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Senator Prods Microsoft On H-1B Visas After Layoff Plans

CWmike writes "US Sen. Charles Grassley (R-Iowa) told Microsoft this week that US citizens should get priority over H-1B visa holders as the software vendor moves forward on its plan to cut 5,000 jobs. 'These work visa programs were never intended to allow a company to retain foreign guest workers rather than similarly qualified American workers, when that company cuts jobs during an economic downturn,' Grassley wrote in a letter sent Thursday to Microsoft CEO Steve Ballmer. The letter asked Microsoft to detail the types of jobs that will be eliminated and how those cuts will affect the company's H-1B workers." Reader theodp adds, "On Friday, Microsoft coincidentally announced it would postpone construction of a planned $500 million data center in Grassley's home state of Iowa, although work on data centers in Chicago and Dublin will continue."

41 of 574 comments (clear)

  1. Hey! by Anonymous Coward · · Score: 5, Funny

    Dey tuk our jerbs!

    1. Re:Hey! by aliquis · · Score: 5, Insightful

      Yeah if they accept giving them the right to work in the country then why shouldn't they work at the same merits as everyone else? I'd assume Microsoft knows better which people they need and want and which they can get rid of than this guy..

    2. Re:Hey! by evilphish_mi · · Score: 5, Insightful

      no they shouldn't they should be allowed to hire the best workers for the job.

  2. awesome by Anonymous Coward · · Score: 5, Insightful

    What's really going to be awesome is when Microsoft, IBM, et al go to Congress for their annual request for increased H1B visas after laying off thousands of American workers.

  3. ...because H1Bs are forms, not people by matt4077 · · Score: 5, Insightful

    I can understand that the well-being of american workers is more important than that of visa-holders to an elected politician. However, the impact of losing the job is much higher for H1Bs, as they usually have to leave the country (within 1 week I think). Considering the fact that these are humans, too, maybe it would be acceptable to lessen these restrictions somewhat, i. e. allow these people to stay in the country for a year if they have the financial means.

    1. Re:...because H1Bs are forms, not people by c0nst · · Score: 4, Informative

      actually, laid off h1b workers are allowed a 2 month "grace" period to either find a new job or leave the country

    2. Re:...because H1Bs are forms, not people by betterunixthanunix · · Score: 4, Insightful

      We are in the midst of a major economic crisis, and the more Americans who lose their jobs, the worse it is going to get. If a foreign national loses his job and goes back to his country, then his country will take care of him. The US government needs to focus on the US and US citizens right now, and not allow the needs of H1B guests to trump the needs of Americans.

      --
      Palm trees and 8
    3. Re:...because H1Bs are forms, not people by Nicolas+Roard · · Score: 5, Informative

      Care to give some links about this ? All I read about the H1B "grace" period is that there is none. (random recent link http://www.isss.umn.edu/H1BEmployment/GracePer.html). There's apparently an unofficial 10 day grace period, but that's about it.

    4. Re:...because H1Bs are forms, not people by matt4077 · · Score: 5, Interesting

      These H1B holders are well-educated. They'd be able to take of themselves. They'll return home and be a huge benefit to their home country. The US, meanwhile, will lose these talents after probably having spent lots of money in educating them.

      Remember: the number of jobs is not fixed. A million unemployed but well-educated nerds will probably lead to the next google, Apple or whatever. If you throw these people out of the country, those companies and their jobs are just created elsewhere.

    5. Re:...because H1Bs are forms, not people by melstav · · Score: 4, Informative

      They don't just have to find a new job.

      They have to find an employer who is willing and able to sponsor them for either an H1B or a green card.

    6. Re:...because H1Bs are forms, not people by Rakshasa+Taisab · · Score: 4, Insightful

      So you're kicking out talented and resourceful people so that you can keep some fat lazy Americans in work?

      Yes, that sounds like the best way possible to prepare for bouncing back after the recession.

      Oh... I guess stereotyping never works well, yet the H1B are mainly high-skilled workers. Sending them back home only gives their home country, or what ever country they decide to relocate to, an invaluable resource.

