Microsoft & Intel Get a Pass On Higher H-1B Fees
theodp writes "Criticizing companies that outsource high-paying American jobs, Senator Charles Schumer described Indian IT company Infosys as a 'chop shop'. (Nine Indian companies accounted for 20,000 H-1B visas as of 2007. In 2008, Infosys held 4,500 of the visas; the number was down by a factor of 10 in 2009.) The comments came as the Senate scrambled to fund the $600M Mexican Border Security Bill by hiking application fees for H-1B and L-1 visas. The Senate measure increases H-1B visa fees by $2,000 per application on firms that have 50% or more of their employees on this visa. Schumer pointed out that the bill would not affect high-tech companies such as Intel or Microsoft 'that play by the rules and recruit workers in America,' although they are among the biggest beneficiaries of the H-1B program."
why do the words Intel and Microsoft just not sound right sitting next to "Play by the rules"?
FTFS: ``The Senate measure increases H-1B visa fees by $2,000 per application on firms that have 50% or more of their employees on this visa.''
And Microsoft and Intel evidently are below this 50% limit. As far as I can tell, this isn't Microsoft and Intel "getting a pass", as the title states. No company is being singled out here. It doesn't matter who you are, what matters if you have 50% or more of your employees on H-1B visa.
Please correct me if I got my facts wrong.
And why does it make sense to tax legal immigration to fight illegal immigration? As if legal immigration causes illegal...
I can already see smaller companies going to court to claim that they are being unfairly burdened by the higher cost.
Right or wrong this is going to cause some fur to fly.
Why are MS and Intel even mentioned here? they aren't getting a pass, this isn't even related to them as neither have more than 50% of employees on Visa?
If 50%+ of your employees are H1-B's, I would suggest that your business model is not viable in the United States.
Jesus was all right but his disciples were thick and ordinary. -John Lennon
WSJ: It is likely the senator was going for 'body shop,' also a derogatory term, but one that describes firms who shuffle low-cost tech engineers around the globe.
Shouldn't we be taxing H1-B applications to increase funding for local schools? After all, a big reason why workers come over on the program is because we genuinely lack enough skilled labor to meet our needs at reasonable price levels. Having come through the California school system myself, I'm a bit shocked that computers can add.
Taxing companies that bring over immigrant workers to pay for border patrol paranoia seems foolish. Tax them to help increase local talent levels. Or require the people to become permanent citizens, thereby permanently increasing the local talent levels.
The ______ Agenda
This is just spin to try and make MS look like the bad guys getting special treatment. The reality of the situation is that if companies hire a majority of American (meaning either citizen or resident alien) employees then they don't pay the extra fee. MS and Intel were noted in the article as tow companies that "play by the rules" and hire a majority of American workers, but they were not given special dispensation.
My guess is the logic is twofold:
1) It is to help protect American jobs and encourage companies to hire local. After all if it costs more to hire H-1B employees, then it is not as attractive a proposition.
2) To derive the funding for the measure from a relevant source. The measure deals with immigration, so companies that bring in the most immigrants get to shoulder the burden. While it isn't a direct thing (since the bill is about southern border security) it is still related.
As I've been the beneficiary of an H-1B with Microsoft, I know very well that MS also does a good job at sending H1-B permit holders back home after 1-2 years, before they get a green card. They actually paid for my 1-way ticket back to Europe. I'd be interested to see what is the proportion of H-1B visa holders who end up staying permanently in the US and which company hired them.
Alot of foreigners (like me) out there would like to come to the U.S. and hire (relatively) cheap American engineers,
but we can't do it because foreign investment visas are too costly/risky for small companies.
Here in Australia, our labour market is tightly government regulated, and it's nearly impossible to hire decent
engineers here for anything less than a king's ransom as competition for anyone good is fierce - even the banks
have problem hiring people.
So support startupvisa.com, to drive jobs and innovation from America's greatest asset - it's people.
So the Indian companies not only pay $1Billion a year to the social security taxes that go to fund the bankrupt social Security system with no benefits derived for the individuals they now get to pay $200 million to fight illegal immigration. What next? A tax on immigrants because they are good in Math?
By the way, this also applies to firms that bring in foreign attorneys. Reference recent NY Times article. http://www.nytimes.com/2010/08/05/business/global/05legal.html?_r=1&scp=1&sq=outsourcing%20to%20india&st=cse. My thought is that unemployed attorneys might be more politically active than unemployed IT developers.
