NCAE 2017/18 Ag Employer Federal Issues Update. Frank Gasperini President & CEO NCAE

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1 NCAE 2017/18 Ag Employer Federal Issues Update 1 Frank Gasperini President & CEO NCAE

2 National Council of Ag Employers Thanks to GPN's Big Grower Executive Summit, parent organization Great America Publishing, and all of the industry leaders here for including NCAE today. 2

3 National Council of Ag Employers NCAE is the national trade association focused exclusively on the policy concerns of Agricultural Employers. NCAE Members are labor intensive growers, associations, and others whose business is dependent on domestic labor intensive agriculture. We work ONLY on ag employer & workforce management federal legislative, regulatory, and legal issues. 3

4 Current Employer Issues/Situation Labor intensive Ag producers continue to be hit on multiple fronts related to labor decisions by the government Growing number and complexity of regulations, regulatory changes, government rulings, and ongoing government ineptness Ongoing labor shortages and growth of H-2A Current DC rhetoric has further de-stabilized the labor market for Workers, and employers, are frightened. 4

5 Current Employer Issues/Situation STRONG opinions on right AND left that if you would just pay more --- when we cut-off welfare --- you need to work harder Right and Left media campaigns--- growers & farmers just want cheap labor --- Bizarre concepts of what ag and growing industries in DC and public---(urban farms/gardens, return to small/ natural, hobby farms/nurseries given equal footing with commercially sustainable businesses.) DC pictures all of ag/green industry like corn farmers--- 5 We/you are caught in the middle---

6 Labor Challenges facing today s agriculture 1) Shrinking Labor Force 2) Growing foreign competition 3) Double Digit H2A Growth 4) Bureaucracy, Federal Inaction/Missaction/Complacency/Ineptness 6

7 Challenges- aging workforce: YEAR % Workforce (55yrs & Older) Medium Age of Workforce % % % 42 7

8 Declining Labor force Participation Rate Aging Workforce Continuing Education Lifestyle disabilities (drugs, alcohol, etc.) Disability Claims 8

9 Declining Labor force Participation Rate Brookings Institute article speculates that up to 20% of the decline of participation in the workforce by men, and up to 25% of women! --- nearly half of prime age men (or men ages 25 to 54) who are not in the labor force take pain medication on a daily basis. Two-thirds of those men or about 2 million take prescription pain medication on a daily basis. 9

10 Declining Labor force Participation Rate Rural populations increasingly aging populations Number working age population declines Birth-rates continue low in US Another generation removed from agriculture All industries short of domestic workers for work that does not require higher education/professional skills (competition for workers will continue to grow) Immigration is the only solution to providing the numbers needed for agriculture and other industry Short supply of workers favors increased wages AND increased demand for enhanced working conditions--- also, increases likelihood of labor organization--- 10

11 11 On-Farm wages on the Rise

12 Growing H-2A Visa Employment Determinations 7,361 8,047 8,388 9,405 7,568 Application Certified 7,000 7,845 8,118 9,152 7, (20% up!) 8000? Positions Requested 83,844 90, , , , ,000? Positions Certified 77,246 85,248 98, , , ,000 * Courtesy of the Office of Foreign Labor Certification 200,000? 2018? 12

13 Declining Labor force Participation Rate 13 Hand in hand with declining workforce/worker availability is development and RETENTION of current AND future workers: Incorporating more women? -Childcare/children in workplace. Overall Worker satisfaction/retention. -Why do workers stay R-E-S-P-E-C-T. Risks of labor shortage adds risks of wage instability AND labor organization. Mechanization. -Focus on ergonomics, labor assist, safety, max value. Sourcing foreign workers (where do/will they come from?)

14 Growing H-2A Visa Employment Barriers to current H-2A: Long lead times, little flexibility Certification of need (time, $, uncertainty) Domestic referrals (costs, reliability, uncertainty) Housing (cost, inspections, zoning, more) AEWR, corresponding workers, recordkeeping Minimum one year preparation time Long term commitment 14

15 Govt Response to Date--- (past 4 administrations) 15 Audits & Recordkeeping I-9 s WHD SWAS OSHA IRS (employee or contractor) ACA compliance FLSA OT standards DOT (fed & state) Union favorable rules Civil AND Criminal actions against employers---

16 Post-election--- Labor REMAINS a key limiting factor: 16 Import labor or import food, fiber, and ornamentals--most of America (including public officials) do not understand that it still requires people to operate--congress has to choose--- but--to date--- have failed to act---

