MEMORANDUM FOR:
CHARLES C. MASTEN
Inspector General
JOHN J. GETEK
Assistant Inspector General
for Audit
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FROM:
RAYMOND J. UHALDE
Acting Assistant Secretary for
Employment and Training
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BERNARD E. ANDERSON
Assistant Secretary for
Employment Standards
SUBJECT:
Response to the Office of the Inspector General (OIG)
Draft Report on the H-2A Temporary Foreign Farmworker
Program (Draft Report No. 04-98-004-03-321)
Thank you for the opportunity, and the extension afforded, to comment on your draft report on the H-2A Program, "Consolidation of Labor's Enforcement Responsibilidesfor the H-2A Program Could Better Protect U.S. Agricultural Workers. " The Employment and Training Administration (ETA) and the Employment Standards Administration (ESA) and its Wage and Hour Division (WHD) concur with many of the findings and the recommendations in the draft report.
Our response first addresses the draft report's recommendations and
then we offer comments on
some of the findings set forth in the body of the draft report.
OIG Recommendation:
"We recommend the Secretary and the Assistant Secretaries for Employment and Training and Employment Standards work with the Congress and other affected agencies to introduce legislation that will:
ETA and ESA/WHD concur. While we are examining the issue, we do not believe that legislation would be required to effect this recommendation (except for the appropriate resource adjustments through the appropriations process) as it falls within the Secretary's authority delegated under the Immigration and Nationality Act (INA) and by the Attomey General. The recommended transfer to ESA's Wage and Hour Division of H-2A program administration (certification) and enforcement responsibilities now performed by ETA will include transfer of appropriate resources. In conjunction with the transfer, we also concur - as we did with a similar recommendation emanating from a recent General Accounting Office (GAO) review of the H-2A program - that WHD should be given the authority to apply sanctions against employers, such as debarment from participation in the H-2A program for violating program requirements.
We believe that implementation of this recommendation should occur in the broader context of DOL's efforts to improve the effectiveness of its other major employment-based immigration programs. As you know, for some time, the Office of the Assistant Secretary for Policy (ASP), the Bureau of International Labor Affairs (ILAB), ESA and ETA have been working together to develop options to address major weaknesses in the application adjudication (certification) process for both temporary and permanent employment-based immigration. Many of the weaknesses cited in the OIG's earlier report on the permanent labor certification program and the H-IB labor condition application (LCA) program, as well as those cited in this draft report relating to the H-2A program, relate to difficulties in recruiting U.S. workers for jobs for which U.S. employers seek foreign workers, and to effective wage and labor protections for foreign and similarly-employed U.S. workers. These weaknesses also affect other employment-based immigration programs. Consolidating DOL responsibilities for all employment-based immigration programs is among the options being considered as part of the action needed to correct these recruitment and worker protection weaknesses. Thus, OIG's recommendation to transfer ETA's H-2A certification responsibilities to WHD should be seen in the broader context of other reforms under review to improve employment-based immigration programs and, perhaps, should be implemented in tandem with the broader set of reforms that are adopted.
OIG Recommendation:
"We also recommend substantive changes be made to the program, including issuance of final program regulations through the rulemaking process and other issues discussed in the section of this report titled, "Additional H-2A Program Issues Require Attention. " ["Which include possible changes to the "50 percent rule" and consolidation of Job Orders in the Interstate Clearance System].
Agencies' Response
Generally, ETA and ES/WHD concur. We have agreed to implement recommendations regarding changes to the H-2A program from the GAO and other sources that will require rulemaking. Through this upcoming notice-and-comment rulemaking we will entertain public comments on changes to the H-2A rules and finalize the H-2A program regulations. In this process, we will consider and solicit public comment regarding possible changes to the "50 percent rule" and the feasibility of consolidating agricultural job orders in the Interstate Clearance System. ETA and ESA/WHD believe, however, that the 50 percent rule plays a key role in providing employment opportunities and protections for U.S. workers and in enabling employers to tap into the domestic labor supply.
OIG Recommendation:
". . . we encourage the Secretary to work with the Congress and other affected agencies in developing a reliable means of verifying individual's citizenship status as they are hired. We note that several such 'pilot' systems are now being tested "
Agencies' Response:
The Secretary and Department of Labor staff have been and will continue to be strong advocates of an effective system for employment eligibility verification, which is principally the responsibility of the Attorney General and the Commissioner of the Immigration and Naturalization Service (INS) under the relevant provisions of the INA.
