by Morgan Sweeney
Hundreds of employees of the country’s largest federally-contracted call center went on strike in Virginia last week to protest claims of “unfair layoffs,” poor pay, lack of career advancement opportunities and racial inequality in the workplace.
Maximus is contracted with the Department of Health and Human Services to supply call center services for the federally-mandated health care marketplace, Medicaid and Medicare enrollees, and the CDC-INFO line. Maximus employees handle millions of calls on behalf of HHS every year.
Workers and former employees gathered in response to the latest round of layoffs that put more than 700 employees out of work just before Mother’s Day.
Employees gathered to protest outside their workplaces in Florida, Kentucky, Louisiana and Mississippi, and former employee Keaira Mark hosted a virtual town hall that afternoon. She and others believe there were unspoken reasons for the layoff.
“I believe the real reason I was laid off was in retaliation for speaking out about Maximus’ working conditions, and to scare my co-workers from supporting a union,” said Daija Arrington, who worked at Maximus handling calls for the CDC for three years. “That’s why we’re calling on HHS to hold Maximus accountable for mistreating workers, help us keep our jobs, and make sure we’re paid the fair wages we deserve.”
The strikers also called for a minimum of a $25-per-hour wage for entry level positions, arguing their current base pay of $16.20 is not a living wage, and questioned the company’s commitment to diversity, equity and inclusion. Maximus’ 2021 workforce data indicates only 5% of company executives are Black and Latina women, though they comprise nearly half of Maximus’ American workforce.
Maximus has responded to each of these claims, arguing that the layoffs were due to overstaffing, in part because open enrollment season has passed; that raising wages would require government approval as the government determines minimum wage for employees of federal contractors; and, according to reporting done by the Washington Post, that “80 percent of Maximus employees [have] a favorable view of diversity efforts.”
The company, in a statement, said, “Maximus welcomes the opportunity to engage directly with our employees and work together to resolve their concerns. We respect our employees’ legal right to attempt to organize, and any information we provide is designed to help them make an informed decision about union representation. Maximus follows all labor laws and regulations, and we strive to treat all employees equally with respect and sensitivity.”
The Communications Workers of America union also issued a statement in support of last week’s strike.
“This is a critical period for Affordable Care Act enrollment, just as millions of Americans may be pushed off of Medicaid and will need help maintaining their health coverage through the federal marketplace that is staffed by the call center workers at Maximus,” the union said.
A pandemic provision from 2020 allowing Americans to stay on Medicaid without routine checks for eligibility has ended, resulting in millions losing Medicaid coverage.
Maximus employees have been attempting to unionize since at least 2018. Other issues they’ve had include breaks, attendance and severance policies, and a layoff that occurred earlier this year. To date, they have been unsuccessful.
Maximus argues that, despite the claims of dissatisfied employees and former employees, the data shows that many Maximus employees are happy with their jobs.
“Our employees are engaged and motivated to deliver high-quality customer service to millions of Americans. We know this because we have historically lower attrition rates than normal,” the statement said.
“Additionally, our most recent employee engagement survey shows that 84% of our employees plan to stay with the company for at least another 12 months.”
The states involved in last week’s strike are right-to-work states, which, according to the National Right to Work Foundation, offer some protections to employees who do not want to engage in union activity.
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Morgan Sweeney is a staff writer covering Virginia and Maryland for The Center Square. Morgan was an active member of the journalism program as an undergraduate at Hillsdale College.
Photo “Call Center” by Charanjeet Dhiman.
