DAY LABORERS: HERE NOW MORE TO COME

DAY LABORERS: HERE NOW MORE TO COME A POLICY MEMORANDUM ON THE DAY LABORERS WITHIN THE WASHINGTON METROPOLITIAN REGION January 2008 REDP6 Day Labor Project Team Mark Ciarrocca, City of Fairfax, VA Venita George, Takoma Park, MD James Jones, Montgomery County, MD Keith Jones, Arlington County, VA Mike Mackey, City of Alexandria, VA Sara Mumford, Fairfax County, VA

TABLE OF CONTENTS Executive Summary 3 Historical Overview 5 Region s Day Labor Market 6 Relation to Immigration 7 The Future 8 Criteria for Success 8 Research Methods 9 Summary of Findings 9 Recommendations 10 Alternatives 11 Summary 12 References 13-2 -

EXECUTIVE SUMMARY The Council of Government s (COG) participating jurisdictions are not prepared to respond with a consistent and practical plan to the current and future prevalence of day laborers. The goal of the Day Laborer Team of Cohort 6 of the COG s Institute of Regional Excellence is to use local and national best practice research to provide a comprehensive recommendation on to how deal with the region s day laborer issue. A successful solution to managing the day laborer market involves regional cooperation. The criteria involved in determining the best course of action for COG jurisdictions on the issue of day laborers should include: the amount of public funding cost for a certain action; the level of political support for a certain action; the level of public support of the action; the rate that an action will produce change; the impact an action has on the rate of complaints and crime; whether or not laborers are employed; the cross-jurisdictional impact of the action; the extent the action facilitates day laborers legalizing their immigration status. The criteria were chosen based on research into factors that were (1) deemed important following interviews with personnel from COG jurisdictions who are involved with the day laborers, (2) identified in research on national best practices and (3) identified in media reports of the day laborer issue. Several forms of research were employed in this project to accurately define the region s day laborer issues and determine the best solution to address the issues. Responsible individuals from each COG jurisdiction were interviewed by a project team member. The interviewees included city and county managers, planning commission members, police officials, and government staff members charged with addressing day labor issues. Additionally, leaders of day labor advocacy groups and members of the media were interviewed. An extensive literature review revealed academic studies and reports on day laborers nationally, as well as specific reports on the COG region. Existing programs in various cities throughout the country, including Oakland, California and Denver, Colorado were also studied. Two recurring themes were evident throughout the research, a population growth of foreign born individuals coming into the United States and the need to utilize best practices to manage the day labor issue. By 2030, there will be an estimated 1.6 million more people living in the D.C. area, 40% of whom will not speak English. As economic development escalates, the demand for ready labor will continue to increase. This increased demand will likely fuel increased numbers of people searching to meet their employment needs through the day labor/ready workforce market. The lack of management of the temporary work centers will continue to lead to negative issues for some citizens and business close to the sites. In an effort to protect day laborers from exploitation and abuse, and to address employers needs to hire reliable personnel, it will be imperative to establish appropriate policy that addresses - 3 -

economic and population growth in the Washington Metropolitan area. Without a policy to guide the region s efforts, local leaders will continue to see political ramifications. There are 17 documented hiring sites in this region, 6 of which are managed sites, while 11 are roadside open-air markets. The complaints involving the open air markets include issues relating to loitering, public nuisance, intimidation, criminal activity and loss of revenue by small businesses located near the open-air markets. Reports indicate that day laborers may be unpaid for their work, denied opportunities to eat or to take water breaks, or driven to a remote area and abandoned after hours of labor without pay. In keeping with best practice recommendations of steering away from prohibition, a practical approach to many of the issues is offered by the establishment and/or maintenance of more hiring centers. The design of the centers should include: Convenient locations; Amenities; Job Allocation systems; Registration systems; Set minimum wage; Staff Support; Educational programs; Funding through public/private partnerships; and Community Service & On-Site Support. The region s day laborer market is related to the current controversial issue of immigration. It is estimated that approximately 75% of day laborers are undocumented immigrants. However nationally, day laborers account for only a small fraction of the estimated 11 million undocumented immigrants currently in the United States. A successful solution to managing the day labor market involves regional cooperation. Member jurisdictions should adopt similar philosophies in managing the issue. A twopronged approach should be employed. First, a concerted campaign should be launched where each COG member jurisdiction presses their elected federal officials to support and ultimately pass a comprehensive immigration reform act. Immigration control is a federal issue that the federal legislation bodies must address. Second, a key component to the solution is establishing more regional managed hiring centers and community cultural education centers. These efforts must include partnerships with non-profit organizations, community service organizations and local governments to support adequate funding. The national day labor phenomenon has no easy solution. The growth of day labor hiring sites is a national trend that warrants attention from policy makers at all levels of government. The COG region s day labor market has unique characteristics that force our governing entities to the forefront of the issue. By acting now, possible future problems can be turned into productive gains. COG member jurisdictions must jointly pursue practical solutions that are within reasonable means to develop, implement and manage. - 4 -

