A weblog about the business of immigrant work: employment, compensation, legal protections, education, mobility, and public policy.

May 17, 2013

Temporary staffing firm and low wage immigrants

ProPublica just published an article about a huge temporary staffing firm that has been cited for exploiting immigrant workers and cheating on its workers compensation premiums. The firm, Select, provides a “raitero” service.

The article says:

The word raitero is a Spanglish invention that roughly means "a person who gives rides." In fact, the raiteros are effectively agents for Select Remedy and other temp agencies, which have grown steadily since the 1990s and are approaching new heights after the recent recession. While not a household name, the Select Family of Staffing Companies, which controls Select Remedy, posted $1.8 billion in revenue last year and employs nearly 100,000 people every week — about as many as Starbucks.

Select was started in 1985. Beginning in the mid-2000s, it bought more than three dozen staffing firms, becoming a national chain. Its revenues skyrocketed from a little more than $300 million in 2002 to $1.8 billion in 2011, according to company press releases. In 2012, Staffing Industry Analysts, a research firm, ranked Select the 10th largest temp agency in America and the fourth largest in the industrial sector.

Go to the article for more details.

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April 16, 2013

Key points in Gang of 8's immigration reform bill

NBC News reported today the following summary of the Gang of 8’s immigration bill, to be released shortly:

Allow undocumented immigrants who have lived in the United States continually since before December 31, 2011 to apply for “Registered Provisional Immigrant Status” if they pay back taxes and $500 in fines, and if they have not been convicted of a felony or 3 or more misdemeanors or voted illegally. Individuals with this status can work for any employer and travel outside the country but are not eligible to receive means-tested federal public benefits.

After 10 years in Registered Provisional Immigrant Status, individuals will be eligible – pending border security measures and a clearing of existing backlogs for legal immigrants – to earn a merit-based green card if they have worked in the United States, demonstrated knowledge of the English language and paid an additional fine of $1000.

Allow eligible DREAM act applicants and certain agricultural workers to apply for green cards within five years

Regarding border security, the bill would set a goal of “90% effectiveness” – meaning the rate of apprehensions and turnbacks of potential entrants – per fiscal year in the most high-risk areas of the southern border. If that goal is not met within five years, a bipartisan “Border Commission” made up of border state governors and experts will be formed to issue new recommendations on how to achieve it.

Allocate $3 billion for increased surveillance and manpower along the country’s southern border and an additional $1.5 billion for fencing.

Include a border security “trigger” requiring that no undocumented immigrant can achieve legal “Registered Provisional Immigrant” status until strategies for border security have been submitted by the Department of Homeland Security to Congress.

Require an additional “trigger” that prevents those with “Registered Provisional Immigrant” status from becoming eligible to apply for Lawful Permanent Resident status until the Department of Homeland Security and the Comptroller General certify that border security strategies are operational and a mandatory employment verification system has been implemented.

Create a new “W” visa program to allow non-agricultural temporary workers to come to the United States to work for registered employers.
Eliminate family-based visas for siblings of United States citizens as well as the Diversity Visa program while eliminating caps on visas for certain employment-based categories.

Use a point system for a new “merit based” visa, of which 120,000 would initially be awarded per year, with a maximum cap of 250,000 annually. Points will be awarded based on criteria including education, employment and length of residence in the U.S.

Require an “enhanced E-Verify” system to prevent ineligible workers from taking jobs in the United States. Employers with more than 5,000 employees will be phased in within two years; employers with more than 500 employees will be phased in within three years.

Raise the annual cap on H1-B visas for high-skilled workers from 65,000 to 110,000, with provisions to prevent such workers from undercutting American wages. Set a maximum cap at 180,000 such visas.

Posted by pfr at 7:05 PM Link to, Comment (0), or E-mail this post

April 12, 2013

IT workers and H-1B visas: necessary or a scam?

A New York Times article today reports on the demand for temporary professional workers from abroad, which is mostly run through the H-1B visa program. Silicon Valley is pressuring Washington to greatly expand the program.

Do these temporary hires suppress the job market prospects for U.S. professionals. And, are temporary visas for professionals, especially in information technology, mainly a way to cycle back to home countries practical expertise in American work styles, thus enabling more overseas outsourcing?

A 2011 GAO report is the source of much that follows:

How many awarded per year:

A statutory cap of 65,000, with exemptions that cause the number to swell well above that.

