Prisons - Prison Work Programs And Industries

Work in fields, laundries, and kitchens has always been a part of many inmates' lives; some even participate in work-release programs. According to the 1995 BJS census of correctional facilities, the last such census published, more than 94% of all prisons operated inmate work programs. About 63% of state inmates and 90% of federal inmates participated in some type of work program.

State and local governments prevent prisoners from working at some jobs because they would be in competition with private enterprise or workers. In 1936 Congress barred convicts from working on federal contracts worth more than $10,000. In 1940 Congress made it illegal to transport convict-made goods in interstate commerce.

These rules were changed in 1979 when Congress established the Prison Industry Enhancement Certification Program (PIECP). The PIECP allows state correctional industries that meet certain requirements to sell inmate-produced goods to the federal government and in interstate commerce. According to the Bureau of Justice Assistance (http://www.ncjrs.org/html/bja/piecp/bja-prison-industr.html#background), the PIECP was created to:

encourage states and units of local government to establish employment opportunities for inmates that approximate private-sector work opportunities. The program is designed to place inmates in a realistic work environment, pay them the prevailing local wage for similar work, and enable them to acquire marketable skills to increase their potential for successful rehabilitation and meaningful employment upon release.

TABLE 4.10
Public strategies for private prisons
SOURCE: James Austin and Garry Coventry, "Table 6. Public Strategies for Private Prisons," in Emerging Issues on Privatized Prisons, Bureau of Justice Assistance, February 2001, http://www.ncjrs.org/pdffiles1/bja/181249.pdf (accessed March 31, 2005). Data by Cunningham (1999).

Reasons to privatize

Reasons not to privatize

Private operators can provide construction financing options that allow the government client to pay only for capacity as needed in lieu of encumbering long-term debt. Private companies offer modern state-of-the-art correctional facility designs that are efficient to operate and built based upon value engineering specifications. Private operators typically design and construct a new correctional facility in half the time of a comparable government construction project. Private vendors provide government clients with the convenience and accountability of one entity for all compliance issues. Private corrections management companies are able to mobilize rapidly and to specialize in unique facility missions. Private corrections management companies provide economic development opportunities by hiring locally and, to the extent possible, purchasing locally. Government can reduce or share its liability exposure by contracting with private corrections companies. The government can retain flexibility by limiting the contract duration and by specifying facility mission. Adding other service providers injects competition among both public and private organizations.

There are certain responsibilities that only the government should meet, such as public safety and environmental protection. To provide incarceration, the government has legal, political, and moral obligations. Major constitutional competition among both public and private issues revolves around the deprivation of liberty, discipline, and preserving the constitutional rights of inmates. Related issues include use of force, loss of time credit, and segregation. Few private companies are available from which to choose. Private operators may be inexperienced with key corrections issues. Operator may become a monopoly through political ingratiation, favoritism, etc. Government may lose the capability to perform the function over time. The profit motive will inhibit the proper performance of duties. Private prisons have financial incentives to cut corners. Procurement process is slow, inefficient, and open to risks. Creating a good, clear contract is a daunting task. Lack of enforcement remedies in contracts leaves only termination or lawsuits as recourse.

In 1999 PIECP wage guidelines were enacted. According to the Federal Register (April 7, 1999):

PIECP inmate workers must receive wages at a rate which is not less than that paid for work of a similar nature in the locality in which the work is to be performed. This requirement benefits society by allowing for the development of prison industries while protecting the private sector labor force and business from unfair competition that could otherwise stem from the flow of low-cost, prisoner-made goods into the marketplace.

Correctional facilities interested in participating in PIECP must meet the following requirements, as listed by the Bureau of Justice Assistance (http://www.ncjrs.org/html/bja/piecp/bja-prison-industr.html#background):

1. Eligibility. Authority to involve the private sector in the production and sale of inmate-made goods on the open market.
2. Wages. Authority to pay wages at a rate not less than that paid for work of a similar nature in the locality in which the work is performed.
3. Non-inmate worker displacement. Written assurances that PIECP will not result in the displacement of employed workers; be applied in skills, crafts, or trades in which there is a surplus of available gainful labor in the locality; or significantly impair existing contracts.
4. Benefits. Authority to provide inmate workers with benefits comparable to those made available by the federal or state government to similarly situated private-sector employees, including workers' compensation and, in some circumstances, Social Security.
5. Deductions. Corrections departments may opt to take deductions from inmate worker wages. Permissible deductions are limited to taxes, room and board, family support, and victims' compensation. If victims' compensation deductions are taken, written assurances that the deductions will be not less than 5% and not more than 20% of gross wages and that all deductions will not total more than 80% of gross wages.
6. Voluntary participation. Written assurances that inmate participation is voluntary.
7. Consultation with organized labor. Written proof of consultation with organized labor prior to program startup.
8. Consultation with local private industry. Written proof of consultation with local private industry prior to program startup.
9. National Environmental Policy Act (NEPA). Written proof of compliance with NEPA requirements prior to program startup.

Wages

Some private industries pay minimum wage, but many prisons take most of prisoners' wages to pay for room and board, restitution, family support, and taxes. The Bureau of Justice Assistance reported that from December 1979 through June 30, 2003, PIECP participants had paid wages of $264 million. After deductions for victims programs ($24 million), room and board ($70 million), family support ($15.6 million), and taxes ($35.6 million), inmates had earned $146.3 million.

Many prison administrators generally favor work programs. Some believe that work keeps prisoners productive and occupied, thus leading to a safer prison environment. Another cited benefit is that work programs prepare prisoners for re-entry into the noninstitutionalized world by helping them develop job skills and solid work habits that will be needed for post-incarceration employment. Some prisons report that inmates who work in industry are less likely to cause problems in prison or be rearrested after release than convicts who do not participate in work programs.

Generally, it is believed that the new skills developed through prison work programs, as well as educational opportunities, give prisoners an added edge in helping them readjust to normal life.

In addition, many inmates report that they like the opportunity to work. They assert that it provides relief TABLE 4.11
UNICOR sales by business segment, 2002–04 [In thousands]
SOURCE: "UNICOR Sales, 2002–2004, by Business Segment," in U.S. Department of Justice Federal Prison Industries, Inc. FY2004 Annual Report, 2004, http://www.unicor.gov/information/publications/pdfs/corporate/catar2004f.pdf (accessed March 31, 2005)

	Fiscal year
Business segment	2004	2003	2002
Electronics
Sales	$255,171	$152,357	$132,662
Earnings	$80,143	$38,576	$27,353
Fleet management
Sales	$129,068	$123,272	$99,054
Earnings	$517	$3,355	($301)
Graphics
Sales	$23,681	$23,658	$26,006
Earnings	$2,692	$2,943	$783
Industrial products
Sales	$45,846	$36,759	$27,782
Earnings	($194)	($3,510)	($9,545)
Office furniture
Sales	$140,935	$151,996	$217,852
Earnings	($1,878)	($2,205)	$22,342
Recycling activities
Sales	$10,004	$8,083	$3,359
Earnings	$2,818	$4	($229)
Services
Sales	$13,550	$12,239	$12,210
Earnings	$789	$729	$2,509
Clothing and textiles
Sales	$184,465	$158,399	$159,730
Earnings	$35,540	$25,344	$28,473
Corporate total
Sales	$802,720	$666,763	$678,655
Earnings	$120,427	$65,236	$71,385

from boredom and gives them some extra money. Inmates find that the money they earn helps them to meet financial obligations for their families even while they are in prison.