A labor market development of much current interest within California agriculture is the pronounced increase of farm labor contractor (FLC) activity over the past 10 to 15 years. Many farmers in California have shifted from directly hiring agricultural workers to procuring labor through FLCs and custom harvesters. These contractors recruit workers and provide such other personnel management services as transporting workers, supervising in the field, and handling payroll.
In 1988 the California Employment Development Department cited an 11 percent increase over 1987 in the number of agricultural laborers employed by farm labor contractors as the year's most significant change in the agricultural labor market. EDD data for 1989 indicate that FLCs are responsible for 20 percent of all farm employment in California and a majority of fruit and vegetable harvest work in most regions.
Farm labor contracting has existed in California for more than 100 years, facilitating information flow and matching between growers and workers in the labor market. First used here in the 1870s, when large numbers of Chinese entered the farm labor force, farm labor contracting has varied in importance over time.
Subject to licensing requirements in California since 1939, contractors came under specific federal law in 1963. Federal regulation of FLCs is currently centered in the Migrant and Seasonal Agricultural Worker Protection Act of 1983 (MSPA). A contractor is defined as "any person, other than an agricultural employer, an agricultural association, or an employee of an agricultural employer or agricultural association, who, for any money or other valuable consideration paid or promised to be paid, performs any farm labor contracting activity," which means ". . . recruiting, soliciting, hiring, employing, furnishing, or transporting any migrant or seasonal agricultural worker."
Recent initiatives in the California legislature reflect the increased importance of farm labor contractors. Assembly Bill 3550 (Waters), signed by Governor Deukmejian in September 1990, requires all FLCs to register with the Agricultural Commissioner in each county where they do business. Adding to existing state and federal licensing requirements, this law became effective January 1, 1991. A main purpose for its passage is to ensure that FLCs are aware of their responsibilities for worker safety.
Meetings to inform labor contractors about the new law, registration procedures, agricultural safety regulations, and other relevant topics were presented in January by APMP in cooperation with CE County Directors, Agricultural Commissioners, and EDD staff in Fresno, Monterey, and Orange counties. The simultaneous sessions drew a total audience of 385. Thanks to Steve Sutter, Sonya Hammond, and Mike Henry for organizing and hosting.
Additional regulation of labor contracting has been proposed. Assembly Bill 318 (Polanco), as introduced early this year before substantial amendment, would have obligated both growers and FLCs to report to the Department of Industrial Relations on contracts into which they enter with one another.
Why have growers turned to contractors to provide labor? What do they expect and what do they get by shifting from direct hire to FLCs or custom harvesters (CHs)? Under APMP sponsorship, Suzanne Vaupel has recently completed a pilot study of issues in Monterey County growers' decisions to hire FLCs. Three principal research questions Vaupel addressed were: (1) What types of work are FLCs and CHs being hired to do and what services do they provide? (2) What are growers' experiences with and opinions about the work of FLCs and CHs? (3) How stable are the relationships between growers and FLCs and CHs?
No previous work had examined reasons for and results of decisions to alter prior patterns of direct recruitment and hire in individual firms. Farmers have had no organized body of empirical evidence to consult when considering a shift to FLCs . Vaupel's findings will be abstracted in the next issue of Labor Management Decisions. A copy of her full report is available from the program office for $1 copying cost (check payable to "UC Regents," or cash is okay).
The Employment Development Department has contracted with the APMP to conduct a major study of FLC business practices in relation to (1) customers (growers and packing houses), (2) employees, and (3) government agencies. Interviews are being conducted with a total of 180 labor contractors, and with smaller numbers of growers and workers, in the Imperial, Ventura-Santa Barbara, Fresno, San Joaquin-Stanislaus, and Monterey County areas. A final report is due to EDD by January 1992.
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