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Disney Making Laid-Off US Tech Workers Train Foreign H1-B Replacements

WheezyJoe writes: The NY Times brings us a story on the Disney Corporation laying off U.S. tech workers and replacing them with immigrants visiting the country under H1-B visas. The twist is that the immigrant workers are not your nice local visiting foreign guy from the university who wants to stick around 'cause he likes the people here... they are employees of foreign-based consulting companies in the business of collecting H1-B visas and "import[ing] workers for large contracts to take over entire in-house technology units." The other twist? The U.S. tech workers are required to train their replacements before vacating their jobs, or risk losing severance benefits (excerpts of the Disney's layoff notice are included in the article).

28 of 614 comments (clear)

  1. Such a nice, sugary story.... by amalcolm · · Score: 5, Insightful

    ...just what you'd expct from Disney

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    1. Re:Such a nice, sugary story.... by Anonymous Coward · · Score: 5, Funny

      ...just what you'd expct from Disney

      Just about ALL of corporate America that can get away with it will do it - defense contractors cannot.

      And the difference in pay goes to CEO bonuses for doing a "great" job. Why you could write a Python script called CEO.py to do their job. The algorithm is just:

      Lower costs by canning people,sending work overseas or hiring H1-bs. Selling off under performing divisions. Concentrating on more profitable businesses.

      Please, we don't need to offshore CEOs; just automate them with scripts.

    2. Re:Such a nice, sugary story.... by mwvdlee · · Score: 5, Funny

      It IS how a lot of fairy tales begin; with evil villains causing unjust and misery.

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    3. Re: Such a nice, sugary story.... by Anonymous Coward · · Score: 5, Insightful

      Yes, but it's a blatant violation of the program to use people you employ to train the h1-b applicants. The program is there for when you can't find employees that are qualified. If they're able to train the replacements then they're clearly qualified to do the job.

    4. Re:Such a nice, sugary story.... by danbert8 · · Score: 5, Funny

      Where are the dead parents? That's what I want to know...

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    5. Re:Such a nice, sugary story.... by syn3rg · · Score: 5, Informative
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    6. Re:Such a nice, sugary story.... by walterbyrd · · Score: 5, Informative

      How is Disney worse? I think Disney only fired about 130 Americans.

      US tech companies hire tens, maybe hundreds, of thousands of guest workers. Often making American workers train their H1B replacements. At best displacing US workers.

      In 2009 Bill Gates sat before the US congress, and explained that the tech industry was suffering from huge shortages, and desperately needed more foreign guest workers. At the same time, Microsoft was laying off thousands of US workers.

    7. Re:Such a nice, sugary story.... by MitchDev · · Score: 5, Insightful

      They deserve a corporate "Death Penalty" for this, as does any corporation pulling this crap

    8. Re:Such a nice, sugary story.... by rwa2 · · Score: 5, Interesting

      How is Disney worse? I think Disney only fired about 130 Americans.

      My former co-workers said it mostly affected the QA and Load Test teams (I left a few months before it all went down while workload was up and morale was already low). Which is a shame, since those were things Disney really did well. There were a lot of times that someone from those groups would catch issues in a deployment before a release, or even help reassure us that things were working properly in production.

      Disney was on a big automation and accountability binge when I left, though. I can see why they'd want to outsource QA/LT to another company that they can point their finger at when things go wrong. When QA/LT is in-house, then (as TFA mentions) it's a big overhead and they only "save money" when things go right (but not in a way that actually hits the books). With an outsourced QA/LT firm, they can probably arrange things so they can charge the external vendor penalties when things go wrong and bugs slip through. Disney is clever like that.

      Anyway I feel sadly for my fallen comrades, but with all of the experience and grinding they did at Disney I'm sure they'll fall someplace better. I'm actually more worried about the health and sanity of the H1Bs. As TFA mentioned, it was the outsourcing company that was responsible for hiring and bringing on the H1Bs. What they didn't mention is that a lot of the in-house Disney QA and even Devs that we worked with are already in completely foreign offices in the Philippines, Mexico, and Argentina, working US office hours. So this isn't exactly news... just SOP after moving their new website from development/hypercare to sustainment.