With respect to the draft OIG report's findings on other aspects of the operation of the H-2A program, we offer the following comments which reference the titled subsections of the report.
Purpose of the H-2A Labor Certirication Process (p. 4)
The correct reference in the first paragraph is to the Immigration Reform and Control Act (IRCA).
Few U.S. Workers Were Recruited for H-2A Jobs (p.5)
Both the GAO and OIG reports concluded - like virtually every other serious study of the issue that there is no nationwide shortage of farmworkers, but there may be spot shortages in certain crops and areas at certain times. It is to address just such spot shortages that the H-2A program exists.
But we do not agree that "poor success in recruiting U.S. agricultural
workers for H-2A positions seems to contradict data that indicate a national
surplus of agricultural workers exists" (p.6). There are many reasons
- well-described in the draft report - why domestic
recruitment efforts under the H-2A program are largely ineffective, and that U.S. farmworkers are sometimes not hired by H-2A employers. Among these reasons are that many H-2A employers have used H-2A workers for decades, domestic recruitment efforts - by employers and the State Employment Security Agencies (SESAS) - often do not effectively disseminate information about available jobs to locations or in a manner that actually reaches U.S. farmworkers, lack of family housing, high transportation costs, and uncertainty about where and which jobs a farmworker would be assigned to, particularly where grower associations make the application for H-2A workers on behalf of a large and geographically disbursed number of their members. Of course, none of these documented reasons for ineffective recruitment relates in any way to the availability of U.S. farmworkers, and certainly these reasons do not cast doubt on the existence of a nationwide agricultural worker surplus in the country.
At the end of this section there is a paragraph we find somewhat contradictory and perplexing. The draft report says, "Why then do most employersf ind agricultural workers to fill their needs without relying on the H-2A program? The contradiction may be answered by the means and methods ETA and employers used to recruit workers." As the draft report later documents, most employers find agricultural workers to fill their needs without relying on the H-2A program precisely because there is an available supply of farmworkers in the U.S. (though a good portion of them are not legally authorized to work), and agricultural employers which really want U.S. farmworkers use different, more effective means to find and connect with them.
Little Recruitment or Hiring of Agricultural Workers Occurred Through the SESAs' Efforts (p. 6)
ETA is working to improve dissemination of information about agricultural job opportunities, including increased use of America's Job Bank, which is accessible by worker advocates and outreach agencies. Some States recently informed ETA that because they have been successful in placing most U.S. workers who are seeking agricultural jobs with non H-2A emplovers, that is where they focus their limited recruitment and placement resources.
The Interstate Clearance System Has Little Impact on Recruiting Workers (p. 9)
ETA is very concerned as to whether the SESAs have adequate resources to perform even the minimum recruitment activities required under the H-2A program due to budget reductions by the Congress. For example, Florida's overall foreign labor certification allocation has decreased from $1.8 million in 1996, to $1 million in 1997, and to $764,000 in 1998 - only about 40 percent of the level just two years earlier. Texas' allocation has decreased from $2.2 million in 1996, to $1.2 million in 1997, and to $893,000 in 1998 - down 40 percent over these two years. These resources must fund not only activities relating to the H-2A program, but the permanent and other temporary nonimmigrant programs as well.
SESAs are Hesitant to Refer Workers on H-2A Job Orders (p. 10)
The draft report notes that "some [SESA] staff were hesitant to refer [U.S. farm] workers to
certain H-2A employers, because it was their perception that the workers referred to certain H-2A employers would not be hired. They believe some employers delayed the applicant interviews or discouraged domestic workers from accepting jobs " This is, indeed, a common problem. It is entirely understandable that SESA staff would not want to send generally destitute U.S. farmworkers off on what would amount to a "wild goose chase" at best, or an expensive, demeaning, and very frustrating exercise at worst, where their experience is a history of poor success in getting a U.S. employer that wants foreign workers to hire U.S. farmworkers. In its earlier report regarding the permanent labor certification and H-lB LCA programs, the OIG found exactly this phenomenon occurring with great frequency in the permanent program. It should be no surprise that it commonly occurs as well in employment-based nonimmigrant programs, like H-2A. SESA staff would be mis-serving both its customers - the employer who only wants foreign farmworkers and the U.S. farmworkers who really have no chance of being hired by that employer - if they insist on making referrals linking the two parties.
