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Disney IT Workers, In Lawsuit, Claim Discrimination Against Americans (computerworld.com)

dcblogs quotes a report from Computerworld: After Disney IT workers were told in October 2014 of the plan to use offshore outsourcing firms, employees said the workplace changed. The number of South Asian workers in Disney technology buildings increased, and some workers had to train H-1B-visa-holding replacements. Approximately 250 IT workers were laid off in January 2015. Now 30 of these employees filed a lawsuit on Monday in U.S. District Court in Orlando, alleging discrimination on the basis of national origin and race. The Disney IT employees, said Sara Blackwell, a Florida labor attorney who is representing this group, "lost their jobs when their jobs were outsourced to contracting companies. And those companies brought in mostly, or virtually all, non-American national origin workers," she said. The lawsuit alleges that Disney terminated the employment of the plaintiffs "based solely on their national origin and race, replacing them with Indian nationals." The people who were laid off were multiple races, but the people who came in were mostly one race, said Blackwell. The lawsuit alleges that Disney terminated the employment of the plaintiffs "based solely on their national origin and race, replacing them with Indian nationals."

27 of 455 comments (clear)

  1. Except they didn't. by Anonymous Coward · · Score: 5, Insightful

    They didn't terminate them "based solely on their national origin and race"

    They terminated them based on the fact they can pay Indian workers a fraction of the salary.

    1. Re:Except they didn't. by hawguy · · Score: 4, Insightful

      They didn't terminate them "based solely on their national origin and race"

      They terminated them based on the fact they can pay Indian workers a fraction of the salary.

      Did they offer the Americans an equivalent salary?

    2. Re:Except they didn't. by Narcocide · · Score: 5, Informative

      No, because (somewhat ironically) its illegal to pay Americans that little.

    3. Re:Except they didn't. by hawguy · · Score: 5, Insightful

      No, because (somewhat ironically) its illegal to pay Americans that little.

      The lawsuits says that workers were "brought-in", and were mostly H1-B holders. H1-B holders need to be paid market salary.

      There's not much the workers can do about jobs that are actually off-shored, but if they were laid off and replaced by Indian H1-B workers who are working locally to transition to off shore teams only because they were not Indian, then they may have a case.

    4. Re:Except they didn't. by Anonymous Coward · · Score: 4, Insightful

      Missing the point.

      H1B needs to be brought in for salary based on their position.

      Big-indian-outsourcing-company, advertises their jobs at $5 per hour. Somehow wangles H1-B ( as in, no americans want to be contract engineers at $2.50 per hour, but indians do so being them in ).

      Outsourcing company ( read TATA ) now contacts as a U.S company, to another U.S company (disney) to do their IT.

      The spirit of the law is mangled to completely unrecognizable pulp.

      But the law is obeyed.

      Dunno what the fix is. But stop yelling about "bought-in-replacements", you'e missing the loop hole and it's important to understand

    5. Re:Except they didn't. by ghoul · · Score: 3, Informative

      Not if a job requirement was specified as being able to speak in Telugu. Boom your discrimination lawsuit has as much chance of guys filing a discrimination lawsuit against stripclubs hiring girls only

      --
      **Life is too short to be serious**
    6. Re:Except they didn't. by Anonymous Coward · · Score: 3, Insightful

      "Nope H1Bs are not paid less than Americans. They however do..."

      get paid less. It's magic.

      And they cannot change jobs, so you can ramp up their hours, ramp down their conditions, etc. If they don't like it, all they can do is leave the country, or get another sponsor, which is almost impossible and risky, as their current employer is almost certain to find out they are looking. See "ramp down their conditions, etc."

      We should be bringing the people we actually think are worth having in on work visas as real workers with rights. If they could simply leave if not paid enough or treated poorly, and be hired by someone who values them, the bottom would completely drop out of this racket.

    7. Re:Except they didn't. by plopez · · Score: 3, Insightful

      "They however do work a lot longer hours"

      I have never seen either onshore or offshore Asians works more than 40 hrs a week while my US co-workers covered for them out of hours or during their month long holidays. I have seen US workers work on Thanksgiving, Christmas, New Years, and the 4th of July (which should be illegal IMHO) only to be laid off. I don't buy it.

