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Lawsuit: Oracle Called $50K 'Good Money For an Indian'

jfruh writes "A former Oracle sales manager is suing the database company for what he called racially discriminatory salary-setting practices. Ian Spandow wanted to transfer a high-performing salesman from Oracle's India office to California. When he requested a salary of $60,000 a year or more for the employee, equivalent to what his white American counterparts received, he was told instead to offer $50,000, which was 'good money for an Indian.' When Spandow protested, he was himself summarily fired."

43 of 409 comments (clear)

  1. Shocking by Nerdfest · · Score: 5, Funny

    I'm shocked. Oracle has always seemed like one the more reputable companies, willing to compete fairly, not obsessed with gouging its customers, and nary an evil bone in their corporate body. I can't imagine them hiring or promoting people that would act like this.

    1. Re:Shocking by CdBee · · Score: 4, Interesting

      If proven true in court, this justifies a boycott of Oracle products by all us techies until Oracle produce an open salary audit proving no racial differentials between staff at the same locations. The allegation if true is disgraceful

      --
      I have been a user for about 10 years. This ends Feb 2014. The site's been ruined. I'm off. Dice, FU
    2. Re:Shocking by binarylarry · · Score: 5, Funny

      Next thing you know, they're going to be bundling adware with Java and suing open source projects.

      --
      Mod me down, my New Earth Global Warmingist friends!
    3. Re:Shocking by jellomizer · · Score: 5, Interesting

      Umm... I don't think Boycott is what you think it is.
      You really don't need to be justified to boycott a product/company. You can do it whenever you really want.

      Besides no matter how bad Oracle gets, if your Boss says use this Oracle product or your fired, then you will probably be a little less outraged.

      Now this if proven true in court, could be justifiable for Oracle workers to unionize and strike.

      --
      If something is so important that you feel the need to post it on the internet... It probably isn't that important.
    4. Re:Shocking by Anonymous Coward · · Score: 5, Insightful

      I gotta say, it was hilarious (in retrospect) how the open source community got ultra-paranoid about Mono and C#, and it turned out that it was Java that turned into the lawsuit fodder instead.

      Do any of the people who were beating up on de Icaza feel bad about that now, or are they incapable of shame?

    5. Re:Shocking by binarylarry · · Score: 5, Insightful

      I suspect if Google had chosen Mono instead of Java, Microsoft would have sued the fuck out of Google exactly like Oracle did. Hell, Microsoft is shaking down Android OEMs over FAT patents.

      So that mistrust was not wrong, Oracle and Microsoft both suck and their product offerings reflect that.

      --
      Mod me down, my New Earth Global Warmingist friends!
    6. Re:Shocking by Anonymous Coward · · Score: 4, Insightful

      might be a huge raise, but the living expenses are very different too

    7. Re:Shocking by ausekilis · · Score: 4, Informative

      If proven true in court, this justifies a boycott of Oracle products.

      It wasn't the public shaming and mudslinging between Oracle and Google, or the dozens of lawsuits Oracle has brought on with various companies, like those providing Solaris support "illegally", or even the controversies surrounding the company and it's business tactics. No, one racial comment and termination in an at-will state is what's going to cause the boycott.

    8. Re:Shocking by sunderland56 · · Score: 5, Informative

      Now, when someone is already working for for you for far far less, and you are paying for one of them and his family to move to America, why would you expect them to pay him as much as the other employees, already there.

      Because that is the law. Paying someone on a H1-B or L1-B visa less than the US rate is prohibited.

      Oracle has more than enough lawyers; at least one of them should have known this.

    9. Re:Shocking by fuzzyfuzzyfungus · · Score: 4, Insightful

      I'm shocked. Oracle has always seemed like one the more reputable companies, willing to compete fairly, not obsessed with gouging its customers, and nary an evil bone in their corporate body. I can't imagine them hiring or promoting people that would act like this.

      Honestly, I am shocked; but for totally different reasons:

      Oracle is evil, sure; but they are a major corporation, with a legal department, HR, 'Compliance' people, and so on. Try to stiff an employee and fire him if he complains? Fuck yeah, Larry can't keep himself in yachts if the peons get all the crumbs they ask for.

      Outright admit that you are engaging in discrimination based on racial/ethnic/national origin, when there are so many other ways to massage something as potentially ambiguous as salary level, 'fit with the company', and so on? Was somebody drunk on the job? Asking to get fired and sued? Got away with it so often that they got arrogant?

      That is what strikes me as shocking (though, rather convenient for the cause of justice). There are endless legal, or at least 100% unprovable, ways of fucking with somebody. What kind of utter moron would be dumb enough to tell the guy the truth to his face?