Footnote 8 (p. 11) should say that family housing is required to be provided workers with families when it is the prevailing practice in the area of intended employment.
"Positive Recruitment" Requirements Do Not Result in Local Hiring (p. I 1) and "Spot" Labor Shortages May Exist (p. 12)
We do not agree that, as the draft report states, "The most plausible reason that neither H-2A employers nor the SESAs have success in recruiting U.S. workers is that such workers are not available." As pointed out in earlier comments, the draft report itself documents a number of reasons - unrelated to the actual availability of U.S. farmworkers - that both SESAs and H-2A growers domestic recruitment efforts are largely unsuccessful. That is not to say that "spot", shortages of agricultural labor do not exist, which the H-2A program exists to address.
ETA has recently placed a priority on more effective positive recruitment. The agency has recently issued positive recruitment instructions (copy attached), and has reviewed positive recruitment tools at its national H-2A conference in May 1996. ETA acknowledges that neither the States nor its regional offices have the expertise or staff to effectively direct individual recruitment efforts by thousands of employers directed to specific locations and advertising sources. The agencies will examine new ways to obtain the assistance of worker advocates and community-based organizations in improving the effectiveness of recruitment efforts both by employers and the State agencies.
Involvement of Growers Associations May Present Special Concerns
for Local Recruitment
(p. 12)
H-2A applications from growers' associations are specifically authorized in the law, and represent significant savings in program administration because potentially hundreds of different employers may be combined in a single master order.
ETA has no direct evidence that H-2A applications from growers' associations discourage U.S. workers, but we do not disagree with this basic proposition; we agree especially that large, statewide master orders submitted by associations pose such problems. Consequently, ETA is currently instructing its field staff to carefully examine the scope of associations' applications - a master order can only request workers for one time period, and must be for one primary crop. However, if growing other crops in addition to the primary crop is normal practice in the area, it remains permissible to include these crops in the master order. ETA has instructed its regions that receive and process master orders that when a separate or secondary crop, such as cucumbers, is normally harvested by a separate group of workers who "specialize" in that crop, to better protect U.S. workers, the separate/secondary crop must be excluded from the master order.
Certirications Were Often Made on Incomplete Data and Were Not Timely (p. 14)
This finding parallels the GAO's findings. While ETA does not dispute that necessary information on which to base certifications was not available in the files reviewed, we would point out that, during the period covered by the OIG's review, ETA's largest H-2A region did not have an H-2A staff person assigned to this activity (though a full-time staff person is now in place). Further, with respect to information which was not available in the files reviewed, such as recruitment reports, we would note that there are instances where a recruitment report would not be needed. For instance, a recruitment report might not be required of an employer who applies a few days after another employer (with the same type crop and dates of need) who had previously recruited without success. However, a local and an interstate job order must always be completed, and the file should at least contain a negative report from the SESA indicating that there were no referrals. ETA will take steps to ensure that regions consistently maintain the required documentation.
Regarding the OIG's finding that housing inspection reports were missing from the files, ETA notes that we have recently denied or delayed a number of certification requests due to lack of housing. Some H-2A housing is rental housing meeting local standards and thus would not require inspection. Additionally, the housing in many master orders is used during the season for a number of master orders from the same association and employers. If the first order contains written confirmation of an acceptable housing inspection, the next several orders during the season might not contain the actual inspection document for the same housing. Nonetheless, ETA will follow up with the regions on this finding.
The OIG finds that many certifications in 1996 were not issued during the statutorily-required time period. ETA points out that there are many reasons a certification is appropriately issued after the 20 day statutory period - these include an employer's lack of approved or inspected housing, delays in providing a recruitment report, if required, and delays by the employer in responding to deficiencies in the application. While delays in meeting the seven day requirement for initial processing of applications are only attributable to actions by the agency, we are concerned that diminishing regional staff resources may require other actions to ensure that the Department is better able to consistently meet this statutory deadline.
