
2009 Media
Fact Sheet on H-1b Harm
In spite of the current economic downturn and massive
bailouts to industry, Congress has failed to mitigate the harm they are
inflicting upon U.S. tech workers through their liberal H-1b, L-1, PERM, OPT,
and related programs that displace qualified Americans with foreign workers.
In December 2008 Roy
Beck of NumbersUSA asked: “Isn't it time to stop the massive importation of
foreign workers? Non-farm employers in the U.S. eliminated 533,000 jobs in
November. At the same time, in a typical month the feds give out approximately
140,000 new work permits and green cards to foreign workers.”
[President Elect Obama] and his advisers are crafting
a two-year economic stimulus plan that would create 2.5 million jobs. But,
unless Congress suspends the prevailing “guest-worker” programs, many of these
Americans jobs will be given to foreigners over that two year period.
Accordingly, the Programmers Guild calls for an immediate, emergency suspension of all
foreign worker programs until the U.S. economy is again creating jobs
faster than Americans can fill them.
H-1B FACTS
1. H-1b workers are directly competing
against Americans for a diminishing number of job openings.
The Nov 26, 2008 Reuters article “Silicon
Valley starts to feel the sting of layoffs” quoted unemployed H-1b business
systems analyst Vivek Sharma who is seeking work in Silicon Valley: “The job market is completely dead.” In
October 2008 another batch of H-1b workers flooded in. In November 2008 the unemployment
rate in Silicon Valley jumped from 6.2 to 6.9 percent.
2. Congress allows H-1b workers to be
hired regardless of whether qualified Americans are available.
Immigration and Nationality Act (INA) states: “Any
alien who seeks to enter the United States for the purpose of performing
skilled or unskilled labor is inadmissible, unless the Secretary of Labor has
determined… that — (I) there are not sufficient workers who are able, willing,
qualified ... and available at the time of application for a visa and admission
to the United States...”
However this provision does not apply to H-1b
workers, who are deemed “temporary,” even though they can remain for six years
and many obtain greencards during that period.
3. H-1b
workers are displacing U.S. workers
eWeek
reported in November 2008: “Pfizer's outsourcing contract with Infosys
Technologies and Satyam Computer Services means job losses for IT workers in
Connecticut. Many U.S.-based contractors are complaining that they are being
asked to train H-1B workers who will soon replace them.” Earlier this year the Nielsen company
laid off hundreds of workers and replaced them with H-1b workers.
4. Foreign
firms are the largest users of H-1b
The largest
users of H-1b are Indian consulting firms. They admit
that their competitive advantage is that they pay 25% below what they would
have to pay to American workers.
H-1B
REFORMS
a) Reform the flawed "prevailing wage"
calculation that allows employer to legally
pay H-1b workers at the 17th percentile of what average-skilled
Americans are paid within the same occupational classifications. Abolish the
four DOL wage levels and mandate that H-1b be paid at least the average wage
within the classification.
b) Reform the annual random “H-1b lottery” to
instead give preference to the highest skilled foreign workers. We agree with
industry on this point: It makes no sense to randomly deny visas for $100k PhD
Researchers while approving the visas for $17/hour accountants and web
developers.
c) Require employers make a good faith effort to recruit
American workers before DOL approves Labor Condition Application (LCA) for
an H-1b worker. This can be achieved by making the “H-1b dependent” provisions
of the H-1b statutes apply in all cases.
d) Ban the remarketing of H-1b workers via “bodyshops.”
Any H-1b use should be as a direct hire by the employer that requires the
skills. The growing use of H-1b by bodyshops, which first obtain H-1b workers
and then aggressively shop their resumes against U.S. workers makes a sham of
the entire program.