Tech Industry Has Ulterior Motive Regarding H-1B Visas

[OhioChick]

Posted Dec 18, 2006

The technology industry has dispatched its fat-wallet lobbyists to demand that the new Congress vastly increase the number of foreign computer software techies and engineers who can be imported on H-1B visas. This demand is based on the claim that we suffer a labor shortage in those fields, but that's a bare-faced lie to erect a smoke screen around the real reasons.

Three reasons motivate the tech giants to use their political clout and political action committee contributions to increase H-1Bs:

1. Cost-cutting: H-1B visa holders are paid much less than Americans.

2. The influx of H-1B visa holders depresses the "prevailing wage" for all computer techies and engineers.

3. The hiring of H-1B visa holders prevents potential competition from Americans who might choose to work for other firms or start companies of their own.
http://www.humanevents.com/article.php?id=18532


<snip> A technology industry coalition called Compete America gathered at Stanford University in November for a TechNet Innovation Summit, but the goal wasn't innovation. This coalition, backed by Microsoft, Intel and other computer giants, has sent a letter to every member of Congress calling for more H-1B visas so businesses can import Indian, Pakistani and Chinese engineers to fill U.S. jobs.

A study by the Pratt School of Engineering at Duke University also found that there is no shortage of U.S. engineers. Eighty percent of respondents to a Pratt survey say U.S. engineering jobs are filled within four months, and 88 percent didn't offer signing bonuses.
Many companies hire student engineers from India and China with only two or three years of college and then train them in their own facilities. U.S. students with two or three years of college get no job offers.

[SharonAnn]

1. You bet! They want cheap help, just like the meat packing industry does.

There are skilled Americans available to work.

Why don't they hire us?

Silly, answered my own question.

h, and don't forget that someone on an H-1B visa is going to accept just about any kind of treatment from the company that hires them. Number of work hours, working conditions, no benefits, etc.

[ChromeFoundry]

2. Notice that there is no mention...

to congress of fast tracking these H-1B workers into full citizenship status, where they would actually be contributing to this tax base for years to come. This is all just part of a plan to allow for legalization of the sweat-shop mentality, bringing in additional windfall profits to the corporations. Microsoft plans to build a large tech center in Vietnam. Is it because there are no workers in the US (and now India) to fill their coding positions? No, fact is that Vietnam is a market that can be trained and directly compete against the rising Indian software development wages. It is all about least cost sourcing and increased profitability. The development costs plummet (coders salaries) and the end product (Vista) costs increase; Gates and Ballmer get bigger payouts.

[rollopollo]

3. Controversial Issue

I can see why many are upset at the H1B visa program. Several years back, congress expanded the program but allowed it to sunset, and the level of H1B immigration is back to its former, reduced level. What the tech industry is advocating, I believe, is a return to that higher level.

Interesting though this article was written by Phyllis Schafly and covered in Human Events. Its one of those issues that seems to unite people in both parties.

From my personal experience, I have almost always had good experiences working with H1-B workers. They're smart, humble, soft-spoken, but have a terrific work ethic (although I've really encouraged a few of them to hit the beach on the weekend and get a few hobbies ;). In Silicon Valley, unemployment is just above 4% and finding engineers has become difficult. I know that first-hand. We're having to hire people who just don't have the skillset we need.

I agree that we shouldn't hire H1B's at the expense of American workers. And we should increase technical training for displaced workers. We should also make it a first priority to fill positions with American workers. Having said this, I see the need for us to expand the talent pool for technical positions. If the economy slows, we can ratchet the level down as we've done in the past. We have so many immigrants coming to this country every year: 1M legally and an estimated 1M more illegally. The H1B immigrants make up a small percentage of this and are just about the most highly-educated of immigrants coming to the country. I think we should see them as positive contributors to our country, and not as intruders.

[cap]

5. you must be joking right...

you cant be serious.... I know tons of people getting out of IT who cant find jobs. I know ex-Bell Labs guys who are doing meatball coding.