Ken
I've worked at MS of and on since the mid 90's. Today, as an American born citizen with over 15 years in software engineering the best I can get at MS today is a low pay rate contract position while the rest of the team (99%) is made up of full time or contract employees who got green card status from their H-1B or LB visas or are still work here on such visas. The average American born worker at MS makes up a very tiny fraction of the work force at MS anymore. It is time that our US elected officials end the visas and send these workers home and give those jobs to the very citizens of the US who are more then qualified. If they are not qualified then B.G. and company should be investing more to train their own country men instead of bring over the cheap labor. Think about that philanthropist man.
This is just protectionism - why shouldn't American companies be able to hire whoever they want?
Countries in general seem unable to have sane immigration policies. It is just one area that stupidity and bureaucracy form a perfect storm. Example:
My father is American, born in the US. My mom is a Canadian, born in Canada. Most of their lives were spent in the US (that's where I was born and raised). However, before I was born, during the Vietnam War they went up to Canada. My dad intended to dodge the draft. I say intended because he was never actually drafted but he wasn't waiting around for that to happen. Being married to a Canadian made it real easy to get in. In that time he obtained landed immigrant status, which is similar to a green card. That all ends, he moves back to the US, they start a family.
30ish years later, they decide to move to Canada. This is not a problem, as mom is Canadian. Also they purchase a house, and a business there. No big deal. Dad contacts Canadian Immigration about getting his landed status back. Surprisingly, they just give it to him. Not a single hitch, almost no paperwork. Just "here you go." Wow some sense at last right? If only.
So a few years later, he's lived there long enough to be eligible to obtain citizenship. He's applying, since there's no reason not to (you don't give up your US citizenship, you get both, I have dual citizenship, as does mom). Now the bureaucratic bullshit starts. Hefty fee, paid in advance, massive amounts of forms including asking all the dates you've been out of the country in the last few years and so on. All that gets submitted. He hears nothing, calls to ask. They say "Oh we won't even look at the application for 9 months or so."
Wait, what? I mean there's no reason (or probably even ability) to deny it, he's married to a Canadian, there legally, owns property, etc. However the process is what the process is so they accept an app and then just sit on it for months. Then there's more bullshit to come, he's been warned.
For that matter I've had people tell me I should look for a job in Canada. Reason is that they have a real lack of tech workers. They don't have enough locally to cover demand. Of course that doesn't mean they let more in, no immigration continues to be retarded. So as a citizen, a company would love to hire me since there'd be no bullshit, I could just move up and start work.
We cannot altogether make the H-1 visa so difficult that we stop getting the adequate staff. At the same time there needs to be some preference be given to local Talent.
Meanwhile 200 "furniture movers" got H-1B's for Urban moving systems. I was not aware that there are too few furniture movers in the US for this position to qualify.
This is a tragic industry trend. I work at a company where about 75% of all developers are HB1 visa holders. These companies are looking for 'instant' workforces that they can bring along and dismantle when a project ends. They also like to work these people like crazy, as they will only be around for a few years. They can work hard for a few years and go back to their country with more money maybe to buy a house or get married. As for HB1 visa holders being cheaper, perhaps a little bit when it comes to health care, etc. I think employers like that they can demand even more out of these folks.
So if there was a new Manhattan project today, they couldn't hire the best people for the job, they'd have to fill a certain number of positions with unqualified people, because of affirmative action towards locals. And then you wonder why China will mop the floor with us.
My (now former) company simply opened multiple large IT ffices in places like Gurgaon, Mumbai and Noida, so they don't have to get H1B workers. (They were first opened as BPO offices.) American workers are slowly laid off (always in small numbers every few months) or lost by attrition, new workers are hired in those Indian offices and work for the Indian subsidiary of that company. Those offices have grown by leaps and bounds since they were first opened in 2002-3ish. So that company doesn't "outsource" anything or get any H1Bs. Whether or not that's a dirty trick is another discussion. Everyone will have their opinions.
I would say that any H1B in this economy is pretty frustrating if just based on perception (and perception tends to be reality...); I guess I just don't believe there aren't enough American workers to do those jobs.
Please don't use "umm" or "err" or "erm".
There is, and that is when the whole world gets to a standard above 1$/day. Artificially limiting where people can work and travel solely based on where they were born is quite a medieval practice that we have yet to get rid of. Globalization is all about more goods moving around then people. The reason you get cheap labour intensive goods such as Tuna, Rice, Coffee etc is because millions of people are artificially forced to live in unlivable conditions because they can otherwise do nothing or cant go anywhere else.
