New Labor Regulations Threaten to Shut Down Louisiana Seafood Businesses
Proposed regulations by the U.S. Department of Labor to significantly raise the wages of seasonal temporary foreign employees, working in the U.S. under the H-2B visa program, could mean the end of business for Seafood processors and other small businesses in Louisiana and across the U.S.
H-2B workers peeling crawfish at Randol’s Restaurant in Lafayette Louisiana. Photo Credit: Randol's Restaurant
The regulations which were proposed in January could go into effect as early as October 1, 2011. They would increase the salaries of most foreign workers in the U.S. under the H-2B visa program by a staggering 30-50%. Some businesses have been notified the wage increase will jump even higher to 88%.
Many seafood businesses will not be able to afford the sharp rise in labor costs and because Louisiana seafood businesses are already struggling to compete with the low price of imported seafood, raising the price of their seafood to cover the increase in labor costs is not an option.
If the regulations are put in place, seafood processors like Frank Randol in Lafayette will be forced to send the H-2B workers home and lose the majority of his workforce.
“I’ve had this business for 40 years. What will happen to me will happen to businesses not just in the South but also across the country. They’ll be put on the shelf.”
Randol has spent 15 years advocating for the Crawfish Processing Alliance. The organization has lobbied the U.S. government to levy tariffs on imported crawfish tail meat from China to stop undercutting American crawfish prices. It is now working with other industry groups to fight the new H-2B wage increases.
Despite intensive recruiting efforts, not enough American workers can be found to fill the seasonal, temporary jobs. H-2B workers are vital to the survival of small businesses that depend on this seasonal labor.
The proposed legislation will affect American workers who work in the seafood industry as well. These workers will potentially also lose their jobs when plants are forced to cut services or close completely.
Seasonal temporary foreign employees work in crawfish processing under the H-2B visa program. Photo Credit: Randol's Restaurant
According to Mike Voisin, CEO of Motivatit, one of the largest oyster processors in the U.S., a resolution of this issue is critical so the United States can continue to create opportunities for people in the U.S. and abroad.
“What not enough people understand about this issue is that we must protect American jobs by allowing immigration. I prefer to hire American workers, as many processors do, but we can’t get them to do these jobs.”
“There is much less turnover with immigrants who are willing to do these seasonal, entry level jobs — that saves training and other costs as immigrants tend to stay with the job,” Voisin said.
Voisin, Randol and others are trying to get their message across to their congressional delegation and those at the Department of Labor, “The seafood community must make people aware how important H-2B workers are to them.” Without H-2B workers, there will be fewer boats harvesting oysters, fewer workers in plants, fewer employees that businesses need during their busiest times of the year,” said Voisin.
Category: Seafood Industry
