Department of Agriculture and Forestry, State of Louisiana - Mike Strain DVM, Commissioner

NEWS

H-2B guest worker wages increased by 32 percent

April 2, 2012

Agriculture and Forestry Commissioner Mike Strain, D.V.M., said crawfish plants that employ temporary guest workers as crawfish peelers could be forced to pay hourly wages that are on average 32 percent higher than last year under a new wage calculation methodology adopted by the United States Department of Labor (DOL).

Strain said the proposed change would affect any Louisiana industry that employs workers through the federal H-2B labor program.

The H-2B Visa Program is a default United States worker program that permits American business to fill unfilled seasonal job vacancies with H-2B foreign visa workers so businesses can avoid closures due to lack of seasonal workers.

Shrimp, crab and other food service industries as well as candy manufacturers, sugarcane, forestry, equine, construction and hotel businesses employ seasonal workers through the H-2B program. These seasonal employees are typically paid the prevailing wage for the type of job performed in the geographical area in which they are hired.

Strain said a March 23 LSU AgCenter report estimated that the new DOL wage methodology increased H-2B seasonal worker wages by an average of 32 percent, which means labor costs will rise from $13 million to $19.5 million in one year. The estimated reduction in economic activity resulting from the proposed wage increase is $40 to $60 million per year.

“Louisiana shellfish industries are under constant pressure from overseas competition where wages are much lower than American rates,” Strain said. “Louisiana created the crawfish tail meat industry. Now it’s practically extinct. It has put United States businesses that rely on H-2B labor at a severe disadvantage.

“It is unfair to employers who need the workers to process Louisiana seafood and work in other industries to have this significantly higher wage increase imposed on them. What business could absorb a 32 percent wage increase at the stroke of a pen?”

Strain said the national guest worker policy must be revamped.

“Employers across the nation who use H-2B labor demand a streamlined process that will allow producers to pay foreign guest workers a fair wage to fill job vacancies that aren’t being taken by American workers,” Strain said.

Strain said the H-2B provision of the DOL rules allow U.S. employers to bring in foreign nationals for work if employers can establish that the need for workers is temporary and/or seasonal. American employers must also demonstrate that there are not enough American workers who are available and willing to do the work.

-30-