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Skilled Foreign Workers Treated as Indentured Servants

theodp writes: A year-long investigation by NBC Bay Area's Investigative Unit and The Center for Investigative Reporting (CIR) raises questions about the H-1B visa program. In a five-part story that includes a mini-graphic novel called Techsploitation, CIR describes how the system rewards job brokers who steal wages and entrap Indian tech workers in the U.S., including the awarding of half a billion dollars in Federal tech contracts to those with labor violations. "Shackling workers to their jobs," CIR found after interviewing workers and reviewing government agency and court documents, "is such an entrenched business practice that it has even spread to U.S. nationals. This bullying persists at the bottom of a complex system that supplies workers to some of America's richest and most successful companies, such as Cisco Systems Inc., Verizon and Apple Inc."

In a presumably unrelated move, the U.S. changed its H-1B record retention policy last week, declaring that records used for labor certification, whether in paper or electronic, "are temporary records and subject to destruction" after five years under the new policy. "There was no explanation for the change, and it is perplexing to researchers," reports Computerworld. "The records under threat are called Labor Condition Applications (LCA), which identify the H-1B employer, worksite, the prevailing wage, and the wage paid to the worker." Lindsay Lowell, director of policy studies at the Institute for the Study of International Migration at Georgetown University, added: "It undermines our ability to evaluate what the government does and, in today's world, retaining electronic records like the LCA is next to costless [a full year's LCA data is less than 1 GB]." President Obama, by the way, is expected to use his executive authority to expand the H-1B program after the midterm elections.

29 of 284 comments (clear)

  1. Was pretty obvious by Lunix+Nutcase · · Score: 5, Insightful

    Is anyone even remotely surprised by this?

    1. Re:Was pretty obvious by CimmerianX · · Score: 4, Interesting

      Hopefully the non-IT, general public will be.

    2. Re:Was pretty obvious by Old97 · · Score: 5, Insightful

      Before him it was the Bush Administration. Before Bush it was Clinton. Minions of the ruling class always do their bidding regardless of major party affiliation.

      --
      Very often, people confuse simple with simplistic. The nuance is lost on most. - Clement Mok
    3. Re:Was pretty obvious by operator_error · · Score: 3, Interesting

      The LA Times has recently covered how Electronics For Imaging (EFI) clearly underpaid Indian immigrant laborers. $1.21 an hour in Silicon Valley, 122 hours in a week, and no overtime. Thank goodness EFI got caught!

      http://www.latimes.com/busines...

      Still, I don't think the non-IT general public knows an industry called IT *labor* even exists. Except for the Obama-care website snafu that is. (Maybe in Oregon, the folks there know about Oracle Corp. by now) Millions of iPhones are begging for greater robotic assemblies, because those gizmos don't build themselves, and it'll happen.

    4. Re:Was pretty obvious by knightghost · · Score: 4, Insightful

      Time to form a union. No, seriously. STEM workers have been absolutely screwed to the point where no intelligent person should pursue that career in the USA. Talk with nurses to see how to make some progress.

    5. Re:Was pretty obvious by Anonymous Coward · · Score: 3, Funny

      How dare you suggest such a thing. Are you a communist?!!

    6. Re:Was pretty obvious by roc97007 · · Score: 5, Insightful

      Before him it was the Bush Administration. Before Bush it was Clinton. Minions of the ruling class always do their bidding regardless of major party affiliation.

      Exactly. Let's not get wrapped up in partisanship. It's wrong when either side does it, and both sides have.

      --
      Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
    7. Re:Was pretty obvious by NotDrWho · · Score: 5, Insightful

      It's been pretty clear for a very long time now that the entire H1B program has become nothing more than a legal indentured slavery program for U.S. corporations, one that is intended to artificially lower U.S. worker wages and exploit cheap foreign labor without the stigma of "offshoring." This whole pathetic "STEM labor shortage" charade that the big-corps and the U.S. government are colluding on is one of the saddest dog-and-pony shows in U.S. labor history. A lot of degreed programmers can't even get a decent job anymore that pays even a living wage, and still Mark Zuckerberg et. al. are running to Congress crying "We can't get any American workers anymore, give us more H1B's!!!"

      --
      SJW's don't eliminate discrimination. They just expropriate it for themselves.
    8. Re:Was pretty obvious by NotDrWho · · Score: 4, Insightful

      So...how's that "Hope and Change" working out

      I suppose you think Mitt Romney would have ended it??? Yeah, real champion of the little guy that one.

      The fact is that NO ONE who runs for President or Congress anymore opposes H1B's. They're all now completely owned by corporations. EVERY SINGLE ONE OF THEM.

      Yes, YOUR GUY TOO!