    10. Re:Shocking by MartinSchou · · Score: 5, Informative

      So you're perfectly okay with one of the largest companies in the world engaging in salary gouging?

      We're not talking about salary in India vs salary in California - we're talking about salary in California vs salary in California. If they want to import workers from abroad, because there aren't enough qualified local workers, they need to pay the same salary to the imported workers as they would to local workers.

      That's not only decent behaviour - it's the law. People like yourself - well, you're only going to ruin the game for yourself down the road, and sadly you seem unable to understand this.

    11. Re:Shocking by TWX · · Score: 4, Interesting

      Yeah, Larry Ellison has been a dick for as long as I've been aware of his existence, and probably a lot longer than that.

      I'm reminded of an exchange between F. Scott Fitzgerald and Ernest Hemingway.

      Ellison is no different than any other Type-A asshole, he just has more money. Arguably his biggest flaw is that he loves to flaunt what he has while being a huge dick while giving interviews to the press, so we can't help but want to punch him in the face.

      --
      Do not look into laser with remaining eye.
    12. Re:Shocking by wvmarle · · Score: 5, Insightful

      In contrast, in many Asian countries, it are the western ex-pats that are asked by their employer to move that get payed more than the local staff. And on top of that extra pay, they often get housing allowance, schooling allowance for their children, and other benefits local employees do not get. These salaries are not only higher than what locals get, they're also higher than what they'd get back home. The justification is that these people are exceptionally good at what they do, and are worth their money, and that the company needs this foreign talent. So they receive the extra cash and benefits as incentive to move.

      Now of course it's more common that people move from high-paying countries to low-paying countries, however it's quite reasonable for that Indian employee to not only get offered a salary at least as much as what the US locals get, but also other allowances. Indeed that $50k will be a lot more than he gets in India, though cost of living in the US are far higher as well. It may very well be that at say $20k in India he can have a higher standard of living (big house, car, various domestic staff such as a butler, gardener and a maid) than he can have at this $50k in the US.

      The guy is considered so good, they want to move him to the other side of the world. That generally means he's at least as good as, if not better than, the top performers of his US counterparts. Otherwise a company would not normally bother with the efforts of moving an employee.

    13. Re:Shocking by shaitand · · Score: 3, Informative

      Yeah, now find a company that doesn't pay them less. Companies just have to list the position somewhere, interview a few obviously unqualified people, and then when they "fail to hire" someone in the US they hire the H1-B at the reduced rate.

    14. Re:Shocking by camperdave · · Score: 5, Insightful

      Are you suggesting that the 60k/yr Americans working at the California office are only getting H1-B or L1-B visa level salaries? No. This has nothing to do with violating visa pay rates. This has to do with discrimination: paying someone less than someone else for the same work simply because of the color of their skin. It also has to do with being spiteful, spoiled brats: to whit, firing an employee for pointing out illegal or unethical behaviour.

      --
      When our name is on the back of your car, we're behind you all the way!
    15. Re:Shocking by MikeBabcock · · Score: 3, Informative

      I was on that page myself ... how on earth is this even news to people who've followed Oracle? The whole company appears to be one big jerk.

      --
      - Michael T. Babcock (Yes, I blog)
    16. Re:Shocking by shaitand · · Score: 4, Informative

      They didn't tell the guy to his face. They told the hiring manager, the hiring manager refused, so they canned the hiring manager who clearly was going to be a problem going forward.

      I'm not sure why people are acting surprised. Undercutting the local market is the entire reason US tech companies import people from India just like it's the entire reason they export functions to India. You didn't actually believe there is any sort of shortage of talented labor? Only in the sense that local labor wants more money than companies like Oracle would care to be paying therefore they want a cheaper pool of labor.

    17. Re:Shocking by Anonymous Coward · · Score: 4, Interesting

      Mono works on Android and, in my experience, the dev times are much faster than using the built-in APIs. Combine with Monogame, which took the place of XNA and has Microsoft's full support, and you have a really viable (though not perfect) cross-platform gaming solution. If you want to give it a try, I recommend Xamarin studio.

      http://xamarin.com/android

      Xamarin has been endorsed by Microsoft as a legal and legitimate cross-platform c# vendor for a while now. Microsoft may still be evil, but whoever is running their C# ecosystem is yet untainted. *fingers crossed*

    18. Re:Shocking by ElectricTurtle · · Score: 4, Insightful

      You and the poster above you are very, very naive about the role of "Westerners" (really just bai ren, white people, Latinos not so much because Asians think they're like the diaosi of Westerners) in East Asian businesses, especially mainland Chinese. It's often not about talent at all, it's about the company's image. Having a 'white guy' on your staff is 'impressive', so much so that there are 'rent a white guy' services in China for business affairs where you want to impress but don't want a full time 'white guy' just hanging around on the payroll.