    9. Re: Such a nice, sugary story.... by Rob+Y. · · Score: 5, Insightful

      You left out the best part. After all these savings, productivity drops precipitously. And it stays down, because what these Indian outsourcers are pushing (the one I worked with is Cognizant) is 'flexibility'. They tell the US company that they can provide a workforce that ramps up to handle any project you throw at them. But in order to do that, they 'train' a pool of workers and then rotate them off of the project. The result of this is that the workers on a project at any given time are by design never experienced in the particulars of the given system they're working on. They can provide absolutely no creativity to the process, and in fact, will spin their wheels on a wrong aproach for weeks before asking for help and revealing how little they know. They're only human, after all, and they've been thrown into a project cold and are being evaluated based on metrics that have little to do with actually producing working code.

      In our case, the outsourced projects included custom in-house platforms. And the Indian workers spent much of their time watching videos of us teaching the first round of them our jobs. I know this, because I was hired by the contractors to be the one 'employee' that actually knew how to do the work - and who did the lion's share of it. That's the other dirty secret - they hire a few key ex employees to maintain a semblance of continuity.

      Also, in our case, none of this really mattered. It turned out that the company was for sale, and the real purpose of the outsourcing was to make the financials look better for the sale to a private equity firm. The eventual buyers probably knew they were buying a dog - but not how much of a dog they were buying. Now that they've realized the extent of it, they're dropping their plans for an IPO and firing the rest of us so they can milk whatever profitability is left from existing customer contracts. The empty hulk will be abandoned when those contracts run out - and the private equity guys will have gotten their money back. Nothing lost - except a viable company and a bunch of American jobs...

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  2. Gonna buy a ticket to Star Wars this December? by Anonymous Coward · · Score: 5, Interesting

    So how many "nerds" and information technology workers are going to reward Disney by buying tickets to see the new Star Wars movie this December? Wouldn't it be funny if their target audience boycotted the movie out of solidarity and it flopped?

    1. Re:Gonna buy a ticket to Star Wars this December? by vux984 · · Score: 5, Insightful

      the gist is though that isn't this incredibly risky for Disney? the government could cut down on the numbers of h1b's any year and then they would be boned.

      Therefore all but ensuring the government won't do it.

      though I suspect the point is that now the entire department IS dependent on h1b visa workers, so they can say that if they don't get them then they're boned.

      Precisely.

      Its 'too big to fail all over again' -- if you change the h1b quota you'll hurt us a lot, and in turn hurt the economy. It doesn't even matter that they deliberately put themselves in this situation just to be able to leverage the harm they would endure as a bargaining chip.

      Governement completely lacks the will to inflict any serious short term pain on large corporations right now.

  3. A dupe but can't be said enough by Crashmarik · · Score: 5, Insightful

    You can toss in So Cal Edison in the same bin
    http://www.computerworld.com/a...

    Now unless I misunderstand the law. H1-B is supposed to be for jobs Americans can't do. Tell me how a dept that is and has been doing the work is suddenly unskilled and unable to do the job but is able to train their replacements. Also if these people have the "Skills" why are they being trained by those they displace ?

    1. Re:A dupe but can't be said enough by BVis · · Score: 5, Insightful

      Now unless I misunderstand the law. H1-B is supposed to be for jobs Americans can't do.

      No, it's for jobs that businesses don't want to pay prevailing wages for. Why pay a native worker $100k and listen to them bitch about "work-life balance" and "not being worked to death", when you can pay an H1-B visa holder $65k and not hear a single complaint?

      Tell me how a dept that is and has been doing the work is suddenly unskilled and unable to do the job but is able to train their replacements.

      They're suddenly unskilled because some suit figured out that H1-Bs are a lot cheaper and easier to abuse.

      Also if these people have the "Skills" why are they being trained by those they displace ?

      They're not hired for their technical skills or coding ability. They're hired because they're cheap and easily abused.

      --
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  4. Fuck you Very Much, Disney. by geekmux · · Score: 5, Interesting

    Wow. Train your replacements. Bit like making the condemned sharpen the guillotine before they step up.

    Can't say I've heard of a dick move like that since FuckedCompany.com was tracking this sort of thing.

    And to think I was considering visiting many of your parks this year. With friends and family. I'll be certain to inform them all what a magical place you've become.

    Fuck you Very Much Disney. I hope your bottom line feels this shit. Have a Nice Day.

    1. Re:Fuck you Very Much, Disney. by Opportunist · · Score: 5, Informative

      Very obviously whoever made this smart decision never had to do a hostile takeover of an internal project. You get all the information you ask for, not one word more. You don't know what questions to ask? Wow, sucks to be you.

