By Sarah O’Connell and Rebecca DossmanVice NewsVice NewsThe Federal Trade Commission is warning the transportation industry about a potential wave of job fraud.
It is a warning the Trump administration has ignored, and it is one it will likely not heed as the industry seeks a way to rein in the hiring scam.FTC Commissioner Terrell McSweeny, who heads the agency’s enforcement division, said in a letter to transportation firms Tuesday that it is not a new problem for the agency to track, and that “it is important that our customers are protected from any potential harm.”
“We have observed that some of the industries we work with are becoming more brazen in their attempts to recruit and hire workers without verifying their credentials,” he said.
“The recent hiring of fake credentials on the job market is yet another sign that our agencies are not taking this threat seriously enough.”
The letter was sent to 10 transportation companies and is not an official announcement.
“The agency is also concerned about instances of fraudulent employment,” McSweeney wrote.
“These instances have occurred in some cases where a company is employing someone without verifying that the person has the proper credentials.
We continue to work with industry stakeholders to identify ways to reduce the likelihood of this happening again.”FULL COVERAGE: Transportation industry hires in record numbersDespite the warnings, the industry has continued to hire, and a wave of new jobs has been created at airports and other businesses.
In March, the U.S. Chamber of Commerce, which represents big businesses, called on Trump to “immediately begin to close the loopholes that allow unscrupulous employers to hire unauthorized workers without the necessary credentials.”
McSweenys letter to the industry came after Trump in January ordered the agency, the National Labor Relations Board and the Department of Homeland Security to investigate labor fraud.
That investigation was underway.
The president also ordered an investigation into allegations of widespread labor theft in airports, including one case where a woman working as a nurse claimed to be a government employee and was fired.
McSweeney did not mention the labor theft case in his letter to companies.
But he said the industry needs to be proactive in fighting the hiring scams.
The industry has had to fight fraud in the past, McSultan wrote, citing cases of the UAW organizing a campaign in the 1980s to recruit truck drivers in the United States.
The union eventually won the right to organize the trucking industry, he wrote.
“It is important to remind all of us that we have a responsibility to protect our workers, including the workers who are our largest customers and most valued employees,” McSanweeny wrote.