>> Sreenivasan: FOR MORE THAN 30

YEARS, MANY U.S. EMPLOYERS IN

SEASONAL BUSINESSES HAVE RELIED

ON FOREIGN WORKERS TO FILL

POSITIONS AMERICANS OFTEN WON'T

APPLY FOR.

THE H-2B VISA PROGRAM ALLOWS

COMPANIES TO HIRE MIGRANTS

TEMPORARILY FOR LOW-SKILLED,

NON-AGRICULTURAL JOBS IN

EVERYTHING FROM THE HOTEL

BUSINESS TO LANDSCAPING TO

MEATPACKING AND SEAFOOD

PROCESSING.

BUT THIS YEAR, WITH DEMAND

SOARING TO A HISTORIC RATE, MANY

COMPANIES HAVE NOT BEEN ABLE TO

SECURE H-2B VISAS FOR THEIR

WORKERS.

NEWSHOUR WEEKEND'S CHRISTOPHER

BOOKER REPORTS FROM MARYLAND'S

EASTERN SHORE, WHERE THE STATE'S

FAMED CRAB INDUSTRY IS FEELING

THE EFFECTS.

THIS STORY IS PART OF OUR

ONGOING SERIES ABOUT POVERTY AND

OPPORTUNITY IN AMERICA, "CHASING

THE DREAM."

>> Reporter: WHAT IS SAID TO

DIFFERENTIATE MARYLAND CRAB IS

THE SALTINESS OF THE CHESAPEAKE

BAY AND THE PERFECTLY SIZED

JUMBO LUMP OF MEAT THAT COMES

FROM THE BACK FIN.

THE EXTRACTION PROCESS IS

LARGELY THE SAME AS IT HAS BEEN

FOR THE PAST 100 YEARS, WITH THE

CRAB PICKED BY HAND,

TRADITIONALLY BY WOMEN, BUT THE

FACES OF THOSE DOING PICKING,

HAVE CHANGED.

>> THE AMERICAN CRAB PICKER HAS

GONE BY THE WAYSIDE.

THE OLDER LADIES HAVE DIED OFF

AND THE YOUNGER LADIES NOW WANT

A FULL-TIME JOB.

WE ONLY OFFER EIGHT MONTHS OUT

OF THE YEAR.

WE'RE SEASONAL.

SO THEY WANT SOMETHING THEY CAN

COUNT ON YEAR-ROUND WITH

BENEFITS, AND WE DON'T OFFER

THAT.

>> Reporter: LIKE OTHERS IN THE

AREA, HARRY PHILLIPS HAS GOTTEN

AROUND THE SHORTAGE OF AMERICAN

WORKERS WITH A MIGRANT

WORKFORCE, HIRED SEASON AFTER

SEASON, AND BROUGHT LEGALLY TO

THE U.S. ON H-2B VISAS.

>> YOU HAVE TO HAVE YOUR

PETITION IN THE 1st OF JANUARY

SO WE COULD HAVE OUR WORKERS

HERE THE FIRST DAY OF APRIL.

AND IT'S ALWAYS BEEN FIRST-COME,

FIRST-SERVE.

SO IT'S WORKED OUT PERFECT OVER

THESE LAST 25 YEARS.

>> Reporter: THE WAY IT WORKS IS

THAT AMERICAN COMPANIES

THEMSELVES APPLY FOR THE VISAS.

ONCE THEY'RE APPROVED, THEY

CAN INVITE FOREIGN WORKERS

TO COME.

BUT THIS YEAR THE ROOM IS EMPTY

WHERE 50 WORKERS, MOST OF THEM

WOMEN FROM MEXICO, USUALLY PICK

CRAB.

RECORD DEMAND FOR THE VISAS

ACROSS THE COUNTRY, COUPLED WITH

CHANGES TO THE PROGRAM, SQUEEZED

PHILLIPS OUT.

>> I NEED THIS, MY FAMILY NEEDS

THIS, MY CHILDREN, AND MY

GRANDCHILDREN COMING UP, THEY

ARE COUNTING ON THIS BUSINESS

TO KEEP THEM GOING INTO THE

FUTURE.

>> Reporter: THIS JANUARY, U.S.

COMPANIES APPLIED FOR MORE THAN

80,000 H-2B VISAS FOR THE SECOND

HALF OF THE FISCAL YEAR, BUT

ONLY 33,000 WERE AVAILABLE UNDER

A LONGSTANDING CONGRESSIONAL

CAP.

IN RESPONSE TO THIS YEAR'S

DEMAND, THE GOVERNMENT CHANGED

THE WAY IT AWARDS H-2B'S, MOVING

FROM A FIRST-COME-FIRST SERVE

SYSTEM TO A LOTTERY.

HARRY PHILLIPS' COMPANY WAS NOT

SELECTED.