Data Necessary to Evaluate H-2A Program Activities Is Not Maintained (p. 17)
This finding also parallels a GAO finding. ETA has requested that $275,000 in FY 1998 funds be reprogrammed to establish an automated tracking, case processing and management system for the H-2A program. This system is urgently needed and ETA will place a high priority on its development. Many of the timeliness issues noted previously are exacerbated by lack of a uniform, "real time" information system to assist the regions in processing cases, tracking deadlines, and allowing National Office monitoring. ETA has already commenced planning for this system; mandatory items in the new system will include recording housing inspections and the required job orders.
DOL's H-2A Enforcement Responsibilities are Fragmented (p. 17)
The reference to "SESA 's WHD " needs to be corrected.
Additional H-2A Program Issues Require Attention (p. 18)
ETA and ESA/WHD believe that the H-2A program's "50 percent" rule provides essential U.S. worker protection. However, as discussed above in response to the draft report's related recommendation, we will explore whether there are circumstances in which the rule might be applied differently.
With respect to the draft report's suggestion regarding alternative approaches to the interstate recruitment process, ETA plans to expand the current pilot project in New York State regarding use of the America's Job Bank for New York apple harvest orders. (See attached)
As noted above, the Department has committed to a number of additional changes in the H-2A program in response to recommendations from the GAO and other sources. These changes include:
Again, we appreciate the opportunity to review and comment on this draft
report. If we can be of any further assistance or clarify our comments,
please do not hesitate to contact John Fraser, Acting Administrator of
WHD, at 219-8305, or John Beverly, Director, U.S. Employment Service, at
219-5257.
Attachments
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FROM:
ROBERT S. KENYON
Acting Administrator
for Regional Management
SUBJECT: Pilot Project Using America's Job Bank in the H-2A Recruitment Process
1. Purpose. To provide instructions for processing and coding New York State (NY) job orders using Americals Job Bank (AJB) for recruitment of H-2A workers.
2. Reference. Title 20 CFR 653.500-3, 29 CFR Part 500, ESPL
No. 4-95, FR Vol. 61 No. 96 (MSPA).
3. Background. The National Office has designated NY as the
pilot State for using AJB to transmit recruitment information for coded
H-2A job opportunities throughout the United States. his project
will not alter the legal requirements of the H-2A process, and is expected
to provide information on job opportunities to more U.S. workers.
As a result of using AJB in the H-2A recruitment process, electronic
orders for jobs in NY will instantly be made available to all SESAs.
SESAs and local entities with access to either AJB or the INTERNET will
have information sufficient for referral to job opportunities resulting
from H-2A orders. Unless otherwise indicated (or specifically
requested) NY State staff will not routinely provide a hard copy
of complete job orders to other States.
This pilot project will help establish procedures for using electronic
methods to comply with the regulatory recruitment requirements. If
this pilot is successful for NY H-2A orders, similar procedures will be
extended to all H-2A orders and to all interstate clearance orders.
Rescissions
None |
EXPIRATION DATE
July 31, 1998 |
b. The attached procedures should be adhered to in responding to NY
State H-2A job orders; and
c. Since onlv AJB will be used initially to notify the ES system of NY State H-2A openings, it is essential that local office staff in States which have traditionally received hard copies of the NY orders access AJB on a routine basis, especially during the traditional recruitment period for NY harvest orders (July 1-August 15).
6. Attachments.
I. General
In the 1970's, a series of ES complaints were consolidated in a lawsuit
titled NAACP (Western Region) v. Brennan. Among the problems
identified in the complaints and lawsuit were referrals of farmworkers
to jobs for which there were deficient orders or orders with insufficient
information. I n resolving the lawsuit, DOL established guidelines for
the handling of interstate orders, both criteria and noncriteria.
Those guidelines were promulgated in regulations at 20 CFR 653.5OO-503
and were designed to insure that farmworkers were not referred to jobs
that offered inadequate wages or working conditions and that farmworkers
had access to information about all material aspects of the job offer.
Although automated job banks were in use at the time of the regulations,
their use was limited and electronic distribution was within the State.
A State had to take specific action to place a job on the Interstate Job
Bank (IJB), the predecessor of today's Americals Job Bank (AJB).
States were informed of jobs on the IJB through periodic updates of microfiche.
There were often delays of two weeks or more between the time a local office
accepted a job order and when an order would appear on the IJB microfiche.
