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Large Corporations Displacing Aging IT Workers With H-1B Visa Workers

New submitter genericmk writes "NPR is running an interesting story about the unfortunate status of the aging programmers in the IT industry. Older IT workers are opposing the H-1B visa overhaul. Large corporations want more visa, they claim, because of a shortage of IT talent. However, these companies are actively avoiding older, more experienced workers, and are bringing in large volumes of foreign staff. The younger, foreign workers are often easier to control, and they demand lower wages; indentured servitude is replacing higher cost labor."

39 of 617 comments (clear)

  1. Greedy Upper Management. by Serpent6877 · · Score: 5, Interesting

    You have to be able to afford pricey CEO's, CTO's, and any of the C's. To do this you have to compensate by replacing a higher paid employee that know what he is doing with one that half ass knows what he is doing but makes the books like nicer. You can see here (http://thinkprogress.org/economy/2012/05/03/475952/ceo-pay-faster-worker-pay/?mobile=nc) that companies have spiraled out of control. Heck look at AIG, General motors bonuses paid out when we the tax payers were paying their salaries.

    --
    When all else fails, hire me!
    1. Re:Greedy Upper Management. by nicholas22 · · Score: 4, Interesting

      You have a point. But this is goes deeper. It's about keeping salaries down, and IT salaries have been stagnated. So it's working...

    2. Re:Greedy Upper Management. by SwampChicken · · Score: 5, Insightful

      Easy fix. Large corporations simply to sack all their high-priced execs and get some H-1B visa ones. They'd save a *lot* more money from there than from IT...

    3. Re:Greedy Upper Management. by Lord+Kano · · Score: 5, Interesting

      Ahhhhh, echos of the housing bubble? Corporate America has shifted targets from lowly craftsmen, to the formerly elite IT crowd.

      The day will come when a citizen of the US can't buy an IT job, especially if he looks like a white American.

      It's funny that you mention that. I work in IT at a Fortune 500 company. One day last week, I was in a meeting and I was the only black person there and ironically I also had the lightest skin. Indian H1Bs are ALL OVER IT. Anything Oracle related is dominated by Indian H1Bs.

      LK

      --
      "Hi. This is my friend, Jack Shit, and you don't know him." - Lord Kano
    4. Re:Greedy Upper Management. by advocate_one · · Score: 4, Insightful

      get yourself into a field where they can't outsource or insource workers. One where you need high security clearance and have to be a national in order to do the work.

      --
      Donald 'Duck' Dunn: We had a band powerful enough to turn goat piss into gasoline.
  2. "Shortage" by v1 · · Score: 5, Insightful

    "Large corporations want more visa, they claim, because of a shortage of dirt cheap IT talent"

    There, ftfy

    --
    I work for the Department of Redundancy Department.
    1. Re:"Shortage" by Darinbob · · Score: 4, Insightful

      Many people like to claim that they lack talent with the relevant skills for the particular jobs. I think some of this is true, but most is BS. What it really means is that they don't want to spend even a minute training anyone. They'd rather have the person with the particulars already on the resume than hire someone who might need some minimal introduction. Ie, any older programmer is going to be able to figure out your new fad language of the year very quickly, and will be able to program it far better than your entry level worker who peppers the resume with buzzwords.

      This is where age discrimination comes in, and it's very subtle, and the people doing the discrimination don't even realize they're doing it. Managers want the exact match for a job, HR people are filtering based on keywords, executives want to give out lowest possible salary. It all adds up.

      The visa system is up for abuse, and it is being abused. Those execs who disagree about this should be made to step up and prove that no other suitable workers could be found.

    2. Re:"Shortage" by tftp · · Score: 4, Insightful

      I expect there will be no relief in sight until Americans start electing politicians that put the interests of Americans first

      The politicians are already doing that. CEOs are also Americans, isn't it so? Some of the profit is donated to politicians; that's how the feedback loop is operating.

      Or perhaps you meant some other Americans, like those peons in IT? How much do they donate to Congressmen?

