In Search of Cheap Labor in Tech: Behind the H1-B Visa Scenes

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In Search of Cheap Labor in Tech: Behind the H1-B Visa Scenes
by Wolf Richter • February 5, 2015


In April, 2014, it emerged that Southern California Edison, a utility with about 14,000 employees at the time, was planning another round of layoffs. Most of them would be in its Information Technology Department, which had 1,800 employees and 1,500 contract workers. SCE admitted to the plan but told the LA Times that it hadn’t finalized the number. State Senator Alex Padilla then told the paper that as many as 500 employees and 500 contractors would be let go.

Laying off workers and outsourcing some functions was part of its “ongoing efforts to act as cost effectively and prudently as possible in operations for its customers.” These efforts at the IT department would “enable an increase in quality, speed and capabilities while lowering costs,” SCE explained. “By better leveraging the knowledge, skills and expertise of industry vendors, SCE will adopt a proven business strategy commonly and successfully used by other top U.S. companies.”

Namely laying off American employees and bringing in cheaper H1-B visa holders from India.

IT workers in the process of getting axed often sign severance agreements that contain non-disparagement and confidentiality clauses that bar them from discussing the situation in public. Plus there are fears that if they discussed the situation publicly, they might be blacklisted and not find another job. But now some of these affected SCE employees have talked to Computerworld. ....................(more)

The complete piece is at: http://wolfstreet.com/2015/02/05/the-search-for-cheap-labor-in-tech-behind-the-h1-b-visa-scenes/