The use of electronic technology has the positive effect of making
information about agricultural jobs available more quickly in more States
and in locations other than the Employment Service office. With automation
advances today and the development of AJB, in most States when a job is
listed by AJB, it is simultaneously available throughout the States.
Some States also make all their job orders available on the Internet.
II. Preliminary Steps
Upon issuance of this GAL, the AJB Interstate clearance pilot project will be effective with respect to jobs in New York only. All States shall refer workers to all available agricultural job opportunities (criteria and noncriteria) in New York utilizing the following procedures:
B. Orders will continue to be submitted to the Regional Office (Region II) for review and approval.
C. After completion of the regional review process, New York State will be notified of acceptance consistent with current practice.
D. Upon receiving notice of acceptance, the order will be released for entry into the National AJB system. Orders will not be released into the National AJB system until the ETA Regional Office in New York has accepted them for entry into the clearance system.
E. Once the order has been placed into the AJB system, a copy
of the complete order (the ETA 790 and all attachments) will be provided
to each designated applicant-holding ETA Regional Office, and the Regional
Farm Labor Enforcement Committee for the New York Region.
and use the information on the AJB to create a complete order. If the applicant-holding office does not have access to the Internet, it should request the order-holding office to fax a copy of the complete order in English, or Spanish when necessary. S tandard "boilerplate" such as the 3/4 rule, etc., should already be available so that it may be provided to workers at all local offices, and it is also available on the general web address. The applicant-holding office must continue to provide each referred worker a copy of the description of the worker's rights developed by the National Farm Labor Coordinated Enforcement Committee.
C. Supplementary information such as detailed job information including experience and productivity standards should be explained in the "free form" section of the computer screen. The NY AJB system will allow (5) lines for typed text, one of which is used for the codes.
DIRECTIVE: FIELD MEMORANDUM NO. 17-97
TO: ALL REGIONAL ADMINISTRATORS
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FROM:
BARBARA ANN FARMER
Administrator
for Regional Management
SUBJECT:
Improvements in H-2A Processing
1. Purpose. To transmit policy regarding issues
involving recruitment of U.S. workers in the H-2A program.
2. References. 20 CFR Part 655, Subpart B (H-2A regulations);
ETA Handbook No. 398.
3. Background. Since the H-2A Regulations went into
effect on June 1, 1987, questions have been raised about when and under
what conditions U.S. workers are considered to be available and used as
a basis for full or partial denial of H-2A certifications. Questions
have also been raised in regard to the process of redeterminations in the
72 hour window in the regulations. A third issue relating to recruitment
has been the adequacy and/or necessity of Positive Recruitment.
During the debate and testimony concerning proposed "guestworker" legislation
to amend or replace H-2A, a number of growers and their representatives
alleged that ETA is inconsistent and needlessly bureaucratic in interpreting
and enforcing its regulations in regard to recruitment. At the same
time, worker advocates expressed concem about the adequacy of the recruitment
process for domestic workers, and especially about the use of adequate
positive recruitment.
This memorandum clarifies some of these issues with the goal of retaining
realistic protections for U.S. workers while streamlining the process for
growers and SESA staff.
4. Policy Discussion:
RECISSIONS:
NONE |
Expiration Date
January 31, 1998 |
In making full or partial denials, the Regions should consider the historical
record of recruitment sources both in relation to the percentage of workers
on a list who continue to express interest after the employer interview
and the percentage of those workers who show up as agreed by the date of
need.
b. As a reminder, the 50 percent rule protects the employment
rights of U.S. workers. Employers should be informed of the number
of workers who might be available and reminded that they must make
a job available for all who arrive at the job site. The goal should
be to eliminate the need for redeterminations by certifying the appropriate
number of H-2A workers initially.
c. If workers identified by the Regional Office as able,
willing and qualified do not report as promised, Regions should use discretion
in reducing the number requested in the redetermination based on "last
minute" replacements. Since in most situations there is another employer
with a later start date, the focus should be on an effective placement
of the replacement worker, and not on producing a name as a basis for rejecting
a redetermination request. Because many employers prepare their processing
documents in advance, providing timely notification with respect to replacement
workers is essential to providing quality customer service. The intent
should be to identify and refer domestic workers who will report as promised
and remain to complete the job.