Foreign student workers may plug staffing gaps
Pub Date: 8/1/2006
Economists declare an economy has "full employment" when the unemployment rate reaches 4 percent. You can grasp their reasoning by reading an introductory level textbook. We won't go into that here.
What is important to know is that Montana has had unemployment rates below 4 percent since Sept. of 2005 and the rate appears to be heading further downward.
The upshot is that we have job openings in the state that are going unfilled for lack of workers and the problem is much worse in some regions of the state than others--regions such as the southwest including Gallatin and Madison Counties. And the problem is worse in some industries, especially those dependent upon entry-level workers such as the hospitality business.
You don't have to tell Bob and Deb Miller, proprietors of the Bear Claw Bar & Grill in little McAllister, southwest of Bozeman and just north of Ennis, that they have an employment problem. Bob says they have struggled with keeping the 15 work slots filled for the last several years but more recently the problem has become, not just acute, but critical.
"For the first time in 13 years we were looking at simply not having enough help to run lunches and dinners seven days a week," Bob says with exasperation.
But Bob is well plugged into the industry grapevine due to his activity with his local tavern association as well as serving as a director and vice president of Montana Tavern Association. As such, he has found a band-aid solution to what has become an intractable and chronic problem.
"I heard that the Korner Klub (at the "four corners" south of Belgrade and west of Bozeman) had found and hired some Brazilian help through a temporary foreign worker program," he recalls.
Miller began looking into the programs, though almost too late to bail him out of his current shortage.
"I contacted several agencies and was too late to get help for this season, but then talked to Ralph Ferraro (Rockin' R in Bozeman) and Mike Artz (Chico Hot Springs in the Paradise Valley). They were using interExchange to get help from Eastern European countries," Bob explains.
He found their web site and filled out an employer application. Soon he had four worker applications in hand, one of which he selected. He selected a second employee from a subsequent group of potential workers offered by the agency.
The forms list the applicant's name, birth date, previous work experience, personal interests, places where they have traveled and a rating of the candidate's English language skills.
And that is how Vitaly Alekseev and Ratmir Sabitov, native Russians, came to spend the summer of 2006 in the Madison Valley, sharpening their work and language skills and learning about American culture while pocketing a paycheck from the Bear Claw.
That's the whole point of the program, really: allow foreign university students access to real hands-on learning experiences. That in doing so employers in areas with labor shortages are helped through a pinch is simply icing on the cake.
The agency covers the students' insurance and the workers pay state and federal income taxes and their own Social Security and Medicare. The employer may be required to provide unemployment insurance, Bob says, depending upon the jurisdiction.
"It's best to check with the authorities and your accountant" first, Miller says, but notes the interExchange charges nothing for its services and that he found their evaluations of Vitaly and Ratmir to be fair and accurate.
Vitaly's English skills were rated a "6" on a scale of 1-10 and Ratmir was rated an "8". This reporter found he was able to clearly, quickly comprehend about 60 percent of Vitaly's speech and about 80 percent of Ratmir's, but minor repetition and questions filled in the gaps.
Miller has not found the language deficiencies to be burdensome, noting a little extra explanation may be required in training, especially when it comes to concepts well ingrained in the average American but foreign to a, well, foreigner.
"For example, I had to explain what rare, medium and well-done means in a cooking con[varchar](max) COLLATE SQL_Latin1_General_CP1_CI_AS NOT NULL," Miller says.
The agency provides employers with a handbook and is available to assist employers one-on-one, which they do promptly and graciously, Miller says.
He says, "interExchange told me they love to place kids in Montana because they have such a great experience here...employers here treat people decently, locals are friendly. I guess sometimes that isn't the case in the big cities..."
He said he has found training requirements similar to what is required for any young entry-level seasonal worker. He started Ratmir and Vitaly with clean-up and prep tasks, but one is now capable of functioning independently as the lunch cook.
"They certainly don't lack motivation," Miller says.
"They are here to learn and work," Miller says, "and that's what they do. They are reliable and have a good work ethic. A lot of these students find second jobs while they're here. Vitaly helps out part-time at the liquor store in Ennis."
The Russian university students first landed in New York, then were put through a four-day orientation by interExchange before being loaded on a bus for a 52-hour ride to Montana.
The young fellows (Vitaly age 19, Ratmir age 20) came aboard at the Bear Claw June 10 and will remain for three months only, which will get Miller through his peak summertime labor requirements.
Other similar programs, he said, can arrange for winter season help and still others, known as H2B programs and administered through the U.S Department of Labor, may be able to provide older, non-student workers with nine-month or one-year work visas. These programs carry an application fee and the process takes longer, Miller said, adding that the job must also teach a skill and an employer must demonstrate an acute need.
Employers are obligated to arrange housing for the workers, though are not required to pay for it. Miller hit upon a practical and functional solution: he installed a 28-foot camp trailer on his property where the young men comfortably bunk. They pay a minimal rent--enough to cover utility and other incidental costs, Miller says, while he in turn pays them a wage competitive in the market.
Miller even furnished them an inexpensive economy car for trips to Ennis or Bozeman for shopping or recreation (Ratmir has a Russian national drivers license that is legal here; Vitaly does not).
These young men are interested in girls, music (Ratmir will sing you a few verses from the Beatles' "Back In The USSR") and, yes, parties, they confess, though Miller laughs and quickly adds, "But they are always here for work and on time!"
It is readily apparent that Deb and Bob Miller are enjoying the young men, who exhibit outgoing personalities and quick wit, a natural warmth and an apparent love for their home cities and motherland.
During the interview we were treated to exquisite lap-top images of the stunning Russian architecture found in their home towns.
While Deb and Bob have focused on teaching the young men the ins and outs of foodservice work and the business, they have also taught them much about basic skills required to get along in America.
"I took them down to the bank, introduced them, helped them set up checking accounts and explained how they work and how they're maintained," Miller says. "They're quick learners and have become pretty self-sufficient," Miller says.
interestingly, a number of other Ennis-area businesses have also adopted the restricted-visa student worker solution. Vitaly and Ratmir have connected with an entire subcommunity of 40 or so fellow foreign students including youth from Poland, Lithuania, Spain and other countries with whom they've developed friendships.
While Deb and Bob Miller may have found just the stop-gap they needed to plug the holes in their labor force, they predict the workers shortage in southwest Montana "is going to deteriorate even further."
"The people moving here already have other skills, and the construction trades suck up the unskilled workers at wages higher than we can afford," Bob says.
"I would highly recommend that other employers look into this. Apply early and you'll get candidates with the best language skills. You could put them to work waiting tables or tending bar. This just might be the solution. We're satisfied."
Source: The Montana Tavern Times, August, 2006, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.