Duration:

While the H-1B visa is not considered a permanent visa, H-1B workers can apply for extensions and pursue permanent residence in the United States. Initial petitions are those filed for a foreign national’s first-time employment as an H-1B worker and are valid for a period of up to 3 years. Generally, initial petitions are counted against the annual cap. Extensions—technically referred to as continuing employment petitions—may be filed to extend the initial petitions for up to an additional 3 years

Over the last decade, the top four countries of birth for approved H-1B workers were India, China, Canada, and the Philippines. Across all 10 years, about 64 percent of approved H-1B workers were born in these four countries, with the largest group from India

Employer not required to test U.S. worker supply:

Unlike some other temporary visa programs, the H-1B program does not require employers to provide evidence that they have first “tested” the U.S. labor market by trying to hire a U.S. worker.

Most new H-1B visas are awarded to foreigners already studying in the U.S.:

From fiscal year 2000 to fiscal year 2009, the proportion of newly approved H-1B workers that were already living in the United States increased from 43 to 62 percent. Many of these workers are likely to have been on student or another visa status. In 2000, 40 percent of approved H-1B workers (initial and extensions) possessed an advanced degree (master’s, professional, or Ph.D.), which increased to 59 percent by fiscal year 2009 (see fig. 11). One reason for this increase may be the H-1B Visa Reform Act of 2004, which allowed for an additional 20,000 approvals each year for foreign workers holding a master’s degree or higher from an American institute of higher education.

Continue reading "IT workers and H-1B visas: necessary or a scam?" »

Posted by pfr at 7:15 AM Link to, Comment (0), or E-mail this post

April 10, 2013

Immigrant workers unaware of workers compensation

A recent report out of New Hampshire of immigrant workers reveals a shockingly high level of ignorance about worker compensation benefits and their rights to them.

The key findings include:

366 immigrants completed surveys, and 299 (63%) reported working in the U.S. now or at some point in their lives.
• 229 were surveyed about their experience working in New Hampshire.
• The most common reported job/industry categories were factory, cleaning, food service, farming, service, construction and retail.
• 62% of all respondents were not aware of workers’ compensation
29 respondents, or about 10% of those who have worked in the U.S., noted they had been injured at work. Common body parts affected included hands, fingers, wrists, backs, knees, feet, elbows, and abdominal regions.

The “Occupational Health Surveillance Immigrant Survey Report” of February 2013 was prepared by the Occupational Health Surveillance Program of the Division of Public Health Services, New Hampshire Department of Health and Human Services (DHHS), in partnership with the New Hampshire Coalition for
Occupational Safety and Health (NH COSH) and the DHHS Office of Minority Health & Refugee Affairs.

This recent study follows a 2006 study. In 2006, NH COSH interviewed 25 immigrant workers who had been injured within the past 3
years. Among this group, there was an overarching issue that workers lacked
information about workers’ compensation and that this hurt them when they tried to obtain benefits. Fifteen of the 25 workers interviewed reported that at the time of their injury they did not know that all of their medical bills were supposed to be paid by workers’ compensation. Six of the 25 people interviewed reported problems
actually getting workers’ compensation to pay medical expenses. At least one additional worker did not try to get medical benefits because he was unaware of the
system. Of the six who had problems, two workers reported that health insurance paid their bills, one worker paid from personal funds, two obtained care through a
community health clinic, and one said the bills were never paid. Four of these workers reported going without treatment at some point due to inability to pay.

The 2013 survey reported included information on the nationality (44% Asian) of the respondents and their education level:

28% of respondents completed some college level training before coming to the U.S.
32% of respondents completed some high school level education.
19% of respondents completed 8 years or less.
12% of respondents received no education.

Posted by pfr at 9:23 PM Link to, Comment (0), or E-mail this post

Reforms to Legal immigration of low skilled workers

The Migration Policy Institute just published an Issue Brief on legal immigration of low skilled workers.

The authors say that severe limitations on legal immigration, temporary or permanent, of these workers has been in part the cause of illegal immigration.

The U.S. Chamber of Commerce and the AFL-CIO have agreed in principle on reforms to temporary low skilled labor immigration including freedom to move among employers and an opportunity to apply for permanent visas. The proposed W visa will allow for a broader range of employment.

H-2A visas for agricultural workers, which run for one year and are extendable to three years, are limited in number. H-2B visas, for non-farm work, are limited to 66,000 a year. Only 5,000 EB-3 permanent visas are available.

The debate over expanding and revising legal immigration for low skilled workers is paralyzed by these following issues:

• Wage levels and employment conditions. How to determine “prevailing wages.” The MPI says there is no obvious way to reconcile or come to an consensus about methodology. Also, there is differences in positions about assuming transportation and housing costs.
• Level of effort employers must show to recruit U.S.workers
• Whether U.S. workers to work alongside temporary visa workers should be entitled to transportation and housing subsidies.
• Which federal agency should oversee these temporary workers: the Department of Labor or Homeland Security
• How to determine the appropriate number of visas. Caps, when reached, make it difficult for employers to plan. The MPI has for years recommended the creation of an independent body to set and periodically adjust the cap for visas, to overcome federal inertia.
• Freedom of temporary workers to seek employment other than with the original employer. This proposed policy is intended to deter labor standard violations by employers
• Incentives to employers who play by the rules.
• Legal remedies for temporary workers
• Better monitoring, by adding dedicated resources
• Regulating immigration intermediaries.

