Building Trades Unions' Alternative Analysis Of Labor Ready Inc. 2000 Financial Performance Finds Huge Drop in Profits and Downward Trend

Apr 17, 2001, 01:00 ET from Building and Construction Trades Department AFL-CIO

    WASHINGTON, April 17 /PRNewswire/ -- On the eve of Labor Ready Inc.'s
 (NYSE:   LRW) release of its first quarter earnings, the Building and
 Construction Trades Department, AFL-CIO released its own analysis of the
 company's FY 2000 financial performance. The Building Trades' analysis
 spotlights significant drops in profits for the company, higher operations
 overhead, and the likelihood that a downward financial trend for the
 beleaguered temporary help firm will continue.
     As a Labor Ready shareholder, the Building and Construction Trades
 Department has monitored the company's performance in an effort to provide
 investors with a more objective understanding of how Labor Ready operates. The
 Building Trades report is based on Labor Ready's annual 10-K report that was
 filed with the Securities and Exchange Commission on March 30, 2001. The
 Building Trades report concludes:
 
     *  Labor Ready had a very bad year. Earnings are down, debt is up, and
        overhead is running at almost twice the rate of one of its competitors,
        Manpower Inc.
     *  Labor Ready closed 10% of its offices in the second half of 2000 and
        may close more. U.S. growth is almost flat. Plans for new divisions
        have been shelved. Labor Ready's national ad campaign has been
        curtailed.
     *  Labor Ready appears to have suffered market burnout.
     *  Labor Ready burns out its blue-collar workers as well as its office
        workers. Turnover may be a major cause of its apparent decline.
     *  Labor Ready has major regulatory problems. Workers comp costs are up
        $16 million and $15 million has been added to reserves for future
        claims. Back payments, penalties and forfeited rebates in two states
        have cost Labor Ready $1 million, and now more states are
        investigating. Labor Ready faces worker class action lawsuits for
        alleged cash dispensing machine fees, wage and hour violations, health
        and safety violations, and transportation fees.
     *  Labor Ready's accident rate worsened between 1999 and 2000. The
        company's worker injury rate is three times higher than the national
        average for construction.
 
     The Building Trades Alternative Analysis of Labor Ready's Year 2000
 Performance will be available on-line at http://www.tempvoice.org , the web
 site of the Temp Workers Deserve a Permanent Voice @ Work campaign. For a
 printed copy, please contact the Building and Construction Trades Department
 at 202-756-4635.
 
 

SOURCE Building and Construction Trades Department AFL-CIO
    WASHINGTON, April 17 /PRNewswire/ -- On the eve of Labor Ready Inc.'s
 (NYSE:   LRW) release of its first quarter earnings, the Building and
 Construction Trades Department, AFL-CIO released its own analysis of the
 company's FY 2000 financial performance. The Building Trades' analysis
 spotlights significant drops in profits for the company, higher operations
 overhead, and the likelihood that a downward financial trend for the
 beleaguered temporary help firm will continue.
     As a Labor Ready shareholder, the Building and Construction Trades
 Department has monitored the company's performance in an effort to provide
 investors with a more objective understanding of how Labor Ready operates. The
 Building Trades report is based on Labor Ready's annual 10-K report that was
 filed with the Securities and Exchange Commission on March 30, 2001. The
 Building Trades report concludes:
 
     *  Labor Ready had a very bad year. Earnings are down, debt is up, and
        overhead is running at almost twice the rate of one of its competitors,
        Manpower Inc.
     *  Labor Ready closed 10% of its offices in the second half of 2000 and
        may close more. U.S. growth is almost flat. Plans for new divisions
        have been shelved. Labor Ready's national ad campaign has been
        curtailed.
     *  Labor Ready appears to have suffered market burnout.
     *  Labor Ready burns out its blue-collar workers as well as its office
        workers. Turnover may be a major cause of its apparent decline.
     *  Labor Ready has major regulatory problems. Workers comp costs are up
        $16 million and $15 million has been added to reserves for future
        claims. Back payments, penalties and forfeited rebates in two states
        have cost Labor Ready $1 million, and now more states are
        investigating. Labor Ready faces worker class action lawsuits for
        alleged cash dispensing machine fees, wage and hour violations, health
        and safety violations, and transportation fees.
     *  Labor Ready's accident rate worsened between 1999 and 2000. The
        company's worker injury rate is three times higher than the national
        average for construction.
 
     The Building Trades Alternative Analysis of Labor Ready's Year 2000
 Performance will be available on-line at http://www.tempvoice.org , the web
 site of the Temp Workers Deserve a Permanent Voice @ Work campaign. For a
 printed copy, please contact the Building and Construction Trades Department
 at 202-756-4635.
 
 SOURCE  Building and Construction Trades Department AFL-CIO