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Worker Shortage - Immigration
Reform
The Issue:
The chain restaurant industry, like most service sector industries,
has for several years experienced a crippling workforce shortage.
Due to increased competition, a shrinking labor pool, and
an increase in service sector employment options, chain restaurant
operators are finding it increasingly difficult to attract,
train, and retain employees for the long-term. Although the
shortage lessened somewhat during the recent economic downturn,
they are expected to resume as the economy rebounds.
This shortage of "essential
workers" has consequences not only for our industry,
but for the broader economy as well. Chairman Greenspan of
the Federal Reserve has noted repeatedly in congressional
testimony that tight labor markets threaten the continued
growth of the economy and could result in inflation.
Moreover, demographic trends
indicate that the situation will continue to worsen. For example,
the Bureau of Labor Statistics predicts that by 2010 the number
of jobs available in the U.S. will outpace the available workforce
by 10 million. A great many of those jobs will be in the service
sector - BLS estimates that by 2008 the largest single employment
sector will be services (30.2%).
NCCR Says:
Despite the chain restaurant industry's leading efforts in
welfare-to-work, school-to-work, and creative and generous
recruitment practices that have resulted in reducing welfare
rolls and getting graduates into jobs, our workforce shortage
woes continue. Congress should consider the great contributions
that immigrants - both legal and undocumented - currently
make to our industry and our economy. Our immigration laws
should be changed to allow foreign nationals to work here
when there is evidence of a shortage of U.S. workers, and
to allow those individuals already here and working to obtain
legal status. NCCR has worked continuously over the past two
years with Congress and the new Administration to make our
case for immigration reforms to alleviate our debilitating
workforce shortages.
Status:
NCCR and other business organizations and employer associations
joined together over three years ago to form the Essential
Worker Immigration Coalition ("EWIC"). EWIC has
led the effort on Capitol Hill to reform the immigration laws
in order to ease the worker shortages in sectors of the economy
that rely heavily on essential workers. Our agenda includes
reforming the current temporary visa category (H-2B), creating
a new and longer-term nonimmigrant visa for essential workers,
increasing the available green cards for essential workers,
and providing for earned adjustment as a pathway to legal
status for undocumented workers already in the U.S.
In February 2001, President
Bush and Mexican President Vicente Fox announced a new, cabinet-level
working group between the two nations to discuss immigration
issues. The commission, headed by U.S. Secretary of State
Colin Powell, U.S. Secretary of Labor Elaine Chao, Mexican
Foreign Minister Jorge Castaneda and Interior Minister Creel,
was charged with drafting recommendations for reforms to U.S.
immigration laws. The creation of a guest worker program and
the granting of legal residency to undocumented Mexicans currently
working in the U.S. are among the topics that have been discussed
thus far. In August 2001, NCCR and other EWIC members met
with Mexican Foreign Minister Castaneda to discuss the commission's
recommendations and strategy for moving the issue through
Congress, which will ultimately consider the two Presidents'
legislative recommendations.
The terrorist attacks on the
U.S. on September 11th, 2001 placed a temporary hold on the
activity of the U.S.-Mexico migration talks. In addition,
considering the political climate following the terrorist
attacks, EWIC suspended advocacy efforts. Recently, however,
Presidents Bush and Fox reaffirmed their commitment to addressing
migration issues, and EWIC has resumed activity.
Expected Action:
It is unclear at this time when we can expect the Administration
to make recommendations for immigration reforms. It was expected
last year that such a proposal might include a temporary guest
worker component, coupled with a form of amnesty, or "regularization,"
for Mexican workers currently in the U.S., or an opportunity
for undocumented workers currently in the workforce to earn
permanent residency status by continuing to work in the U.S.
over a period of time. These initiatives would assist our
industry greatly by regularizing our current workforce, and
by allowing for an orderly process for bringing more workers
into the U.S.
NCCR and EWIC stand at the
ready to assist Congress and the Administration in crafting
bipartisan proposals to improve our system of immigration
while at the same time enhancing national security.
Contact: NCCR at 202.626.8183
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