      --
      SJW's don't eliminate discrimination. They just expropriate it for themselves.
    9. Re:Was pretty obvious by Anonymous Coward · · Score: 5, Insightful

      Technically what EFI did was wrong. But really it wasn't as egregious for the reasons some make it out to be. The workers were brought in for a few weeks to help with a data center move, probably put up in hotels and lived on expense accounts. Were they really "immigrant laborers"? Or just earning their same salary but working temporarily at a different company location?

      Yes, this exactly! I am tired of local authorities telling me that my slaves are illegal in this country. They are beaten daily, fed and raped in accordance with local statutes in the country in which they were enslaved.

    10. Re:Was pretty obvious by kilfarsnar · · Score: 4, Insightful

      Nope, and they don't care. They don't care that their cheap shitty chocolate comes from slaves. They don't care than Nike uses child labor. They don't care about the abusive practices involved in processing shrimp. They don't care about overfishing. They don't care about the pink goo in their food. They don't care about air pollution.

      Face it, people are fucking stupid, and NO they don't care. If they did, actually, they'd probably be in favor of it, as long as it didn't happen to them.

      Americans (people, really) care about what they're told to care about. Everyone is terrified of Ebola and ISIL and know something must be done; and it's not because of their good judgement and risk analysis.

      --
      "What the American public doesn't know is what makes them the American public." -Ray Zalinsky (Tommy Boy)
    11. Re:Was pretty obvious by 0123456 · · Score: 3, Insightful

      Exactly. Let's not get wrapped up in partisanship. It's wrong when either side does it, and both sides have.

      Except one side claims to be on the side of the workers, and the other side... doesn't.

  2. Time for Solidarity? by Lilith's+Heart-shape · · Score: 4, Interesting

    It's time to organize the world's programmers and make it clear to business that we won't tolerate this treatment any longer. It doesn't matter if we form a union or not as long as we band together to protect our common interests as programmers.

    1. Re:Time for Solidarity? by i+kan+reed · · Score: 4, Insightful

      That's literally the definition of a union, though.

      I mean, more effective unions have mandatory membership, but a union itself is literally a group of employees in a field banding together to protecting their common interests.

    2. Re:Time for Solidarity? by Technician · · Score: 4, Informative

      This trickles down to the US workers too. Here is how it works.

      In a downsize you become unemployed. In looking for work, most openings are either entry level or contract positions with no benifits.

      You earn too much to be eligable for Obama Care and the company plan is employee paid. If you have a spouse without employment, a mortguage, and need health care, there is a distinct lack of family wage jobs that isn't sucked dry by insurance in excess of 2K/Month. My COBRA insurance is higher than the mortgauge. This payment pretty much sucks up all expendable income normally used for living expenses.

      Many younger workers simply forgo the insurance payments. Older workers don't have this option.

      --
      The truth shall set you free!
    3. Re:Time for Solidarity? by JeffOwl · · Score: 4, Insightful

      My COBRA insurance is higher than the mortgauge. This payment pretty much sucks up all expendable income normally used for living expenses.Many younger workers simply forgo the insurance payments.

      Wait, I was under the impression that these health insurance exchanges would create a competitive marketplace where people could buy insurance at reasonable prices even if they weren't eligible for subsidies. You mean that isn't true?

    4. Re:Time for Solidarity? by ShanghaiBill · · Score: 3, Interesting

      It's time to organize the world's programmers ... to protect our common interests as programmers.

      What "common interests" are shared by the world's programmers? Even with the exploitation, these Indian workers are likely better off than they would be back in India. So Indian programmers likely would want America to keep the H1B program. In my opinion, the proper "fix" is to eliminate H1Bs and give foreign tech workers visas that are not tied to any employer, so that they can come to America and compete for wages in a free job market. I doubt if many American programmers would support that.

    5. Re:Time for Solidarity? by Anonymous Coward · · Score: 3, Insightful

      >Unions have mandatory membership for a damn good reason. It used to be that company men could come to your house at night and "persuade" you to voluntarily withdraw from the union.

      Yeah, instead union members come to your house at night and "persuade" you to voluntarily support the union instead. Such a big improvement.

      (Don't believe me? Google "slashed tires" "Detroit" and either "UAW" or "Teamsters'".)

      These pro-union weenies make big promises but just read newspaper archives about what the unions actually do if you want to find out what's really going to happen.

  3. Re:But, but, teh STEM talents!!! by Anonymous Coward · · Score: 5, Insightful

    They do. The talent is accepting slave wages.

