New Bush Rule Could Fuel Unemployment among Construction and Service Workers

Thursday, December 18, 2008

WASHINGTON, DC -- Today, in yet another affront to workers, the Bush administration issued a final rule that will lead to further exploitation of non-agricultural foreign guest-workers in the Department of Labor’s H-2B program and fuel greater unemployment among U.S. workers in construction and service industries. Leading Democratic lawmakers who have vowed to work with the new Obama administration to overturn this and other midnight regulations that will gut wages, benefits and key protections for workers, issued the following statements.

“With our nation facing an unemployment epidemic, it’s unconscionable that the Bush administration is still working overtime to slash worker protections and put more American jobs at risk,” said U.S. Rep. George Miller (D-CA), the chairman of the House Education and Labor Committee. “Make no mistake – now we will work overtime with the new administration to undo their midnight schemes and make stronger wages, benefits and protections for all workers a top priority.”

“In our moment of economic crisis, the Bush administration has sought to attack worker protections on an alarming scale,” said U.S. Rep. John Conyers Jr. (D-MI), the chairman of the House Judiciary Committee.  “The effect of today’s midnight regulations would depress wages across the country.  I pledge to work with my colleagues and the incoming administration to overturn these last minute regulatory attacks on wages and protections for American workers.”

"This is yet another attack on working people by the Bush Administration," said U.S. Rep. Zoe Lofgren (D-CA). "Again we find the administration pushing a midnight regulation to slash protections for both U.S. and foreign workers. We will work with the incoming Obama administration to undo these ill-conceived regulations."

The rule, which was issued by the Departments of Labor and Homeland Security, is set to take effect in January 2009.

Among other things, the rule reduces oversight of the H-2B application process, which will increase the likelihood that fraudulent or otherwise non-meritorious requests for foreign guest workers will be approved and qualified U.S. workers will be displaced from jobs.  While the Department has claimed the rules end state workforce agencies’ “duplication of effort” when it comes to reviewing these applications, state workforce agencies have been key in uncovering fraudulent or non-meritorious applications before they are approved.  When such applications are wrongfully approved, U.S. workers will lose job opportunities and see continued downward pressure on their wages and working conditions.  Such applications will also crowd out businesses that may have legitimate labor needs. 

In addition, the final rule expands the definition of “temporary” from one year to three years, making less temporary jobs eligible for H-2B employment; crowding out businesses with shorter, more seasonable needs; and displacing U.S. workers from longer term jobs. 

Last week, the Departments issued a similar rule that will lower wages and abolish labor protections in the H-2A agricultural guest-workers program – changes that will drive down the wages and working conditions for all farm workers.

Under both the H-2A and H-2B programs, employers are allowed to hire foreign workers only if they can’t first find U.S. workers, and only if the wages and working conditions they provide don’t have a negative impact on U.S. workers. Both programs have become rife with exploitation under the Bush administration.

Also last week Congress approved legislation that creates new criminal penalties for foreign labor recruiters and U.S. employers that lure foreign guest workers to this country under materially false pretenses. Miller, Conyers and Lofgren championed these provisions, which were passed as part of a larger bipartisan measure to combat human trafficking. For more information on the bill, click here.

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