THE NEED FOR ACTION Our research strongly suggests that the Council of Government s (COG) participating jurisdictions are not prepared to respond with a consistent and practical plan to the current prevalence of day laborers in the region and the future net influx of some 1.6 million people who are expected to relocate to COG jurisdictions by the year 2030. There will be a need for the ready work force in the region due to growth in the jurisdictions that are a part of COG. Should a more suitable approach to addressing the issue of day laborers be chosen, the region can benefit from the presence of those who are currently present and whose presence is anticipated in the community, while minimizing any negative effects. It is important for COG to look at the way in which its members address day labor issues because there are multiple implications which will either serve to foster positive growth in areas such as the economy, infrastructure, crime prevention, human relations and education, or create discord and discontent in the region. These implications, as well as consequences for the legal/justice systems and the intensity of the debate on this issue in the media contribute to a high level of urgency to address the issue now. One can look at the fact that political leaders have lost or gained seats over the issues, to see that many communities are raw and teaming with emotion and opinion on this issue. The desired outcome of the project is that the member jurisdictions of COG be presented with an objective, systematic review of the status of the day labor issue and measures that will offer practical solutions to managing the region s day labor market. In an effort to fully understand the implications of managed versus unmanaged day labor sites and processes, a review of the region s day labor market, history, relation to immigration, future considerations, and cost must be completed. HISTORICAL OVERVIEW Day laborers are workers who are hired for and paid by the day. Although there has been much controversy recently surrounding day laborers, day labor is not a new phenomenon. We traditionally associate day laborer with the men and women who stand on urban street corners or parking lots, waiting to be hired by employers, most often contractors and homeowners. Day labor work has been in existence in the United States for centuries. It has been an essential part of the fabric of American society since the nation s inception. The distinction of legal and illegal immigration has existed since 1882, when Congress passed the Chinese Exclusion Act - one of the nation s first immigration laws established to keep immigrant populations out of the United States. Day laborers were regularly hired as longshoremen, or dockworkers. These workers arrived at the docks each day, seeking work for the day, and they were traditionally the new immigrants or other - 5 -