If your skillset is such that other people can compete easily then distinguish yourself, don't just advocate the medieval practice of limiting people's freedom of movement.
An open world is a world where goods and services are more fairly priced, not underpriced (third world goods) nor overpriced (certain first world goods, such as medicines). It is a world where 6 billion people can be as productive as the 1 billion in the western world. It would be amazing to live in such a productive world.
I find lawyers charge way to much. We should allow visas for lawyers that will work for $20/hr. I wonder what the odds of getting that through congress would be?
I love Jesus, except for his foreign policy.
WTF does this have to do with stopping illegal Latin Americans from crossing our southern border? ZERO. "Mexican Border Security Bill", huh. This is how we got in this fucking mess. Leave it to a guy whose state borders Canada...
lot's of places use contract janitors firms any way some of then hire illegals so even that is better as you have more Americans working and they must pay min wage as well.
The original article says "The proposed bill would hike the visa fee to $2,000 per application on those entities that have less than 50 per cent of their employees as US citizens." and not "firms that have 50% or more of their employees on this visa"
MSoft or Intel: they have offices all over the world so I find it hard to believe that more than 50% of their employees are US citizens.
The bill looks like is against companies like Infosys or TCS who (by virtue of being non US company) has less than 50 per cent of their employees as US citizens to get H1Bs.
Here are 2 things that always shock me:
1) To get an H1B or L1 visa, an ALL AMERICAN company has to invite a non US citizen to come and work in US (so the chop shop is not infosys or TCS)
2) Lots of cases: the jobs does not stay back in USA if you stop giving visas, they move back to where the H1B holder is from.
China does not give a f* if people die in a lab that makes nukes and then will cover it up / get rid of the true as well.
AC speaks up against hypocrisy. Should have been brave enough to post under own ID.
Chat with other atheists http://secularchat.org
Why don't Intel and MS (and others) don't open centers in immigration-friendly countries then? Specifically for that purpose.
how long until
We did some financials outsourcing to Infosys, and I can honestly say it was nothing like "skilled" work. Most of the people whose jobs were outsourced had mediocre skills, and no special education.
Mind, the Infosys people are hilariously bad, and the number of errors that they're making on financial jobs that have to be tediously fixed because they can't be re-run is staggering.
Just my two cents.
ad logicam Claiming a proposition is false because it was presented as the conclusion of a fallacious argument.
How is that a fiction?
In my field and in many hard sciences there are no qualified americans to do the job. The Department of State actually has a webpage where they list the type of skills that are scarce in the country and the types that aren't. Here is the page for computer and mathematical types of jobs. The outlook doesn't look bad. On the other hand, if you're a skilled auto-industry worker, I don't think the outlook is the same. And believe it or not, I have a pretty good idea of what skills set most H1Bs have...
Signed: proud H1B, soon Green Card holder
Indian staffing companies are reporting record profits. When US politicians smell windfall profits, it's just like when sharks smell blood in the water.
When there is money to be had, the US politicians will think up some excuse to get their cut. Remember Godfather II? The way things worked in the old neighborhood, when you made a score, the local Don had an automatic right to "wet his beak." The same system was portrayed in that Goodfellas movie.
07/23/2010
> Indian software services provider Wipro said quarterly profit jumped 31 percent to 13.19 billion rupees ($284 million), beating expectations, as India's No. 3 outsourcer ramped up staffing to meet stronger global demand.
> Revenue for the April-June quarter rose 16 percent over the same period last year to 72.36 billion rupees ($1.56 billion) under international accounting standards.
> A Thomson Reuters poll of 23 analysts forecast quarterly profit of 12.15 billion rupees.
> "We are seeing strong demand ... across our industry," chairman Azim Premji said in a statement Friday. "We added the highest number of billable employees ever, in this quarter."
http://www.mercurynews.com/business/ci_15586063
In essence, we've created a system that always has a labor surplus leading to lower wages (or no wages) for everyone -- from the low skilled workers in the textile industry, to highly educated people in technical fields.
No, not for everyone. Just for the wealthier nations. Worldwide, developing nations are catching up rapidly and benefiting tremendously from the new jobs available, and their standard of living is rising. That's the global part of globalization - they are part of the same labor force, and part of the same seesaw. The United States are essentially destined to stagnate (or just slow down) in terms of economic growth until the rest of the world catches up, unless we pull out the rug from developing countries and resort to colonial strategies and protectionism (neither of which is that likely).