      --
      - These characters were randomly selected.
    7. Re:...because H1Bs are forms, not people by Anonymous Coward · · Score: 4, Insightful

      Sure. As long as skilled WHITE construction workers aren't allowed any of those jobs!

      http://www.youtube.com/watch?v=opxuUj6vFa4

    8. Re:...because H1Bs are forms, not people by darkstar949 · · Score: 5, Insightful

      The whole purpose of the H1B program was to bring foreign nationals into the country to work because the company said there weren't enough Americans who could fill the positions. However, if a company is now downsizing then it make sense that if you have a technical position that you need less people for, that the guest workers should be the first ones to be downsized. Logically, you can't claim not being able to find people to fill a position if you just laid off two people qualified for the position.

    9. Re:...because H1Bs are forms, not people by bahbar · · Score: 5, Interesting

      Having been in this situation a while back, no, there is officially no grace period. As far as I know, it just happens that the administration lets people transfer anyways. I have heard 10 days, 2 months, nothing... I personally had my H1b transfer initiated in the couple of days after my company closed. Technically, you can apply for transfer, start at your new job, and have your transfer denied (or so they say, I never actually heard about a denied transfer). fun stuff!

    10. Re:...because H1Bs are forms, not people by fartrader · · Score: 5, Informative

      actually, laid off h1b workers are allowed a 2 month "grace" period to either find a new job or leave the country

      That is completely and utterly untrue. You have a 10 day period to leave the country - if you do not have another visa in process with the USCIS BEFORE YOU GET LAID OFF you are considered to be "out of status" after those 10 days and a USCIS examiner is likely to refuse you another visa if you apply for a new job without leaving the country. Being out of status is bad because it will count against you if you ever decide to get another visa or apply for a green card - even ONE day can result in a refusal.

    11. Re:...because H1Bs are forms, not people by darkstar949 · · Score: 4, Insightful

      That is true. However, the assumption is that if you have two people with the same job description, then that is two people whom the company thinks is qualified to do that job.

      Also, since the H1B program is a government program, then they have to hold to the law of the land which assumes that all of the employees are in fact equal (actual work performance not withstanding) which means that the company must justify laying off employees who were filling a job that they are now requesting a H1B visa for.

    12. Re:...because H1Bs are forms, not people by bsane · · Score: 4, Interesting

      These H1B holders are well-educated.

      Except for the ones that lied about their education and experience: http://www.businessweek.com/print/bwdaily/dnflash/content/oct2008/db2008108_844949.htm

      When I worked for FNMA I wondered how most of my H1 coworkers had no previous knowledge of computers, and why even though they supposedly had degrees in EE they had no knowledge of any basic principles of that field. They were very popular with management because they always said yes, and were continually afraid of 'causing problems'. The ones I talked to also made 20-30% less than I did.

      Certainly not the case everywhere, but I'd say H1B1 visa holder = undereducated indentured servant in far too many places.

    13. Re:...because H1Bs are forms, not people by Splab · · Score: 5, Insightful

      In Denmark we have a fixed grace period, however foreign workers do have a hard time getting a job since there is a minimum required pay for keeping the green card (which in effect puts the foreign worker in the top 50% payment), this severely reduces the gain for companies when hiring foreigners.

      On a side note, I thought the US was build on people coming from bad situations to live the American dream, you guys sure have changed your mindset lately.

    14. Re:...because H1Bs are forms, not people by DoofusOfDeath · · Score: 4, Insightful

      So you're kicking out talented and resourceful people so that you can keep some fat lazy Americans in work?

      There's so much wrong with your characterization of the issue that it's hard to figure out where to start...

      H1B workers can be paid significantly less than native workers. If you're carrying $100k in student loans from having been educated in America, and the H1B program brings in someone who can afford to work for $30k/year, you're screwed. Being undercut by inexpensively educated foreign workers makes one neither fat nor lazy.

