New US wage rates for foreign workers crippling-Industries
canadaupdates.com
by Guneet S
September 13, 2011

United States, 13th September: New wage rates announced by the US Labor Department to become effective from 30th September onwards are unfair and burdensome, several US industries dependent on foreign workers have alleged.

The new US wage rates announced by US Department of Labor(DOL) for US H-2B visa workers are almost double the previous wage rates.

New US wage rates will restrict industries’ growth—According to the Louisiana Forestry Association, the main plaintiff opposing new US wage rates, the changes will curb growth of industries in the US. It will be beneficial for US companies using undocumented immigrant workers and will spell boon for overseas competitors, the association adds.

Employers in Louisiana will feel the pinch of new US wage rates for US H-2B visa holders seeking employment here, the association laments in the federal complaint.

Foreign competitors like China, who are not subject to such labor costs will be at an advantageous position, the complaint further maintains.

Among the US industries to be affected by the newly announced US H-2B wage rates include the American Sugar Cane League of the USA, the American Hotel & Lodging Association, The American Shrimp Processors Association(ASPA), the Forest Resources Association (FRA), the Outdoor Amusement Business Association and the Crawfish Processors Alliance.

The US H-2B Visa program was launched in 1987 to provide nonimmigrant foreign workers for working in nonagricultural jobs in the US when US citizens with requisite skills are not found to be available.

US H-2B Wage Rule II--Becoming effective from 30th September 2011 onwards, the new H-2B Wage Rule II will result in an increase of 129 percent in the wage rate of all H-2B foreign guest workers as well as some US workers working in reforestation jobs.

Current wage rate in majority of parishes in Louisiana is said to be $9.60 an hour.

However, from 30th September onwards, the new wage rate will be $16.31 an hour, thus surpassing the overtime wage rate of tree planters. The overtime wage rate will also increase to $24.47 an hour from the current $14.40 an hour.

And the fact that such increased labor costs will not get transferred to forest landowners thus casting a bad spell on the growth of their businesses, allege forestry reforestation firms, one of the member of the FRA.

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