KTFMC Meeting: Labor Crisis in the Thoroughbred Industry

LEXINGTON, KY-The ongoing labor crisis in the Thoroughbred industry was the focal point of discussion at the Kentucky Thoroughbred Farm Managers' Club's monthly meeting, which was held on Tuesday and brought in a large audience for a discussion on the talk.

A panel of five industry participants and educators was on hand to give their perspective on the history of the issue and how the situation has worsened over time. They also spoke on projects currently in the works that have potential to bring in skilled labor and shared their thoughts on the best methods for effectively recruiting a new generation of workers.

“We had a board meeting and discussed what would be relevant for this meeting and this is a topic that pertains to every farm right now,” KTFMC President Courtney Schneider said. “You hope that there's a light at the end of the tunnel, but it's an issue that needs to be addressed and we need to be educated about what we can do to bring in new people and keep them in the industry.”

“Our goal for the club is to refocus on issues that are important for farm managers–be it health and disease, operational issues or the bigger challenge of labor,” KTFMC Treasurer Gerry Duffy said. “It's an issue affecting every farm and everyone you talk to. Some people are in a desperate situation. Not only are you changing how you do things due to the absence of help, but it's putting an extra burden on the people you do have. It's not sustainable and we need to really get in front of the issue to try and solve it.”

Fasig-Tipton

Chris Baker was the first member of the panel to speak. The Chief Operating Officer of Three Chimneys Farm briefed the audience on the state of the issue when he first joined the industry through an entry-level position as a groom in 1986.

“It was a different time with 50,000 foals on the ground, the market was strong and input and labor costs were relatively low,” he said. “But even at that time, when labor was more abundant than it is today, I can still remember lamenting about finding the next group of people coming up to do this. The problem of identifying, recruiting and retaining a workforce isn't a new one, but it was less of an issue then.”

According to Baker, the connection with the horse–or lack thereof–is a main cause for today's limited employee pool and poor job retention.

“Finding help seemed easier [in 1986] and I think some of that was because we were less removed from an agrarian society. When you look now at the composition of the workforce, with a lot of Latinos, many of the people who have immigrated here are less removed from or are coming from an agrarian society. I think that's a big part of it–the connection with the horse. Without that, it can be hard to make sense of what you have to do and the sacrifices that need to be made in order to have a career in this industry.”

Baker emphasized that in order to recruit a strong, skilled workforce, finding the right person to fit the job is crucial.

“If you're going to come to work in the Thoroughbred industry, you probably have a different realistic financial ceiling than if you were going into medicine or finance,” he explained. “So why do you come to the horse business? It all comes back to the horse. I think if we can put the horse first in all we do, make people aware and make that focus on the horse as part of your recruiting, you're going to get the kind of people you want who are doing it for the right reasons.”

He continued, “We need to focus on a fair wage, a good work environment where people and horses are treated with respect, because that's part of making people feel like they're a part of something special, and then we need to train, develop and encourage so there is infrastructure in place for people to grow.”

Frank Taylor, Vice President of Taylor Made Farm, also shared his experiences as an employer. Taylor Made has several programs that Taylor said have been key to keeping their operation fully staffed.

This year, Taylor Made has started a pilot program called the Taylor Made School of Horsemanship. Created in partnership with Shepherd's House, a transitional residential drug addiction treatment center in Lexington, the program set a goal to bring in five trainees every 90 days. The workers spend their days on the farm and then return to the Shepherd's House every evening, where in addition to food and housing, they are also provided with counseling services.

“We have one barn set up where they are all working together and we also have a director there, someone who is good at teaching,” Taylor said. “I think it could be huge in the future. It's such a win for everybody. Obviously it's a win for society, it's a win for the horse business and a win for Taylor Made, and if we can give these people second-chance employment and help them get on their feet, I think we can do a lot of great stuff.”

While the project is still in the beginning stages, Taylor said he envisions future expansion.

“When you give these people a second chance and they are fully recovered, they become an example for everybody else,” he said. “For people dealing with addiction, one of the things that keeps them going is helping other people. So our hope is that we grow this and help a lot of people, who in turn help a lot of other people. We want to take this, get it perfected and show it to other farms. This has a lot of potential and we could envision 50 to 60 people a year graduating from this program and going out into the industry.”

