Not that I’m trying to start an argument…
But I think that’s gonna be the result anyways.
First off, here’s the link to an article in the Houston Chronicle by Dane Schiller entitled (Click the title to see the article):
Businesses want foreign labor visa plan to grow
Opponents see practice as model for creating guest worker program
The basic connundrum here is that this deals with the guest worker visa program. There are several points I need to make before I state my opinion. The numbered paragraphs that follow lay out the facts of the H-2B Visa Program. As an aside, I always thought it was called the “H1-2B” visa, but not according to the Chron article. Perhaps the H1-2B is for skilled workers.
1. The purpose of this visa is ostensibly to allow businesses to bring in workers from outside the US when they cannot find a qualified person in the US to take the job.
1a. This is often abused by companies offering below-market wages, until they get no qualified candidates, and then they hire an outside the US worker for less.
2. When used properly, this program allows businesses to provide workers in positions they need. In this case, the positions are for low-skill manual jobs, mostly. Over 26,000 of these low-skill workers were brought into Texas this year.
3. The article cites $8 per hour to travel year-round with a circus, cleaning up elephant crap and putting up and taking down tents. That’s apparently a “fair wage” for doing that kind of work, that no Americans want to do.
4. The article also cites companies hiring folks to do lawns (commercial building grounds maintenance, really), but they neglect to mention the amount.
5. Union representatives quoted in the article say that this is just a way for companies to get cheap labor. It is a method for them to get labor below market value, and keep wages depressed.
Now, on to my opinion. I’ve spoken a bit along these lines with the Dude, I think, over a year ago, but here it goes again.
I’ve been to many places where contract labor is brought in for all kinds of duties. From what I can see, this arrangement has worked out well for both the host country, and the worker. There are indeed jobs that aren’t worth a “living wage,” and that therefore have a hard time hiring folks. Who wouldn’t rather work as a mall shopping clerk for the same wage as they could get by working outside swinging a weed-eater all day? And how much is swinging a weed-eater worth? If the price for doing someone’s lawn was such that four workers could come in, each making $40,000 per year, I think that a lot fewer people would pay someone to do it. How many people are willing to pay $100 per week to have their normal-sized lawn mowed?
So, if we continue with my example above, we would see that paying a higher wage would have the effect of shrinking the customer-base. That means more people competing for less work, which means lower prices, and therefore, lower wages. The pay for the job is exactly equal to what someone is willing to pay for the work to be done, and who would allow the work to go undone if a higher wage is required. Therefore, there is either a job at $6.00 per hour to do the work, or there is no job at all.
The other countries where I’ve seen this done, though, have very, very strict rules about it. Anyone who overstays their visa is jailed before being deported. In addition, the person can never come into the country again. Also, employers are responsible for insuring the worker departs as planned, up to and including paying their transportation, each way.
Every worker is required to leave the country periodically, as well, and reapply to come back in. In one case, it is annually, in the other case, it is once every three years, but the person must remain outside the country for at least 6 months before returning.
In Singapore, they use a lot of Malaysian labor. Singapore is an island connected to Malaysia by a very short bridge. Think “White Oak Bayou” for about the size of bridge necessary. The Malays are identified, stamped, verified, etc., and virtually come and go daily to their jobs. Some sleep in Singapore, but usually on the job site, and outdoors. Singapore is practically on the equator, so this is not much of a burden.
Anyway, in all three of the cases I mentioned above, there is a guest worker program that works to the benefit of all parties involved. I think we can have the same, here, but not the way things sit now.
First, we need to close the border to illegal crossers. Until that font is closed, I am against all guest-worker programs, including the legal ones we have now. We must first control who comes and goes, and where they are when they are in the country, and why they are here must be known.
Secondly, the business importing the worker had better be able to prove it is paying a reasonable wage and is unable to find an American worker to do the job. Anyone proven to be hiring foreign workers at sub-par wages should be fined so heavily that others see them as an example and think, “That isn’t going to happen to me, buddy!”
