H-2B Visa Workers and Louisiana Seafood Industry

Ashok K. MishraProfessor

Dept. of Agricultural Economics and AgribusinessLouisiana State University AgCenter

& Louisiana State University

H-2B Temporary Non-Agricultural Workers

• The H-2B non-agricultural temporary worker program allows U.S. employers to bring foreign nationals to the United States to fill temporary non-agricultural jobs.

• A U.S. employer must file a Form I-129, Petition for Nonimmigrant Worker, on a prospective worker’s behalf.– The employer must establish that its need for the

prospective worker’s services or labor is temporary, regardless of whether the underlying job can be described as permanent or temporary.

– The employer must demonstrate that there are not sufficient U.S. workers who are able, willing, qualified, and available to do the temporary work

– The employer must show that the employment of H-2B workers will not adversely affect the wages and working conditions of similarly employed U.S. workers

– Generally, a single, valid temporary labor certification from the U.S. Department of Labor (DOL) must be submitted with the H-2B petition.

• There is a statutory numerical limit, or “cap,” on the total number aliens who may be provided H-2B nonimmigrant classification during a fiscal year.

• CAP for fiscal 2012---33,000 {9,497 already approved}

• Effective Jan. 18, 2011, nationals from the following countries are eligible to participate in the H-2A and H-2B programs: – Argentina, Australia, Belize, Brazil, Bulgaria, Canada,

Chile, Costa Rica, Croatia, Dominican Republic, Ecuador, El Salvador, Ethiopia, Guatemala, Honduras, Ireland, Israel, Jamaica, Japan, Lithuania, Mexico, Moldova, The Netherlands, Nicaragua, New Zealand, Norway, Peru, Philippines, Poland, Romania, Serbia, Slovakia, South Africa, South Korea, Turkey, Ukraine, United Kingdom, and Uruguay.

– For the first time this year: Barbados, Estonia, Fiji, Hungary, Kiribati, Latvia, Macedonia, Nauru, Papua New Guinea, Samoa, Slovenia, Solomon Islands, Tonga, Tuvalu, and Vanuatu.

• Period of Stay– H-2B classification may be extended for qualifying employment in

increments of up to one (1) year. The maximum period of stay in H-2B classification is three (3) years.• Any spouse and unmarried children under 21 years of age of an H-2B worker

may seek admission in H-4 nonimmigrant classification. Family members in H-4 nonimmigrant classification may not engage in employment in the United States.

• The petitioner’s information – Name– Address– Telephone number – Employer identification number (EIN)

• The employer’s information (if different from that of the petitioner): – Name– Address– Telephone number

• The H-2B worker’s information: – Full Name– Date of birth– Place of birth– Last known physical address & telephone number

H-2B Workers in LouisianaYear Number of workers

under H-2B visa program2010 2,026

2009 2,421

2008 2,397

2007 2,533

2006 1,345

2005 1,515

Issue at Hand• The current wage rate of $8.07.• The U.S. Department of Labor (DOL) officials

proposed higher wages for H-2B.– The new regulations would average the pay of different

kinds of jobs regardless of the tasks, skills or industry involved.

– drafted without regard for or consultation with the seafood industry. • Under this rule an unskilled crab picker could make the same

wage as a master butcher who has completed a two-year apprenticeship.

• Under the new rules, workers in Louisiana who now make $8.07 an hour would receive $14.77

H-2B Workers contribution to Louisiana Economy

• Economy multiplier is 2.81• $1 in employee compensation + $1.81 induced in other

sectors of the Louisiana economy.

• Total income generated by H-2B visas workers in Louisiana is substantial:

Hours per week Total income generated

60 $30-36 million

40 $20-24 million

Economic Impact • The total economic impact of H-2B visa workers:

• Number of domestic jobs supported:• 769-1,371

Remittance rate Hours per week Total economic impact

20 60 $86 million

5 60 $102 million

20 40 $57 million

5 40 $68 million

Future Work• Program development grant from LSU Sea Grant• Survey of Louisiana Seafood Processors– Develop a survey questionnaire– Measure exact labor cost in total cost of production– Number and wage rate of H-2B visa workers

employed by the firm.– Quality of workers required • Both for domestic and H-2B visa workers

Thank you.If you have any questions, please let us know.

E-mail: AMishra@.lsu.edu