Speech #840231953

I call attention to the statement of the Department of Labor circulated belatedly to members of the Conference Committee which voices strong opposition to the amendment. The statement declares that the amendment will be most unfortunate for the migratory agricultural workers. The statement predicts that "deductions would be made from the workers pay envelope without in many cases being recorded with the Social Security Administration. thus defeating the purpose of the amendment and thus depriving the migrant of honestly earned benefits under the Social Security Act." The statement bases its prediction on the Labor Departments "long experience with the socalled crew leader system. under which approximatly 350.000 migrant workers travel and secure their jobs." There is a distinctionThe Department points outbetween crew leaders and legitimate labor contractors. who actually employ and pay agricultural workers. These labor contractors are now considered as employers for Income tax and social security purposes under rulings of the Internal Revenue Service. Their operations are not affected by this proposed legislation. Unlike the recognized labor contractor. the crew leader is generally only one step removed from migrant worker status himself. He may be a crew leader today and a migrant worker tomorrow. and vice versa. He is not. except in a few States. licensed. nor is he bonded. He usually has no place of business. no fixed residence. no facilities whatever for keeping records. and in many instances is illiterate. The crew leaders charge for service averages around 12 percent of the workers meager earnings. Crew leaders. having no responsibility toward workers or farmers. have been known to abscond with entire payrolls. leaving the migrants and their families destitute. without work. money or transportation. While many migrants are now recruited directly by the farmers or through the employment service. section 201 (f) (2) would tend to force the workers to come under the crew leader system. The employer would find it more advantageous to have his entire work force under crew leaders and thus avoid employeremployee responsibilities. This section would give statutory recognition to the crew leader system and would confer upon it a legal status inappropriate to its nature and most unfortunate for the migrant workers. Deductions would be made from the workers pay envelope without In many cases being recorded with the Social Security Administration. thus defeating the purpose of the amendment and depriving the migrant of honestly earned benefits under the Social Security Act. Moreover. from the standpoint of labor law administration. a dangerous precedent would be established by this amendment in its recognition of the practice of using a middleman to allow employers to shift their responsibilities for complying with labor legislation. This action might be a step in the direction of removing long recognized responsibilities of employers under other labor lawsworkmens compensation. for instance. or child labor. or the field of minimum wages." These are telling arguments against this amendment and afford valid grounds for grave apprehension.