      This political system is the best the money can buy. If you don't like its results then perhaps the system ought to be replaced with something else. It would be otherwise foolish to expect a different result.

      From the POV of many CEOs, american workers are overpaid, underexploited, and too pampered with benefits. Foreign workforce - who often comes from countries that we do not associate with widespread wealth - is willing to work on terms of pseudo-slavery. The american worker might just as well curl up and die, he is not needed anymore, aside from a handful of highly educated workers. The american worker cannot even be a customer because he has no job and no income to pay for things. In this aspect a rice farmer in China is a better customer, he has an honest income and can buy a gizmo once in a while. The words "customer" and "employed" are synonyms.

    3. Re:"Shortage" by Wansu · · Score: 4, Interesting

      Yes, a shortage at the nice price. That is what this has always been about.

      Industry groups have been bellyaching about shortages since the 70s. Dire predictions of shortages are regularly made. Only now, they may finally be right. So many citizens have been displaced for so long, the H1-Bs may be the industry's best source of technical talent. It's a self full-filling prophecy. They may have run off so many older citizen engineers, developers and what have you that the young ones see that and opt for a more stable career path. So they may have produced the shortage they've been predicting for so long.

      --
      Wansu, th' chinese sailor
    4. Re:"Shortage" by CAIMLAS · · Score: 4, Insightful

      The sickening thing is, when your business is an IT business, why would you do this to yourself? It's like a dissonant behavior where "prescribed action" doesn't even reflect upon the world it's being acted in.

      Let's say you do indeed get good value out of your Indian H1B workers (you don't, but let's just say you do). Great. This is the best possible outcome of H1B workers. But in the meantime, you're stagnating domestic IT salaries, which means talented people will not look to work for you or will leave the field. And suddenly, your domestic company is 100% dependent on foreign labor, which you need government regulation to acquire.

      And you have no hope of hiring a local, talented or otherwise, because you've effectively priced yourself out of the market - all while handing industrial expertise to foreign nationals.

      --
      ~/ssh slashdot.org ssh: connect to host slashdot.org port 22: too many beers
  3. 52 years old.... by edmanet · · Score: 5, Insightful

    And I really thought I'd be in management by now. But I really hate meetings.

  4. "Free" Trade, What Did You Expect? by CanHasDIY · · Score: 4, Insightful

    What, you thought only the manufacturing base could outsource? Think again.

    --
    An enigma, wrapped in a riddle, shrouded in bacon and cheese
    1. Re:"Free" Trade, What Did You Expect? by Intrepid+imaginaut · · Score: 4, Funny

      Workers unionise. IT workers obfuscate their code. :D

    2. Re:"Free" Trade, What Did You Expect? by Anonymous Coward · · Score: 4, Funny

      Senior IT workers obfuscate using an encryption scheme termed "cobol".

    3. Re:"Free" Trade, What Did You Expect? by fermion · · Score: 5, Funny

      The majority of voters over 45 voted for Romney. The populous has spoken. Older workers want to be fired and replaced with more efficient and cheaper workers.

      --
      "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
  5. one solution by phantomfive · · Score: 5, Insightful

    If they allowed H1B visa holders to find other jobs, then this wouldn't be nearly as much of a problem, because employers wouldn't be able to force them into indentured servitude. If they were able to find other jobs, their salaries would rise to the level of their ability.

    --
    "First they came for the slanderers and i said nothing."
    1. Re:one solution by cob666 · · Score: 5, Insightful

      If H1B visa holders were allowed to find other jobs then there is no point in issuing H1B visas, just issue s regular work visa. The whole point of the H1B visa is to allow companies to hire people for skilled jobs that they are unable to fill with local talent. They are by design short termed and extremely limited in scope so the visa holder must leave the country when the visa has expired.

