Offshoring and H1B Visa abuse, the 1-2 punch to knockout US tech workers

"he estimated 500,000 people in the U.S. on H-1Bs are by definition citizens of other nations, and they're usually beholden to employers that can transfer them home at will."- BusinessWeek 1-31-08

H1B Visa Abuse

Do as we say or get deported
From the green building in which I recently left, where the entire environmental controls will be monitored from the desk of another country, to the tech support jobs that Dell led the way into the Indian nation, the brighter of our countrymen, the Techie geeks, are under attack. Not just from the threat of offshoring, but by the threat of misuse of H1B Visa's by unscrupulous employers on our own shores. It is called the PERM process and the following video made by Immigration attorneys from Cohen & Grigsby explains just how to disqualify qualified US Workers in favor of foreign workers, who by the way must keep their job at all costs or be deported. Sounds like a new form of slavery.
Immigration attorneys from Cohen & Grigsby explains how they assist employers in running classified ads with the goal of NOT finding any qualified applicants, and the steps they go through to disqualify even the most qualified Americans in order to secure green cards for H-1b workers. See what Bush and Congress really mean by a "shortage of skilled U.S. workers." Microsoft, Oracle, Hewlett-Packard, and thousands of other companies are running fake ads in Sunday newspapers across the country each week.
From : networkworld.com
Cisco caught in maelstrom over fake job ads to hire H-1B visa holders
Submitted by Brad Reese on Fri, 06/29/2007 - 2:04pm.

Patrick Thibodeau reported in Computerworld, that Cisco may have advertised for a U.S. job position that really wasn't open to American citizens.
June 28, 2007 (Computerworld) -- Cisco Systems Inc. placed a help wanted ad for a network consulting engineer in the Chicago Tribune on Sunday, June 3, and David Huber, a networking professional who lives in Chicago, was interested in the job.

The ad copy read, "No phone calls please." But Huber, a University of Chicago graduate whose prior work included being the lead LAN/WAN network engineer for NASA's aborted X-33 rocket plane project, called Cisco and asked for the person named in the ad.

"Before I send my resume into a black hole, I always like to talk to the recruiter first," he said this week. A Cisco telephone operator gave Huber the phone number of an immigration law firm in Santa Clara, Calif. "Why would I be talking with somebody at an immigration law firm about this?" he wondered.

Huber said his question was answered a couple of weeks later when he saw the controversial YouTube video that shows an attorney from a Pittsburgh law firm providing advice to employers on how to deal with government requirements for seeking U.S. workers to fill jobs before hiring foreign workers.

"It seems obvious to me after that video what's going on," Huber said.
This isn't just an isolated incident, most if not all of the major companies are doing this and lobbying to get more H1B visa allowances pushed through Legislature. In fact a recent bill which was supposedly for border enforcement contained wording to increase the allowed H1B Visa's annual cap to increase from from 65,000 to between 130,000 and 195,000(*See Below). The companies keep saying the same old bullshit to allow this, but according to Information Week story entitled No, The Tech Skills Shortage Doesn't Exist:
none of the indicators demonstrates a systemic shortage. While exceptional talent or skills in emerging technologies will always, by definition, be in short supply, the most relevant market indicators--wages and employee risk--clearly show there's no broad-based scarcity of U.S. IT workers. In their zeal to enlist government help to expand the supply of tech workers through foreign guest worker programs, employers are misrepresenting IT labor market conditions.
BusinessWeek points out how many foreign companies are accused of underpaying foreigners on work visas and hurting US wages in the process in the article: Are H1B workers getting bilked?
But this was no dream job come true. Goel's base salary was $23,310, about half the $44,000 that Patni had said it would pay on the visa application, according to a lawsuit he has filed against the company. When Goel complained, one official said that Patni would brand him a "troublemaker" and that his parents in India would be harassed unless he stopped, the suit alleges.
How do the candidates feel about the subject? Heres a CNN story with Hillary from 6/2/07, none of the other front runners seem to have an opinion.

