Labor Requests Increased FY 2011 Funding for Int'l Enforcement, Etc.

Increased Funding Requested for Worker Rights Monitoring, Enforcement

The FY 2011 DOL budget request includes an increase of more than $22 million to enable ILAB to fulfill its expanding congressional mandates; undertake active oversight and monitoring of labor rights in countries with free trade agreements or preferential access to the U.S. market; and design and launch technical assistance programs to address root causes of violations of workers' rights.

This increased funding and staffing would allow ILAB to:

FTA, preference program enforcement. Become more active in interagency policymaking on the negotiation and enforcement of labor provisions in FTAs and expand U.S. labor diplomacy through better coordination (including the possible exchange of personnel) with the Department of State. The additional funding would allow ILAB to upgrade its ability to monitor labor conditions in FTA and preference program countries and undertake significant enforcement of protections for workers' rights contained in U.S. trade agreements and preference programs.

The funding would also allow ILAB to undertake proactive monitoring, self-initiation of consultations and enforcement where required, and an active policy role for DOL in the interagency process. The result will be to significantly increase the ability of the U.S. to leverage the market access provided to the 16 countries that are party to free trade agreements with the U.S. that contain labor obligations and the roughly 140 countries that benefit from preferential access to the U.S. market into improvements in living standards, working conditions, and enjoyment of labor rights for the work forces of those countries.

Reporting capabilities. Conduct more analytical and strategic research and reporting on labor conditions, worker rights, child labor, and forced labor in order to produce reports that are more useful to Congress and the public.

Existing worker rights programs. Expand existing worker rights programs and undertake initiatives in at least eight additional trading partner countries.

Foreign country requests. Facilitate responding to requests from foreign countries for short-term assistance in addressing worker rights, training, and workplace issues (often involving DOL staff visiting the requesting country or the country's officials visiting the U.S.).

Joint DOL-Treasury Initiative to Prevent Employee Misclassification

DOL's FY 2011 budget request includes a joint DOL-Treasury $25 million initiative to "strengthen and coordinate" federal and state efforts to prevent the misclassification of employees as independent contractors. DOL's budget request includes $12 million in funding (with Treasury to provide the remaining $13 million) for its Wage and Hour Division to address employee misclassification.

The FY 2011 DOL budget also supports legislation to ensure the proper classification of employees by (i) shifting the burden of proof to employers to demonstrate that their workers are properly classified; (ii) eliminating a loophole created by Section 503 of the Revenue Act of 1978 that allows employers to misclassify employees as independent contractors; and (iii) making worker misclassification a violation of the Federal Labor Standards Act, with appropriate penalties.

(See ITT's Online Archives or 02/25/10 news, 10022510, for previous BP summary of this initiative.)

Current Labor and State Dept Activities to Address Workers' Rights

At a joint hearing of two subcommittees of the House Foreign Affairs Commitee¹,representatives from the Departments of State and Labor testified on specific actions the Administration is undertaking to address workers' rights.

FTA, preference country monitoring. ILAB is coordinating with USTR to increase monitoring and analysis of compliance with workers' rights in countries that benefit from U.S. trade agreements and trade preference programs. The agencies are increasing their engagement with foreign countries and, when necessary, will invoke the consultation and dispute settlement procedures in FTAs and consider the removal of benefits under trade preference programs for countries that violate workers' rights.

Factory monitoring program. ILAB, as part of its technical assistance programs, has partnered with the International Labor Organization to replicate a program called "Better Work," a transparent factory monitoring program conducted by the ILO. The Better Work program makes the results of factory inspections public, enabling international buyers to direct their orders to factories that are improving their worker rights and working conditions.

Better Work started in Cambodia, but ILAB is now funding Better Work programs in Haiti and Lesotho and is considering expanding to Central America.

Int'l Labor Affairs representative. The President will soon appoint a Special Representative for International Labor Affairs that will lead the Department of State's efforts to promote labor diplomacy and ensure a high-level focus on labor rights and employment issues.

(See ITT Online Archives or 02/24/10 daily news, 10022420, for ILAB request for information on child and forced labor in foreign countries.)

¹Subcommittees on Terrorism, Nonproliferation, and Trade and International Organizations, Human Rights, and Oversight.

FY 2011 DOL budget request available at http://www.dol.gov/dol/budget/2011/PDF/bib.pdf.

House Foreign Affairs Subcommittees' hearing testimony (dated 03/10/10) available at http://foreignaffairs.house.gov/schedule.asp.