marginalized group like Chinese, Irish, and African Americans. For many this work often represented a vital and at times, only - way to gain entry into the job market. REGION S DAY LABOR MARKET The day laborer work force affects all elements of the Metropolitan Washington Council of Government region as day laborers are present in all COG jurisdictions. Men and women representing a variety of ethnic origins are migrating to this area at a growing rate in search for gainful employment. The day labor market is a national phenomenon. The region s day laborers are predominantly from Guatemala (25%), Honduras (22%), and El Salvador (20%). This differs from the national trend as the national day labor work force is largely from Mexico (59%). The region s day labor work force population from Mexico is 14% 1. This region s day laborers are primarily hired for construction, moving, landscaping, and painting, which is consistent with the national trend. On a typical day, many of the day laborers search for jobs, congregating near home improvement stores, gas stations, parking lots, even churches. Others seek work through day labor worker centers managed by other day laborers, community organizations, and governmental agencies. They earn a median wage of approximately $10 an hour and rarely make more than $15,000 per year. There are 17 documented hiring sites in this area, 6 of which are managed, while 11 are roadside open-air markets. The complaints involving the open air markets include issues relating to loitering, public nuisance, intimidation, criminal activity and loss of revenue by small businesses located near the open-air markets. Many day laborers are vulnerable to wage theft and other abuses because they are willing to take almost any job. Based upon the research, day laborers are often underpaid for their work or may be denied opportunities to eat or to take water breaks. Still others report that they have been driven to remote areas and abandoned after hours of labor without pay. Many key groups, or stakeholders, are involved in the challenge presented by the day labor market. Elected leaders, citizens, day laborers, employers, and COG staff are all affected. The section below describes some of the key stakeholders, their concerns, & perceived ability to impact the issue. Elected leaders are concerned with the court of public opinion. They have some impact but seem to move according to their jurisdiction s philosophy. The factor that influences them is what the people in their jurisdiction want. Officials have been voted out of office due to this issue. They influence, accordingly, service provision and legal matters, and they will direct how their jurisdiction responds in a service capacity. Political leaders opinions are very powerful. Because of their position of power, we feel that they have considerable potential to impact the day laborer issue. - 6 -

Citizens are concerned with use of public funds, the time it takes for change, crime/complaints, NIMBY (i.e. Not in my backyard), and immigration issues. Citizen opinion is very powerful in this context. Because of the fundamental philosophy of democracy, citizens have a substantial ability to impact the issue.. Day Laborers are concerned with employment, legal issues and services. Due to the large number of day laborers that are not legal residents and their limited ability to impact political issues, we believe that the day laborers themselves have little ability to impact the outcome of decisions on the day laborer issue.. Employers are concerned with the best system with which to attain skilled workers to complete their projects. Employers who frequently use day laborers are reluctant to make public statements and become known due to negative perceptions and legal implications. As long as this is the case, their potential impact on the day laborer issue is limited. The COG staff is concerned with use of public funds, political implications, public opinion, the time it takes for effective change and reduction in complaints/crime/legal issues. Because of COG s over-arching ability to influence change, we feel that COG can play a substantial role in impacting the day laborer issue.. RELATION TO IMMIGRATION Although they are not one in the same, the region s day laborer market is clearly related to the current controversial issue of immigration. Consequently, discussing day laborer markets can not be accomplished without also discussing immigration. It is estimated that approximately 75% of day laborers are undocumented immigrants. However nationally, day laborers account for only a small fraction of the estimated 11 million undocumented immigrants currently in the United States. Immigration experts agree that comprehensive immigration reform is the responsibility of the federal government. Local governments should do everything within their power to press their federal legislators to reach an agreement on an immigration policy that ultimately leads to a comprehensive immigration reform. The reform must effectively manage the current undocumented population as well as strengthen our country s border protection. Our perspective on the role of local governments is that their challenge is to serve the people who reside in their jurisdictions, regardless of how they traveled to get there. An element of that service plan should include efforts to manage the region s day labor market. In addressing the day laborer versus immigration issue, the goal should be - 7 -

focused on practical solutions, not cumbersome plans, that may have been unduly influenced by emotion. This approach will allow policy makers to develop plans based on factual information that can produce timely and sustainable results for the residents, businesses, and visitors of the region. THE FUTURE The Council of Governments regional forecasting indicates that the region will have approximately 661,000 new households by 2030. An example of this trend is the projection that Loudoun County alone will experience a 94% growth rate. The same report predicts a population increase of 1.6 million spurred by long-term strength of the economy, high rates of in-migration and international immigration. From 1990 to 2000, 47.5% of the region s population increase was foreign born individuals. It is reasonable to believe that of the 1.6 million population increase by 2030, 700,000 individuals will be foreign born. The 661,000 new households will drive the regions construction industry and subsequently drive the region s day labor market. In all probability, the COG region will continue to be a worldwide magnet for individuals seeking the fortunes of a strong economy in the day labor market. ANALYSIS AND RECOMMENDATIONS CRITERIA FOR SUCCESS The criteria involved in determining the course of action COG jurisdictions should take include determining: the amount of public funding cost for a certain action the level of political support for a certain action the level of public support of the action the rate that an action will produce change the impact an action has on the rate of complaints and crime whether or not laborers are employed if one jurisdiction s efforts affects, positively or negatively, surrounding jurisdictions of COG whether or not an action facilitates day laborers legalizing their immigration status The criteria were chosen based on research into factors that were (1) deemed important following interviews with personnel from COG jurisdictions who address issues or should have knowledge of day laborers, (2) identified in research into best practice methods nationally and (3) identified in media reports of the day laborer issue. - 8 -

