As the name of the book implies, it is a miserable mill. The workers at the mill are not treated very well. They are forced to live in a windowless room (with windows drawn on the walls) and to sleep in uncomfortable bunk beds. Their only meals are chewing gum, for lunch, and disgusting casseroles for dinner. All workers are paid in coupons that they cannot use. This is actually illegal according to The Paltryville Constitution (as read by Phil near the end of The Miserable Mill). It is revealed that the workers are brainwashed and mind controlled with hypnotism by Dr. Georgina Orwell.
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