Issues in designing a new temporary W visa include the following:

• Creating a more nuanced range of employment, that might include some skilled labor such as in construction
• Providing a path to permanent residency. The design of this path is somewhat caught up in the issue of who will be admitted. The higher the skill level, the greater prospect policy makers believe the worker will successfully integrate with American society. Integration with American society is seen as a very desirable attribute of permanent residency.

Candidacy for permanent residency can include learning English, having a good work record, and evidence of skill development.


Posted by pfr at 8:55 AM Link to, Comment (0), or E-mail this post

March 19, 2013

Latino voters and immigration


Latino Decisions released new polling data today highlighting why immigration reform has become the number one political issue for Latino voters, and the answer is close personal connections between Latino voters and Latino undocumented immigrants.

The poll was funded by immigration reform advocates.

The poll finds that 58% of Latino registered voters now cite immigration reform as the top priority for the Congress and President, up from 35% in November 2012. One reason is that 63% of Latino voters say they personally know someone who is an undocumented immigrant, either a member of their family or a close personal friend. Further, 39% of Latino voters say they personally know someone, or a family who has faced deportation or detention for immigration reasons, and increase of 14 points over 2011, when 25% of Latino voters said they personally knew someone who had faced deportation or detention.

The poll asked Latino voters if they knew any young immigrants who had applied for the 2012 "deferred action" program that would allow DREAM Act-eligible immigrants to live in the U.S. and attend college with temporary visas. More than one in five Latino voters (22%) knows someone who has already applied for deferred action, with 18% saying they know someone who is eligible, but not yet applied.

Background:

Latino Decisions interviewed 800 Latino registered voters via landline and mobile phone, across all 50 states, from February 15-26, 2013. Interviews were conducted in English or Spanish, at the preference of the respondent, and all interviewing staff was fully bilingual. The survey averaged 20 minutes in length and has an overall margin of error or +/- 3.5%. On split sample questions the margin of error is +/- 4.9%. For questions about the results, please contact Gary Segura gary.segura@latinodecisions.com

The poll was sponsored by America's Voice, National Council of La Raza, and SEIU.

Posted by pfr at 6:38 AM Link to, Comment (0), or E-mail this post

February 21, 2013

Reforming temporary worker programs

A coalition of worker advocates issued a report this month, The American Dream Up for Sale, an indictment of abuses in temporary worker programs in the United States. Go here for an announcement of the report.

The collation include the International Labor Recruitment Working Group (ILRWG), a diverse coalition that includes the AFL-CIO, AFT, the Centro de los Derechos del Migrante Inc. (CDM), Farmworker Justice, Global Workers Justice Alliance, National Guestworker Alliance, Southern Poverty Law Center and other international and national organizations.

The New York Times ran an editorial about these abuses today.


Posted by pfr at 8:36 AM Link to, Comment (0), or E-mail this post

February 20, 2013

Remittances from the United States: big, getter fairer

Remittances from the U.S. to other countries continue to grow. And new Feb 2013 regulations on remittances, created out of the Dodd-Frank Act, seek to impose better controls to protect the sender.

The Congressional Budget Office estimated in 2011 that in 2009 remittances from the United States to other countries totaled more than $48 billion, nearly 30 percent more in inflation-adjusted terms than they were in 2000. This outflow is over 10% of total worldwide remittances. According to the Economist, remittances from the U.S. make up about 15% of the total GDP of Haiti, El Salvador and Honduras. It appears that about 2% of Mexico’s GDP is remittances from the U.S.

In 2009, such remittances from the United States to other countries totaled more than $48 billion, nearly 30 percent more in inflation-adjusted terms than they were in 2000. People in Mexico receive more of the remittances sent from the United States than do residents of any other country.

CBO 2011 report excerpts:

Of the $48 billion in remittances in 20098, nearly $38 billion of that amount was personal transfers by foreign-born residents in the United States to households abroad. The rest, about $11 billion, reflected the compensation of employees who were in the United States for less than a year.

Here are excerpts from a late 2012 report by the World Bank on remittances, which includes a summary of new U.S. remittance rules effective 2/7/13.