Thirdly, the process needs to be rigidly administered to allow small business folks the same opportunity to get this much needed labor as do larger businesses with connections. One way of doing this would be to allow folks on either side of the border to apply for worker positions. Let’s say you run a lawn care business and need 4 workers for $6.00 per hour, which is what the other companies are willing to pay. Your name goes into a pool with the guy who needs to hire 150 workers, at $6.25 per hour. A wage difference for less than 10% for equal or near equal jobs would be considered equal pay. This prevents nickel and diming your way to the top of the pile.
Anyway, workers apply, and are dispersed via a lottery system to all of those in the pool. Everyone should then have about the same chance, to get the same percentage of their requests filled. If you hedge, say, saying you need 6 workers, to insure you get 4, you had better hope the number comes up short, or else you’re going to have 6 workers you’re going to pay $6.00 per hour for at least 6 months, when the next lottery is held, even though you really only needed four. This should deter padding (sand bagging), and penalize the cheaters.
Fourthly, anyone found overstaying should get at least deported, with no chance to return, and possibly jail time, depending on what they did. Criminal offenses are handled through our courts, and all of those convicted would be deported afterwards for any significant crime. Where to draw the line can be found by experience.
Fifthly, at regular intervals, these workers must be forced to leave the country. Any woman who is pregnant is immediately sent home for violating her visa requirements (no anchor babies). Anyone who marries an American citizen is sent to their country of origin, and must apply for all paperwork, etc., from their country of origin, just as if they met and married there. Employers are responsible if the person is not turned in immediately upon discovery, and will be fined accordingly.
Lastly, I want this program not to start until we close the borders a heckuva lot more than we have them closed, now. Once we get a handle on the illegal stuff, we can start on this legal stuff.
December 17th, 2007 at 6:29 pm
Good article and thoughtful. I have a concern, and don’t know how to express it. My concern is, we are paying these people $6.00 an hour. An apartment is $600. A home to rent is upwards of $900. What we are seeing is, several people living in one home. We see 8 cars parked outside, etc. How can we expect these people to survive on so little? The economics arent good,for the quality of life we want in the USA. The economics are great if you come from a home with no concrete floor. But, when we accept and encourage the lower standard of living, it reduces our standard too.
December 17th, 2007 at 7:34 pm
AW,
Firstly, thank you for reading and commenting on the post. I did give this quite a bit of thought, and was afraid it was falling on deaf ears.
Secondly, I’m not saying that my framework of a plan is complete, but it is a good starting point for a workable and complete plan.
Thirdly, I don’t think $6 per hour is so bad or will be drain or anchor on our economy or standard of living, to mix metaphors and maybe do a little butchery of the English language at the same time.
Let me explain. Assume you are in a country with no jobs, a decent climate, wattle and daub huts, no modern conveniences, and no real path for you to escape… at least nothing that is put in front of you. That’s the standard of living of some of the workers I’m talking about.
Now, take three of them, and put them into an air-conditioned apartment for $900 per month. At $6 per hour and forty hours per week, that gives $36,000 per year. I think that in a position such as yard work, they would get some overtime in the summer, and must contractually get 40 hours per week during the off-season. Anyway, 40 hours times 50 weeks (2000 hours) times $6 is $12,000 each.
After each individual’s share of the rent, they still have $700 per month for food, transportation, etc. That’s about $150 per week… call it $20 per day.
I don’t think that’s going to drop our standard of living too much. I think it is probably a bit better living conditions than some College students have, and certainly better than what they are coming from.
We get our lawns mowed for… call it $30 per week, to account for the additional wage burden.
These workers would not pay federal taxes… perhaps a nominal fee to pay for the adminstration necessary to keep track of them and run the program. Call it $10 per month, per worker. That leaves my figures more or less intact.
Does that sound reasonable to you?