      I really doubt it will be any different in this case. They will give them all the information they have to relay to ensure they cannot be considered hostile, while leaving out everything that "they assumed that the new guy already had to know". It's just common sense, ya know? Everyone knows that. Ask around in the office, everyone will tell you that this is something you really don't have to spell out simply because it's OBVIOUS. It's not to your new hire? Gee, maybe you should have hired someone who knows his trade? Ok, I'll make sure the new tech will learn everything from now on and explain it all to him. Ok. Look, new guy. This here we call a hammer...

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  5. The root of the problem by 140Mandak262Jamuna · · Score: 5, Insightful

    “The program has created a highly lucrative business model of bringing in cheaper H-1B workers to substitute for Americans,” said Ronil Hira, a professor of public policy at Howard University who studies visa programs and has testified before Congress about H-1B visas.

    By law the H1B should not be cheaper than hiring Americans. They need to demonstrate they are paying prevailing wages and that they have made good faith effort to recruit Americans. But the companies game the system thoroughly. They lobby the congress to create strict dead lines like, "if there is no reply from immigration side for 90 days the application is deemed to be approved" and they the congress cuts the budget and staff of the immig department. They pad up the qualification requirements on one hand, "degree in math/engineering, x years of experience in y technology blah blah blah", then on the payment side they name the positions that have low pay. Naturally they would not find qualified Americans willing to work at that pay.

    The way around these issues should be to create some sort of bounty program. Let the government crowdsource it. Make these H1B applications and the documentation supplied by these companies public. Any one should be able to challenge and point out the "gaming". There should be some sort of reward for people who catch them cheating. There should be some safe guards against frivolous challenges, and this program could be revenue neutral by making the cheaters pay for this by fines.

    In some fields in some ways H1-B applications are legitimate. People who come to USA, get a degree from accredited US university who work in the field they got their degrees in are not to be confused with these body shopping companies that import people with degrees from diploma mills in India. Indians who came in the early 1990s with degrees from top univs like IITs, IISc, TIFR, AIIMS, RECs and got further degrees in US universities earned the good will and the reputation for Indian engineers. Now all that is being squandered by these cheap body shoppers gaming the system bringing ill-repute to all Indian Americans.

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    1. Re:The root of the problem by NotDrWho · · Score: 5, Insightful

      By law the H1B should not be cheaper than hiring Americans.

      Two points:

      1) The law doesn't mean jackshit if it's not enforced

      2) H1-B's aren't hired just for their cheaper salaries. They also come with a number of other perks. For one thing, they are indentured servants, meaning they can't leave your employ no matter how badly you treat them. If they quit or try to go somewhere else, they lose their visa. They also, as a whole, help keep the salaries for American citizen workers held artificially low. After all, no one is going to ask for a raise if they know you can replace them with an H1-B.

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  6. How can they legally do that? by pla · · Score: 5, Interesting

    The U.S. tech workers are required to train their replacements before vacating their jobs, or risk losing severance benefits

    I'll start by saying, I have no shortage of cynicism and this doesn't surprise me in the least. So I know, "legally" doing this and "no one cares" don't mean the same thing.

    But in order to hire H1Bs, I thought a company needs to demonstrate that they have advertised locally for the positions and can't find any sufficiently qualified people to take them. The fact that they have laid off their existing staff (a pool of local people willing to do the work), and the existing staff has sufficient skills to actually train their replacements, seems 100% antithetical to the conditions required for a company to hire H1Bs.

    Any IAL's want to comment on how Mickey can get away with this?

  7. Re: Why isn't this illegal again? by sycodon · · Score: 5, Insightful

    The problem is that the government is influencing the market by allowing companies to pay these people less by virtue of their immigration status. A H1-B is sponsored by a particular company. They can't just quit and go find a better paying position when they are abused/under paid/etc.

    --
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  8. Re:So we have a lack of people with wha skills? by StatureOfLiberty · · Score: 5, Insightful

    I think the problem isn't so much a lack of skills, but instead grossly overcharging for those 'skills' when there are obviously plenty of other people willing to do the work for cheaper.

    It's funny how that logic never seems to work for CEOs.

  9. Better Idea for Disney by bkmoore · · Score: 5, Funny

    If Disney wants to boost profitablity, they should bring in an H1-B replacement for Robert Iger. I'm sure they could find lots of qualified candidates from India or China who have experience managing an organization the size of Disney and who would be willing to do the job for less than 46.5 million dollars per year. Replacing this one employee would have a larger savings effect than replacing the entire IT staff, while allowing the IT staff to continue innovating and making Disney run smoothly. As a gesture of corporate good will, Disney could allow Mr. Iger to continue working at a theme park as a cast member, preferrably wearing the Goofy costume.