Taylor said that his farm has also been a part of the H-2A Temporary Agricultural Workers program for four years.

“This program has been a godsend,” he said. “The thing about these guys is they're coming in and they're grateful and they love what they're doing. They can do two times as much work as the average person, maybe three.”

The Kentucky Equine Education Project (KEEP) Foundation and the Kentucky Chamber of Commerce Workforce Center has joined forces to launch the Equine Workforce Initiative in an effort to address the shortage of equine workers on a state level. Laurie Mays, another member of the panel, serves as the initiative's Equine Talent Pipeline Project Manager.

“We are in year three of this initiative,” she said. “We bring employers together and give them a safe space to discuss their struggles in terms of workforce development. We look at things like what skills go along with specific positions and how many people an employer might need in these positions.”

One problem her team has encountered, Mays said, is that accurate research on employment in the equine industry is difficult to pinpoint quantitatively due to the broad scope of data the state agency has to offer on employment in agriculture as a whole.

“One of the things we're doing is trying to get hard data for the needs of the industry,” Mays said. “This information and data can feed into our state's statistical agency so we can have a better idea of what our true needs are. This gives us a better way to talk to training programs when we can show them the actual number of positions we need to fill.”

The program at Blackburn Correctional Complex currently has seven graduates working in the industry. | EquiSport Photos

The Equine Workforce Initiative is in the process of developing several other programs that could prove to be valuable resources for employers. In partnership with the Thoroughbred Retirement Foundation and the Blackburn Correctional Complex in Lexington, Mays and her team are working to create meaningful connections between inmates who have undergone training on the farm and potential employers so that graduates of the program have a job as soon as the time comes.

“As of yesterday, we've placed seven people in Lexington at farms and vet clinics and it's going very well,” May reported. “We've heard great feedback from the employers who have hired them. We're going to look at doing an educational tour for employers to meet the instructors and the gentlemen, see the facility and learn more about what they learn.”

Savannah Robin serves as the internship coordinator for the University of Kentucky's Equine Program. She joined the panel to speak on the growing population of higher-education graduates seeking a career in the equine industry.

Robin shared that seven institutions in Kentucky offer an equine program. At the University of Kentucky, 300 students are in the program at any given time and on average, 89% come from out of state.Each student is required to complete an internship in order to obtain their degree at UK, and Robin said that on average, 21% of these internships focus on horse and farm management. However, only 9% of the UK Equine Program's alumni base currently works in that same field.

“We need to figure out how to tap into that 21% and help retain them within an industry than can provide them with leadership experiences,” Robin said.

Katie LaMonica, the Charities Manager for Godolphin, closed out the panel by reminding the audience about the upcoming Thoroughbred Industry Employee Awards.

“We are heading into the sixth year of the TIEA Awards,” she said. “If we're looking for ways to reward and recognize our staff, this is a great way to do it. This year, all seven award categories have a sponsor. Our nominations are now open and we also have a new award. The Support Service Award is for your maintenance crew, gate grew, night watch team, farriers-people who don't necessarily work on the end of the shank, but they keep you going.”

The audience present at the meeting consisted of a diverse group of both well-established and up-and-coming industry participants, with UK Equine students and Kentucky Equine Management Internship (KEMI) members on hand. During the 'Q and A' session at the end of the meeting, much discussion was brought forth on the topic of work-life balance and the incoming generation's emphasis on the subject.

“Millennials and Gen Zers get beat up sometimes in terms of their work ethic, but the values of their generation won't disappoint you in what they can bring to the workforce,” Robin said. “These students need different things. They need different things than what I needed when I graduated. They're looking at work-life balance early on so that they don't burn out and can go on a long time within a career and be sustainable within that career.”

Baker and Taylor agreed that better working conditions and increased job flexibility are areas they could see evolving in the future, but said that participation in the Thoroughbred industry would always require hard work and sacrifice.

Baker said, “Do we need to adapt and provide opportunities to broaden the people that come to this business for a career? Yes. But on some level, I think the people that do the best, go the furthest and accomplish the most are those that embrace the lifestyle and the sacrifices that come with it in their personal life.”