      Widening the scope of the H1B visa shouldn't be an option. I'd like to see H1B visas become even MORE restrictive. Cut the number of H1B visas issued, shorten the term, limit the number allowed per company. In fact, I'd also like to see something implemented where once a visa issued for a company has expired they can't apply for another visa for a certain length of time, also require companies applying for H1B visas to fund programs to train people for the skill they are applying for visas for, something in the ballpark of $50K per year per visa. Would accomplish two goals, would guarantee that there is training for skills that are obviously in demand and would make bringing in H1B workers more expensive, thus possibly forcing companies to hire locally again.

      --
      Do what thou wilt shall be the whole of the Law - Aleister Crowley
  6. This is very true by Anonymous Coward · · Score: 5, Interesting

    I had worked for a major software company that was not Microsoft but worked in the virtualization area.

    Over the last few years saw anybody over 50 terminated and then subsequently replaced with immigrant workers for lower wages. The workers terminated had alot of experience and could do the job more correctly and faster than staff subsequently hired -- suspect longer vacation time and higher wages made them targets for termination.

    This has happened consistently over 3 years.

    This is wrong.

  7. Older IT staff = Higher expected pay by eksith · · Score: 5, Insightful

    It's just a race to the bottom in terms of dollar amount spent on manpower. It's basically outsourcing without having the workforce overseas.

    --
    If computers were people, I'd be a misanthrope.
    1. Re:Older IT staff = Higher expected pay by RabidReindeer · · Score: 4, Interesting

      I don't know that it's a race to the bottom. A news story this morning mentioned that wages had remained stagnant since 2001. Except 2001 you could be trained chimpanzee that knew HTML and make $100k a year. So maybe we're just finally purging all of the bullshit employees from the dot-com employment orgy.

      All together I don't have that much sympathy. Most of those graybeards are libertarians who don't believe in any protectionism so... welcome to the free market.

      You're out of date and off the mark. The dot-com drones long ago left the building. IT wages have actually been rising (modestly) and the IT unemployment rate is half what it is for most other professions.

      Hardly the heady days of pre-Y2K. but things have been on the uptick for some time and it's a rare day when I don't get calls and emails from headhunters.

  8. This would go some way in explaining... by ackthpt · · Score: 5, Insightful

    I've been observing a downward spiral in quality of web applications, sites and services for some years now. Old school programmers/developers wouldn't make some of the bone-headed mistakes I keep encountering. How can we suddenly have so many incompetant people doing this work? Easy - they know how to write code, but do not have the wisdom to avoid drop-through logic, non-intuitive interfaces, extremely fragile code, etc.

    Gotta be a mill somewhere, cranking out code monkeys who are paid by the deadline, not but the quality of their work.

    --

    A feeling of having made the same mistake before: Deja Foobar
  9. video showing how this is done by corbettw · · Score: 5, Informative

    This is an older video, but it shows just how companies manage to avoid hiring qualified Americans just to flood the market with cheap H1B laborers.

    https://www.youtube.com/watch?v=TCbFEgFajGU

    --
    God invented whiskey so the Irish would not rule the world.
    1. Re:video showing how this is done by An+dochasac · · Score: 5, Interesting

      Mod parent up. Yes this is a very old problem. Pre Y2K and years prior to my 40th birthday I saw the writing on the wall. I saw how friends with H1Bs were treated as indentured servants, sometimes earning little more than 1/2 what their US-born colleagues earned. I saw how people from certain countries were assumed to have magical mystical IT talent and how people with dubious certificates and knowledge of hot software products (VisualBASIC, DBase 3...), were given the same "irreplaceable" specialized H1B treatment as brain surgeons and PhD level scientific experts.

      I saw where US IT jobs were going-- so I followed my outsourced IT career out of the country. And no, I don't particularly miss the short vacations, high taxes, high medical costs, high education costs, long drives and terrible job security many US workers have to put up with. If US companies continue to abuse the H1B system as a cheap labor pool, American workers should consider emigrating to countries where real IT experience is still valued as being worthy of more than a living wage. (e.g. all of Europe, Brazil, most of Asia, Canada, Australia, New Zealand...)