      --
      putting the 'B' in LGBTQ+
    8. Re:Except they didn't. by hey! · · Score: 4, Interesting

      Except if you do it through a third party company that's all at arm's length, and nobody bothers enforcing that law anyway. We all know that's true. So the risk to Disney is minimal.

      What they're doing with this lawsuit is hitting Disney where it lives -- reputation. What's going to happen is that if Disney doesn't settle, Disney will win on the basis that it's not illegal to discriminate against Americans. How do you think that will go over?

      --
      Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
    9. Re:Except they didn't. by somenickname · · Score: 4, Interesting

      It seems like it would be a pretty easy loophole to close: If you are hiring H1-B workers, the department you are hiring them into cannot be comprised of more than X% of H1-B workers. If you want to pick up 100 H1-B workers for $5.00 an hour, that's fine. But, you might need 900 non-H1-B workers to qualify for that many H1-Bs. And, if you can't find 900 local workers that are willing to work for the wages you are offering, maybe this isn't the right country for your business and you should move it to where your workforce resides.

    10. Re:Except they didn't. by the_Bionic_lemming · · Score: 5, Interesting

      No, the easiest way is to feel sorry for the H1B having to leave their homeland and live in the US. They should therefore earn the median computing wage in the area plus a 40% bonus for living expenses. After all, they have no home here, and will have to rent or buy. They should also gain a company car since obviously they can't bring whatever transportation they have in their old country.

      Also, free air fare to visit their relatives at least once a month - and on holidays. Can't have them being sad or missing their family.

      I would be happy with that in place for H1B's.

      --
      _ _ _ Go for the eyes Boo! GO FOR THE EYES!
    11. Re:Except they didn't. by TheReaperD · · Score: 3, Funny

      Strangely enough, I saw an actual, honest job listing that required speaking fluent Klingon as a job requirement. It was for a psychiatric hospital who had gathered up shut in Star Trek nerds that refused to speak any other language and they wanted to try and treat them. Psychiatric experience was a plus but, the job requirement was for a Klingon-English translator. One of the only times I wish I knew Klingon as the salary and benefits were awesome for the time.

      --
      "Be particularly skeptical when presented with evidence confirming what you already believe." -
    12. Re:Except they didn't. by budgenator · · Score: 4, Insightful

      What people are missing is Disney laid-off the workers and contracted with Tata to provide the services that the employees were supplying previously. Tata is the company primarily discriminating against American Workers, the workers being tasked with training their replacements, strongly implies the American Workers were qualified, the USG (United States Government) needs to cancel the H1B visas because qualified American Workers were available, Tata needs to pay the former H1B the difference between what was paid to them and what the market rate was (what the former Disney employees were paid) then Tata needs to settle up for the discrimination with the qualified American Workers based on National Origin, then Disney needs to be accountable for creating a Hostile Work Environment by requiring their employees to the insulting (By Disney's CEO's own admission) training of their replacements.

      These things need to be made such a hot mess that CEOs break out in hives anytime H1B vistas are mentioned.

      --
      Apocalypse Cancelled, Sorry, No Ticket Refunds
  2. Indian managers by Anonymous Coward · · Score: 5, Insightful

    Once you get a couple of Indian folks into management positions they just tend to recruit other Indian people and gradually remove whites.

  3. H1B is deeply flawed by LeftCoastThinker · · Score: 5, Insightful

    The flaw here is the H1B program needs to be completely eliminated for consulting/services companies (among other things, but this is the topic du jour). If you are a consulting/services company, you should be required to use only US employees in the US. The consulting company outsourcing is a circumvention technique for companies like Disney, who could never have gotten away with replacing all their IT people with H1B employees, but by "outsourcing" to a consulting company, they can legally lay off all of their employees and then benefit from the lower cost from the consulting company hiring a bunch of H1B slave labor. Same net effect, same savings to Disney, but totally legal currently.

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    1. Re:H1B is deeply flawed by fluffernutter · · Score: 4, Insightful

      I agree. A consulting company is in the business of speculating where resources will be needed. Therefore it is illogical that they could ever hire under H1B since the point of H1B is to be a last resort for hiring once all avenues are exhausted. It is not supposed to be used to fill positions that are still being speculated upon.

      --
      Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
  4. Re:I live in Orlando by __aaclcg7560 · · Score: 3, Interesting

    Now you're unemployable for life.