“It is a lifestyle and it's not a job,” Taylor echoed. “If you're getting in the horse business and you want to be successful, it has to be a lifestyle. If you're going to get in this business, you better love it and be dedicated to it.”

“It's a matter of figuring out a way to make our industry available to the incoming generation who, quite rightly, doesn't want to work seven days a week,” Duffy said in conclusion. “We have competition from other industries who are paying more and making variable work times and conditions available to people, but behind that there's some great work going on here and some great initiatives. We have to keep the conversation going. We're here to get a discussion going and not necessarily present the answers, but just to get the industry talking and collaborating. As an industry, we need to come together and try to solve our issues together.”

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H-2B Visa Language Removed from Bill

The H-2B visa guest worker program, used frequently by trainers to fill backside positions, has been the subject of potentially damaging language within the fiscal year 2022 Department of Labor Appropriations bill. United States Representative Andy Harris (R-MD) offered an amendment July 15 to remove certain sections from the bill that would have made it difficult for employers to use the H-2B visa. During committee consideration, the amendment passed by voice vote.

“Thank you to all who contacted their Representative regarding this issue,” said NTRA president and CEO Alex Waldrop. “We also are grateful to Rep. Harris for offering the amendment to eliminate the language that was so threatening to employers, like horse trainers, who use the H-2B visa program.”

The amendment removed sections 116, 118, and 177 from the bill. The language in those sections would have:

  • Prohibited industries from using the H-2B program if they experienced unemployment in any of the previous 12 months over 10%;
  • Prohibited construction industries from using the program even in seasonal locations or occupations;
  • Increased the baseline for wages to at least 150% of the federal or state minimum wage, whichever is higher;
  • Required wage compliance with a collaborative bargaining agreement for your industry in your area, even if you are not a party to the agreement;
  • Banned participation in the program for labor/workforce-related infractions outside of the scope of the H-2B program.

 

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H-2B Visa Program Faces Severe Threat From Bill

Edited Press Release

The U.S. House Appropriations Committee is scheduled to consider the fiscal year 2022 Department of Labor Appropriations bill Thurs., July 15, and language within the bill could devastate the H-2B visa program. The National Thoroughbred Racing Association (NTRA) is urging industry members to contact their Representative immediately and ask for this language to be removed from the bill.

The language of concern appears on pages 46-50 of the bill and would make the H-2B visa program difficult for many employers to use. Specifically, the draft bill would:

 

  • Prohibit industries from using the H-2B program if they experienced unemployment in any of the previous 12 months over 10 percent;
  • Prohibit construction industries from using the program even in seasonal locations or occupations;
  • Increase the baseline for wages to at least 150% of the federal or state minimum wage, whichever is higher;
  • Require wage compliance with a collaborative bargaining agreement for your industry in your area, even if you are not a party to the agreement;
  • Ban participation in the program for labor/workforce related infractions outside of the scope of the H-2B program.

 

“This appropriations bill contains alarming language for any business or industry that relies on the H-2B visa program to operate,” said NTRA president and CEO Alex Waldrop. “We ask trainers and others in horse racing to contact their Representative today to help get this language removed.”

As suggested by the H-2B Workforce Coalition, of which the NTRA is a member, industry members are encouraged to speak with their representatives and ask that their party leadership delete Sections 116, 117 and 118 of the of Fiscal Year 2022 Labor, Health and Human Services, Education, and Related Agencies Subcommittee Appropriations Bill before the legislation is considered by the Appropriations Committee Thursday. The Capitol switchboard may be reached at (202) 225-3121. Emails can also be sent to representatives via this link.

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Labor Shortage Could Be The Next Big Challenge For Racing, Industry Experts Say

The racing industry had a number of hurdles ahead of it before the COVID-19 pandemic hit. Reducing fatal breakdowns, creating a national regulatory body, attracting new owners and horseplayers, along with many other challenges, were all at the forefront of discussions before March 2020. Speaking at this week's American Horse Council National Issues Forum, industry experts say 2020 may have worsened the next big problem facing racing — the labor shortage.