      --
      I support the Slashcott and will not be reading or commenting from 2/10/14 to 2/17/14. Beta is steaming pile of dog shit
    19. Re:Shocking by ebno-10db · · Score: 4, Insightful

      It's not about race, it's about money.

      It's about race (ethnicity really) being used as a basis to pay someone less money. The motivation might be to save money, but so what? The practice is, and ought to be, illegal.

    20. Re:Shocking by david672orford · · Score: 4, Informative

      This has to do with discrimination: paying someone less than someone else for the same work simply because of the color of their skin.

      I think it probably had more to do with the fact that wages are generally a lot lower in India. This improved Oracle's bargaining position in wage negotiations. If they had offered someone already in the US less then the going rate, he would likely refuse in the hope of getting a better offer. But if this employee refused their offer, he would remain in India and get much less than their lowball offer. Is this unfair, exploitive, and illegal? Of course it is. But the decision to exploit him may have had more to do with his poor bargaining position than his skin color.

    21. Re:Shocking by aardvarkjoe · · Score: 5, Insightful

      It's about race (ethnicity really) being used as a basis to pay someone less money.

      Nationality. Not race or ethnicity. There's zero reason to think that an Indian-American would have been offered a lower salary.

      --

      How can we continue to believe in a just universe and freedom to eat crackers if we have no ale?
    22. Re:Shocking by tompaulco · · Score: 4, Informative

      I'm sure they could have gotten somebody locally for $60k if they wanted to. The reason they are even bringing this guy in is because they want to pay less money.

      --
      If you are not allowed to question your government then the government has answered your question.
    23. Re:Shocking by Half-pint+HAL · · Score: 5, Informative

      What surprizes me is that the sales guy in India needs to come to the U.S.? Also, 60K is chump change for sales. All this nonsense combined with so much drum beating has me wondering, "why?"

      The subtext not mentioned in either the summary or the article is that Oracle's overseas hiring policy is a money-saver, which goes completely against the spirit and letter of the H1B visa legislation. The policy is that visas should be granted where skilled staff fill a skills gap in the USA, not because US staff are too expensive. There have been complaints that big companies have been flouting this, and if this guy wins his case, Oracle will end up with a judgement that effectively states that they're breaking immigration laws. That's the big story....

      --
      Got them moderator blues I blieve I walk out the do', With these mod-points I been gettin', I 'most never post no mo'
  2. Oracle is not a person by Anonymous Coward · · Score: 5, Insightful

    Oracle didn't say anything. Some dude that works there said it. The company should be charged for any discrimination their employees say, but don't make it like it was a statement from their PR or anything like it. There are people that saying stupid things like that anywhere, at any given time.

    1. Re:Oracle is not a person by biodata · · Score: 5, Interesting

      If a company is not a person, how do they have any rights?

      --
      Korma: Good
  3. Re:B-But Muh Talent by oscrivellodds · · Score: 5, Insightful

    No, you don't understand. Amnesty and immigration are needed to keep the social security Ponzi-scheme going. There simply aren't enough young people paying into the system to support all those retired old people. We need to make the undocumented workers legal so they can be taxed.

    What Ellison, Zuckerberg and other of their ilk want is more H1B visas. H1B visas are needed to keep salaries down by replacing relatively highly paid American tech workers with lower paid imports who will be unable to leave their awful working conditions to seek better elsewhere lest they be sent back to the countries they worked so hard to leave.

  4. Comedy Gold by Sponge+Bath · · Score: 5, Funny

    An Oracle executive, sales manager and human resources manager walk into a court room...

    1. Re:Comedy Gold by T.E.D. · · Score: 5, Funny

      An Oracle executive, sales manager and human resources manager walk into a court room...

      Oh! I know this one...

      ...suddenly a crazed gunman on trail in the next room escapes and takes them all hostage. He threatens to kill the hostages one by one over the next 10 minutes unless his demands are met.

      What kind of sandwich do you go make yourself?

  5. Re:german law by MickyTheIdiot · · Score: 3, Informative

    In the US, that's the law regarding H1-B workers as well, but it's not enforced.

  6. Re:Truth hurts by CanHasDIY · · Score: 4, Insightful

    Indian = someone from India.

    Well, yea. That's evident by the fact they offered him money, instead of signing the contract, getting him drunk, then peeing on the contract up as they steal all his land.

