Real Issues from Real People #3

The problem that those supporting cheap labor don't want fixed...


 I spoke with a man the other day who I made contact with while going door to door in the district. He is a union foreman who also prepares bids for construction projects. He was concerned because he sees an abuse of our system that allows unscrupulous contractors to hire illegal workers to win bids against US workers who play by the rules.
 This is how it works. A project RFP is published and the qualified construction firms prepare their bids based on the job specifications. The Union companies are paying their workers the prevailing wage that is an assurance of the skill and quality of work from their organization. But some contractors who are registered and legitimate companies sub-contract aspects of the job to independent companies who use a loophole in hiring to replace qualified workers with illegal labor. They relegate finishing work for example to ACME (a fictitious example). ACME hires for the job using 1099 or self employment forms for the pay. These forms are issued to the illegal workers who may or may not ever file for taxes. They are employed at a much lower wage which of course translates into a lower bid for the ACME proposal. As a result of this ACME gets the job and the legitimate companies who played by the rules are out of work. If ACME is confronted or questioned about having used illegal labor, they simply default to the explanation that they used a sub-contractor who is responsible for the workers they hire. The subcontractor in turn falls back on the use of the 1099 form claiming that their responsibility ended when they issued the forms to workers.
 In the last 10 years we have watched while the illegal labor issue has been used to pass laws aimed at punishing immigrants. But at the same time that these laws are passed the motivation for the illegal labor is intentionally ignored.  Immigrants come to the US because they can find work. They can find work because the laws surrounding hiring have built in loopholes that not only allow them to be hired but encourage and depend on them breaking the law to acquire this work.
 The obvious question here is how are our elected representatives getting away with passing laws that seem tough on immigration violations but at the same time encourage illegal hiring? The answer is that they hide behind the idea that passing regulations that hold employers responsible makes doing business harder. But the truth is that it is left alone to accomodate cheap labor.
 There are only two ways this will ever be corrected. One would be for the contractors themselves who hire to be concerned about the fair hiring and illegal immigration. But they are not. They like it because it is making them money. They want the loophole so they can profit and they don't give a damn about lost jobs by US workers. Neither do the legislators supporting these practices. They will pass the most punitive laws to punish illegal workers while simultaneously protecting illegal hiring under the guise of avoiding "burdensome regulation".
 The solution to this problem was actually introduced by the majority in Missouri in their effort to disenfranchise voters. They need to make it law that anyone hiring using a 1099 must submit a current MO approved picture ID and a legitimate social security number for the worker before they can be approved to work. If it is not too much to ask for voters who have lived in the same house for 40 years and voted in the same precinct to produce a current photo ID, it shouldn't be an issue asking workers who are now assumed legitimate to produce identification for themselves and their employment. Otherwise, we are encouraging illegal labor and undermining workers who are trying to make a living. We either do the right thing because it is right, or we have rules. The current hiring practices of illegals show clearly that without a check system in place, some are NEVER going to willingly do the right thing.
 I believe most businesses who employee using 1099's would have no objection to running a check before hiring. We don't have to create a new agency to accomplish this. We simply need the courage to do what is right.