By JOYCE E. KUSTRA Illinois Issues' special assignments writer in the Chicago area, she holds a master's degree in journalism.

A nonprofit corporation works to guide ex-addicts, ex-offenders and welfare mothers into jobs

'Options' for the unemployable

FEDERAL FUNDS, federal guidelines, competitive bidding, contracts and earnings goals — these features from both government and business come together in a unique nonprofit corporation called "Options." The corporation is designed to guide ex-addicts, ex-offenders and welfare mothers back into the ranks of the employed. These workers receive modest salaries, regular raises, bonuses, health and life insurance, even vacation and sick pay. Options is running smoothly according to its president, Joseph G. Kelly, and is making more money each month through various work projects throughout Chicago and surrounding Cook County. Options contracts with various companies to perform specific jobs or to provide a specified number of employees. All supported workers are in turn paid by Options.

The company works under the watchful eye of a federal nonprofit corporation called Manpower Demonstration Research Corporation (MDRC), formed by the Ford Foundation and several federal agencies and operating 13 pilot programs like Options throughout the country. Because it is considered a research program, Options cannot hire whom it chooses. After people are recommended by a social service organization, their names are fed into a computer which randomly approves the number of workers needed. Those rejected form a control group against which the supported workers will eventually be measured. Kelly explains that the choices are made by computer so the program cannot be accused of "creaming" the most promising workers. "If we can succeed with the hardest of the hardcore, we can succeed with anybody."

For many supported workers, it's the first real chance they've had since they found themselves labeled "unemployable." Options started with six supported workers in September of 1975. In 18 months, it had hired 400 people, 70 of whom had been placed in outside jobs, 181 were still with the corporation; and the rest had either quit or been terminated. Only six workers had completed the year-long program without finding independent work.

Kelly stresses that the thrust of the organization is jobs. "We are not a training program, we are a work program," he says. "We stress three things: come to work every day, come to work on time, and do quality work. If they do these three things, after a year we will place them." He said that these people are regarded as unemployables because they usually have a very poor work history and poor work habits. Options is designed to replace these liabilities with assets which most of them would not be able to acquire on their own.

It expects reliability

Options support continues throughout the 12-month program. For the first month, the employee takes part in an orientation program at the Options headquarters. When the employee is given an outside assignment. Options support continues by providing transportation to work sites. Most importantly, Options will find work for the employee for the entire year, more job security than many in the labor force can expect. Support ends only if the employee fails to meet the three requirements of a reliable employee. For example, if a worker develops poor work habits because of a drinking problem— one of the most common sources of trouble — Options does not attempt to deal with the individual's problem. The worker is fired.

During the first month all employees are subjected to a series of tests — functional literacy and vocational tests and a complete physical examination. These tests were incorporated into the program after a few early participants were found incapable of performing certain tasks because of psychological problems or coordination difficulties. Kelly explains that it is necessary to drop such people because of the "work" thrust of the program and because the 31-member staff is not trained to deal with problem employees.

It's a 'company'

Kelly does not like to refer to Options as a government program and insists that employees call it a "company." He points out that the supported workers have usually had more than their share of government programs and as a result have developed a "program mentality" which he feels is not conducive to a good self-image. "Our work has a value," he says, which is why "every customer has to pay, even if it's a nominal amount." He feels that the workers realize their worth more when the boss relies on their performance to meet goals and please customers.

After the initial orientation, a worker is placed in one of the company's three divisions. In the construction division, Options has a good start. Chicago's Model Cities Program has awarded a $230,000 contract under which Options sends workers into the inner city to renovate private family units, in addition, the construction division competes in the open market for jobs. They submit bids for carpentry, painting and flooring contracts with public agencies as well as private firms.

The factory division sends a team of

26/ February 1978/ Illinois Issues

workers into plants. In contracting with companies such as Turtle Wax, Inc., and Alberto-Culver, Options places a crew of six to ten employees and a foreman in the plant and, with a backup crew on hand, can guarantee the company that an entire team will report to work each day. It is not uncommon for good workers to be hired away by the factories, a development which Kelly feels is as good for the program as it is for the worker. Kelly is trying to secure more factory contracts and hopes such growth in this division will help the company reach the goal this year of employing 250 people.

The third division is the clerical division, which has grown substantially since June 1976 when the company began accepting welfare mothers. Clerical employees spend 10 hours a week in classes and 30 hours on the job at such places as the Chicago Public Library, Malcolm X College and the YMCA. Figures show welfare mothers to be the most reliable employees — only about 1 per cent of them have been fired, compared with a figure of 35 per cent in the group of ex-offenders and ex-addicts. In addition to clerical work, some women in this group have decided to go into the construction division as painters.

While Options funding is currently close to $3 million from MDRC and several other state and local sources, Kelly says the goal of the corporation is "to become as close to [being] self sufficient as possible." He cites the current picture as an example of the company's progress. The initial estimate of earnings for the year ending March 31, 1977, was $12,000. But Kelly says the final figures could look more like $250,000. After three years, earnings should approach the million-dollar mark.

It's a model

But dollars aren't the only goals of Options. Kelly, who has spent many years working in government programs, feels this is the first one to really make sense, because it works through the business community and puts people into that community. He says if Options can build a successful model, there's room for several more like it in Chicago alone. And the market is there; there are thousands of "unemployables" who need one more chance.

27/ February 1978/ Illinois Issues