  4. seems to me by Anonymous Coward · · Score: 5, Interesting

    The best thing to do is replace the H-1B visas that are tied to a specific employer and make them a general limited time employment visa.
    If the employers say there's a specific need for more workers in a field then the govt can grant a few more of the new visas to those wishing to travel to the US.
    This would mean employers would be have to pay the going wage to the newcomers, albeit with the downward pressures on pay that would come from an increased worker pool.
    I could be crazy tho.

    NOTE: All of the above is the view of a simple rustic Northern Irishman with no desire to move to the US. Well, mebbe somewhere with snowboarding. Seriously, I live farther north than Vancouver for fuck sake, but all winter is just rain and wind. An no. I'm not going to Scotland. Our whiskey is better. If i wanted to drink bog water i'd just drink bog water.

  5. My Great Grandparents were Indentured Servants by Anonymous Coward · · Score: 4, Interesting

    Finally someone else is making this obvious analogy, but in one way H1-B is worse. Two of my great grandparents came to Canada as indentured servants. My great grandparents got married and fled their servitude into what was then the wilds of western Canada where as long as you could work or scratch some dirt for food and kill a little wild for extra you got along. Most of all no one was going to look for you and ship you back because there was no one to DO the work so a body was appreciated in a way, even one that wasn't a slave.

    That last word being the key point. They don't want employees, they want slaves. If the free market was driving this to attract the best they would be offering all H1-Bs a premium salary and premium working conditions above local talent which would drive up wages and then supply ... guessing that is not the case.

  6. Abuses on all sides by tompaulco · · Score: 5, Insightful

    There are abuses on all sides of this program. Just end it. The tech worker shortage is a lie. This is no longer about cherry picking the best and brightest scientific minds. It has become a system of replacing local workers with lower cost indentured servants.

    --
    If you are not allowed to question your government then the government has answered your question.
  7. the bottom dregs for the cloistered elite. by nimbius · · Score: 5, Insightful

    Companies like Verizon, Cisco, HP, and Walmart contract employment because direct-hire is nearly impossible. These companies insist you work in armpits like Bentonville Arkansas or Decalb Georgia so your salary can be shuffled down the chain to 40 grand a year not under the implication that your services are worthless, but under the assertion that the "cost of living" is so inexpensive you shouldnt need a respectable wage. American workers caught on to this shifty crap pretty quickly and now in the race to pedal labor in general into the earth, contract companies are picking up the slack. Cognizent and Infosys are two companies that actively avoid american labour capable of contesting wage theft and frivolous litigation in court. They avoid it by specifying explicitly the requirement for an H1B in order to incense foreign workers to apply. If you receive a call as an american, its generally from a roaring indian callcenter with poor diction and once your salary comes up, the call ends.

    H1B is the new slave-ship, and because corporations control the general direction of american government, it isnt likely the H1B process will get any more reasonable.

    --
    Good people go to bed earlier.
    1. Re:the bottom dregs for the cloistered elite. by clintp · · Score: 5, Insightful

      Slightly offtopic...

      These companies insist you work in armpits like Bentonville Arkansas or Decalb Georgia so your salary can be shuffled down the chain to 40 grand a year not under the implication that your services are worthless, but under the assertion that the "cost of living" is so inexpensive you shouldnt need a respectable wage.

      As a midwesterner, I'd like to tell you firmly to go fuck yourself ... but also I'm far too polite to do that.

      Instead maybe realize that wage costs are only part of having your business in the "armpits" -- and a pretty small one at that. Real estate, utilities, shipping, taxes, buildout costs, and a lot of other factors make flyover states a financially beneficial place to locate a business. With tech jobs there's no geographical need to pick a particular location other than space, power and bandwidth -- and those can be bought. Why not go cheap?

      --
      Get off my lawn.
    2. Re:the bottom dregs for the cloistered elite. by t0rkm3 · · Score: 5, Interesting

      Hmmm... from my salary, which is about 15% off of what the average InfoSec guy with 20yrs of great experience can draw in the Bay area. I wonder at your supposition. In fact, I may spend the day wandering around my 75acres of well wooded land, or perhaps I'll ponder while I watch the soybean farmer that leases the other 75 acres is doing, or perhaps while I wander about my 4600 sqft home...

      I lived in SoCal for 10 yrs. My wife is from the West Coast. I make a good living, and live a good life. Every now and then I get a nice offer from some west coast or other company to move and take up the urban life style. We consider it, and then pass. You can't trade knowing the people in your farmer's market by name, having conversations with the local coffee shop about roasting methods over a cigar and whiskey, all while enjoying an evening in which the background noise lacks cars but more than makes up for it with owls, crickets, cicadas, whipoorwills, doves, and all manner of other creatures.