  10. Probably not H1-B, but L1 by Pulzar · · Score: 5, Interesting

    The author of the article is guessing (*) (and presenting it as a fact) that they are on H1-B visas, since they happen to be unpopular... Most likely, though, these are L1 visas, used by foreign companies with offices in US to do intra-company transfers.

    The L1 visa has no caps and no requirements for prevailing wages, and makes it much easier to bring in foreign workers into US.

    (*) - http://www.computerworld.com/article/2915904/it-outsourcing/fury-rises-at-disney-over-use-of-foreign-workers.html

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  11. Re:So we have a lack of people with wha skills? by gstoddart · · Score: 5, Insightful

    I think the problem isn't so much a lack of skills, but instead grossly overcharging for those 'skills'

    BULLSHIT!!!

    This is about people who worship "the free market" saying "fuck it, if we pay these politicians we can introduce externalities to change the market in our favor we can do this cheaper".

    This whole globalization crap is a race to the bottom where corporations exert political influence to basically decide they don't like the costs the market has decided on, and instead we'll get someone from a third world to do it for a fraction of the cost.

    This doesn't benefit anybody but the fucking corporations, and it's a terrible idea.

    That companies are so blatantly ignoring that H1Bs are intended to be used to cover skill shortages, not to drive down wages is appalling.

    This has nothing to do with people grossly overcharging for skills, or competition, or even the fucking free market.

    This is corporate interests manipulating the "free" market on their own terms to change the playing field in their favor. And it's about corrupt asshole politicians who are letting them do it.

    This is the exact fucking opposite of a free market. This is corporate welfare at the expense of societies, bought and paid for through lobbying creating global oligarchies to make sure everybody is in a race for the bottom.

    Save the world, shoot an MBA.

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  12. Re:Why isn't this illegal again? by walterbyrd · · Score: 5, Insightful

    > Oh, don't think "union" like other professional groups. IT skills are not anything that can be unionized

    Why not?

    Other professions, like medical doctors, are organized, and it works for them. It works like all hell.

    Ask yourself why the US has not flooded the market with foreign physicians? Ask yourself why the wages for physicians have not been crushed?

    The reason is: doctors have organized, raised money, and lobbied congress. They have become a protected group.

    Tech workers could do the same. But they won't. US tech workers would rather, pointlessly, send links to articles to one another; and then gripe that nothing ever changes.

  13. Re: Why isn't this illegal again? by Junta · · Score: 5, Insightful

    It should be illegal because the point of H1-B is 'we can't find local skill to fill the position, we had to go overseas to get it'. The fact that you already *have* the skills and are laying them off to *replace* with H1-B workers means you are violating the intent of the H1-B program.

    With respect to protectionism, having a coporate 'sponsor' for your VISA means handing a corporation unreasonable power over that guest worker. This weakens their negotiating power if the general market conditions suggest they are not as well compensated as other companies do. It's one thing if they would be as empowered to quit their job without fear of deportation as the person they are replacing. This is a factor that makes H1-B holders stay cheaper than their non-H1-B counterparts, even when they should be on a level playing field when working in the same geographic location.

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  14. Only one way to fix the problem by walterbyrd · · Score: 5, Insightful

    Forget about "raising public awareness" public only cares about issues that affect them directly.

    Forget about voting the problem away: about 99% of politicians favor more guest workers.

    We need to organize.

    Consider the following situations:

    1)
    Management: train your h1b replacement before we fire you, or you do not get a severance, or a good reference.
    Worker: I guess resistance is futile.

    2)
    Management: train your h1b replacement before we fire you, or you do not get a severance, or a good reference.
    Everybody at the company: you try to pull that bullshit and we all walk out right now.
    Management: okay, never mind.

  15. Re: Why isn't this illegal again? by kilfarsnar · · Score: 5, Informative

    You can pretend to know something about me if you want, but actually I'm only part of the problem for people who are afraid of competition. And no, I don't get paid less than the employees - I get paid more. Always. Because I'm good.

    How nice for you. I guess we should all just become superstar consultants and we wouldn't have a problem. Can everyone be in the top 5%? I'm thinking that's not possible.

    You come off as pretty arrogant; basically telling people that if they didn't suck so much and were more awesome like yourself, they wouldn't care if people were trying to undercut their wages by making them compete with desperate people willing to settle for much less, because companies would just throw money at their awesomeness. I'm glad companies throw money at your awesomeness, but you seem to have an advanced or rare skill set making your example inapplicable to many other situations.

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