Working closely with the Gulf Seafood Institute, Louisiana Congressman Charles W. Boustany, Jr., M.D. has led a letter to the U.S. Secretary of Labor Thomas Perez asking him to resume accepting private wage surveys. Photo: Boustany/Facebook
by Ed Lallo/Gulf Seafood News Editor
Gulf Coast seafood processors and its hospitality industry rely annually on a seasonal workforce granted entry to the United States via the temporary worker H-2B visa program. Working closely with the Gulf Seafood Institute (GSI), Louisiana Congressman Charles W. Boustany, Jr., M.D. has led a letter signed by his Gulf Coast colleagues to the U.S. Secretary of Labor Thomas Perez asking him to resume accepting private wage surveys (PWS) to determine wages for H-2B visa workers after the Department announced it will no longer accept the documents.
Historically, the seafood industry, due to the rural location of many processors, has used PWS to determine wages for H-2B workers brought into the country for temporary work.
Congressman Boustany, filming with a crawfish farmer, has been a longtime supporter of Gulf seafood issues. Photo: Boustany/Facebook
The December 2014 Labor Department’s announcement that it will no longer accept PWS has caused significant wage increases for seafood employers across the Gulf according to a 2012 study by the LSU AgCenter. The study found that wages have a predicted increase of up to 32.5% the current rate.
During a recent visit to nearly 30 Gulf State Congressional offices, GSI asked legislators to draft a letter to Labor Secretary Thomas Perez urging his Department to clarify that it will continue accepting private wage surveys for H-2B visa workers in the seafood and hospitality industries.
“In January, GSI asked Congressman Boustany to assist in helping preserve the current H2B Visa Program that seafood processors along the Gulf coast rely on for temporary, seasonal work,” said GSI executive director Margaret Henderson. “The Congressman, who has been a longtime supporter of Gulf seafood issues, immediately offered to take the lead for our Gulf seafood processers.”
H-2B Visa Program
According to Henderson, workers admitted to the U.S. under the H-2B Visa program fill the most labor-intensive positions in the seafood industry, not only along the Gulf Coast but also from the East Coast to Washington State. The work done by these skilled laborers is necessary to support thousands of permanent seafood jobs held by U.S. workers,” she explained.
“Gulf seafood processors stand to lose as much as $19.5 million in increased costs from the Department of Labor’s latest arbitrary decision on private wage surveys, threatening permanent closures of processing facilities if we do not act quickly,” the Congressman from Louisiana’s Third District told Gulf Seafood News. “I am working to reverse this decision because it’s wrong for Washington bureaucrats to have the final say on this important and historic industry’s ability to succeed. I’m glad to have the Gulf Seafood Institute as an ally in this fight for our working coast, and I’ll continue working with the Institute to pressure the Administration to change its tune on this issue.”
Because of the unique nature of the seafood occupation and the rural location of many processors, the seafood industry has used Private Wage Surveys for more than 15 years in order to set their wage rate, as well as relying on State agency-provided wage surveys.
Stan Harris (l), a GSI member and CEO of the Louisiana Restaurant Association, explained the H2B workers are an important labor source, not only for the Gulf’s seasonal seafood processors, but also to the Gulf’s hospitality industry. Harris chats with Boustany during a trip to Washington. Photo: Ed Lallo/Newsroom Ink
Stan Harris, a GSI member and CEO of the Louisiana Restaurant Association, explained the H2B workers are an important labor source, not only for the Gulf’s seasonal seafood processors, but also to the Gulf’s hospitality industry that uses them to staff the hospitality industry during peak time periods.
“We appreciate the leadership of Congressman Boustany and our Gulf delegation in trying to roll back this arbitrary decision by the DoL,” said Harris. “The potential negative financial impact to our seafood processors that our restaurants rely upon would raise operating and product costs. Many processors may be forced to cease operation in the face of market pricing pressure resulting from imported products.”
In December of 2014, a 3rd Circuit court ruling in the In the case of Comite de Apoyo a Los Trabajadores Agricolas, et al. v. Perez, No. 14-3557 directed the Department of Labor that private wage surveys no longer be used in determining the mean rate of wage for occupations except where an otherwise applicable OES survey does not provide any data for an occupation in a specific geographical location, or where the OES survey does not accurately represent the relevant job classification. The exemption outlined in the ruling directly related to the seafood industry’s past ability to use State agency-provided PWS and DoL’s repeated nature of approving them.
