Does anyone remember who the two companies that started the outsourcing trend were?
The companies whose leaders were held up as visionaries, who provided a new model for industry to follow?
Anyone?
Anyone?
That's right. Kodak and Enron started this all in the early 1990's.
One of the reasons outsource persists in spite of not saving any money is what I call "The NFL Problem."
You're a team owner. It's January. Your team went 4-12. You've just fired your coach. Now you need to find another coach. But you want someone with NFL head coach experience AND you don't want to pay what it would take to get Jimmy Johnson or Bill Parcells out of retirement.
What's then available?
The coach that went 3-13 and just got fired from some other team.
Let's now move into the computer industry. You may have read that Fossil (a company I had never heard of until this event) H-1Beed its Americans.
http://dailycaller.com/2015/05...
I turned out that this was a decision made by new IT management Fossil had hired that had previously come from JCPenny. CIO magazine described the situation there as "Mismanagement for the Ages."
http://www.cio.com/article/284...
Why in in the world with Fossil want to hire "Mismanagement for the Ages" to run their IT Department?
Just like the NFL owner, they probably wanted "experience" and did not want to pay a lot. That's why you see incompetent CIOs getting fired from one company and moving to another. It's not uncommon to see CIOs creating serial disasters at four or more companies.
Sadly, that is not a topic we got into in Sold Out because it was too industry specific but maybe in another book.
Unions these days have a number of structural problems that I will not delve into hear. However, I will point out that when Southern California Edison replaced its American workers with H-1B workers last year, notice its was non-union workers that got replaced and the Americans that stayed.
If I were running a union, that would be one of my marketing points.
It is true that Americans programmers at all these companies that have been H-1Beeing could have prevented their own jobs losses by collectively following Nancy Reagan's advice: JUST SAY NO.
The fact of the matter is that H-1Beeing has been going on at least since 1994 and NOT ONE company doing it has had the slightest problem getting their soon-to-be-ex-American-workers dig their own graves. NOT ONE.
The programmer motto has been "Thank you sir. May I have another?"
I throw this out as a serious question: If no unions be needed, when are Americans going to stand up without one?
No, you don't kneed a union to stand up when the employer says "Train your foreign replacement." But the fact of the matter is no one stands up without a union.
I have had a friend working in my office for the past couple of days. He has been asking me questions related to the post here. I finally am going to step in myself.
Replacing Americans with low paid foreign workers, as as Disney, is what the H-1B program is DESIGNED TO DO. Disney is not an accident. Politicians, like Rubio, may say otherwise but what they say and what they do are two different things.
It is perfectly legal to replace an American with an H-1B worker (even if Disney had down so without using Infosys) unless:
1. The H-1B worker is paid less than $60,000; AND
2. The H-1B worker does not have a graduate degree; AND
3. The employer has more than 15% of its total workforce on H-1B visas not counting those making $60,000 or having a graduate degree.
The national average wage for a computer worker is $84,000 (much higher in NYC and California where H-1B workers are more prevalent). Pay the worker $60,000 and you can replace Americans at will. Effectively, any employer can replace Americans at will in technology fields.
Infosys alone generates 8 figures a year in lawyer fees for H-1B visas. If Infosys cannot replace Americans, it is not getting H-1B visas. If it doe not get H-1B visas, there are no legal fees for lawyers. If there are no legal fees for lawyers, the lawyers cannot run their yachts. Therefore, American programmers are expendable.
If you go to the top of 8 USC 1182(n)(1), yes it says H-1B workers have to be paid the prevailing wage. But moved down to 8 USC 1182(p) and you find that Congress requires the Department of Labor to provide 4 skill-based prevailing wages. As the provisions dictate, the result is
Skill Level 1: 17th percentile of wages for the occupation and location. Employers classify 50% of H-1B workers here.
Skill Level 2: 34th percentile. 32% of H-1B workers
Skill Level 3: Median wage. 12% of H-1B workers
Skill Level 4: 64th percentile 6% of H-1B worker
Go to FLCDATACENTER.COM and you can see the wage savings by going H-1B for any occupation and location combination. You can see that this system is designed to allow employers to pay H-1B worker ridiculously low wages.
Those of you are hare saying that Disney came about due to a lack of enforcement are WRONG. What happened at Disney, under the H-1B program, IS PERFECTLY LEGAL. Maybe Ms. Blackwell can win on some other grounds. I wish her luck,.
The H-1B program is deliberately convoluted and designed to make the casual reader believe something different from reality. I spent two hours on Monday walking another lawyer who initially could not believe it was legal to replace Americans with low paid H-1B workers through the twists and turns of the H-1B statutes.
If you are posting nonsense like this—"It is not the law. H1B Visas are not meant to replace US worker force but to supplement the the workforce. It also expressly forbids paying workers lower wages. Look it up sometime. The problem is enforcement and the companies that game the system."—showing publicly that you don't know what you are talking about, I suggest you start listening and reading; rather than talking.
When you "look it up sometime" be sure you pay special attention to:
1. Defining an "H-1B Dependent Employer"
2. Defining an "exempt H–1B nonimmigrant"
3. The restrictions imposed on enforcement
4. The prevailing wage provisions of 8 USC 1182(p).
You will find that H-1B is, quite simply, the best legislation money can buy.
Congress needs to be held accountable. The problems with H-1B (and H-1B is just the tip of the iceberg), can only be fixed by Congress.
Otherwise, we lawyers can laugh all the way to the bank.
Slashdot Mirror
Mr. Iger, who actively lobbies for more more H-1B visas was the 2d highest paid executive in the country. http://money.cnn.com/gallery/n...