Off Shoring
Cheaper workers, do you see the savings? I think not!
Heres a partial list of the job impact of off shoring by the people at TechsUnite.org who state:
Offshore Events Display
most recent event: 02/01/2007
last updated: 09/22/2005

The offshore tracker is based upon news accounts and employees. It tracks instances of offshoring beginning in January 2001 and using a list of companies derived from media sources. The tracker is not scientific in determining the precise number of jobs lost, since media reports are not always accurate, we do not have access to all media reports, and many instances of offshoring go unreported. However, this tracker is the only source that accounts for and aggregates the number of jobs lost due to offshoring. In fact, we know the current totals are low. For that reason. we need your help to let us know which employers - companies and state agencies - are offshoring jobs. We will be updating the tracker regularly by encouraging individuals to submit new event information and by continuing to monitor the media

Top 10 Offshoring companies

Company------Most Recent---Jobs Offshored--Est. jobs lost




Cognizant-------11/01/2004-----15000-------data unavailable

Siemens AG----03/02/2004-----15000-------data unavailable

GE----------------12/20/2004-----14250-------data unavailable





The complete list of Offshoring can be found here, I don't know what to tell anyone to do about it other than what I always do when confronted with a guy named "Sam" on the phone who obviously doesn't speak English very well, I tell him I would like to speak to someone who is English speaking as a first language, Most companies have a remaining call center in the states for obtuse people like myself. I stopped buying Dell and dropped Verizon DSL because of this exact problem of sending our jobs out of the country. Did it make a difference, probably not, but I refuse to knowingly give my hard earned money to a corporation who doesn't reinvest in our country. If there were more people like myself we wouldn't be in this predicament.

The fight for the tech workers is the same fight for the rest of us here in America, Joe's Union Review stands with you in your plight. Please feel free to give me any news to spread to the masses.

Resources for Tech workers:


Anonymous said...

I was listening to the testimony of Microsoft Chairman Bill Gates and his points on requesting Congress for increase in H1 B visa quotas. He was mentioning that H1 B employees gets paid very high salary and most of the H1 B guys remain in US through Green card. See companies like Microsoft do not abuse H1 B visas program but there are many-2 big Indian companies are abusing these programs and also pay very low salaries to the H1 B workers keep them in a pathetic condition in USA.

Comapnies like Infosys, Wipro, TCS get the job of Software Designer, Architecht, Data Base Adminsitrator done from their employees but pay them the prevaling wage of a junior programmar as they file there H1 in junior category and pay them less salary. He only gets paid as per a Junior Programmer salary say 60 K USD where as his day to day job responsibility should be compensated by 100 K or more.

Indian H1 B employee is completely on the mercy of his Indian employer as the moment H1 is cancelled the person becomes illegal in USA so he continue to bear the abusive practices from his employer. Hiring an American would need the IT consulting to pay almost 30 K more per year for the same job responsibilities. This way of paying Indian engineer less salary brings down the overall salaries for Americans.

Most of the Indian IT consulting do not file Green Card for the employees as they want employee to be temporary for six years in USA and always be dependant on the H1 sposnoring employer. Say if they file H1 B Visa for 1000 employees but only file 10 Green card out of those 1000 H1B guys.

Mr Gates was asking to increase the quota for H1 B but most of the quota would be abused by the Indian IT Companies. Only 20 % of the quota would be used by the big American companies like Microsoft and they might be
utilizing this H1 B program correctly but rest of the 80% would be used by Indian IT consulting companies who would abuse the emoloyees and bring down the entire salary level for American employees.

One H1 B employee works in USA and be a Onsite coordinator but in his team there are 5 engineers in India. So he becomes a coordinator and 5 people work in India. So one h1 B is replacing atleast 5-6 jobs in USA.

I know a very close friend of mine who is on a H1 B program and get paid only 65 K per year whereas the same job being done by an American is getting paid about 90K per year. He cannot raise his voice as his Indian employer would kick him back to India. So this way the abuse continues and if the congress increase the H1 B quota the more Indian employees would get exploited, IT salary would come down further and jobs would continue to get shipped to India.

Joe638NYC said...

Thanks for your comment Visa abuse is getting more common and if the corporations who abuse the employees have their way, it will quadruple in the near future. People such as yourself should get your own blog to spread the information. I'm but one person.



The H-1B visa program was originally created to assist American employers who were having trouble finding American high-tech workers for their businesses. It allowed a fixed number of foreign workers come to the United States to “temporarily” fill those positions while the American companies and the federal government invested time and money in upgrading the training of American workers to meet the new skill levels required.