RESEARCH METHODS Several forms of research were employed in this project to accurately define the region s day laborer issues and determine the best solution to address the issues. Responsible individuals from each COG jurisdiction were interview by a project team member. The interviewees included city and county managers, planning commission members, police officials, and government staff members charged with addressing day labor issues. Additionally, leaders of day labor advocacy groups and member of the media were interviewed. Extensive literary research revealed accredited academic studies and reports on day laborers nationally as well as specific reports on the COG region. Existing programs in various cities throughout the country, including Oakland, California and Denver, Colorado were also studied. SUMMARY OF KEY FINDINGS Day labor issues are a political hotbed; particularly given recent pro and con antiimmigration measures. However, our examination of best practices on this issue, points to management of the day labor pool; not elimination. As is indicated in a report published by the Department of Justice (Responses to Disorder at Day Labor Sites, Guide No. 44, Center for Problem Oriented Policing, 2007) there is no evidence that prohibiting day laboring outright is effective in the long term. Day laboring serves a need in the informal labor market and has existed since early times. De facto prohibition of day laboring by creating ordinances against soliciting work on public street corners citywide may relocate day laboring to other places, but it will not eliminate it or associated problems. The anticipated population increase will be accompanied by an increase in the number of individuals participating in the region s day labor market. Without effective management, the negative aspects associated with large crowds of unemployed men and women gathering in random public places will be prevalent in every member jurisdiction. The dimensions of the day labor market are fluid. New participants arrive daily and areas of high demand will shift with regional growth patterns. Day labor is a complex issue, and there is no single solution to the conflicts generated in this market. The success that lies within this challenge should be regionally based so that COG jurisdictions do not participate in the practice of relocating problems associated with unmanaged hiring sites from one municipality to another. - 9 -

RECOMMENDATIONS Keeping with best practices of steering away from prohibition, a practical approach too many of the issues is offered by the establishment and/or maintenance more hiring centers, the design of which, based on national best practices, should include the following: Locations Centers should be located within 30 minutes travel time of laborers residences. 58% of the region s day laborers live within 15 minutes travel time to sites. They should also be created in the vicinity where laborers have searched for work. Amenities - Hiring centers should have amenities such as restrooms, drinking water, places to sit, telephones, classrooms, outreach to employers, and parking facilities. Allocation systems - The hiring center should provide a job allocation system such as a lottery, list of available workers, or some like selection process. Registration - Job seekers and employers should register with center staff. Wage - A minimum wage for laborers at the center should be established. Staff Support- Hiring center staff should monitor labor standards, employer behavior and worker quality. Guidance for laborers should be provided for pursuing non-paying employers and employers who fail to provide breaks or return transportation. Additionally, guidance should be offered for following up work related injuries and crimes committed against the laborers. Education - Educational programs should be offered such as English as a Second Language and other programs designed to prepare the day laborer force for fulltime employment. Funding - The most successful sites are managed through public/private partnerships. Through public/private partnerships, local jurisdictions build on private and/or non-profit organizations expertise. By utilizing public funding we ensure that we are enforcing existing labor and employment laws. This ensures that there is a targeted enforcement to ensure all workers, regardless of immigration status, are getting paid for the work they have performed. The average annual cost to manage a day labor site in this region is approximately $225,000; covering the costs to operate the site, pay staff salaries, leadership development, wellness activities, career guidance and educational vocational training programs. By partnering with non-profits, applying for grants and utilizing private sector funding, the cost to local governments can be decreased. - 10 -

