Issue link: http://read.dmtmag.com/i/34757
H-2A changes add COST, DIFFICULTY Rules for the guest-worker program have changed significantly each year that McDougall & Sons has participated. by Geraldine Warner A n increase in the wage rate that employers must pay workers recruited through the H-2A guest-worker program will add well over $1 million to labor costs this year for one company alone. McDougall & Sons, Inc., in Wenatchee, Washington, has recruited Mexican workers through the H-2A program for the past three years and has built housing for them at five locations in central Washington. Last year, the company hired 190 foreign guest-workers, which met about half its labor needs during harvest. Employers using the H-2A program are required to pay what is known as the “adverse effect” wage rate, which is set by the U.S. Department of Labor. Scott McDougall, manager of McDougall’s orchard division, said that the adverse effect wage rate last year was between $8.87 and $9.19 (depending on the county)—not much higher than Washington State’s minimum wage rate of $8.55. For this season, the rate has increased to $10.60, and employers must pay the same rate to domestic workers. In addition, the company raises the wages of its regular employees to maintain a differential over the entry-level employees. As a result, the increase in the adverse effect wage will add well over $1 million to its wage bill. Domestic workers When hiring foreign guest-workers, employers must advertise for domestic workers in three locations nationally during the first part of the H-2A contract period. Another big change in the program for 2011 is a lengthening of the advertising period from 30 days last year to 50 percent of the contract period this year. McDougall’s contract runs from early June to the end of October, a total of five months. This means that the company will have to keep “We try its hiring process open until August. If domestic people apply, it must hire them under the same con- tract as the guest-workers and provide housing for them if they are not rea- sonably able to return to their homes the same day. In the past, a number of to have a situation where they’re not people have applied for advertised jobs, often through the state employ- ment agency WorkSource, but not many actually came to work, McDougall said. For example, last year, 1,023 people were referred to having to go out and cut dandelions at $10.60 an hour.” —Scott McDougall McDougall & Sons for jobs, of which 266 accepted the contract and were hired. Of the 266 workers hired, only 39 were still employed after 30 days. “That’s a pretty good argument that we don’t have a reliable domestic work force,” he said. “But what we’re seeing this year with the change in the adverse wage is we’re probably getting triple the amount of interest because they know that the minimum is $10.60.” As a result, McDougall will bring in fewer guest- workers from Mexico to leave room in the housing camps for workers it might have to hire at the orchards. Experienced Most of the H-2A guest-workers have returned to work for the company the following year and become experi- enced. When they’re doing piece-rate jobs during thin- ning or harvest, most actually earn about $15 to $16 an hour, so the company has rarely needed to make up their earnings to the adverse effect rate. The only job they don’t do piece rate is tying (tree training), which is a filler job between thinning and harvest. The employer must guarantee them 75 percent of the hours stipulated in the contract, which is 30 hours a week. McDougall said they haven’t had much down time, but it is important when participating in the H-2A program to make sure there is enough work for them to do. “We try to have a situation where they’re not having to go out and cut dandelions at $10.60 an hour,” he said. 6 JUNE 2011 GOOD FRUIT GROWER www.goodfruit.com