Although the program was originally designed to benefit American businesses, it has now become a program that benefits foreign companies with offices in America, rather than American companies, because the majority of the H-1B visas are now going to foreign-owned companies. Data just released by the federal government shows that offshore outsourcing firms, mostly from India, dominate the list of companies awarded H-1B visas in 2007. Indian outsourcers accounted for nearly 80% of the visa petitions approved last year for the top 10 participants in the program. These statistics should set off some alarms in congress that the H-1B visa program is not working as it was intended. Aqccording to data from the U.S. Citizen and Immigration Services, Infosys Technologies and Wipro, two companies based in Bangalore, top the list of visa beneficiaries in 2007, with 4,559 and 2,567 approved visa petitions, respectively. Microsoft and Intel were the only two traditional U.S. tech companies among the top 10. Microsoft received only 959 visa petition approvals, or one fifth as many as Infosys, while Intel got only 369. How is this helping American workers and American businesses?

The H-1B work visa program was supposed to be used to bolster the U.S. economy by helping American-owned companies. Under the program, American companies can use the speciality visa to hire foreign software programmers or computer scientists with rare skills in order to encourage innovation and improving competitiveness. Instead, foreign companies such as Infosys and Wipro are using our own government program to undermine the American economy by wiping out American jobs. These foreign-owned companies are bringing low-cost workers into the U.S., training them in the offices of American business clients, and then rotating them back home after a year or two so they can provide low cost, out-sourced tech services that causes American IT workers to lose their jobs. How is this helping American workers and American businesses?

Even though approximately 80,000 Americans lost their jobs in the first two months of 2008, incredibly some members in the House of Representatives have introduced legislation to help these big foreign-owned international corporations bring in an increasing number of foreign workers that will put even more Americans out of work. Since its inception, the H-1B Visa program has been rampant with fraud. In the first half of 2006, the Programmer’s Guild, a group representing U.S. worker interests, filed over 300 discrimination complaints against companies who posted “H-1B visa holders only” ads on internet job boards. It’s obvious that these foreign-owned companies are only targeting foreign workers and undermining the system by bypassing the American worker. How is this helping American workers and American businesses?

While a bill to reduce illegal immigration (HR-4088) is stalled in Congress with the House leadership refusing to bring it to the floor for a vote, Representative Gabrielle Giffords (D-Arizona) has introduced “The Innovation Employment Act” (HR-5630) that would increase the cap of H-1B visas from 65,000 a year to 130,000 a year. In addition, there would be no cap on H-1B applications for foreign graduate students attending U.S. colleges and studying science, technology and related fields. Currently, there's a 20,000 student-a-year cap on visas for graduate students in all fields. The legislation would eventually increase the H-1B cap to 180,000 and the total number of foreigners admitted under this work and graduate education proposal could reach almost 300,000 a year. To make matters worse for the American IT workers, Rep. Lamar Smith (R-Texas) has introduced the “Strengthening United States Technology and Innovation Act” (H.R. 5642), which would TRIPLE the current H-1B visa cap to 195,000 in 2008 and 2009 and Rep. Zoe Lofgren (D-Calif) wants to make Rep. Smith’s increase permanent. How is this helping American workers and American businesses?

There is no real shortage of American information technology workers. It’s just that the large high-tech international companies want to turn these hard earned information technology skills into as cheap a labor commodity as possible at the American workers’ expense. On March 12th Bill Gates appeared before Congress calling for an increase in H-1B visas. Two days later, without soliciting comments from any representatives of American IT workers, Congress introduced two bills that would double or triple the H-1B base cap. Why weren’t the representatives of American IT workers allowed to be heard? Could the average of $25 million dollars a year that members of congress receive in bribes (I mean campaign contributions) from the Computer Equipment and Services Industry, have something to do with this? Here’s some interesting campaign contribution statistics compiled by the Center for Responsible Politics at www.opensecrets.org that shows why congress may be so eager to support the requests of the Computer Equipment and Services Industry over the American IT workers. Here’s how much the high-tech industries have contributed to federal campaigns:

2000 - $38.9 million
2002 - $26.7 million
2004 - $29.0 million
2006 - $18.4 million
2008 - $15.5 million (partial)

These two bills (H.R. 4088 and H.R. 5642) will do nothing to curb the fraud in the H-1B visa program and they will have serious consequences for American citizens that are employed in the information technology field. The proposed legislation will displace even more American IT workers and outsource their good paying, high-technology jobs to foreign off-shore companies. We must learn from our mistakes. The current H-1B visa program has not served the best interests of American workers nor American companies. The current program has actually helped foreign competitors, with branch offices in the USA, hire almost no Americans and shift as many American jobs overseas as possible. How is this helping American workers and American businesses?