In the wake of the Disney H-1Beeing, he got a raise: http://www.huffingtonpost.com/...
Note that Mr. Iger's salary is more than that of the 320 Disney workers who got H-1Bed COMBINED.
And if you total the on-paper savings of replacing those Americans with H-1B workers, it adds up to about what Mr. Iger's RAISE was that year.
The companies whose leaders were held up as visionaries, who provided a new model for industry to follow?
Anyone?
Anyone?
That's right. Kodak and Enron started this all in the early 1990's. One of the reasons outsource persists in spite of not saving any money is what I call "The NFL Problem."
You're a team owner. It's January. Your team went 4-12. You've just fired your coach. Now you need to find another coach. But you want someone with NFL head coach experience AND you don't want to pay what it would take to get Jimmy Johnson or Bill Parcells out of retirement.
What's then available?
The coach that went 3-13 and just got fired from some other team.
Let's now move into the computer industry. You may have read that Fossil (a company I had never heard of until this event) H-1Beed its Americans. http://dailycaller.com/2015/05...
I turned out that this was a decision made by new IT management Fossil had hired that had previously come from JCPenny. CIO magazine described the situation there as "Mismanagement for the Ages." http://www.cio.com/article/284...
Why in in the world with Fossil want to hire "Mismanagement for the Ages" to run their IT Department?
Just like the NFL owner, they probably wanted "experience" and did not want to pay a lot. That's why you see incompetent CIOs getting fired from one company and moving to another. It's not uncommon to see CIOs creating serial disasters at four or more companies.
Sadly, that is not a topic we got into in Sold Out because it was too industry specific but maybe in another book.
We need more Americans like you how have a backbone!
Unions these days have a number of structural problems that I will not delve into hear. However, I will point out that when Southern California Edison replaced its American workers with H-1B workers last year, notice its was non-union workers that got replaced and the Americans that stayed. If I were running a union, that would be one of my marketing points. It is true that Americans programmers at all these companies that have been H-1Beeing could have prevented their own jobs losses by collectively following Nancy Reagan's advice: JUST SAY NO. The fact of the matter is that H-1Beeing has been going on at least since 1994 and NOT ONE company doing it has had the slightest problem getting their soon-to-be-ex-American-workers dig their own graves. NOT ONE. The programmer motto has been "Thank you sir. May I have another?" I throw this out as a serious question: If no unions be needed, when are Americans going to stand up without one? No, you don't kneed a union to stand up when the employer says "Train your foreign replacement." But the fact of the matter is no one stands up without a union.
Replacing Americans with low paid foreign workers, as as Disney, is what the H-1B program is DESIGNED TO DO. Disney is not an accident. Politicians, like Rubio, may say otherwise but what they say and what they do are two different things.
It is perfectly legal to replace an American with an H-1B worker (even if Disney had down so without using Infosys) unless:
1. The H-1B worker is paid less than $60,000; AND
2. The H-1B worker does not have a graduate degree; AND
3. The employer has more than 15% of its total workforce on H-1B visas not counting those making $60,000 or having a graduate degree.
The national average wage for a computer worker is $84,000 (much higher in NYC and California where H-1B workers are more prevalent). Pay the worker $60,000 and you can replace Americans at will. Effectively, any employer can replace Americans at will in technology fields.
Infosys alone generates 8 figures a year in lawyer fees for H-1B visas. If Infosys cannot replace Americans, it is not getting H-1B visas. If it doe not get H-1B visas, there are no legal fees for lawyers. If there are no legal fees for lawyers, the lawyers cannot run their yachts. Therefore, American programmers are expendable.
If you go to the top of 8 USC 1182(n)(1), yes it says H-1B workers have to be paid the prevailing wage. But moved down to 8 USC 1182(p) and you find that Congress requires the Department of Labor to provide 4 skill-based prevailing wages. As the provisions dictate, the result is
Skill Level 1: 17th percentile of wages for the occupation and location. Employers classify 50% of H-1B workers here.
Skill Level 2: 34th percentile. 32% of H-1B workers
Skill Level 3: Median wage. 12% of H-1B workers
Skill Level 4: 64th percentile 6% of H-1B worker
Go to FLCDATACENTER.COM and you can see the wage savings by going H-1B for any occupation and location combination. You can see that this system is designed to allow employers to pay H-1B worker ridiculously low wages.
Those of you are hare saying that Disney came about due to a lack of enforcement are WRONG. What happened at Disney, under the H-1B program, IS PERFECTLY LEGAL. Maybe Ms. Blackwell can win on some other grounds. I wish her luck,.
You can read the complete details in Sold Out: http://www.amazon.com/Sold-Out...
The H-1B program is deliberately convoluted and designed to make the casual reader believe something different from reality. I spent two hours on Monday walking another lawyer who initially could not believe it was legal to replace Americans with low paid H-1B workers through the twists and turns of the H-1B statutes.
If you are posting nonsense like this—"It is not the law. H1B Visas are not meant to replace US worker force but to supplement the the workforce. It also expressly forbids paying workers lower wages. Look it up sometime. The problem is enforcement and the companies that game the system."—showing publicly that you don't know what you are talking about, I suggest you start listening and reading; rather than talking.
When you "look it up sometime" be sure you pay special attention to:
1. Defining an "H-1B Dependent Employer"
2. Defining an "exempt H–1B nonimmigrant"
3. The restrictions imposed on enforcement
4. The prevailing wage provisions of 8 USC 1182(p).
You will find that H-1B is, quite simply, the best legislation money can buy.
Congress needs to be held accountable. The problems with H-1B (and H-1B is just the tip of the iceberg), can only be fixed by Congress.
Otherwise, we lawyers can laugh all the way to the bank.