  10. Cost to much to be old by Nyder · · Score: 4, Insightful

    As in, cost to much to pay older workers. Why? Because with corporations, greed matters I mean, the bottom line matters. Why should they pay people $60k a year when they can outsource it/hire cheaper foreigners in the states for $30k a year?

    Corporate Greed, giving your job to someone else for cheaper.

    --
    Be seeing you...
  11. Crazy by Intrepid+imaginaut · · Score: 4, Insightful

    Is there any other business with such an age bias, beyond sports and teen pop idols. You don't see lawyers or accountants being treated like this, nor architects or mechanical engineers. There is no reason whatsoever for a youth culture in IT and programming, experience is more valuable than anything else in this business, moreso than most other businesses.

    1. Re:Crazy by RabidReindeer · · Score: 4, Interesting

      Is there any other business with such an age bias, beyond sports and teen pop idols. You don't see lawyers or accountants being treated like this, nor architects or mechanical engineers. There is no reason whatsoever for a youth culture in IT and programming, experience is more valuable than anything else in this business, moreso than most other businesses.

      The problem is, if you're a lawyer or an architect, what you learned in school is fundamentally going to be the same as what you need to know 30 years later. People don't perceive IT that way. New languages, new paradigms, new hardware. There is a common thread, if you stick with it long enough. Like the way apps have bounced between central and distributed systems over and over through the years. But superficially, it looks like all that old tech is "obsolete". Much of it isn't. It just resurfaces in a new form.

  12. job based health care hurts haveing older people by Joe_Dragon · · Score: 5, Insightful

    job based health care hurts having older people work for companies.

  13. "Demand lower wages" by Kittenman · · Score: 4, Funny

    What the ... ??? "No, I won't take $100 an hour. I insist of $20 at the most".

    --
    "The greatest lesson in life is to know that even fools are right sometimes" - Winston Churchill
  14. This is happening in all departments for a while by Grand+Facade · · Score: 5, Interesting

    That and using temp workers calling them contract but not paying contract wages.

    Thus avoiding paying for benefits and vacations.

    It's like the trucking industry "driver shortage" an illusion promoted around a business model that uses up (abuses) young drivers.

    --
    Rick B.
  15. Illegal to pay less by sunderland56 · · Score: 4, Informative

    It is illegal to pay a H1B worker less than the prevailing rate.

  16. And this is a reason why so much software sucks by gweihir · · Score: 5, Insightful

    Of course not everybody older is actually better. Older folks that have refused to learn will be on par or worse than the younger people. But older folks that have kept up are invaluable. True, young programmers can generate a lot more lines of code for the same price, but once you take quality into account and things like design and architecture, most code by young programmers sucks badly. Not their fault, but quite a bit of experience is required for good coding. Unfortunately, incompetent management cannot understand that (and most management is incompetent with regard to IT). What would be needed is something that other engineering disciplines have mastered: Qualification levels, and required minimum qualification levels of personnel used to protect you from becoming liable for software failures. While this may sound old-school, there really seems to be no other way. If electricians were the mixed bag that "programmers" are, houses would burn down all the time and many people would die from electrocution.

    --
    Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.
  17. Simple solution by Skapare · · Score: 4, Interesting

    Anyone here on H-1B should be allowed to seek any job anywhere for the duration of their H-1B stay. They just need to negotiate with the new employer during the 3 year visa term to provide pro-rated compensation to the company that pre-paid to put the H-1B through. That eliminates the indentured servitude and opens the free market to the technical talent, as it should be.

    --
    now we need to go OSS in diesel cars
  18. Cue the xenophobia by moderatorrater · · Score: 4, Insightful

    I work for a large company that hires based on talent. We can't get enough workers, H-1B or not. We don't discriminate based on age or anything else, just skill. The stories in my area are the same for all companies: we can't get enough skilled programmers.

    This headline will just serve as an excuse for people to post rants about how their talent is being overlooked because of the foreigners invading our shores while ignoring the fact that many people who try to work as programmers are just terrible (see: fizzbuzz).