      When we want to go to the city... We drive and stay a week, or a weekend. We figure that the money we save on the home (my payments on a 30 yr note on the above property are just above 1100/mo insurance and tax included) and the time on the commute can be used on mini-vacations to the city.

      There are things that we miss (an excellent dance school) but not a lot. We have a tutor that teaches my children Mandarin, and piano. They swim at the Y a few times a week, play indoor soccer on weekends. My wife acts in the local theatre companies (one of which is one of the longest continuously running theatre companies in the country). I can still go to the local gaming store and hang out with comic book nerds...

      So... If you're pissed about the wage depression, you should probably look at a different profession, or another circumstance. From here, in Cali or any where else, I've never had a problem getting a good wage for the job that I do, nor have I had a problem getting offers for a damn good wage to live in the Bay, or Denver, or San Diego.

      All of the above aside... The H1-B program is designed for abuse. It was designed by politicians. It falls under the same type of shit that had all computer workers classified as management/professionals to prevent hourly pay and/or overtime. The above was to point out that if you look somewhere other than the Bay, you can still build new stuff, and have a much better life. The Bay area is a technological sweatshop. Leave. When you leave, take your skills and desire to build with you. Make some other place in the country a great place to innovate. Austin is great, and not a terrible city (esp compared to the West Coast), Houston isn't bad either, lots of great places to live. When you build your customer base, move to a smaller town and enjoy your life, you only get one shot.

    3. Re:the bottom dregs for the cloistered elite. by Richard+Dick+Head · · Score: 3, Insightful

      That wasn't his point. Some companies will locate in dangerous drug-infested ghettos to cut costs. But when you get there you realize that you really need to move to the more expensive area anyway, AND suffer a long commute and low salary. "Low cost of living" doesn't always work like you think it should.

  8. Obama, Why wait ? by TTL0 · · Score: 3, Insightful

    "President Obama, by the way, is expected to use his executive authority to expand the H-1B program after the midterm elections."

    I don't get it. If it's a good thing, do it now. If it's a bad thing then why do it later or at all ?!?!?

    Filing this under hope and change

    --
    Sanity is the trademark of a weak mind. -- Mark Harrold
  9. happens anywhere... by MindPrison · · Score: 4, Interesting

    ...even in Denmark.

    Believe it or not, this isn't much different than some desperate Russian woman seeking a future "husband" in a country with democratic freedom of some sorts, what they don't know - is that everything isn't milk and honey where they come to, they're still going to be second class citizens of the country they "escape" to.

    Skilled workers dream of a permanent visa after slaving over minimum wages for 5 years in the U.S. And they pretty much have to accept the conditions, because they know...if they screw up after 3.9 years under slavery, all their efforts would have been wasted, and they have to return home. Don't like the job? No problem...there's 10+ million Asians just waiting to take your job mister so get in line or get lost is pretty much the response they'd get.

    You'd believe it would be better in other countries, say...like the richest countries in the world...Scandinavia, but no. I have met a bus-driver that is a surgeon, an hardware engineer from Iraq that has to work at a friends convenience store to avoid being sent home. Several people that collects bottles in our cities, are former health care workers, well educated people, librarians, scientists and many more professional occupations they "escaped" from at home where their beliefs and freedom where suppressed, hoping to find a better life over here.
    But all we do, is to complain about them taking our jobs (yeah, the jobs WE DON'T WANT TO DO...), and treat them like dirt.

    The whole system has to change. We must modernize this world for the 21 century, we can't keep wasting our resources like that.

    --
    What this world is coming to - is for you and me to decide.
  10. Re:But, but, teh STEM talents!!! by TacoBellGrande · · Score: 3, Informative

    What are you smoking?

    The companies listed Apple, Cisco, Verizon pay wages most of America could only dream of -- especially since they typically require only a 4 year degree. According to GlassDoor:

    Apple's entry-level Software Engineer title makes an average base pay of $119,268, plus $34kish in additional incentives.
    Cisco's "Software Engineer" title has an average salary of $117,326 with about $20k in additional incentives.
    Verizon's "Software Engineer" title has any average salary of $100,098. Only one person reported bonus, at $14k. I'm not sure if, like the above companies, bonuses & stock are all but a given.

    Since H1Bs are, by law, required to be paid the same salaries as their American citizen counterparts, if anything, the travesty is that we're giving the nation's best-paying jobs to people from overseas. But having hired numerous engineers, I can say that it'd be difficult to staff a large tech company of any size without relying on a foreign labor pool.

    There's certainly abuses of the H1B program, but they're mostly from the big Indian "work for hire" shops like L&T, Infosys, etc. They pay way below industry norms, and thus, paying domestic workers the same wage as your foreign workers isn't that big of a deal.