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Nepalis, and America’s Seasonal Workforce

by Kashish | February 2008

(Photo: Kashish; Nepalis leaving for work in the Gulf region)

When it comes to immigration issues, United States stands at a crossroads like never before. And in an election year, the topic gets far more sensitive and politicized. A group of Nepalis working under the H2B visa program in Huntsville, Alabama, recently became fodder for this phenomenon. It all started when Nick Banaszak of WAAY TV-31, a local channel, reported on 30 January that 100 Nepalis employed by Cinram had gone missing with stolen property from rented apartments, and that the Department of Homeland Security was investigating the case. In addition to several major American news outlets, Associated Press published the story, which reached Nepal's widely circulated daily, Kantipur. Soon it made it to CNN—the words "Visa Abuse" plastered next to the Nepali flag—and Rush Limbaugh's right-wing radio show. But while the story was making its rounds and giving foreign workers a damaging repute, small and large businesses across the country worried that a shortage of temporary foreign workers might result in major losses during this year's peak seasons.

On 2 January, the Citizenship and Immigration Services (the USCIS) announced that it had "received a sufficient number of petitions to reach the congressionally mandated H-2B cap for the second half of Fiscal Year 2008 (FY2008)." That meant all applications sent in after 2 January for jobs starting before 1 October would be rejected. The the USCIS will, however, continue to "extend the stay of a current H-2B worker in United States; change the terms of employment for current H-2B workers and extend their stay; or allow current H-2B workers to change or add employers and extend their stay."

United States has been issuing 66,000 H2B visas for seasonal foreign workers every year, with 33,000 for each half of the fiscal year. In 2005, the Save Our Small and Seasonal Business Act passed by the U.S. Congress and President George W. Bush exempted returning seasonal workers with H2B visas from being counted towards that national quota. This is why the US had about 123,000 temporary workers in the last fiscal year. But the bill expired on 30 September, 2007, and it has not been renewed since. Business owners who had yet to file petitions for their seasonal workers are having trouble finding the workforce they need. On 5 February, the USA Today wrote "Businesses that rely on seasonal workers are scrambling to fill positions, and some are shutting down, because there are fewer visas for the foreign workers who usually fill the jobs." On 5 December, 2007, the Associated Landscape Contractors of Colorado (ALCC) hosted an event to urge United States Congress to put together an H2B relief package. The event saw more than 700 members of the landscape and hospitality industry meet with eight members of Congress, including Senate Majority Leader Harry Reid (D-Nev.).

It is apparent that while United States needs foreign workers to keep its economy rolling, foreigners like Nepalis rely on programs like H2B for opportunities to travel and work abroad. Over the last few years, Nepal has been making a steady contribution to the seasonal workforce. According to the US Embassy in Nepal, 229 Nepalis were given H2B visas in 2006 (Mexico topped with 79,992, Jamaica followed with 13,129, and Guatemala with 4,961). Nepal's number dropped to 171 in 2007, but this year it has already reached 313. But United States has yet to establish an efficient temporary workers program, and poor regulations in Nepal enable brokers to exploit legitimate ones. As a result, both countries suffer.

In the last several years, Nepal's economy has grown increasingly dependent on remittance funds, sent home by Nepalis working in foreign countries. A majority of this workforce is based in the Gulf region, or in countries like Malaysia, but not in the US. "There isn't any official data as such on just how much money comes into Nepal through remittance," explains Kiran Nepal, who covers finance for Himal Khabarpatrika, "And the data that is there show a very low figure. But we estimate it to be as much as Rs.125 billion."

However, Nepalis in the US have shown to be a relatively minimal contributor to this process, mainly because a majority of them come as students or Diversity Visa (DV) lottery winners, eventually settling down as permanent residents to the US. The trend is to establish themselves as residents, unlike the seasonal workers who go to the Gulf region and other countries with an intention to return.

At a time when it's trying to rebuild itself, Nepal's economy could use any help it can get, and the H2B program, if properly carried out, could prove to be beneficial. Countries like Mexico, Domican Republic, Jamaica and Guatemala have had a better track record of workers who come to America to work legally for about half a year, and go back home for the other half with their earnings. But Nepalis who come to the US on H2B visas generally tend to have paid large sums of money to one or more brokers. It ends up exceeding what they can possibly earn in a period of six or seven months, leaving them little choice but to overstay their visa, so that they can continue working in order to earn a return on the investment.

The Cinram incident is a case in point; according to a spokesperson for Nirvana Alliance, the agency that sent about 250 Nepalis to work at the Cinram factory, the company "aided" the process of applying for these jobs and charged $750 as a consultation fee. "There have to be receipts of these transactions to prove anything otherwise," he said. The unofficial fee, according to Nepali workers at Cinram, ranged between $10,000 to $25,000. If the workers in question worked 40 hours a week at $8/hr for six months, the earnings would only be $7680 before taxes and expenses. The Nepali workers that remain at Cinram worked 33-hour weeks in January, at which rate they would make $6336 in six months. If the cost was indeed limited to a fee of $750, a 33-hour work week would leave the worker with some savings, and a better likelihood of not abusing his visa. There would be an opportunity to come back to work another season, or as students, as some of them had hoped. But the fees they paid poses a different reality altogether, which many of them have decided to embrace, while others continue to explore legal options.

When Nepalis return without overstaying, the US Consulate in Nepal is easy on those who would like to make another trip. If manpower agencies in Nepal can find legal work in the US for Nepalis without putting them in a situation where they are forced to stay illegally, take huge loans, or stay away from their families for years at a time, surely their business would grow too.

However, the desperation to leave Nepal is so rampant, and the dreams of an American life so hyped, that Nepalis are willing to pay thousands of dollars to brokers who will connect them with an agency that will then charge thousand dollars more to start the H2B visa process. "We pay a couple of thousand dollars to go to work in the Gulf, or Korea, but this is America, so you can imagine," R.K Shrestha, a worker at Cinram who had previously driven 16-wheel trucks in a Gulf country for years, said.

As a result, Nepal's long-term potential as a workforce in the US is shortened, Nepali families torn apart for years, and chances of establishing a steady source of remittance fund from the US diminished. The unfortunate reality is, the possibility of legally having the best of both worlds is obstructed by a corrupt syndicate of human brokers who lead hard working Nepalis to believe that the only way out is to pay the large fees and, regardless of consequences, earn a return on it by overstaying illegally.

Note: Names of Nepali workers at Cinram have been changed upon request.

Comments

March 23rd, 2008

1 | monika sharma:

could you please figure out the name list of the nepali workers who are missing from ciram

June 30th, 2008

2 | Ram Krishna Pudasaini:

I would like to go to the U.S as a seasonal worker.I would like to know that do you provide help for Nepales also?If yes how can I contact you?
I am 26 years old married person.Now I want to go to the U.S to work.Pelase give me an information how can I apply through you /your company
your faithfully
Ram Krishna Pudasaini

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