Mother Jones
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This story originally appeared in ProPublica.
Ty Inc. became one of the world’s largest manufacturers of stuffed animals thanks to the Beanie Babies craze in the 1990s.
But it has stayed on top partly by using an underworld of labor brokers known as raiteros, who pick up workers from Chicago’s street corners and shuttle them to Ty’s warehouse on behalf of one of the nation’s largest temp agencies.
The system provides just-in-time labor at the lowest possible cost to large companies—but also effectively pushes workers’ pay far below the minimum wage.
Temp agencies use similar van networks in other labor markets. But in Chicago’s Little Village, the largest Mexican community in the Midwest, the raiteros have melded with temp agencies and their corporate clients in a way that might be unparalleled anywhere in America—and could violate Illinois’ wage laws.
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