  19. Re:Not indentured servitude by kidgenius · · Score: 5, Insightful

    It is a form of bondage though, as those workers have no freedom to move to a different company on that visa. They are tied to the company. Therefore, they have to accept a lower wage because there is no threat of them leaving for a competitor.

  20. Re:Unemployment? by PRMan · · Score: 5, Interesting

    The other day I was thinking. If you want to deal with unemployment, just federally mandate 40-hour workweeks maximum for anybody who is not a partial owner of a company (minimum of 1%). Some employers would instantly have to hire almost double the workforce, because they couldn't force everyone to work 80-hour weeks anymore. Companies would have to hire and train people. Unemployment would go through the floor and the number of people that could afford things would go up, meaning that it should spike the GDP in a very positive way. It would also, take money back from the rich to the middle class...

    --
    Peter predicted that you would "deliberately forget" creation 2000 years ago...
  21. Re:Not indentured servitude by frosty_tsm · · Score: 4, Informative

    It is a form of bondage though, as those workers have no freedom to move to a different company on that visa. They are tied to the company. Therefore, they have to accept a lower wage because there is no threat of them leaving for a competitor.

    The company doesn't have the incentive to increase salary because the barrier to switch jobs for the employee is very high. The employee could grow in experience and skill to be "Senior" while making an entry-level wage (which is still higher than back home). But the employee must work to increase their abilities or the corporation might cancel their visa and hire someone more capable.

  22. MBAs ruining business by Chemisor · · Score: 5, Insightful

    And the clueless MBAs strike again. Business school graduates forget that the basis of capitalism is capital, not short term profits. You build capital when you care about the company sticking around for a long time, when you intend people to buy your products because of the reputation of your brand, and when you genuinely care about making the world a better place one awesome toothbrush at a time.

    MBAs on the other hand, only care about the company's survival until the next bonus time, believe that people will only buy something if they are tricked and brainwashed into it, and have no interest or knowledge of what the company actually produces.

    And when you do not care about the products you make, why would you want talented employees to make them? If quality is irrelevant, all you need is a bunch of cheap warm bodies to make whatever garbage marketing can sell. It is amazing how fast you can ruin the economy when you only intend to stay on your job until the company dies, rather than until you retire from it.

  23. Modern business school thinking by GodfatherofSoul · · Score: 5, Informative

    Ever had a conversation with these guys about how they do their jobs? They think in the short term and quantitatively, not quantitatively. They figure if they can get 2 subpar H-IBs at the same price as a 50 year-old, it evens out in the end.

    Short story, I had a great conversation with one of these guys years back who was a manager of a chain restaurant. He was explaining to me the glorious logic of shorting ingredients to save money. How, by removing one pickle from a sandwich you could save millions a year. He was wildly enthusiastic about how powerful a management tool that shorting ingredients was. Now, as I listened to this my thoughts were on the long term effects of this policy and the promotion he was angling for.

    So, Joe the manager cuts one pickle, saves the company $10 million a year and gets promoted up. Kelly takes his place and wants to move up too. So, she decides to make the buns 1 ounce smaller. She saves the company mad money and gets promoted up as well. And so on and so on until a premier chain restaurant starts looking more like McDonalds quality. But, none of those guys care because by the time the shit hits the fan they're probably cashed out!

    --
    I swear to God...I swear to God! That is NOT how you treat your human!
  24. Experience counts? Depends on the management.. by knoware · · Score: 4, Insightful

    Paul, the PM: "How long will it take to completely redesign that catalog, replace Ubercart w/ a completely custom handcoded Java version instead of that PHP thing?"
    Ralph, the 50+ yo: "Based on my experience, N year(s) if you have a functional spec and unit test designs."
    Vlad, the 22 yo: " , !" (Russian to English: "not more than a month, sir!")
    Paul, the PM: "Fire Ralph! Get me 20 more Vlads! BTW the client is Amazon's remodel!!"
    CEO: "Paul, n-i-c-e job! Here's your raise and mine too!"
    Note: I see this a lot. A whole lot. Sadly, I'm a PM and I see many PMP colleagues fall for this....