You can lead a horse to water, but you can't make it dissolve.
User of a government service have to pay for increases in the service. There is much more scrutiny these days at all levels of foreign travel.
In the Britain we have a "temporary immigration cap" which has been exposed as yet another hoax with the Home Office confession that it excludes Intra-Company Transfer (ICT) programmes, which in 2008 let 43,495 non-EU workers into Britain, nearly 20,000 more than the government's stated "cap" limit. ICT transfers allow foreign companies with offices in Britain to transfer their own employees to here from anywhere in the world. ICT transfers are over and above what the government regime seeks to keep as a "cap" limit of 24,400. The depth of the government deception became apparent with a comparison between the figures quoted by Home Secretary Theresa and the number of Indian IT workers allowed into Britain under the ICT scheme. Figures released last August by Ann Swain, chief executive of the Association of Professional Staffing Companies (APSCo), showed that ICT programmes resulted in the transfer of 29,240 foreign IT workers alone into Britain during the during the 2008/2009 year. According to Ms Swain, IT workers in particular accounted for the importation of non-European workers into the UK at twice the rate of all other types of professional skills combined. "Despite the downturn creating an ample supply of settled UK IT staff, almost 30,000 computer workers from outside of the European Union were brought to the country in 2008," Ms Swain said. This figure, Ms Swain said, was more than double the number (14,255) who entered the UK on ICTs that year to work in all the other professional service sectors, including telecoms, combined. This means that in one year, 43,495 non-EU workers entered Britain using the ICT programme. Under current ICT rules, employers can effectively bypass UK job-seekers, who command higher pay than their overseas counterparts, as they have no obligation to advertise the roles. Unlike other non-EU workers who must be employed at the company for a year before they can be transferred, graduates would be eligible for an ICT from the third month of work. "The irony is that while graduate level IT jobs are being outsourced to India it is now being proposed that it should be easier for Indian IT graduates to work in the UK at a time when there are few if any skill shortages at that level," Ms Swain said last year. One Indian company, Tata Consultancy Services (TCS), sponsored 4,600 of its employees to come to Britain in 2008 through ICTs, according to new Home Office data. Another Indian company, Infosys Technologies Limited, sponsored 3,235 foreigners to come to the UK in the same year, while a third, Wipro Technologies, brought in 2,420. Indians make up 70 percent of the migrants brought to Britain on ICTs, while others are from nations including the US, South Africa, Japan and China.
$2000 is not a deterrent when you can pay a foreigner $30K less even though they live and work on US soil.
Besides, these companies will just switch to the L-1 visa...
A couple of points here as I'm working in the US on a H1-B, just so you know how things look from my perspective.
Why an American company would want to hire H1-B holders instead of citizens:
- Contractors are cheaper (No need for 401K, benefits etc etc)
- Contractors are easily expendable (If, Heavens forbid, we have another meltdown like 2008)
- The American company can plan inaccurately and dial the contractor workforce up or down based on budgets/company or project performance. You can basically tweak your bottom line by controlling the contractor cost. Its a luxury and has made people lazy and almost incapable of being able to accurately estimate work.
Sad truths:
- Not all H1-B visa holders are doing things which Americans themselves can't
- Many H1-B holders are poorly skilled (too bad there's no technical interview at the port of entry)
What America/ American companies can do:
- Some one mentioned 67.3% if Infosys revenues come from the NA region - care to check how much of that is from the B&FS space? Fix the Financial system. It is shamelessly bloated and is driving inflation for everyone else.
- The education system is too expensive & not being rigorous enough & is disconnected with industry. Where I go, not going to college (albeit lower standards on average) is not an option even for my maids kids (Yes, they can scrape through financially)
- Fact: The youth here that do go to college spend so much for it, have almost none of the issues we have to contend with in developing countries (comparitively speaking) & still don't produce enough per dollar to match us. Otherwise, why the hell wouldn't an American company hire an them instead of me?
Earlier generations Indians wanted to come to the US and probably settle down. In my case (and others in my generation), you can send me back. I'd be more than happy to go back to India and be with my family. The standard of living is not very different plus its my own country. I'm just here because my company sent me to do some work. And my company itself has better margins when I work from India, FYI. (Please note this discussion is NOT about offshoring work so I won't get into that)
..is poised to look very different.