>> MY ACCOUNTANT COMES EVERY SO

OFTEN, SHE SAID I'VE GOT SOME

GOOD NEWS AND BAD NEWS.

THE BAD NEWS WAS I HADN'T MADE

ANY MONEY AND THE GOOD NEWS WAS

I WASN'T GOING TO HAVE TO PAY

ANY QUARTERLY TAXES.

THAT TELLS YOU WHAT WE'RE DOING.

>> Reporter: WHILE IT IS QUIET

AT PHILLIPS' PLANT, ONE OF HIS

COMPETITORS, NEARBY LINDY'S

SEAFOOD, IS SURVIVING FOR NOW

WITH A FRACTION OF ITS USUAL

WORKFORCE.

THEY'RE WORKING OFF VISAS ISSUED

LAST FALL.

LINDY'S, TOO, WAS NOT SELECTED

IN THE LOTTERY.

>> THIS IS EVERYTHING.

MY FAMILY GREW UP HERE.

IN THE SUMMERTIME, THIS IS WHAT

WE DID.

WE DIDN'T TAKE VACATIONS, WE

CAME HERE AND PICKED CRABS.

>> Reporter: AUBREY VINCENT HAS

WORKED FOR THE FAMILY BUSINESS

SINCE SHE WAS 12 YEARS OLD.

SHE NORMALLY HIRES ABOUT 130

SEASONAL CRAB PICKERS.

THE MAJORITY ON H-2B VISAS.

WHY IS IT SO DIFFICULT TO HIRE

AMERICANS TO DO THESE JOBS?

>> I HAVE AMAZING AMERICAN TRUCK

DRIVERS, I HAVE SOME AMERICAN

PICKERS, I HAVE TONS OF PEOPLE

IN MY OFFICE, THE LADY THAT RUNS

THIS PLANT, SHE'S A FULL TIME

AMERICAN EMPLOYEE.

THE PROBLEM THAT I'M RUNNING

INTO IS, IS I DON'T HAVE ENOUGH.

SO, I USE THE H-2B PROGRAM TO

SUPPLEMENT THAT AMERICAN

WORKFORCE.

SO, I THINK A LOT OF IT HAS TO

DO WITH OUR AREA, WE JUST DON'T

HAVE THE PEOPLE.

THERE'S NOT A LOT OF PEOPLE

MOVING INTO THE AREA, BECAUSE

PEOPLE ARE LOOKING FOR FULL TIME

OPPORTUNITIES.

>> Reporter: VINCENT ESTIMATES

THE BUSINESS IS LOSING THOUSANDS

OF DOLLARS A DAY.

THE PASTEURIZER AND COOLER SHE

PURCHASED LAST WINTER SIT EMPTY

AND UNUSED.

THINKING OF THE LOSSES YOU'RE

TAKING NOW, IF YOU WERE TO

INCREASE YOUR WAGES, WOULD YOU

BE ABLE TO SHRINK THOSE LOSSES?

>> I PAY MORE THAN ANY PICKING

HOUSE IN THE AREA, SIGNIFICANTLY

MORE.

I PAY $4.50 A POUND, AND I PAY

$9.51 TRAINING WAGE.

SO, A LOT OF MY EMPLOYEES ARE

MAKING ANYWHERE FROM LIKE $12 TO

$16 AN HOUR.

WE'RE PAYING MORE THAN ANY OF

THE OPEN POSITIONS IN TOWN.

AND STILL, I CAN'T SEEM TO GET

PEOPLE INTERESTED.

>> Reporter: BY THE END OF

DECEMBER, ALL 19 OF VINCENT'S H-

2B WORKERS HAVE TO RETURN TO

HOME, AND THERE'S NO GUARANTEE

SHE WILL BE ABLE TO HIRE THEM

BACK NEXT YEAR.

>> I MEAN, OUR SITUATION IS BAD,

BUT THERE ARE PEOPLE IN THE

COUNTRY THAT HAVE IT MUCH WORSE

THAN US, AND THEY NEED TO MAKE

SURE THEIR REPRESENTATIVES

UNDERSTAND THAT.

INFORMATION ON H-2B?

>> Reporter: BUT VINCENT IS NOT

SITTING IDLE.

THIS SUMMER, SHE MOVED FROM

PHONE CALLS TO DIRECT

INTERACTION ON THE STREETS OF

WASHINGTON.

>> SOME INFORMATION ON THE H-2B

PROGRAM.

CONGRESS COULD FIX IT, THE

ADMINISTRATION COULD FIX IT,

THERE'S A LOT OF DIFFERENT

PEOPLE THAT, IF THEY WERE

WILLING TO STEP UP, AND REALLY

LOOK AT THE PROGRAM OBJECTIVELY,

THEY COULD FIX IT.

