Goodwill of Colorado, a nonprofit known for providing employment opportunities to people with disabilities, is facing backlash after LaborLab reported that the organization had engaged in an aggressive union-busting campaign against its employees. Despite reporting a revenue of $172 million in 2022 and receiving millions in federal funding, the organization’s response to workers attempting to unionize is drawing harsh criticism.
In August, employees of Goodwill of Colorado filed a petition for a union election with United Food and Commercial Workers (UFCW) Local 7R. Frustrated with low wages and poor working conditions, workers were attempting to collectively bargain for better pay and benefits. However, instead of addressing the workers’ concerns, Goodwill of Colorado launched a well-financed campaign to stop the unionization efforts.
Goodwill hired at least three union-busting firms to lead the charge against its own employees. The firms included Sarah Hirt, a “persuader” consultant from Pennsylvania, and two Florida-based firms, JF Management & Consulting LLC and The Labor Pros. These firms are notorious for their anti-union tactics, which often involve captive audience meetings, one-on-one discussions, and close surveillance of workers.
According to disclosure documents, The Labor Pros, a firm infamous for its involvement in several high-profile anti-union campaigns, spearheaded the anti-union efforts at Goodwill. From August 28 to September 17, 2024, The Labor Pros was paid $3,750 per day, possibly amounting to at least $75,000 for their services during this period. This staggering sum does not include additional costs for legal fees, travel, and other expenses related to the anti-union campaign. Despite these massive expenditures, Goodwill employees, including those with disabilities, continue to earn around $15 per hour — and in some cases, even less due to the subminimum wages allowed under federal law.
Goodwill’s wage practices have long been under scrutiny. The organization has used Section 14(c) of the Fair Labor Standards Act (FLSA) to pay workers with disabilities below the minimum wage. This law permits employers to pay disabled workers less, as long as they have a special minimum wage certificate from the Department of Labor. This practice, coupled with Goodwill’s reliance on federal funding, has drawn criticism from labor advocates and the public alike.
Karla Grazier, President and CEO of Goodwill of Colorado since 2010, has also come under scrutiny. While many employees struggle with low pay, Grazier’s annual salary exceeds half a million dollars, as revealed in Goodwill’s IRS 990 disclosure. Other senior executives also receive six-figure salaries. The contrast between the executive compensation and the wages paid to Goodwill’s workforce, many of whom have disabilities, has sparked outrage among workers and supporters.
The Labor Pros, which played a key role in Goodwill’s union-busting efforts, has a controversial track record. In addition to being rumored to have assisted with union-busting at Amazon’s Bessemer location, The Labor Pros has been criticized for its late filings of persuader reports with federal authorities in 2022. The firm is also known for co-opting progressive language on diversity and inclusion to undermine unionization efforts. Its CEO, Nekeya Nunn, has emphasized the importance of “listening” and “heart-led leadership,” yet her firm continues to aggressively dismantle union campaigns across the country.
Despite the workers’ efforts, the union campaign at Goodwill of Colorado was defeated by a narrow margin of 17 votes in an election held on September 18. Out of 120 eligible workers, the intense anti-union tactics employed by Goodwill and its consultants seem to have swayed enough votes to prevent unionization.
For many supporters and donors, the revelations of Goodwill’s anti-union activities are shocking. Goodwill of Colorado, which receives millions in federal funding to support its mission of employing people with disabilities, appears to have chosen to spend substantial sums of money fighting workers rather than addressing their demands for better pay and working conditions. The contradiction between Goodwill’s public image as a charitable organization and its aggressive stance against its own employees raises serious questions about its leadership and priorities.
Goodwill of Colorado’s governing board and leadership are public, and concerned individuals can contact the organization directly to express their concerns.
