Immigrant Labor in the Forest Industry: The Impacts of H-2B Employment on Local Livelihoods by Arnold M. Brodbeck IV A dissertation submitted to the Graduate Faculty of Auburn University in partial fulfillment of the requirements for the degree of Doctor of Philosophy Auburn, Alabama May 7, 2016 Keywords: H-2B, immigrant, labor, livelihoods, forestry Copyright 2016 by Arnold M. Brodbeck IV Approved by Wayde Morse, Co-Chair, Assistant Professor, School of Forestry and Wildlife Sciences L. Conner Bailey, Co-Chair, Professor, Agricultural Economics and Rural Sociology Becky Barlow, Associate Professor, School of Forestry and Wildlife Sciences Ken McNabb, Professor, School of Forestry and Wildlife Sciences Abstract The production of timber requires labor, with peak labor demands coming during reforestation. Much of the labor used in tree planting in the United States (US) is provided by migrant workers. The overall purpose of this dissertation is to examine how the opportunity to work in the US affects migrant workers in their home communities. The specific focus of this study is on migrant workers from Guatemala who work in the southeastern US (South) under H- 2B visas issued by the US Department of Immigration. Migrant laborers working under the H-2B guest worker visa program plant an estimated two million acres every year in the South. In 2004 migrant labor constituted 84% of the forest management labor in the southern forest industry. H-2B labor provides relatively cheap, productive, and reliable labor that enables the forest products industry to remain competitive. The purpose of this study is threefold: First, to describe the role, impact, and importance of H-2B forest workers to Alabama’s forest industry from the perspective of professional foresters; second, to document laborers’ background and explain why immigrant labor from Guatemala participates in the H-2B program; and third, to describe the impacts that earnings associated with H-2B forest employment have on the livelihoods of participating workers, their families, and communities. This study uses a qualitative methodology composed of face-to-face interviews and snowball sampling. Interviews were conducted in Alabama with foresters and labor contractors and in Guatemala with forest workers, family members, community leaders, and government officials in 2012 and 2013 ii Results indicate that immigrant labor in Alabama’s forest product industry has become increasingly important to forest regeneration. Study participants expressed a preference for H- 2B forest workers because of their versatility, productivity, and most importantly, their affordability. However, as a result of 2012 and 2015 Department of Labor wage rules, foresters are concerned about landowners’ willingness to plant as hand planting costs increase. H-2B forest workers are shown to migrate largely as a result of poor labor markets in their communities and the presence of persistent and chronic poverty. The impacts of remittances associated with H-2B forest work are seen in improvements to nutrition, housing, and access to healthcare. Long-term impacts are likely a result of investments in agricultural lands, microenterprise, and their children’s education. iii Table of Contents Abstract ......................................................................................................................................... ii List of Tables .............................................................................................................................. vii List of Figures and Images ......................................................................................................... viii Chapter 1: Introduction ............................................................................................................... 1 Immigrant Labor in the Forest Industry .......................................................................... 2 Exploitative Concerns and Changing Laws .................................................................... 3 H-2B Visa Impacts in Improving Guatemalan Livelihoods ........................................... 4 The Greater Contextual Framework ............................................................................... 6 Research Objectives ...................................................................................................... 10 Chapter 2: Literature Review .................................................................................................... 12 Introduction ................................................................................................................... 12 Migration ....................................................................................................................... 13 Migrant Labor in the US Forest Industry ...................................................................... 27 Does the H-2B Program Exploit Labor? ......................................................................... 39 Does the H-2B Program Provide Opportunities for Improving Livelihoods? ................ 49 Changing Policies and Implications for Immigrant Forest Labor ................................ 56 Chapter 3: Study Site ................................................................................................................ 61 Identifying the Study Site ............................................................................................... 61 Overview of Guatemala .................................................................................................. 62 iv Narrowing the Study Site: Departments of Huehuetenango and Alta Verapaz .............. 65 Inside the Departments: Primary Community Descriptions ........................................... 69 Chapter 4: Methods ................................................................................................................... 76 General Approach ........................................................................................................... 76 US-Based Interviews ...................................................................................................... 76 Guatemala-Based Interviews .......................................................................................... 78 Study Population ............................................................................................................. 90 Chapter 5: Results: Opinions on the Importance of H-2B Labor to Alabama’s Forest Industry ......................................................................................................................... 102 What Did We Have Before Immigrant Labor? ............................................................. 103 Industry Opinions on the Importance of H-2B Immigrant Labor ................................. 106 Impacts of New Department of Labor H-2B Rules on Reforestation ........................... 109 Alternatives to H-2B Immigrant Labor ......................................................................... 114 Chapter 6: Results: Understanding H-2B Forester Worker Migration and Impacts on Livelihoods ................................................................................................................... 119 Part 1: Why Go? Understanding Why Immigrant Laborers Decide to Participate in the H-2B Program ......................................................................................... 119 We Are Poor Here ............................................................................................. 120 Part 2: Remittances Changing Livelihoods .................................................................. 130 Factors Affecting Earnings and Remittances .................................................... 131 How Much Do H-2B Forest Workers Remand? ............................................... 150 Investing Remittances: Changing Livelihoods ................................................. 170 Part 3: Community Impacts of Remittances ................................................................ 240 Better Roads ...................................................................................................... 241 Building Churches ............................................................................................ 244 v Hiring Local Labor and Supporting Local Commerce ..................................... 246 Part 4: H-2B vs. Illegal Alternatives ............................................................................ 249 Why Don’t H-2B Planters Overstay their Visas? ............................................. 251 What Causes H-2B Planters to Overstay their Visas? ...................................... 256 Chapter 7: Research Conclusions ........................................................................................... 262 Forester Opinions on the Role and Future of H-2B Forest Labor in Alabama ............ 263 Why Do Rural Guatemalans Take H-2B Jobs? ............................................................ 267 Is the H-2B Program Contributing to a Higher Quality of Life? .................................. 270 Avenues for Future Research ........................................................................................ 273 Chapter 8: Policy Implications for Developing a Mutually Beneficial Relationship ............. 276 Implications of Changing H-2B Rules for Forester Workers and the Forest Industry ........................................................................................................... 276 Applying the Appropriate