    Uh, no. I was unemployed for two years (2009-10), underemployed for six months (working 20 hours per month), and filed for chapter seven bankruptcy in 2011. For two years I was told by hiring managers that I was overqualified for minimum wage work and told by recruiters that I was unemployable. The day after my bankruptcy got finalized I got full-time work again because the economy turned around and employers needed to fill positions.

  5. Why are hard workers being replaced? by plopez · · Score: 3, Informative

    I have seen US workers work weekends, out of hours and holidays for my entire career. Often covering for contractors and overseas Asian teams who never seem to be available outside of their regular hours. Also they seem to be impossible to contact during their month long holidays no mater the crisis the customers are having.
    They just lack the the Protestant work ethic.

    And the US workers who "go the extra mile" get laid off anyway. I can only attribute it to race and national origin discrimination.

    --
    putting the 'B' in LGBTQ+
  6. Sucks but nothing will change. by ErichTheRed · · Score: 4, Insightful

    I do feel bad for these workers. The H-1B loopholes that allow bodyshops like Tata to bring in cheaper, ,more compliant workers need be changed. I doubt anything will happen though -- Trump certainly isn't going to do anything that will upset his friends in business. He's basically signaled to every executive out there that concessions are available for the right price and he's willing to cut deals with the Carrier incident.

    I don't have a problem with the H-1B program itself - but the fact that it's used to replace older, more senior workers doing routine IT work that doesn't require exceptional skills is the problem. I'm doing systems integration work, and the development teams I'm working with are all slowly being replaced with offshore Indian guys and body shop employees. I'm good for now because someone has to make heads or tails of the messes they want to get working, but I feel that unless something is done there will be no work for experienced people, and no pipeline of newbies to fill entry level positions. If people see they can't get anywhere in IT because there's no entry level work anymore, they're going to study something else.

    I see a post or two saying the people filing these lawsuits have no talent...somehow I doubt this. IT is famous for throwing out workers who are 40+ and who demand above a certain salary for their experience. So far, the only hope I've seen in this situation is that there are constantly companies in this loop of offshoring, then bringing IT back in house when it starts going pear-shaped, then repeating. Not all these companies are on the same schedule. What I'll bet happened is that there was a bunch of staff who became very senior developers or sysadmins of a key system, and spent their time working to maintain their small little pigeon-hole of knowledge...this happens a lot in big companies. CIO comes in, gets sold on the idea of offshoring, and just goes through the department salary spreadsheet, killing off the top x% of the list. Offshore body shop gets the contract, and has to reduce costs, so they bring in the H-1Bs to learn the job, then teach it to the 1000s of people they have in India. Believe me, I've seen it multiple times, including the "this sucks, let's reshore everything" part.

  7. what to do by Ritz_Just_Ritz · · Score: 5, Interesting

    I have worked at a few Fortune X (single and low double digit) companies. They have all been addicted to hiring folks from the usual offshore suspects who pay substandard wages and import (mostly) Indian and Eastern European labor for jobs that could clearly be offered to kids fresh out of college with engineering or comp sci degrees in Europe and the US. I honestly can't fathom why. For all the money "saved" there's the SIGNIFICANT wasted productivity and the "meh" value to the business of the average "resource" supplied. Calls take a lot longer, code quality tends to be sucky to average, emails are hard to parse, and you wind up with a "team" who feels like "as long as there are lots of people on a call, we've got it covered." The fact that efficiency measures suck, employees have no skin in the game to improve things, and everything takes a lot longer seems to be ignored.

    What is it that ensnares the bean counters to prefer this situation over hiring qualified local candidates? I honestly don't get it. Why is it "better" to pay some unqualified person a low wage, tack on a substantial fee paid to the body shop, and then have everyone suffer through the extended delivery times, angst, etc. It can't be cheaper to do it this way, and if it is, it could not possibly be enough of a savings to merit delaying the delivery of what the business needs in a timely manner. Or can it?

    I find the whole thing to be sordid, unsavory, and just demeaning to all concerned. I can't blame the folks who take those H1-B jobs. One trip to Bangalore, Sofia, Kiev, etc and you realize that these are folks that are just trying to make a living. They are acutely aware that many of their co-workers don't like this situation and simply tolerate them. Clearly someone is making some serious $$$ by perpetuating this system. Who? If I was in an industry where the top 20 experts in a particular field were from country X, I could understand. But this is for relatively inexperienced java programmers and sysadmins....clearly not what the H1-B program is designed to help.

