Here's a Businessman Who Knows Value Of a Second Chance
Gerald
Chamales Hires People With Troubled Pasts -- And Give Them a Future
By Julio
Laboy
CARSON — When authorities sent Jennifer Lynne Carez from her Los
Angeles halfway house six months ago to spend the day searching for work, she
was determined to try to rebuild her life.
But as she got closer to her
first job interview, the 28-year-old mother of seven became increasingly fearful
of the questions swirling through her head.
Who would hire a person, she
wondered, serving 11 months in state prison for writing bad checks? Who would
offer a second chance to a recovering substance abuser whose two-year-old
daughter was born addicted to cocaine? Who would give an opportunity to someone
who had long depended on welfare for cash and food?
At Carson-based Omni
Computer Products Inc., she found the answer.
Despite her stormy past, Omni
offered Ms. Carez a position in telemarketing, paying her $250 a week plus
commissions. “I didn’t think I would get a job. I mean, not a real job at a real
company where I can move up,” Ms. Carez says.
She is, however, hardly alone.
Omin, a recycler and manufacturer of computer- related products, says that 75
people — or an extraordinary 30% of its 250-member work force — have been hired
from halfway houses, welfare rolls and drug-treatment programs. Some of these
employees work on a factory assembly line that recycles toner cartridges, while
many others are in telephone sales. A few have even made it into management.
Model for Transition
The 16-year-old company, which posted $25.5
million in sales in 1997, is seen by social-service providers as a model of what
needs to happen elsewhere in the corporate world as some 650,000 Californians
begin the government-mandated transition from welfare to work.
If there were
more companies like Omni, “people would get off welfare and start changing their
lives,” says Almarie Ford, a job developer for Inglewood-based Cornell
Corrections Corp., a work-furlough house where state prisoners spend the last
four to five months of their sentences. Although Ms. Ford places inmates at many
companies around Los Angeles, “Omni leads the pack,” she says.
Of course,
Omni executives would be the first to admit that bringing in recruits from the
streets isn’t easy. There are very real problems, and “we have to keep a very
close eye on some people,” says Gerald Chamales, Omni’s president and founder.
The biggest lesson he has learned, he says, is that people who are
struggling to lift themselves up from the bottom of society often need more than
just a second chance. You have to “give them a third, fourth and sometimes fifth
chance, too.”
Mr. Chamales notes that he has endured death threats from
unstable workers who were fired; evacuated the entire Omni staff into the street
following a bomb scare from a disgruntled employee; posted ball for some on his
staff; and even attended substance-abuse recovery programs with new hires. In
one case, just two weeks after Mr. Chamales had brought in a new salesman, he
personally escorted this worker to a 12-step program.
“I was a wreck,”
recalls the worker, Al McGreevy, who has now been with Omni for five years. “I
didn’t even have enough clothes, and here’s the CEO taking me to a recovery
program.”
The CEO, though, had been there before. The 46-year-old Mr.
Chamales is himself a recovering alcoholic who worked his way into the executive
suite from a life of poverty, welfare and food stamps. “I know what it’s like to
be ... at the absolute bottom,” he says.
Having a boss with his own troubled
past certainly makes it easier on his workers. “I was 42 days sober when I came
to work here,” says Joe Hiller, Omni’s senior vice president of sales and a
recovering alcoholic and former drug addict. “I was in a fog. I had nothing.
Gerry was this energetic guy who used to share about his own struggles. I
realized there was some hope.”
Mr. Hiller joined Omni’s sales team in 1984,
working strictly for commissions at first. His first check amounted to $29.70
for two weeks of work, but he kept at it. Today. Mr. Hiller earns well into six
figures, and with a loan from Mr. Chamales was able to purchase a home for
$580,000.
“We find people who have high-energy enthusiasm,” says Mr.
Chamales. “They want to rebuild their lives. We give them a platform and many
are successful. Work can be the best therapy.”
For Mr. Chamales, it was a
long, rutted road from alcohol-filled nights at a grungy one-room, Venice flop
house — “where the debris meets the sea,” he says - to his current 13,500
square-foot home in Brentwood. His English-style country mansion boasts
four-levels, 18 rooms, 10 baths, a tennis court, two-level detached guest house,
pool and Jacuzzi. His next door neighbor is Los Angeles Mayor Richard Riordan.
“This is really something. This is an entrepreneurial success story that can
only happen in America,” Mr. Chamales says as he guides his black Mercedes
through the narrow streets of Venice where he remembers wallowing in drugs and
self-pity.
As a child, Mr. Chamales bounced from one foster home to the
next. He really didn’t know his father, Tom T. Chamales, a writer whose novel
“Never So Few” was made into a movie starring Frank Sinatra in 1959. His father
published another book before reaching age 36. That’s when he died in an
alcohol-related accident.
In those earlier days, Mr. Chamales went from
recovery programs to psychiatric facilities and was even forced into isolation
at a Santa Monica hospital, he says. But over time, he pulled out of his
tailspin and started getting odd jobs through a social-service agency.
Eventually, he joined a telemarketing firm and peddled computer products by
phone. That was 1978.
By 1979, he became a top salesman at the company,
Pacific Computer Products, and saw a brighter future in starting a similar
business of his own. He did just that, launching Omni with $7,000 in savings.
Despite some early hurdles, his one-man operation took off.
Through the
1990s, 0mm has grown at an annual rate of 20%, and now has more than 35,000
accounts. It began its efforts to hire welfare recipients and other people who
are struggling about 12 years ago.
The company has two main lines: It
manufactures ribbons for computerized printers and recycles laser toner
cartridges. Everything is sold under the Rhinotek brand name. (The company
donates $25,000 a year to a rhino refuge in Kenya — one of Mr. Chamales’s
passions.)
But Mr. Chamales sees himself recycling more than just toner
cartridges these days. “It’s like we’re helping recycle people along with these
products,” he says, standing in his mansion’s library surrounded with art from
Asia and rows of books. “Sometimes I look at what I’ve got here, and I really
have to pinch myself to make sure it’s not a dream.”