Sweat shops may keep people from starving but it is a horrible living. The argument that screwing 1st world nations to bring up 3rd world nations to balance out the world's labor is false and overly simplistic. It is a race to the bottom of human existence where the worst possible (cheapest) is the goal of the system to maximize profits for the top of it.
At some point the middle class of the world will be so greatly undermined and shrunk they will not be able to afford all the products that employ the rest of the world which will again create a race to the bottom where the "balance" is that most everybody is poor. In the USA personal debt has greatly undermined our middle class already - delaying the fall in lifestyle by suckering people into over extending themselves... thus creating decades of delay in public outrage.
Remember the hype in the 90s about how we were going to be a service driven economy? including "thinking services" - a knowledge economy etc. Like the internet somehow was only going to belong to the usa or something and nobody would do anything because there would be somebody providing a service for that. I don't remember when the idiot work ethic got into the culture-- in the usa you are lazy if you don't want to work more than 35 hours a week and 4-6 weeks vacation. how they sold that to the culture I'd like to know because it is unbelievably stupid.
Fact is, we can not sustain the endless growth economic model we've embraced which includes other thoughtless growth problems like overpopulation.
Democracy Now! - uncensored, anti-establishment news
Here is my take on this although not needed. I feel that for every 1 H-1B's that come over to work in the US the US should send 10 over. The one can work at a wage just like every one else in the host country. The 10 in the foreign land will be paid with US dollars and US wages by hosting company. We should do this for 10 years or so just so they, foreign invaders, learn what it is like to be disproportional within their society for a chance and quiet coming over here. The moral of the story; clean up your own foreign backyards before coming over to ours. STFO!
"The laws of science be a harsh mistress." --Bender
If the company has more than 10% H1B workers in any department, they get charged on a per-department basis.
Have it required that at least 50% of the H1B workers they have end with US Citizen ship or they are fined 10 times the average annual salary of the average H1B worker each year that does not occur.
H1B workers are given that via for a period of no less than 3 years and no more than 5 years.
Before any H1B vias may be applied for, they must allow an approved company attempt to hire for that job for them and the company must approve the hours, benefits and pay scale before they attempt to look. If the office can not find workers for that job at a level they considered worth it, THEN they can apply for a H1B but not before. So they aren't looking for a 100k a year job and only offering 30k a year, the approved company would not allow them the option of an H1B and would not seek to fill that position at that pay scale.
If at any time, a company has more than 50% of their workforce made up of non-american workers loses their status as an american based company. This includes their H1B workers locally and their overseas subsidiaries and other such offices. The company as a total must consist at at least 50% American workers over the entire company or they are considered and taxed as an overseas company, tariffs and all.
the H1Bs are the ones you want. That and the special visas for artists and extremely rich people. The moral problem with these special visas is not at the receiving country's end, it is with the drain on talent and capital that it places on the originating country. Unless, say, India benefits from returning citizens with valuable foreign work experience it strikes me that India has more to lose than the US in this transfer of labor.
It strikes me that the "problem" is how to keep and feed huge numbers of US citizens that are not in this league professionally. The problem to my mind is not so much that there are only so many highly-skilled tech jobs around as that there are fewer and fewer productive things for people that lack high-end skills to do. If we are looking for a way to fully employ America and maintain a strong middle class (ie, what passes for socialism here) then we need to look for solutions for Americans in the bottom 50% of qualification and not worry about a few thousand high-end earners.
For the bottom 50%, H1Bs look like a winning proposition to me because they assume their burden of the tax base.
Nullius in verba
Aren't we supposed to keep repeating that?
A US company can hire an H1B even when a US worker is available. This happens all the time. US workers are frequently required to train their H1B replacements.
This has a very harsh "chilling effect" on aspiring tech workers. Why train for a job when you're just going to replaced by a cheaper H1B?
When I lost my job because of "relocation" I was the last American in the data center. When I left there were almost 50 central Asians there and not a single American. Screw Intel and Microshaft and all the other big American Companies that pay third world wages here in America. Shame on you all.
Fear the Libertarians! If they get their way, the government will leave you alone! Oh, the Horror!
Unfortunately, a Libertarian government will also leave BP alone... and I bet you can guess the consequences of that.
If the problem is with the mexican borders, then make them pay for it! Why bully others?
Indians prefer to move to USA not just for economic reasons. India does have serious http://en.wikipedia.org/wiki/Social_mobility problems.
I'd like to buy homeland for our 10 million people. http://twitter.com/mahadiga