicates, all distributors — regardless of location — are wise to know the law when it comes to immigration; not only for their own companies, but also to help guide their customers.

“Oftentimes, new contractors come to distributors and ask for help,” says Ettinger. “It’s usually about product lines or cleaning methods, but it’s probably a good idea to help them with any legal issues that they wouldn’t naturally foresee.”

Ettinger learned a lot of what he knows about immigration law — and its relation to the cleaning industry — through his own experience. “In the mid-1980s, I hired three guys, and I was under the impression that they were all legal at the time,” he says. “They had been doing good work for me for five or six years, and then they suddenly told me that they were illegal immigrants and had different names.”

NEWS MAKERS

G-P Opens Florida Plant
Georgia-Pacific, Atlanta, a leading manufacturer of jan/san towel and tissue, recently announced that it has invested $30 million and created 60 new jobs at its Palatka, Fla.-based plant. The plant will be used to produce a former Fort James towel line for the southeast region of country, one of the fastest-growing consumer products markets, according to sources at Georgia-Pacific.

ISSA Releases 2003 Cleaning Times
The International Sanitary Supply Association (ISSA), recently announced the publishing of the 2003 edition of Cleaning Times, a reference that covers 447 different times to clean a variety of surfaces in various categories.

Rubbermaid Declares Quarterly Cash Dividend
The board of directors for Newell Rubbermaid, Atlanta, recently announced the declaration of a quarterly cash dividend of 21 cents per share on the company’s common stock. On an annual basis, this is a rate of 84 cents. The dividend is payable to common stockholders on December 12, 2003. Newell Rubbermaid, an international manufacturer in the jan/san industry, had sales of more than $7 billion in 2002.

CHH Confirms Sale
Carter Holt Harvey (CHH), a leading international paper tissue manufacturer in New Zealand, recently confirmed rumors that the company will sell its tissue business. CHH head Peter Springford stated in late November that tissue doesn’t fit with the company’s overall corporate strategy, and that it will refocus on its core businesses in wood-fiber processing and marketing. SCA has already held talks with CHH about a possible acquisition.

REGULATORY NEWS

The Department of Transportation (DOT) Research and Special Programs Administration recently released a final rule detailing how its regulations apply to the loading, unloading and storage of hazardous materials. The new rule, found at DOT’s website (www.dot.gov), clarifies that hazardous materials regulations apply to “pre-transportation” functions, such as preparing hazardous materials for shipping, unloading hazardous materials or emptying transportation containers at the destination.

The U.S. Small Business Administration (SBA) recently announced that small businesses with essential employees called to active duty may still apply for Military Reservist Economic Injury Disaster Loans (MREIDL) from the SBA. For the past two years, the MREIDL program has provided loans to eligible small businesses to cover operating costs that cannot be met due to the loss of a key employee called to active duty in the reserves or National Guard. To download an application, visit the SBA website.

MERGERS & ACQUISITIONS

Delta Industries, King of Prussia, Pa., a supplier of reusable trigger-spray bottles for the jan/san industry, recently announced the acquisition of Carson City-based Biggs Corp. Biggs Corp. is a manufacturer of ergonomically designed janitorial maintenance tools. Delta Industries stated that the acquisition will broaden its national distribution network and bring its product lines to a wider audience.

American Building Maintenance Co. of New York, a subsidiary of ABM Industries Inc., recently entered the Boston and Rhode Island markets with the acquisition of the commercial business of Building One Service Systems. Assets acquired by ABM include key accounts in the Boston area, as well as ABM’s first contract in Rhode Island, including the Garrahay Supreme Court Building.

Prophet 21, Yardley, Pa., a national vendor of technology solutions for distributors, recently announced the acquisition of System Design. System Design is the provider of Prism, an enterprise software solution.

Laun-Dry, a jan/san distributor in El Paso, Texas, recently announced the acquisition of Regal Supply & Chemical, also based in El Paso. The two distributors were competitors for more than 50 years.