Community Service & On-Site Support - Day laborers do not utilize the sites without giving back to the community by volunteering. They may remove graffiti from public areas, maintain community gardens and perform needed activities that will improve the quality of life and well-being of the community. Day laborers also assist with operation of the sites by staffing the sign in table, maintaining the site and enforcing the general rules of conduct. Utilizing public funds to manage sites may not be popular with all segments of the community however utilizing public funds offers a practical approach to managing this issue until other funding streams can be established. COG and its member jurisdictions should consider adopting a two pronged approach in addressing day labor issues. First, local governments should do everything within their power to press their federal legislators to reach an agreement on an immigration policy that ultimately leads to a comprehensive immigration reform. Second, the establishment of day labor managed sites that are designed and managed in a manner that is consistent with best practices and that might be accompanied by expanded community cultural education efforts. ALTERNATIVES As stated the preferred action is the development of a regional philosophy to cooperatively manage the day laborer market, most notably by managing hiring sites. However, the team researched and evaluated several other alternative courses of action, as well, in our attempt to ensure that our ultimate recommendation best met the needs reflected in our success criteria. Several alternatives that were reviewed, but not favored for various reasons, are listed below. Aggressive Immigration Enforcement - Attempts to minimize the day laborer number through aggressive immigration enforcement simply shift the day laborer problems to another geographic area. This area very well may be another jurisdiction in COG. Aggressive enforcement comes with a predictable cost associated with increased police activity and an undefined cost associated increased workload and delayed responses to other calls for service. Furthermore, this alternative does nothing to address the predicted increase in demand for the day laborers in the regional market. Educational Campaigns - Launching an educational campaign without the establishment of managed hiring sites would have the positive effects of changing some laborer behavior and creating a better understanding by the citizens of the day laborer issue. Without managed hiring sites, abuse of workers, loitering, and lack of educational opportunities would still plague the issue. - 11 -

Do Nothing - A hands off, do nothing approach would lead to compounding day laborer issues as the day laborer market is predicted to increase dramatically over the next 25 years. Although this approach may seem favorable in cost effectiveness today, the undefined costs in future years may be more than citizens can tolerate. SUMMARY The region s day labor market will continue to grow, driven by an increase in population and households. The predominant type of work performed by day laborers will continue to be prevalent in abundant quantities due to the service needs associated with the aforementioned increases. A successful solution to managing the day labor market involves regional cooperation. Member jurisdictions must adopt similar philosophies in managing the issue. A twopronged approach should be employed. First, a concerted campaign should be launched where each COG member jurisdiction presses their elected federal officials to support and ultimately pass a comprehensive immigration reform act. Immigration control is a federal issue that the federal legislation bodies must address. Second, a key component to the solution is establishing more regional managed hiring centers and community cultural education centers. These efforts must include partnerships with non-profit organizations, community service organizations and local governments to support adequate funding. As stated previously, the national day labor phenomenon has no easy solution. The growth of day labor hiring sites is a national trend that warrants attention from policy makers at all levels of government. The COG region s day labor market has unique characteristics that force our governing entities to fore front of the issue. By acting on the issue now, possible future problems can be turned into productive gains. We must jointly pursue practical solutions that are within our means to develop, implement and manage. - 12 -

REFERENCES: 1 In Pursuit of the American Dream: Day Labor in the Greater Washington DC Region, 2005, Center for the Study of Urban Poverty, University of California Los Angeles On the Corner: Day Labor in the United States, 2006, Center for the Study of Urban Poverty, University of California Los Angeles Growth Trends to 2030: Cooperative Forecasting in the Washington Region, 2006, Council of Governments Publication Number 20068279 At Home in the Nation s Capital: Immigrant Trends in Metropolitan Washington, 2003, The Brookings Institution center on Urban and Metropolitan Policy. Responses to Disorder at Day Labor Sites, Guide No. 44, Center for Problem Oriented Policing, 2007-13 -