“Seafood employers across the Gulf who’s private surveys have been rejected and the new ‘mean H-2B wage’ rates assigned have seen wages rise more than 30%-40%,” said GSI Founding Member Frank Randol. Photo: Ed Lallo/Newsroom Ink
“Since the Department’s announcement that it would no longer accept PWS, H-2B wage rates have artificially increased entry-level wages. Seafood employers across the Gulf who’s private surveys have been rejected and the new ‘mean H-2B wage’ rates assigned have seen wages rise more than 30%-40%,” said GSI Founding Member Frank Randol. “One seafood company has had to increase wages more than $5,000.00 per week. Clearly, the historical evidence is that the seafood community needs a more localized and appropriate wage determination process, like that inherent in PWS.”
The ruling does appear to allow the use of PWS under certain circumstances, especially when directly relates to the seafood industry’s past ability to use PWS and the Department’s repeated nature of approving them for the years. The letter asks for continuing this practice s to ensure workers, both foreign and domestic, are adequately compensated so as to preserve the seafood community and other small businesses.
“We’re lucky to have a strong leader in Washington like Dr. Boustany. He is working to mobilize the entire Louisiana delegation as well as other Gulf Coast representatives. The issues need to resolved in the next few weeks,” said the seafood processor and restaurant owner from Lafayette, Louisiana. “The Gulf seafood industry is made up of many small businesses with thousands of jobs. I am very concerned about current decisions that are coming out of DoL and the potentially negative consequences that might follow… We are still in a fragile recovery and the fix we are seeking must come from the legislative branch. I feel confident that we are finally on the right path to move forward with this important issue. This first step is that our legislators sign this letter as soon as possible and get it into the hands of the Secretary of Labor.”
FY 2017 Appropriate Language
In addition to Boustany’s letter, GSI is encouraging Congress to include language in FY 2016 Appropriations legislation stating the following:
- The Secretary of Labor is authorized, notwithstanding any other provision of law and the court decision in Comite de Apoyo a Los Trabajadores Agricolas, et al. v. Perez, No. 14-3557 (3rd Cir. Dec. 5, 2014), to issue a Final Regulation without notice and comment governing wages in the H-2B program. The Final Regulation shall:
According to GSI executive director Margaret Henderson, workers admitted to the U.S. under the H-2B Visa program fill the most labor-intensive positions in the seafood industry, not only along the Gulf Coast but also from the East Coast to Washington State. Photo; Henderson Strategies
- Authorize employers to utilize State approved wage surveys for the purpose of wage determinations for an occupation, notwithstanding the existence of wage survey data by the Bureau of Labor Statistics for such occupation; and
- Require the Department to accept such surveys if the Department determines that the data and methodology used are valid.
- Notwithstanding the court decision in Comite de Apoyo a Los Trabajadores Agricolas, et al. v. Perez, No. 14-3557 (3rd Dec. 5, 2014), and until the issuance of the Final Regulation issued under subsection (b), the Secretary shall continue to implement 20 CFR 655.10(f) and accompanying guidance in effect as of December 4, 2014 for the approval of prevailing wages for the H-2B program, including such policies governing the use of State approved wage surveys.
- Notwithstanding any other provision of law, the Secretary of Homeland Security shall consult, without fiscal year limitation, with the Secretary of Labor on importing any nonimmigrant under the H-2B program, and the Secretary of Labor shall be authorized as part of that consultation to issue labor market determinations (including temporary labor certifications) and to establish regulations and policies for such issuance, including determining the appropriate prevailing wage rates for occupations in which H-2B nonimmigrants will be employed.
Economic impact outlined by the LSU AgCenter estimated the negative impacts associated with economic activity for not only the seafood processors, but also the agricultural processing sectors in the sate.
Study results found that using FY2010 Department of Labor data, 3,145 H-2B workers were certified in Louisiana for work in agricultural and seafood processing sectors. The estimated increase in the average prevailing wage for these industries across all industries under new proposed regulations would increase by 32.5%, an increase from $13.0 million to $19.5 million per year, depending upon hours worked per week.
The estimated reduction in economic activity resulting from this wage increase is estimated to be $40.1 million to $60.2 million per year in Louisiana alone.
“Rep. Boustany standing behind such an important part of the Louisiana and Gulf coast economy is great news for all Gulf coast processors,” said Jennifer Jenkins, the manager of Crystal Seas Seafood in Pass Christian, MS and a GSI board member. “I hope many more of our Gulf Coast Representatives on both sides of the aisle follow his lead.”
“Allowing bureaucrats in Washington to determine the fate of an important Louisiana and Gulf industry like the Gulf seafood processors is unacceptable,” said Boustany. “This arbitrary decision by the Department of Labor is hurting this industry and threatening permanent closures of processing facilities. I’ll continue pressing this agency to come to reality and reverse this decision.”
Congressional Letter to U.S. Secretary of Labor Thomas Perez asking him to resume accepting private wage surveys-
https://gulfseafoodnews.com/wp-content/uploads/2015/02/Congressional-Letter.pdf
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