ContinentalAFA, a manufacturer of dispensing products based in St. Peters, Mo., has acquired the Specialty Products business unit of Owens-Illinois. The acquisition includes all assets related to the production of plastic trigger sprayers and finger pumps.

Greenwich Hospital Converts to Green Cleaners

Just as Greenwich Hospital, Conn., prides itself in its innovative medical treatment and research, it also prides itself in its cleaning operations. Nationally recognized as a premier health care facility, the hospital recently garnered national attention in the medical industry when it made a complete change to environmentally friendly, or “green,” cleaning products.

“Our company has been supplying Greenwich Hospital for more than 10 years,” said Allan Abels, sales representative for Best Restaurant Equipment, a jan/san distributor in Stratford, Conn. “However, we didn’t propose the hospital’s change over to a green product line.”

Anthony Como, Greenwich Hospital’s director of hospital services, did extensive research before deciding to invest in Green Seal-approved cleaning products from Clean Environment Co., Lincoln, Neb. “Green Seal is a nonprofit organization that is very well respected,” said Como. “We switched all our cleaning chemicals except for our germicidal cleaners, because they’re still researching a germicide that’s better for the environment.”

Greenwich Hospital’s decision has been covered by several New York and Connecticut media sources, bringing increased attention to the green-cleaning movement. “They are being the leader,” Cecilia DeLoash, a state partnership director for Hospitals for a Healthy Environment, told the Greenwich Time newspaper. “Not a lot of hospitals have actually made the transition yet. A lot of them are considering it, though.”

After doing thorough research, Como set up the partnership himself between Clean Environment and his distributor, Best Restaurant. “Mr. Como is generally on the cutting edge of his industry requirements,” said Abel. “He evidently was looking for green products for the hospital for quite a while. To be honest, I was afraid that the manufacturer might work out a direct partnership because of the hospital’s prominence.”

Although Best Restaurant had never sold Clean Environment products to any of its customers in the past, the distributor is now selling those product lines to other health care facilities on the East Coast as well.

“They worked out a flexible pricing structure and this is the kind of product line that hospitals are interested in,” said Abel. “They don’t want a product that just claims to be green; it’s important that those claims can be verified. The Green Seal is the most sought-after recognition for green products because it can be measured.”

Canada Reaches Agreement with Canadian Pulp and Paper Industry

Prime Minister of Canada Jean Chretien recently signed a climate-change Memorandum of Understanding (MoU) with the Forest Products Association of Canada (FPAC).

The MoU looks to have significant impact on the Canadian jan/san paper industry, as it sets out key elements of agreement between the Canadian Government and the pulp and paper industry. One of those key elements is a commitment by the industry to reduce its greenhouse gas emissions intensity by an average of 15 percent by the first Kyoto commitment period, which takes place between 2008 and 2012.

The government released the Climate Change Plan for Canada in November 2002, but this is the first agreement with industry that takes steps to implement that strategy.

“Climate change is a challenge we all share, and we all have a responsibility to do our part,” said Prime Minister Chretien. “This partnership with the pulp and paper companies is a blueprint for how we can work with industry to make real progress in implementing the Climate Change Plan for Canada.”

Jobless Rate Plunges, Gives Hope to Business

The number of Americans filing first-time claims for unemployment benefits decreased to its lowest number since before the 2001 economic recession, the Federal Reserve stated in late November. The statement is fueling hopes for an economic recovery in 2004.

The jobless rate, combined with other recent news indicating an improving labor market, suggests a quickening pace of recovery for the business sector. If the recovery holds true, companies will be forced to increase hiring of new workers.

The jobless rate does “increasingly favor a revival in job creation,” Federal Reserve Chairman Alan Greenspan said. He also told the Securities Industry Association “a notable pickup in hiring” was possible if businesses found a need to rebuild depleted inventories and were unable to squeeze new efficiencies out of their current staffs.




POSTED ON: 12/1/2003