>> Reporter: THE MANY DIFFERENT

PLAYERS MIGHT BE PART OF THE

COMPLICATION.

WHEN THE H-2B PROGRAM HIT ITS

CAP, ONLY CONGRESS COULD

AUTHORIZE MORE TO BE RELEASED.

AFTER MONTHS OF DELAYS, IN

MARCH, CONGRESS DID AUTHORIZE

MORE THAN 63,000 ADDITIONAL

VISAS.

BUT THAT'S NOT THE END OF THE

STORY, THE VISAS MUST BE

APPROVED BY TWO ADDITIONAL

PARTIES, THE DEPARTMENT OF

HOMELAND SECURITY AND THE

DEPARTMENT OF LABOR.

THAT'S A SLOW PROCESS, ON TOP OF

THE CONGRESSIONAL DELAY.

SO FAR, ONLY 15,000 ADDITIONAL

VISAS HAVE BEEN ISSUED, ONCE

AGAIN THROUGH A LOTTERY.

ONLY ONE MARYLAND CRAB

PROCESSING COMPANY WAS SELECTED.

>> AN ISSUE VERY IMPORTANT TO MY

DISTRICT, I HAVE THE BEAUTIFUL

EASTERN SHORE OF MARYLAND, IS

THE H-2B VISA ISSUE.

>> Reporter: MARYLAND'S EASTERN

SHORE IS REPRESENTED BY

REPUBLICAN CONGRESSMAN ANDY

HARRIS, WHO SITS ON THE

SUBCOMMITTEE OF THE DEPARTMENT

OF HOMELAND SECURITY.

>> THEY HAVE TO BRING THOSE

CRABS TO BE PROCESSED SOMEWHERE,

THEY HAVE TO BE PICKED, BECAUSE

WHEN YOU EAT A CRAB CAKE,

BELIEVE ME, YOU'RE NOT EATING

THE WHOLE CRAB.

>> Reporter: THESE VISAS ARE

SITTING WITH THE DEPARTMENT OF

HOMELAND SECURITY, AND THE

DEPARTMENT OF LABOR, READY TO

GO, BUT THE PROCESSING PLANTS

ARE SITTING EMPTY.

>> IT'S A FAIRLY LENGTHY

PROCESS.

IT NORMALLY TAKES A COUPLE OF

MONTHS, WE'RE HOPING THAT IT CAN

GET SHORTENED TO, YOU KNOW, ONLY

SEVERAL WEEKS, BUT THERE IS A

PROCESS.

>> Reporter: 15,000 IS WOEFULLY

INADEQUATE WHEN YOU'VE HAD SO

MANY APPLICATIONS.

THEY KNEW FULL WELL THAT THIS

WAS COMING.

>> YEAH, LOOK, THIS IS CONGRESS'

PROBLEM.

CONGRESS HAS SET THE CAP,

CONGRESS DELAYED DOING THEIR

OMNIBUS BILL, WE INCLUDED THE

FIX IN A LATE APPROPRIATIONS

MEASURE, AND EVERYTHING

CASCADED.

IT WAS A DOMINO EFFECT.

>> Reporter: CONGRESSMAN HARRIS

WAS ONE OF 82 REPRESENTATIVES TO

SIGN A LETTER CALLING ON THE

DEPARTMENT OF HOMELAND SECURITY

TO RELEASE THE ADDITIONAL VISAS.

>> THIS IS ACTUALLY THE IDEAL

FOREIGN WORKER TO COME IN,

BECAUSE THEY ACTUALLY ARE

SUPPORTING OUR MEDICARE SYSTEM,

SUPPORTING OUR SOCIAL SECURITY

SYSTEM, EVEN THOUGH THEY WILL

NEVER PARTICIPATE IN IT.

>> Reporter: BUT HARRIS SAYS,

CONVINCING GROUPS ON BOTH SIDES

OF THE POLITICAL SPECTRUM ISN'T

EASY.

WORKERS' RIGHTS AND CIVIL RIGHTS

GROUPS ARGUE THE SYSTEM NEEDS

REFORM AND INCREASED OVERSIGHT

TO PROTECT MIGRANTS FROM

EXPLOITATION AND UNION GROUPS,

LIKE THE A.F.L.-C.I.O., HAVE

ARGUED THAT ALLOWING MIGRANTS TO

WORK SEASONALLY DEPRESSES WAGES

FOR AMERICAN WORKERS.

AT THE SAME TIME, SOME

CONSERVATIVE LAWMAKERS HAVE

TAKEN A HARDLINE AGAINST

EXPANSION OF THE PROGRAM.

>> A LOT OF THE ARGUMENTS FOR

THIS KIND OF PROGRAM BOIL DOWN

TO THIS: NO AMERICAN WORKER WILL

DO THAT JOB.