Your quoting of the 4% unemployment rate is absurd. You must have thought unemployment was negative during the Clinton years with whole sections of the newspapers devoted solely to tech jobs. Salaries were going up like mad and everyone had 5 job offers.

[rollopollo]

6. Just the facts, man

"In another sign of a strengthening Silicon Valley economy, unemployment in Santa Clara County dipped to 4.1 percent in October as the region added jobs at a monthly clip that far outpaced its historical average." - http://www.mercurynews.com/mld/mercurynews/business/16045606.htm

"The continued low unemployment rate in Maryland — which was at 4.3 percent in July, below the 2003 level of 4.6 percent, according to seasonally adjusted state figures — and economic growth have caused a tighter labor market, analysts said. That has forced companies to compete more aggressivly for technical employees, especially the high-end ones." - http://www.gazette.net/stories/092206/businew173428_31986.shtml

I have no doubt there are cases where people don't find jobs. But when you look at the whole picture, its hard to deny that the tech industry is booming. The rates, as published, are low. And it's not only statistics, I see that first hand.

[ChromeFoundry]

7. Silicon Valley's unemployment rate

has been through the roof since 2003. This drop was caused by the recent addition of 5000 jobs at below 2003 salary medians. Of course unemployment rate are going to fall briefly... did you really think that people would continue to live there for four years, unemployed???

Do you really think that 5000 jobs amounts to a hill of beans when the unemployment rate has been on a large upward trend for nearly four years? If this math works for you.. I guess you would have no problem reducing your paycheck each month by 7% for four years straight.. as along as they only decreased it by 4.1% in one November? Big f-en deal!

[rollopollo]

8. What are you saying?

I'm confused. I gave you two different sources that showed the unemployment rate is about 4%. Since we're talking about today making decisions about H1B's, today's rate is what matters, not the rate in 2003 or other period. Your implication, if I understand it, is that people who are unemployed left Silicon Valley? If you have data to back this up, I would be more than willing to consider it. Having lived here between the dot-com bust and today, best I can tell is that the population has either remained stable or has increased.

[cap]

9. the official unemployment statistics are a joke...

there have been numerous threads on DU about this. What was unemployment like during the Clinton years, a negative number?

Remember when recruiters aimlessly dialed company exchanges punching in random extensions looking for people? You've gotta be kidding.

[rollopollo]

11. No Joke

The chart over the years from the BLS is here: http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?request_action=wh&graph_name=LN_cpsbref3 .

It's as good an indicator as we've got for employment levels.

[OhioChick]

12. You're gullible if

you believe everything that the government tells you.

[rollopollo]

14. You're right

I would be. But I don't. I do however believe the unemployment ratesj; in the past they've squared with what I've observed about the employment status of people around me.

[cap]

15. You are not following the debate on the validity of the BLS statisticss

there was a recent article in the NYT stating that 10% of males between the ages of 30 and 55 are not employed.

Remember, no one is getting extended unemployment benefits like they used to. So the statistics you are quoting dont measure those who have fallen off the roles or a professional who is now working retail or an ex-retail clerk who is now doing day labor or the day laborer who doesnt bring home any money because he didnt work today.

[ChromeFoundry]

13. Here...

"Santa Clara’s labor force numbers declined by 12.3 percent (-116,000) during the 2001–2005 period."

http://www.calmis.ca.gov/file/cosnaps/santcSnap.pdf

[ixion]

4. labor shortage my a**

they simply don't want to pay real wages. The H-1B's are basically slaves to the corp they work for.


See, there's a problem with outsourcing: it doesn't work as well as having people who are in or at least near the same time zone. So they want to bring them over here now and pay them just marginally more than they would if they had outsourced directly.

[cap]

10. yup.. look at zazona.com

it documents when "experts" were paid the low end of the wage scale during the boom times of silicon valley. Now, if folks were really high end, they would have been paid accordingly.