Imported Cheap Labor Forced to Foot Bill for their own Exploitation

You might remember the huge outrage when instead of hiring local workers in New Orleans for Katrina reconstruction, companies imported cheap labor via guest worker Visas. The Bush administration also suspended an order to pay below prevailing wage...

Well, some of those exploited guest workers tried to sue. This is the result.

court rules:

A federal appeals court has ruled a Louisiana hotel chain wasn't obligated to cover the relocation expenses incurred by immigrant workers recruited to work in New Orleans after Hurricane Katrina.

The 5th Circuit Court of Appeals on Wednesday dismissed a lawsuit accusing Decatur Hotels of exploiting foreign workers it hired after the August 2005 storm scattered many of its employees.

The suit claims Decatur Hotels violated the Fair Labor Standards Act when it refused to reimburse foreign workers for recruitment, transportation and visa expenses. Decatur's foreign workers spent up to $5,000 apiece to relocate to New Orleans.

A three-judge panel concluded the law doesn't require an employer to cover any of those expenses.

Scattering employees my ass. They didn't hire local, imported cheap labor, labor arbitraged to pay workers less, gave massive contracts to our usual corporate no bid contractor suspects like KBR and on top of it, stuck those imported workers with the bill.

How many think it paid for these people to come here, be abused, paid less and stuck with a $5000 dollar bill for their own exploitation?

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At least the court didn't rule

like they did in that earlier case- that the workers didn't have the right to sue because they were illegal!

Maximum jobs, not maximum profits.

that point

of using their illegal labor status as it suits exploitative employers is the reason why the AFL-CIO is for "amnesty". They want all workers to have ...well, duh, worker rights.

Now whether through the fundamental laws of labor economics you go for "no amnesty" to "selective amnesty" to full bore "amnesty" is almost a separate issue from the fact these employers are truly manipulating immigration law from every angle to wage repress and exploit workers.

But that's their argument or reasoning. The SEIU on the other hand, I just think is nuts. They seem to be power for power's sake almost instead of getting high wages, worker protections, career stability for their members. At least that's what it has appeared to me they are doing overall.

So, that's also why the AFL-CIO was against the Comprehensive immigration bills. Loaded with guest workers and basically increased this whole exploit the worker and screw over U.S. workers at any costs.

Instead of Amnesty

I'm for adding deportation to the list of possible punishments for those who hire illegally. They like Mexico so much- well, let's see them live there.

Maximum jobs, not maximum profits.

this is a touchy fine wire

On EP, what I have deemed ok to talk about is anything related to labor economics, unions, wages, etc.

So, "punish" is outside the scope.

That said, anybody trying to post pure economic fiction claiming massive influxes of labor into a domestic market isn't going to lower wages etc....would be considered a troll because that's pure economic fiction.

As far as positions on "amnesty" I'm fairly certain we have people from all views on EP.

My view is always focused on U.S. workers first, increase those wages, increase worker power, increase the economic strength of the U.S. middle class...and write accordingly...

But I really don't want to "go there" to the sites which really blast the illegals". I can understand why they are, I think the ACLU is off the deep end and this entire thing is clearly for what is in a particular subgroups best economic interests, which are in conflict with U.S. workers best interests....

So, "no amnesty" people are welcome on EP, but the key is to keep it purely on labor economics, globalization, wages, etc....

plenty of "reduced immigration" sites etc. for the rest of it...

I think there is a legitimate case on both sides simply because the real devil is in the details and I am positive both sides know guest worker Visas are creating a subclass of workers for the purposes of labor arbitrage and to strip them of normal labor rights through a specialty visa status....

But I believe the case needs to be made on pure labor economics, economic costs exclusively. (since EP is about economics that obviously makes sense).

Take the H-1B or STEM labor issue. There is a very legitimate case of R&D being international in scope and there is a case where rare talent in these fields should be allowed to immigrate into the U.S. in whatever form possible. The key here is these people are rare....true talent just isn't in huge unfortunately the cases of real innovation are subverted to try to enable more global labor arbitrage. But in terms of enabling advanced talent, skills, genius into the U.S., I agree with that. No way they would displace anyone because they are rare birds....they are unique, advanced research is cutting edge and there are maybe a handful of experts around the globe in each topic area and sometimes just one who is really generating the breakthroughs.

so in other words I don't want EP to degenerate into an "immigration" site or get into that "blast the illegals" or on the other side "no person is illegal, we have a right to border hop and set up shop in your country blah, blah" stuff either.

Here's where punishment fits economically

Right now, the punishments are so incredibly light that they're basically taken as "cost of doing business", at $15,000/head for illegal aliens. That is, if you can get by with unskilled labor that does *exactly* what you say and nothing else (the work ethic south of the border doesn't seem to include imagination), AND if the difference in cost is greater than $15,000/employee- then go for it.

Thus, from an economic standpoint, the way to stop this behavior is at the demand side of things (gee, where have I heard that before- I think I'm a demand-side economist, or at least heading that way) by making the cost of punishment completely outweigh the benefits of the crime- loss of business license, jail terms, deportation.

And to me, that's in keeping with no matter what the illegal labor is- H-1b/STEM abuse, or just border hopping.

What might help on the supply side of things would be greater efficiency in ICE to begin with- I see no reason, with modern technology, that any country with a Wal-Mart can't be allowed to have green card applications done over the web in 30 minutes or less (as opposed to the 3-5 years they currently have to wait). If Wal-Mart is in country, then you already have a massive database keeping tabs on all purchases and police records.

Maximum jobs, not maximum profits.

that's employers

Believe me, there are studies going back all the way to the 1970's that know the way to stop illegal labor is to enforce employment law and punish employers. That is the effective mechanism and has been known forever.

If employers are busted for this as well as stopping the recruitment etc...this is all the employer chain...

it would stop.

Seriously, in most cases can you blame someone when they are in poverty and here is this "opportunity" presented to them to earn of course they are going to do it.

But, it's the employers that will work.

Just like Americans, ya know, people are people so you have all sorts of motivations and different crap that illegals think and believe....

but to simply stop the influx of illegal labor the answer is well known,'s just that the U.S. chamber of commerce along with other groups who want cheap labor know this will work and hence try to stop that at all costs.

Just like e-verify, they know it works so come hell or high water, they are going to stop it. They want that cheap labor.

Remember the globalists want corporate controlled unfettered global migration as an agenda.

here, here!

My view is always focused on U.S. workers first, increase those wages, increase worker power, increase the economic strength of the U.S. middle class...and write accordingly...

Thats why I come here. Just my $0.02

It has always been about class warfare.

Why is Obama in front of Caterpillar?

Caterpiller just fired 20k people, they have been offshore outsourcing, rehiring people in at minimum wage and just fought like hell to rip out any Buy American provisions in the Stimulus bill.

There's Obama in front of a Caterpillar logo giving a speech about "innovation" and "American jobs".

WTF. Why isn't he standing with Intel and the Intel logo. While Intel sucks on labor arbitrage, huge labor thrashing, age discrimination, displacement through H-1B they also just coughed up $7 billion dollars to invest in FABs in the US, U.S. manufacturing.