    15. Re:...because H1Bs are forms, not people by Trailer+Trash · · Score: 4, Informative

      On a side note, I thought the US was build on people coming from bad situations to live the American dream, you guys sure have changed your mindset lately.

      If that was the case, there wouldn't be any complaints, because then they wouldn't be getting paid less. It's the fact that they're only temp workers that get paid up to 23 percent less than Americans in the same positions that cheeses people off. Level playing field--fine. Unfair playing field where management lies about not being able to find qualified personnel and then turns around and pays substantially lower salaries--not good.

      And, to continue, the "lower pay" part is illegal. I have actually looked into it (from a business standpoint) before, and, as a business owner, I have to basically sign an affidavit that I will pay the same rate to the foreign worker as a similarly qualified US worker, and I have to swear that I can't find anyone in the US to fill the job.

      My wife came over on an H1A originally as a nurse, and it was the same story. The nursing home was getting Filipino nurses to come over so they could pay them shit wages that Americans wouldn't even consider. The Filipinos also put up with *anything* because they could be sent back to the Philippines with a signature from the director.

      I have a friend who's in the same shitty position now as a computer programmer - the company illegally didn't pay him for 8 months while he was "benched", but he won't sue them because he wants to be in the US so bad. They owe him tens of thousands of dollars. He ended up finding the current contract that he's working by himself, but still is working through the agency that dicked him over. Looking them up on the internet, he's not the only one they've done this to.

      Anyway, it's a mess, but if the US simply enforced the law, particularly the "equal pay" part, the problem would go away.

  4. This is Major Tom to ground control. . . by Anonymous Coward · · Score: 5, Interesting

    I was laid off from my programming job and I have been looking for a job for a year now, and I keep getting passed on. I've even lowered my wage expectations and my references, former managers and coworkers, have a lot of good things to say about me. I am constantly applying through newspapers, monster.com, dice.com, etc. Why is a H1-B holder getting precedence over me? And, why are these companies laying off Americans in favor of keeping the H1-Bs? We have a problem, Houston.

    1. Re:This is Major Tom to ground control. . . by SerpentMage · · Score: 4, Interesting

      Have you actually thought about WHY you are not getting hired? And fixing those issues?

      My wife is a manager and I get to see the other side of things. They don't explicitly go out with the notion, "oh let's not hire X, but hire Y."

      They are just thankful that they can get anybody with skills.

      Right now there is a REALLY big problem, and a friend of mine says it best.

      "Those that you want to hire are not hirable, but those that are hirable you don't want."

      He said this because he noticed that there are many who calls themselves programmers, but are 2000 leftovers who got into it because you could make "lots and lots" of money. Hiring a programmer that you want to keep is these days very difficult.

      --

      "You can't make a race horse of a pig"
      "No," said Samuel, "but you can make very fast pig"
  5. They will not by WindBourne · · Score: 4, Insightful

    They are all simply hiring elsewhere.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  6. H1Bs are wrong by mlwmohawk · · Score: 5, Insightful

    The "guest worker" program is nothing more than a gift to large corporations to get cheap labor that is almost an "indentured servant."

    Seriously, what employer wouldn't want to be in the position to employ reasonably killed labor that *HAS* to work to to say in the country. They are a lot easier to intimidate. They can't raise labor issues for fear of having to leave the country.

    H1Bs come to the US. Work for less than the prevailing wage. Are not "citizens" and do not have the same rights. Can be easily intimidated: "Don't want to work on the week-end without pay? Your fired, now go back to your own country."

    Then if they lose their jobs, not only do they have to leave, but they have to pay to leave. Lose their last month's security deposit on their apartment because they have to break the lease.

    H1Bs reduce the prevailing wage, exploit foreigners, and are generally bad policy for middle class.

    As for Microsoft, or any employer, *all* H1Bs should be dispensed with *before* any american gets laid off.

    1. Re:H1Bs are wrong by bahbar · · Score: 5, Insightful

      Funny, during my H1b days, I always thought I was paid at least as much as my colleagues. I went through my company closing, and had support of everybody around me. I worked for 3 different companies in 5 years (a couple of big ones), and never once was felt pressured as an H1B. What do I know, maybe I am the exception?

