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The H-1B Swindle
An anonymous reader writes "A new study shows that companies hire foreign workers for cheap labor, not skill." From the article:"When you look at computer job titles by state, California has one of the biggest differentials between OES salaries and H-1B salaries. The average salary for a programmer in California is $73,960, according to the OES. The average salary paid to an H-1B visa worker for the same job is $53,387; a difference of $20,573 ... H-1B visa workers were also concentrated at the bottom end of the wage scale, with the majority of H-1B visa workers in the 10-24 percentile range. 'That means the largest concentration of H-1B workers make less than [the] highest 75 percent of the U.S. wage earners,' the report notes. "
Anyone who has been in the computer industry for more than a few months knows this. Its prevalent everywhere. Don't let them say "there aren't enough engineers to go around", thats pure horse hockey. HIB workers arre cheaper, plain and simple.
What's beneath it is probably some hideous unethical, if not illegal, practice of hiring only H-1B people into jobs.
A feeling of having made the same mistake before: Deja Foobar
Is anyone suprised by this? ..
My employeer scours the fourth world for masters degrees, sponsors thier visa, then pays them $10/hour and forces them into unpaid overtime. After all, if they complain, the company can just stop sponsoring thier work visa
Unethical? Yes.
Illigal? Not in this state.
-Annonymousguywhodoesntwanttogetfired
Has anyone considered the cost to aquire and hold H1-B1 papers for a overseas worker? What about when the contract is up? The company is responsible to return the worker, who pays for that?
WTF? Over?
Having RTFA I wonder how much of the "Duh this has to be true" concept effected their research. They seem to focus mostly on jobs title vs. looking at years of experience or education vs. pay. I think there would be more value in comparing people with the same relative experience who got their final degree be it BS, MS, or PHD from the same school to each other before saying.
"Abuse is by far more common than legitimate use,"
PS: This might be true but I think this has more to do with H1B's being less mobile as far as switching jobs than outright abuse vs. US citizens.
Other issue is that it does not compare apples to apples: most H1b are non-managerial positions with relatively low experience, while national average includes middle managers. One need to compare H1B to the people in the same position.
And it looks like reducing numbers of H1Bs does wonders to the IT jobs retention in U.S. indeed. Not.
<^>_<(ô ô)>_<^>
That means the largest concentration of H-1B workers make less than [the] highest 75 percent of the U.S. wage earners
Yet, the oppressed foreigners keep taking advantage of the visas. Shame on the evil corporations for taking advantage of these poor people. To think, they could be spending more on their own countrymen and supporting their grossly disproportionate wages.
Rather than say, "Hey, you're trying to pay less for programmers!" we should be saying "Hey, are we getting paid too much? Are we pricing ourselves out of positions?"
Don't get me wrong. I've been a programmer for quite some time and it sucks, but supply and demand concepts aren't limited to one country. The world is getting smaller and more connected. National economies are merging into a world economy. No amount of artificial propping-up by local governments is going to keep it from happening. Get used to it.
If the companies are using the H1B workers to pay them $20,000/yr less, do you think they'll give them large raises. What if they don't? The H1B code monkeys aren't going anywhere, they'll work for $30,000/yr, it is still better than what they get in their home country. Most of them will underestimate the living expenses and will think they are getting a killer deal. It is like me, when I tell my family in Russia what I make here in America, they are all "ooh"-ing and "aah"-ing like I am some kind of a millionare, they don't know that my car insurance is $200/month and utilites another $150/month and car payments, mortgage, school loans etc etc
Most H1B's are folks who've been in the workforce for a relatively shorter period of time. Most H1Bs are actually dual-status, which means they are applying for a Green Card while working as an H1B. Green Card processing typically takes 4-5 years. They are not classified as H1Bs once they get their Green Cards - which coincides with them acquiring additional experience and raises.
I make more money now than when I was an H1B and it has nothing to do with my visa status and everything to do with the fact that I have more experience doing what I do now than I did before.
Mmmm.. Donuts
Rather than say, "Hey, you're trying to pay less for programmers!" we should be saying "Hey, are we getting paid too much? Are we pricing ourselves out of positions?"
No. Any cheap work that could be done overseas is already being done overseas. The work that's left in the US would stay in the US regardless of what pay programmers demand. So, companies can only reduce the amount they pay in wages by artifically increasing the workforce and reducing the demand for high-skilled workers.
This has nothing to do with "free" trade in labor and everything to do with market manipulation. These companies do not want to deal with the free market as it's currently structured. So, instead of dealing in the free market, they'd rather redefine the labor market in their terms.
These companies would rather have completely open borders in the US where everyone from everywhere could freely enter. We've already heard Bush say exactly that. Labor costs in the US would plummet. So would the standard of living, but companies and the current administration don't actually care. The only reason they don't push that through now is that they've been pounding security for the last four years. Also, the majority US citizens, both Democrats and Republicans, don't want any more foreigners entering the country to take away jobs. If anything, people want the foreigners to leave so we could actually get some work and decent pay raises around here.