Overview of World Bank report

Officially recorded remittance flows to developing countries are estimated to reach $406 billion in 2012, a growth of 6.5 percent over the previous year. These flows are expected to rise 8% in 2013 and 10% in 2014 to reach $534 billion in 2015.

 Remittance costs are still too high, averaging 7.5% in top 20 remittance corridors; the worldwide average cost is about 9%.

 US Remittance Transfer Rule, to be implemented in February 2013, will increase transparency for consumers and thereby market competition.


Facts about remittance flows

Officially recorded remittances to developing countries are expected to reach $406 billion in 2012, up by 6.5% from $381 billion in 2011(figure 1 and table 1). The true size of remittance flows, including unrecorded flows through formal and informal channels, is believed to be significantly larger. Compared to private capital flows, remittance flows have shown remarkable resilience since the global financial crisis, registering only a modest fall in 2009, followed by a rapid recovery. The size of remittance flows to developing countries is now more than three times that of official development assistance.

The top recipients of remittances in 2012 are India ($70 billion), China ($66 billion), the Philippines ($24 billion), Mexico ($24 billion), and Nigeria ($21 billion).

Continue reading "Remittances from the United States: big, getter fairer" »

Posted by pfr at 11:00 AM Link to, Comment (0), or E-mail this post

February 16, 2013

Congressional seats: ready to go Red with slight change in Hispanic voting

The Georgetown [University]Public Policy Review carefully analyzed each Congressional district for the potential of gains by Republicans if the percentage of Hispanic voting Republicans went up. It concluded that there are many more competitive races in heavily Hispanic areas for Democrats to lose than to gain. A shift of Hispanics from Dem to Rep would produce a lot more Rep wins than a shift of the same percentage from Rep to Dem would create more Dem wins.

“There are two different lenses through which to consider the Republican perspective. First, most incumbent Republicans will not have a strong incentive to vote for an immigration bill containing a path to citizenship if a significant Hispanic population appears to be lacking in their districts. In fact, many conservatives may be far more concerned about primary challengers than Hispanic backlash.

On the other hand, the Republican Party as a whole has a tremendous opportunity to turn districts in their favor. If they can redefine themselves to the Hispanic population, starting with comprehensive immigration reform, they will be doing more than pouring water on the DCCC’s gunpowder—they will be stealing it for themselves.”

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February 11, 2013

The transformation of Mexican farm labor supply to the U.s.


Only 2% of California’s farm labor is U.S.- born. Foreign workers, mainly Mexicans, are essential for California’s production of labor intensive agriculture. (For a list of the major “FVH” farm products, such as avocados, grapes and lettuce, go here.)

Two very recent studies from US Davis and US Sacramento examine the impact of shorter supplies of low wage farm workers from Mexico.

A new study from the University of California at Davis reports on shifts in agriculture in Mexico that may be affecting the supply of Mexican farm workers in the United States.

Mexican food distribution is increasing through large retailers, such as Walmart. These large merchandisers have “strict quality, quantity and timing standards” that small family farms cannot easily meet. This is leading to more industrial farm production.

Supermarkets think cross-border, not locally. Thus Californian food will be sold in Mexican stores in one season, and Mexican food in Californian stores in another season.

The net effect of these and other changes is to tighten the supply of Mexican low wage farm labor to work in either Mexico or the U.S. (Mexico now imports farm labor from Guatemala.)

MPI reports that farm labor costs in the U.S. are rising. When the farm unions rose in California (think Cesar Chaves) in the 1960s, farm worker wages rose by 40%. If farm wages increase significantly, the MPI predicts more mechanization (which is already picking a lot of wine grapes) and shift towards importing farm produce that cannot be easily mechanize.

A study from the University of California in Sacramento (“The End of Farm Labor Abundance”) says that “New data from the Mexico National Rural Household Survey reveal that the same shift out of farm work that characterized U.S. farm labor history is well underway in Mexico. Meanwhile, the demand for farm and non-farm workers in Mexico is rising, and a combination of recession and border enforcement has discouraged new Mexico-to-U.S. migration. The decline in foreign farm labor supply to the United States has far-reaching implications for farm production, immigration policy, and rural poverty in California and other labor-intensive agricultural regions.”

The UC Davis study (see the powerpoint here) says that farm productivity in Mexico has risen by 300% since 2003, leading to a 25% decline in the workforce along more production.

The report quotes Passel of The Pew Hispanic Center: “The supply of Mexican labor available to work in the United States has fallen due to a sharp decrease in Mexico’s total fertility rate and employment growth in Mexico.”

What happens when mechanization comes into California farms? Fewer low skilled workers, more high skilled workers, and hard from low skilled workers to transition up.


Posted by pfr at 7:27 AM Link to, Comment (0), or E-mail this post
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