  7. They didn't want to hire American's in the first p by htnmmo · · Score: 5, Informative

    Some of these companies didn't want to hire Americans in the first place according the Programmer's Guild.

    Here's a video showing Immigration Attorney's explaining what companies need to do to get around the laws and hire more H1-Bs.

    Basically, create impossible job descriptions and then go oversees since no American would qualify.

    I've worked with and managed a few H1B programmers. Some where very talented. Some were hired just because they were cheap. They were no better than any random American college grad. They were just cheaper.

    Both the American and foreign born developers worked hard and there were good and bad in both. It all boils down to money.

    Most of these companies depend on American consumers to survive, but if everyone decides American workers are too expensive to hire, they're not going to have American consumers to buy their products and services.

    Here's the video.
    http://www.youtube.com/watch?v=TCbFEgFajGU&feature=channel_page

  8. Re:Republican? by calmofthestorm · · Score: 5, Insightful

    1) Everyone is more likeable when not in power.
    2) Neither party actually practices what it preaches to any reasonable degree. If you want to vote for a balanced budget, exactly who do you vote for? Tax and spend democrats or borrow and spend republicans? (feel free to translate to non-depression times to make the question fair)

    Of course that's a gross oversimplification, but balance is always in the middle, so we see parties break with their stereotypical views on issues from time to time. If anything I'd be more worried if we didn't.

    Also not every single member of a party is in complete alignment with the party. I lean left, but I'm still in favor of guns, free markets (to the degree that this is possible while keeping them competitive), and against racism by any name. I fail to see why politicians should be any different, except perhaps more tacit on their views.

    --
    93rd rule of Slashdot: No matter how obvious my sarcasm is, my comment will be taken seriously by someone.
  9. Re:Anonymous Coward by darkstar949 · · Score: 5, Insightful

    Actually, I would have to go back and read the way the law is written, but the Senator has a valid point in regards to this situation. You can't really sit there and lay off a large number of technical people and then say that you can find people those same technical skills to do the job and ask to bring in guest workers from out of the country.

    Microsoft might be allowed to layoff who ever they want to, but on the same token the government is able to deny H1B applications from Microsoft as well.

  10. How about... by Hurricane78 · · Score: 4, Insightful

    ...keeping those people that are the most competent?

    Makes more sense than keeping incompetent lazy Americans or incompetent lazy foreigners.

    Oh well... why do I expect business decisions of a big company to make sense?

    --
    Any sufficiently advanced intelligence is indistinguishable from stupidity.
  11. Re:Republican? by Curien · · Score: 4, Insightful

    Many Republicans and other economic conservatives profess to believe in free markets and deregulation. Hypocritically, they staunchly support (and often demand) labor market regulation.

    --
    It's always a long day... 86400 doesn't fit into a short.
  12. Preferential Economics by Ralish · · Score: 5, Insightful

    I always twitch when I read these stories, because I always see it as hypocrisy and double-standards.

    You constantly hear about free market economics, capitalism, the global economy, etc... from America, but what it really boils down to as always is supporting the above ideals when it's good for America, and then moving them to the side when things get tough. It's the age old "America does what is best for America" mantra.

    Microsoft is going to hire and fire the best worker for the job, according to their qualifications; nationality and citizenship should be entirely irrelevant. Not only does this make sense ethically, it makes sense economically (from a corporate perspective). Why hire an inferior worker who holds citizenship when I can hire 'x' H-1B worker who is superior (and, make more money as a result)? Making money is what drives companies.

    When you're willing to advocate preferential treatment for an American citizen not because they are better equipped to do the job but purely because they are an American, you're throwing away your ideals of free-markets and global economics. Coming from a republican I find this especially amusing, as it tends to be the republicans that are the strongest advocates of pure-free market economics.

    This is potentially a great move from a PR perspective. Most Americans aren't going to call someone out for taking a position that strengthens their ability to gain employment, but from an ideological perspective, it's flimsy at best.