THAT IS A LIE.

IT IS A LIE.

THERE IS NO JOB THAT AMERICANS

WILL NOT DO.

>> Reporter: CONGRESSMAN HARRIS

SAYS THE H-2B PROGRAM IS NOT

JUST ABOUT THE JOBS THAT THE

MIGRANT WORKERS ARE DOING.

>> FOR EVERY JOB THAT THEY'RE

FILLING, THERE ARE AT LEAST

THREE OR FOUR AMERICAN JOBS THAT

DEPEND ON THEM.

THERE'S THE PERSON WHO SUPPLIES

THE CONTAINERS THAT THEY'RE

GOING TO PUT THE CRAB MEAT IN.

THERE'S THE TRUCKER WHO TRUCKS

THE CONTAINERS IN, AND THE

FILLED CONTAINERS OUT.

THERE'S THE RESTAURANT WHO

SERVES THE CRAB, THERE ARE THE

DISTRIBUTORS, THERE ARE THE

WAITRESSES IN THE RESTAURANTS.

THERE ARE MANY DOWNSTREAM JOBS.

>> Reporter: THOSE DOWNSTREAM

ARE ALREADY FEELING THE EFFECTS.

AT OLD SALTY'S, A POPULAR

EASTERN SHORE RESTAURANT, OWNER

JAY NEWCOMB SAYS HE STRUGGLES TO

FIND ENOUGH FRESH CRAB FOR HIS

MENU.

>> LAST YEAR I PUT AWAY LIKE

4,000 POUNDS, AND THAT WAS ALL

BUT USED UP.

SO NOW WE'RE IN THE FRESH

MARKET, AND IT'S BEEN HARD TO

GET ALSO, PLUS THE PRICE IS UP A

LOT.

>> Reporter: HOW MUCH HAS THE

PRICE CHANGED?

>> 3 TO $4 A POUND.

>> Reporter: JUST THIS YEAR?

>> YES, JUST THIS YEAR.

>> Reporter: WHAT WILL IT MEAN

FOR THIS COMMUNITY IF NEXT

SUMMER IS LIKE THIS SUMMER AND

THEY HAVEN'T FIGURED IT OUT?

>> NEXT YEAR WE FEEL IT'S GOING

TO BE WORSE.

THERE'S A LOT MORE DEMAND THIS

YEAR, SO A LOT MORE NEXT YEAR,

AND WE JUST DON'T THINK THEY'RE

GOING TO BE AS LUCKY WITH THE

LOTTERY.

>> Reporter: WHO DO YOU THINK IS

RESPONSIBLE FOR WHAT'S HAPPENED?

>> IT'S WASHINGTON.

>> Reporter: JUST THIS MONTH,

THE DEPARTMENT OF HOMELAND

SECURITY RESPONDED TO

CONGRESSMAN HARRIS' LETTER,

INFORMING HIM THAT IT WOULD NOT

BE RELEASING ANY ADDITIONAL

VISAS.

WHERE ARE YOU NEXT YEAR IF YOU

DON'T GET YOUR VISAS?

>> SO MY FAMILY STARTED THIS

BUSINESS.

MY DAUGHTER IS TWO.

WHAT I PRAY, IS THAT I CAN KEEP

IT ALIVE ENOUGH THAT IT DOES GET

FIXED, AND THAT I CAN PASS THIS

OPPORTUNITY DOWN TO HER.

I LOVE THIS.

I LOVE THIS INDUSTRY, I LOVE

THIS AREA, WORST CASE SCENARIO,

IS I'M NOT GOING TO BE ABLE TO

PULL THAT OFF.

AND THAT'S THE SCARIEST PART.

>> Reporter: LACKING SOLUTIONS,

HARRY PHILLIPS IS MAKING

CONTINGENCY PLANS.

>> I CAN'T DO IT TWO YEARS IN A

ROW, NO.

IF WE DON'T GET OUR WORKERS

ANOTHER YEAR, WE'LL SHUT THE

DOORS.

EITHER THAT, OR WE'VE EVEN

CONSIDERED, THERE'S CRABS IN

MEXICO.

WE'RE CHECKING TO SEE WHAT'S

GOING ON, AND WE'RE GOING TO FLY

DOWN THERE THIS WINTER.

>> Reporter: TO SEE ABOUT MAYBE

SETTING UP SHOP THERE.

>> SETTING UP SHOP IN MEXICO.

THE LADIES ARE THERE.

THEY'RE ALL WILLING TO WORK.

THE CRABS ARE THERE.

THIS IS ALL I KNOW.

I DON'T HAVE MUCH EDUCATION, AND

I DO KNOW WHAT I'M DOING HERE.

SO WHAT ELSE CAN WE DO?

WE CAN'T SIT HERE IDLE.