    What do YOU think?

    1. Re:what to do by Anonymous Coward · · Score: 5, Insightful

      Simple. Short term profits over long term sustainability. In the short term, expenses go down, profit goes up. By the time the shit has hit the fan, the people making the decisions have cashed out and moved on. They couldn't care less about what happens at that point.

      And it tends to be what a lot of the shareholders want, too, for pretty much the same reason.

    2. Re:what to do by drew_kime · · Score: 5, Insightful

      What is it that ensnares the bean counters to prefer this situation over hiring qualified local candidates? I honestly don't get it. Why is it "better" to pay some unqualified person a low wage, tack on a substantial fee paid to the body shop, and then have everyone suffer through the extended delivery times, angst, etc. It can't be cheaper to do it this way, and if it is, it could not possibly be enough of a savings to merit delaying the delivery of what the business needs in a timely manner. Or can it?

      One year when I worked at a bank the CTO published our annual goals, and one of the two goals was to achieve an average development rate less than $30 per hour. Everyone in the room knew what that meant ... or we thought we did. There was no one there making less than $30/hr at the time, so we expected we were all going to be replaced by low-price contractors, or the work would simply be outsourced.

      But our department head was smarter than that. He engaged an offshore team of 20 people. We had 10 onshore. We never sent them any work that mattered, and a significant portion of our project manager's job wen to "keeping them busy" with things that would show up on a status report, but that didn't affect our actual work product.

      The average development rate went down even thought the total spend went up, and we kept delivering what we always had.

      You tell me the metric, I'll tell you the easiest way to game it.

      --
      Nope, no sig
  8. How will Disney defend itself? by Required+Snark · · Score: 3, Interesting
    I can't think like a lawyer (because I am still human and have not sold my soul to the devil) so it is tough for me to figure out how Disney will try and wriggle out of this. It looks to me like there is no feasible defense. The facts are crystal clear. They broke the law.

    Their big problem is that they fired all the previous workers because hiring Indian 1HB was cheaper, despite the delusional claims in some of the previous posts. Replacements never are paid equal wages in the real world. However, if Disney goes anywhere near that then they can be sued for breaking the 1HB regulations. Just because the Feds side with Big Business in screwing workers doesn't mean that law has been repealed, so civil suites can still provide an individual with some legal recourse.

    This case could really shake things up. In fact, I bet that it never goes to trial and Disney settles out of court because they are terrified what would happen if it got in front of a jury. Unless there is some sort of in court judgement against the workers bringing the suite, you can be sure that this will be the first of a big wave of long overdue lawsuits. I can't wait.

    --
    Why is Snark Required?
  9. Boycott by gabrieltss · · Score: 5, Informative

    I know this is seen as a useless attempt. However, I personally have. Instead of taking our grandson to Disney World two years ago, we took him on a road trip and visited 9 national parks instead. This year again we boycotted Disney and went to NY and Washington DC. Both trips the last two years cost us LESS Than one week in Disney World. A week there is at LEAST $10K (if you stay at one of their resort hotels) for a family. So imagine if 1,000 people did the same thing and saved $10K. That would be $10,000,000 Disney would lose.

    Just a thought....

    --
    The Truth is a Virus!!!
  10. Re:The real missed point by GrumpySteen · · Score: 4, Insightful

    Yes, but laying people off to fill their positions with an outside contractor is legal, even if the contractor primarily hires H1-B visa workers for their contracts. It's a loophole that has been abused too many times to count and there's absolutely no sign that it will ever be closed.

  11. Re:The real missed point by myid · · Score: 4, Interesting

    It's a loophole that has been abused too many times to count and there's absolutely no sign that it will ever be closed.

    This NDTV article states,

    President-elect Donald Trump has said he would not allow Americans to be replaced by foreign workers, in an apparent reference to cases like that of Disney World and other American companies wherein people hired on H-1B visas, including Indians, displaced US workers.

    "We will fight to protect every last American life," Mr Trump told thousands of his supporters in Iowa on Thursday as he referred to the cases of Disney world and other US companies.

    We'll see how hard he pushes Congress on this matter.

  12. Comment removed by account_deleted · · Score: 3, Interesting

    Comment removed based on user account deletion