In the short term, the pandemic made it difficult for people to travel to work in the United States on a short-term basis, but that problem may have been solved. Earlier this year, President Trump issued three proclamations that suspended the entry of aliens from certain countries due to concerns about the novel coronavirus. Several groups, including Breeders' Cup, the National Thoroughbred Racing Association, Keeneland, Kentucky Thoroughbred Association, and Fasig-Tipton, worked with the Department of Homeland Security to get exemptions for people traveling into the United States to buy horses at the autumn sales or to run at the Breeders' Cup. The president's restrictions allowed for exemptions that were in “the national interest” and through a very specific and detailed explanation of Thoroughbred economics, the industry groups were able to get exemptions for certain key players in both events. That discussion could ultimately prove helpful down the road.

“We were happy we were able to get that done,” said NTRA President and CEO Alex Waldrop. “I think it's a good story to tell. At this point in time, I think the Department of Homeland Security is very familiar with our industry, the international nature of our industry, and they're supportive of the national interest exemption where it's appropriate.”

That doesn't mean that when the pandemic is over, the horse racing industry will no longer face restrictions on international movement that impact its bottom line. It's no secret that trainers and farms have had difficulty in recent years accessing H-2A and H-2B visa workers to fill seasonal needs for grooms, hotwalkers, exercise riders, and farm workers. Those restrictions have only gotten tighter under the current administration, according to the Bryan Brendle, director of policy and legislative affairs for the American Horse Council.

The Department of Homeland Security has discretion to allow visas above the statutory cap, and while it did authorize supplemental H-2B visas in March, it only released 35,000 and not the 60,000 it could have released. (Trainers have previously said even with supplemental visas released they struggled to find staff.)

The issuance of new H-2B visas was put on hold in June. In August, the U.S. State Department, which handles the visa process in the home countries of guest workers, did create an exemption for caretakers of non-farm animals, which is how horses are classified in the visa system. That only freed up people who had been granted visas prior to the freeze and then been told not to travel to the United States, so the State Department's action didn't result in many additional workers coming into the States.

Eric Hamelback, CEO of the National HBPA, said he still regularly hears from trainers, including high-profile operations like Chad Brown, Todd Pletcher, and Dale Romans, who are unable to find enough help despite high unemployment figures in the States this year. Hamelback said he knew of operations at smaller tracks that had to close altogether because they couldn't find employees to take care of horses.

“While we are all on different pages with some items in this industry we can't be on different pages as we push for our workforce shortages, whether it's developing new programs here in the States or continuing to push for H-2B visas,” said Hamelback.

Waldrop said the “elephant in the room” is the potential impact of the upcoming national election on this issue.

“You have to ask yourself — is there a difference between a Trump presidency and a Biden presidency?” he said. “My sense is, we've got an uphill battle, we've got tough sledding if we continue to work with the Trump administration. I think you're going to see difficult times ahead, certainly no talk of comprehensive immigration reform.

“I think you cannot say Trump will not develop a comprehensive policy and Biden will, but I do think you'll see some additional conversation taking place [if Biden wins].”

Of course, one solution would be to try to create a better pipeline for domestic workers to fill the jobs on the racetrack. Remi Bellocq, executive director of Equine Programs at Bluegrass Community and Technical College, said that progress could be on the horizon on this issue, but it's not going to be an easy one to solve. Bellocq recently collaborated with the Kentucky Chamber of Commerce and KEEP to create a one-year apprenticeship program for horse trainers. He also suggested Godolphin may soon launch an international educational initiative to help those interested in racing find the appropriate pathway to industry jobs in their country.

“On a greater scale, we need to look at what we do nationally,” Bellocq said. “My strong feeling is that until we approach the workforce issue the same way we approach unwanted horses or racing medication, this will continue to be a bigger and bigger challenge. One of the things I've found personally is you have a guest worker immigration issue you have to deal with, but the labor issue, which is a domestic training issue, is just as critical. Until we can incentivize and recruit domestic workers into our industry, pay them what they ought to be paid, find work/life balance, it's going to be a growing problem.

“What I find with a lot of our graduates is they'll go to work for a trainer but very quickly they'll want to move up, become an assistant trainer or a foreman, and we have to very quickly fill those lower skilled jobs again. That's one of the things we continue to try to find solutions for.”

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