    --
    An enigma, wrapped in a riddle, shrouded in bacon and cheese
  7. Re:Indians are hired for low wages by gordo3000 · · Score: 4, Informative

    it's funny because you are a solid 10 years out of date. Top grads in India now make comparable amounts to their US equivalents. Hell, just a couple months ago Oracle was offering grands 200k+ for Mumbai based roles. The days of indians taking jobs based solely are salary are quickly coming to a close. Now it's just ability and ease of hiring.

  8. Re:Indians are hired for low wages by sandytaru · · Score: 4, Informative

    Oh, you can still hire a subcontractor in India for $30K/year. It's just that you'll get what you pay for. As you said, the top jobs there make the equivalent of their counterparts in the US and other places easily. But those jobs only go for the folks who have the critical thinking skills necessary to do programming right. The lead architect at my office was born in Mumbai, and there's a reason he makes more than any of us - the guy's a genius.

    --
    Occasionally living proof of the Ballmer peak.
  9. The cruelest part by Dishwasha · · Score: 5, Insightful

    Was that they were only willing to offer him $50,000, not even $60,000 in CALIFORNIA. Isn't $60,000 a year under the poverty line there?

    1. Re:The cruelest part by TheGratefulNet · · Score: 4, Insightful

      you joke, but for that income in the bay area, you'd have to have room mates, eat cheap food every day and maybe not even own a car. and you'll have no savings each month, it will all go to rent, food, insurance.

      $60k/yr might be ok in some areas of the country, but you will never have anything in your savings account at this kind of rate and with bay area housing prices. if you define poor as being a paycheck away from being homeless, this could count as being poor, then.

      --

      --
      "It is now safe to switch off your computer."
  10. Re:Indians are hired for low wages by Anonymous Coward · · Score: 5, Funny

    As an American sub-contractor of an American who works in a Indian office of a Finish company that was recently acquired by an American company, I feel like I've been screwed somehow.

  11. Re:Indians are hired for low wages by bradgoodman · · Score: 3, Interesting

    Yes and no. There are many well-educated, foreign countries in which US companies (several I have worked for) try to hire-in, in an attempt to lower labor costs. India is one, there's also Russia, Singapore, etc. It's all about supply and demand. US companies flock to these countries and start hiring. This increases demand and decreases supply. After a while, the salary offset isn't as large, and there becomes less incentive to do so. This is starting to happen in many countries, and it's a good thing for workers everywhere. (Foreign employees get paid more, less desire to ship US jobs overeases = Good for US workers).

  12. Re:Where is "racial" discrimination? by mark-t · · Score: 3, Informative

    Had Oracle just said that $50k was goody money for someone, and left the issue of Spandow's race unmentioned, they'd certainly have been fine. The problem was, however, that the person didn't just say that.

  13. Re:german law by ThatsDrDangerToYou · · Score: 4, Insightful
    Salaries are basically a con. A business will pay you as little as they think you will accept. There are skillset supply and demand constraints, local market conditions, and whatever else is in your salary history. If a business you worked for 10 years ago wasn't doing well and hence didn't give decent raises, future employers use this as fodder for justifying paying you less than another person who managed to market themselves into a higher wage position.

    So it goes..
    d

  14. Re:Citizenship? by taikedz · · Score: 3, Informative

    The salary and cost of hiring is secondary to the main issue here.

    Mr Bambling will have to explain why he issued a "stern warning" in response to the request, rather than an explanation as to his reasoning; Mr Trudeau will have to explain his contemptuous choice of words, and failure in turn to explain his reasoning; both them and probably others will have to explain why firing the sales manager was considered fair and necessary, in the light of the previous two points.

    --
    -- "Simplicity is prerequisite for reliability." --Dijkstra
  15. Mongo DB by Frankie70 · · Score: 3, Informative
  16. Re:50K good? in the USA too, you bet! by arth1 · · Score: 3, Informative

    As a tech who is unemployed, I will work for that kind of money today!!!

    That was the salary for a salesman already experienced with the company, for a job in California.

    Do you still qualify?

  17. Re:Truth hurts by CanHasDIY · · Score: 3, Insightful

    Well, yea. That's evident by the fact they offered him money, instead of signing the contract, getting him drunk, then peeing on the contract up as they steal all his land.

    To be fair, they *did* do that ca. 1600 to the entire Indian subcontinent, at the behest of a corporation, no less ("The British East India Company"). Took ~300 years before they could be overthrown, only to end up with a much more dangerous problem (India and Pakistan, both with nuclear capabilities).

    As An American, I refuse to take credit or blame for stuff the British Empire did.

    We have plenty of fucked up behavior in our own history, thankyouverymuch.

    --
    An enigma, wrapped in a riddle, shrouded in bacon and cheese