17 Post-election--- Labor REMAINS a key limiting factor: Labor Our must be provided by willing, able, and available people--- US domestic demographics no longer support that--- system of labor laws & regs is based on 1940/50s/early60 American ag labor needs and demographics--- willing, able, and available 17

18 What it means for labor intensive agriculture? We really need a completely new model--- one to serve the 10% on H-2A now--- AND the 90% not H-2A Complete re-do of laws/regs governing labor and employment Not just fix this or that--- add this or that--- Do not see anyone/any group ready (willing or able) to propose and drive that--- So--- agriculture formed the Agricultural Workforce Coalition (about 6 years ago)--- 18

19 Agricultural Workforce Coalition (AWC) Agriculture is working together--- better/longer than I have ever seen us cooperate--- Ten Steering Committee Members (CEO level): *AFBF *Natl Milk *Western Growers *ACIR (Craig R.) *NCAE *NCFC *FFVA *United Fresh Produce *US Apple Assoc. *USA Farmers Over 100 other associations participate. 19

20 Agricultural Employer activists (OUR team.) AWC actions/activity--- STRENGHT IN UNITY for Ag Steering Committee negotiated the AG section of the Senate comprehensive immigration reform proposal (S744) in (Feinstein, Rubio, gang of 8) Ongoing meetings with Goodlatte/House Judiciary staff since 2012 (proposed new visa program for future.) Positioning: 1. Work authorization for current workforce (address year-around) 2. Make H-2A work as Congress intended (address year-around) 3. Long-term workable (scalable) legal guest-worker program that addresses all of agriculture s needs. 20

21 Future of H-2 Visas? 21 Current House proposal (Ag Workforce Act): Draft shared 9/28/17, must pass Committee to get to Floor--- Key differences from H-2A (replaces H-2A): Adds all food-related guest visas. Some current H-2B, dairy, fisheries, etc. Includes contract and non-contract options. More mobility from farm to farm. No housing mandate Up to 18 months before return to home country. (touchback requirement 1/12 authorized time in US or 45 days.

22 Future of H-2 Visas? Key differences from H-2A (replaces H-2A): 500,000 worker cap. (For new workers only--- current workers who convert and work same farm do not count against. And, cap can adjust upward 10% per year.) H-2C is not path to citizenship or PERM Domestic referrals must still be hired--- up to time H-2C workers arrive. USDA is supervising agency. 22

23 Future of H-2 Visas? While there is MUCH good in House proposal, we need to understand issues around Cap, Current workforce, Numbers of new jobs to be included, USDA s capacity, etc. Once out of Committee-àHouse Floor, where good--- or bad--- could be added. Concern over H-2A sunset day before H-2C starts--- assumes flawless start-up--- 23

24 Growing H-2A Visa Employment We must have workable reforms for agriculture--- risk now is that Congress trades DACA issue fix for Mandatory E- Verify--- WITHOUT a workable ag fix. We would be left-behind--- must not let that happen--- The next few weeks are critical to Ag 24

25 Going Forward Government affairs work is frustrating and thankless--- 2% winning ground--- 98% preventing (bigger) loss of ground--- No clear ROI--- ROI is measured in how many more years your business has survived --- or we lost less than we could have --- MUCH harder to measure than growing crops/animals--- Never ends or lets up--- Know that there is value, and that all of your efforts and support ARE both important--- and VALUED--- EVERY ONE OF YOU--- 25

26 Going Forward- (no matter what Congress does/does not do--) Comply with labor & immigration laws and regulations--- to the letter--- Keep proper records on everything--- Continually educate yourself--- Use appropriate professionals when you need them--- and seek out the BEST--- Stay politically engaged (direct and via ASSOCIATIONS) Be THE preferred employer (safety, opportunity, reliability, innovation.) Look forward, not backward--- 26

27 Education & Growth Opportunities for Employers Next 12 Months: Employer Labor Issues: Nov 29 thru Dec 2. NCAE 4 th Annual Employer s Ag Labor Forum, Las Vegas. Feb 6-8, NCAE 54 th Annual Meeting and day on the hill, Washington, DC. Safety, Health, Risk Management: Ag Safety, Health, and Risk Management Certificate Program.(Customized too?) Feb 21-23, North America Ag Safety Summit, Phoenix (ASHCA). 27

28 Thank you Pennsylvania! There is a place at the table for YOU--- NCAE Membership is open to all ag employers AND those whose business/interests are dependent on ag employer issues. QUESTIONS? 28 To learn more: Frank@NCAEonline.org NCAE website: ( mobile)