Secretary's Speech

Secretary of Commerce Carlos M. Gutierrez
Plumbing-Heating-Cooling Contractors Leadership and Legislative Conference
Washington, D.C.

Thank you for that kind introduction. I spoke to you last via taped remarks at your annual meeting in September. So it’s nice that today we get to be together in person. Thank you for coming to Washington. It’s a privilege to speak with you about our nation’s economy, what’s going on in Washington and around the country, and then hear from you on the top issues facing your businesses.

Today, I’d like to focus on a few key issues: our economy, workers’ rights, and immigration. These are the big economic issues we’re facing, and I know they’re important to you.

But first I’d like to recognize the Association of Plumbing-Heating-Cooling Contractors for your leadership in the advancement and education of those aspiring to be in your industry. This year more than $100,000 in scholarship money will be awarded by the PHCC Educational Fund to students pursuing a major directly related to the plumbing-heating-cooling industry. We applaud your commitment to helping individuals achieve their dreams. We know that education is the key to America’s future and I applaud your generosity and commitment.

Let me start by giving you some facts about the strength of our economy:

• 180,000 new jobs were created in March.
• That’s nearly 8 million since August 2003.
• Unemployment is at a low 4.4 percent, the last time it was lower was May 2001.
• 43 straight months of job growth.
• Growth in 2006 (3.3 percent) was above the previous 15-year average.

Our job in Washington is to develop sensible policies that will encourage continued growth and job creation.

Tax relief is among the efforts we can take to create an environment for our economy to keep growing. Tax cuts helped to lead us out of recession post 9/11. It’s time for Congress to make tax relief permanent as the President has asked.

Another priority is prying open new markets overseas. One of the big reasons our economy is doing well is because we’re competing and winning in the global economy.

• In 2006, U.S. exports reached an all time high of over $1.4 trillion dollars. Exports grew by 12.7 percent
• Our exports year to date (Jan. and Feb.) continue to be up 10 percent over the last year.

We are creating an export culture. Our strategy is to grow exports instead of limiting imports.

Free trade agreements are the engine for that export growth. They create additional opportunities for American workers, farmers, businesses and consumers. U.S. exports to countries with FTAs implemented under the Bush Administration have grown faster than our exports to the rest of the world.

Pending FTAs with Colombia, Korea, Panama and Peru will increase our exports and improve market access for American exporters. We look forward to working with Congress to pass these free trade agreements and extend trade promotion authority, so that we can continue our record-setting pace for exports.

Another issue of concern is the effort to do away with secret balloting when workers vote to form a labor union.

The House already passed the so-called “card-check” legislation. We believe this bill short-circuits worker rights. Secret balloting is a right workers have had for 50 years. If the bill is sent to the President, he will veto it.

So, expanding trade and protecting worker’s rights are two of our top agenda items in Washington. However, there is one issue which is front and center across the nation and I know it is important to you. And that is immigration.

I believe immigration reform is the most important domestic social issue of our time, and I know it is an issue of utmost importance to your industry.

Immigration reform has been on President Bush’s agenda since the day he took office. But because we now have a tightening labor market that is affecting industry after industry, state after state—the entire country is feeling the impact.

I’ve been traveling across the country, talking with business and community leaders, and for many, immigration is their biggest problem.

Comprehensive immigration reform is no longer a question of if, but when. The mood in Congress and across the country has shifted. People want action at the national level. And they want it sooner, not later. The President listened and has asked for a bill this year.

Secretary Chertoff, members of the White House staff and I are working closely with Congress to pass immigration reform. And like President Bush, we are optimistic about the chances for reform this year. The American people want this problem fixed. They want practical, workable solutions.

We believe there are three keys to a successful plan:

First, we must continue to focus on national security. We must secure our borders and implement a system to tell us who enters our country, and who is already here.

The good news is that Congress and the American people see that our enforcement efforts are serious, and that they are working.

We’ve heard that the prices “coyotes” charge to smuggle people across the border have skyrocketed. That’s a very clear sign that border security is working.

• In recent months we have:
• Seen the numbers of people apprehended for illegally crossing our Southern border go down nearly 30 percent in 2007 from this point in 2006.
• Ended the policy of “catch and release” at the border.
• Stepped up worksite enforcement. Arrests are up seven-fold since 2002.
• And we’re doubling the number of border patrol agents to 18,000 by 2009.

Our next step will be a tamper-proof biometric identity card, which will give employers, like you, the confidence to know who you are hiring.

It will be a disincentive for people to come across that can’t get one, or don’t have one. We don’t want people risking their lives to come to this country. Without this card, they won’t be able to get a job in the U.S.

Secondly, immigration is crucial for our economy to grow in the years ahead. Today, immigrants make up 15 percent of our labor force. And they account for nearly half the growth in the labor force (since 1996).

In your industry:

• Overall, 18 percent of those in the plumbing, heating, and air conditioning trade are Hispanic.
• Some estimates show roughly half of the Hispanic workers in this occupation are foreign born.
• Pipe layers, plumbers, pipe fitters, and steamfitters are among the highest paid construction occupations.
• And, employment of pipe layers, plumbers, pipe fitters, and steamfitters is expected to grow 9 percent to 17 percent through the year 2014.

The reality is that with this expected growth, you will need more workers. Unfortunately, there are thousands of jobs across the country that aren’t getting filled because of the tight labor market. Without immigrants, we don’t have enough workers. Period!

And the problem is getting worse. The demographic trends are against us:

• The number of people in the prime working years, ages 25-54, is expected to increase by a mere 0.3% per year over the next seven years.
• By 2010, 77 million baby boomers will begin to retire. Some are retiring already.
• By 2030, nearly one in every five Americans will likely be a senior citizen.

These are stunning trends that will dramatically impact our economic competitiveness if we do not take action now.

I’m confident that we will.

Many advanced economies face declining populations and struggle to assimilate immigrants. Immigration can be our competitive advantage.

We’re a nation of immigrants. We have a history of making immigration work. We know how to do it.

What we need is a legal immigration system that can adjust to the changing demands of our economy. It must take into account the labor shortage, the need for seasonal workers all the ebbs and flows of a large free-market economy.

The third goal of comprehensive immigration reform is American unity. This means it must have bi-partisan support in the Congress.

We are a society governed by the rule of law. We shouldn’t reward unlawful behavior. But the mass deportation of 12 million people is not a solution. Neither is amnesty. I am convinced we can strike this balance.

We need a solution that brings workers out of the shadows and into the mainstream. We need a solution that is both viable and workable.

The American people will not tolerate a one-sided bill. They want us to find common ground. They want us to do what’s good, and what’s right, for our nation.

In closing, let me just say that these issues—immigration reform, workers' rights, tax relief, trade—are all vital to our nation’s ability to retain its global leadership position. And we know that they are important to you and your industry.

So continue to be vocal about your concerns. The Association of Plumbing, Heating, and Cooling Contractors have a proud 124-year history of working closely with government on many, many issues. Be vocal about the policies that are working, and how we can continue to have a pragmatic, practical approach.

Thank you.