Racial Inequities Exposed at Maximus, the Largest Federal Government Call Center Contractor

PRESS RELEASE 

March 21, 2023

New report finds stark racial disparities in company’s workforce while Maximus granted bonuses over two years totaling $1.4 million to all-white executive team tied to diversity and engagement efforts

CWA and NAACP call on the Biden Administration to investigate racial disparities at Maximus as part of the administration’s commitment to promoting racial equity throughout the federal government

---Press conference at 1:00 pm ET here feat. Maximus workers, Congressman Bennie Thompson, NAACP President Derrick Johnson, CWA President Chris Shelton, and Mississippi Black Women’s Roundtable Executive Director Cassandra Welchlin---

Nationwide — A new report released today by the Communications Workers of America (CWA), the Strategic Organizing Center, and the NAACP exposes significant racial inequities at Maximus, one of the federal government’s largest service contractors, whose frontline workforce is nearly 50% Black and Latina women. The report reveals that workers interviewed at Maximus’ call centers, which serve the Centers for Medicare and Medicaid Services (CMS), felt they have no clear paths to career advancement, keeping their careers stagnant in the lowest roles.

The new report, analyzing newly-released reports on workforce demographics and including additional insights from frontline workers, reveals that while white men make up only 9% of frontline workers, they account for nearly 50% of Maximus’ executives, and Black and Latina women account for only 5% of executives.

This is in stark contrast to federal agencies with large call center workforces like the Internal Revenue Service and the Social Security Administration, where women and workers of color are represented in similar percentages across the supervisor, non-supervisor, and leader levels in the agencies.

The report finds that over 60% of call center workers who participated in a survey conducted by CWA reported applying for higher positions within Maximus, and of those nearly 75% were either turned down or didn’t even hear back. Meanwhile, the report includes an analysis of LinkedIn profiles for nearly 1,000 current Maximus managers and finds that more than two-thirds (68%) of current Maximus managers with LinkedIn profiles were hired externally, rather than being promoted from within. Furthermore, a review of the company’s press releases found that within the past year, 87% of executives hired were white and 67% were male.

In light of the Biden administration's multiple executiveorders calling for racial equity throughout the federal government, CWA and the NAACP have issued a letter calling on the Biden administration to take action and investigate racial disparities and potential obstacles to equal employment opportunities at Maximus.

“Workers at Maximus have been organizing with CWA to fight for living wages, affordable healthcare, fair treatment, and a voice on the job. Black women workers, who make up a significant portion of the workforce at the largest Maximus call centers, have been courageously leading this fight and raising the alarm about the lack of equity. We are proud to stand with them,” said CWA President Chris Shelton. “In the last year alone, Maximus CEO Bruce Caswell received over $200,000 in bonuses tied to diversity metrics. This is insulting to Maximus workers who, despite their efforts to move up in the company, continue to be held at the bottom of the corporate ladder with no hope of meaningful advancement. It’s long past time we hold this federal contractor accountable and ensure that all workers at Maximus, regardless of race or background, are given the respect and opportunities they deserve.”

"Federal contractors, such as Maximus, are intended to provide good jobs and equal opportunities for people in our communities,” said Representative Bennie Thompson (D-MS). “For years, Maximus workers in Mississippi, primarily Black women, have had to fight for better working conditions while trying to make ends meet on low wages and unaffordable healthcare. Rather than investing in its front-line workers, Maximus is lavishing multi-million dollar bonuses on its executives. If we are serious about racial justice in federal contracting, the Biden Administration must investigate the unacceptable disparities at Maximus."

Maximus, a publicly traded corporation (NYSE: MMS), received nearly all of its $4.63 billion of revenue in 2022 from federal and state government agencies in the U.S. To fulfill its single largest contract, valued at $6.6 billion over nine years to operate call centers on

behalf of CMS, Maximus employs roughly 10,000 customer service agents at ten call centers, almost all located in the South.

Maximus has opposed efforts aimed at increasing transparency around racial equity at the company, including opposing a shareholder proposal for a racial equity audit and objecting to the release of its EEO-1 reports in a Freedom of Information Act request from CWA.

“Maximus’ practices of deep-rooted inequity are entirely unacceptable. For far too long, Black workers, particularly Black women, have been shut out of economic progress by powerful corporations like Maximus, preventing us from attaining the positions of power and economic freedom we deserve,” said NAACP President and CEO Derrick Johnson. “It’s about time the federal government used its power to enforce the highest standards of fairness and equity while holding corporations accountable for denying employees of color the opportunity to advance their careers. We’re proud to join our allies at CWA to release this report and call on the Biden Administration to conduct a full and thorough

investigation of Maximus’ hiring, training, promotion, and retention practices to ensure their Black employees are given every opportunity to thrive.”

Workers at multiple Maximus call centers have been organizing with CWA, including in Hattiesburg, Miss., Bogalusa, La., and Chester, Va., all of which have workforces of more than 75% people of color. The workers have organized multiple walkouts and strikes within the past year to protest poor working conditions, as well as Maximus’ failure to protect them from racially abusive callers.

At the same time, Maxiumus’ all-white executive team received a total of $1.49 million in cash bonuses over the course of 2021 and 2022 tied directly to diversity and engagement metrics.

“Frontline workers at Maximus show up every single day to ensure that people all over our nation get the help and answers they need to feel heard and supported,” said Katrina Berry, a call center worker at Maximus. “The fact that I’ve been unable to advance in my career, after nine years at the company, is unacceptable. Despite Maximus’ claims that they’re cultivating a diverse workplace, their promotion and hiring processes have done quite the opposite, holding Black workers back at every turn. We need meaningful change now, and we are counting on the Biden administration to immediately investigate Maximus’ employment practices.”

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