    Disclaimer: America isn't the only country that does this kind of stuff, but as arguably the most vocal advocate of the above economic philosophies, it's probably the most hypocritical for doing so.

  13. Re:Republican? by Cheeze · · Score: 4, Insightful

    Wasn't it Microsoft that went before a senate committee asking for more H-1B visas because they could not find enough qualified workers?

    At that instant, Microsoft's H-1B visa workers became an issue with the senate.

    --
    Why read the article when I can just make up a snap judgement?
  14. Stupid argument by yabos · · Score: 4, Insightful

    Why do you think every single H1-B holder is some loser without anyone to care for and has no obligations except to themselves? How do you know if they have family back home they're sending money to? Seriously that's a stupid argument and you're assuming some foreigner is working for less money than a native. From my experience the foreigner will make the same as a native at a company like MS.

  15. Re:Republican? by commodore64_love · · Score: 5, Insightful

    >>>Think that what kind of labor a company must keep should be left to markets (who works for cheapest) compared to their skills) instead of government regulation.

    That's true, but since it was the *government* who brought the foreign workers to the U.S., it's no longer a free market. It's entirely reasonable to say to Microsoft, "If you layoff American workers, we the government will take a hands-off policy and no longer help you with your future labor shortages. Figure it out on your own." The Republican policy can best be described as non-interference (sounds like Star Trek).

    --
    "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
  16. Re:Republican? by commodore64_love · · Score: 4, Interesting

    >>>Actually, it's none of the senator's business.

    I agree. Therefore the government should immediately revoke all foreign VISAs, and assume a role of non-interference when it comes to labor: "You say you want to hire foreigners?" Bill Gates: "Yes." Congress: "Too bad. We won't help you import non-americans; find a different solution to your labor shortage."

    --
    "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
  17. Re:Republican? by OldGeek61 · · Score: 5, Informative

    Are you really that brain dead??? Since the late '90s H-1B visa holders have taken over American jobs at half or less what an American was making!! And don't try to tell me different, I'M ONE OF THEM!!! I WAS REPLACED BY AN H-1Ber that's making half of what I was, and then they called me to fix the problems he didn't know how to for "Old Times Sake". You need to go from a 50k a year job to 20k a year, then you'll know!!!! Oh and getting an H-1B is not that hard when you have a major corporation helping you!!

  18. Re:Republican? by htnmmo · · Score: 4, Insightful

    The free market doesn't work without consumers.

    The reason it's profitable to use cheaper labor is because you're selling to higher earners. If you make sneakers at $1 a pair, you make a profit by selling them for $60.

    If you outsource a large number of your workforce and don't have other jobs they can do at the same pay, they won't be buying lots of $60 sneakers.

  19. Re:Republican? by SwedishPenguin · · Score: 4, Insightful

    If you want to vote for a balanced budget, exactly who do you vote for? Tax and spend democrats or borrow and spend republicans?

    Obviously, if you want a balanced budget, you have to vote for those willing to raise taxes along with increased spending. Though as an outsider looking in, it appears to me that both parties wants to borrow and spend, neither party really seems willing to raise taxes to pay for increased spending, or for existing spending for that matter.

  20. Comment removed by account_deleted · · Score: 4, Insightful

    Comment removed based on user account deletion

  21. Re:Republican? by sweetooth · · Score: 4, Interesting

    Microsoft just let 1400 workers go from their Licensing division in Reno, NV. Those are almost entirely non technical staff and would fall into the "financial services" folks they said they would lay off. It's also extremely unlikely there were any workers in that portion of the layoffs that had an H1-B.

    Now, I would agree with the senator that if two people are being considered for a layoff and one has an H1-B and the other is a citizen, the H1-B should be let go. The reason being that Microsoft and the other tech companies argued that they desperately needed the cap on H1-B's to be increased as they couldn't find skilled workers in the US to fill the positions. At a time of layoffs, in the situation I described, that would obviously not be true any more.