The current H-1B Program, as designed, is detrimental and harmful to the welfare of American workers and American high-tech businesses. It should be abolished. In it’s place and only if it is needed, H-1B type legislation should be written in a way that actually benefits American companies, American workers and American students thinking of embarking on a high-tech career.
Any new H-1B Visa legislation should be simple and have the following criteria to help Americans only:

IT MUST BENEFIT BOTH AMERICAN WORKERS AND AMERICAN COMPANIES: The H-1B Visa Program was originally designed to help American companies. Any new H-1B Visa Program should apply ONLY to American-based business entities and the H-1B visas should only be issued to foreign employees after proof is supplied that no American worker has either applied or is otherwise qualified for the position.

BENEFIT FOR AMERICAN STUDENTS: Companies that hire H-1B visa holders should pay an annual fee for each visa holder they hire to be used to fund scholarships for American citizen high school and college students interested in high-tech careers and enrolled in STEM educational programs (Science Technology Engineering and Mathematics).

Candidate for Congress
New York’s 20th Congressional District

Anonymous said...

"I stopped buying Dell and dropped Verizon DSL because of this exact problem of sending our jobs out of the country" - Did you ever wonder what will happen to US economy if Indians or people elsewhere in the world stopped drinking their Pepsis and Cokes, buying their Dell laptops, eating California oranges and Washinton apples - and started patronizing local brands exclusively?

Globalization means that a product or service would be sourced from whichever place in the world can produce it the best and sell it at the cheapest price. The Americans invented it and made everone else embrace it. So there is not much point in crying that offshoring companies pay their employees less, because that is the whole idea.

Mind you an H1-B employee can afford a fantastic life and buy every financial security he needs back home with his 'low' salary. His American counterpart needs to earn at least ten times more to afford the same securities in US. So comparing a H1-B worker to a slave is really taking things too far.

Joe638NYC said...

Hi Anindito, firstly thanks for the comment,

"Did you ever wonder what will happen to US economy if Indians or people elsewhere in the world stopped drinking their Pepsis and Cokes, buying their Dell laptops, eating California oranges and Washington apples - and started patronizing local brands exclusively?"

I think that would be a fantastic idea, maybe some of the countries where the unsubsidized markets, such as farming in Mexico which has caused entire towns to close shop and their workers heading illegally to the United States would return home and my tax money which subsidizes the agriculture market in the US would be used for better things like feeding the poor, or maybe education. I also feel that absolutely none of that income by these products you stated winds up into the American economy. I just got a check for my Google ads from another country. Would you think that my life would be better off if these corporations made more profit off of exports?

as far as crying, I wouldn't call it that, you stated making items the best and the cheapest, and I say that is absolutely bullshit, my girl recently bought a Made in China air conditioner from a local store, and when I lugged the 120 LB. piece of crap up to the 2nd floor and plugged it in, then waited for it to cool, unfortunately, the compressor never kicked on. I returned it to the store and when talking to the merchant, he stated to me "used to be that when they were made here, they always worked properly, now about 1 in 15 is broken.", thats just great, the better part is incorrect, should I bring up the lower quality material in Carhartt flannel shirts as opposed to the exact same priced USA made counterpart.

How about talking to someone from India with the thickest English accent I have ever heard trying to understand how to fix a computer, is that the best?

Now as far as H1-B and slavery, if a worker who gets paid must give up his or her rights in the process, that is, in my opinion considered slavery. When these people who are getting paid much more than what they would in their country, but are probably encountering massive labor violations, including unpaid working but do not have a voice for their concerns, or are threatened to open their mouths I consider that slavery. As sensationalistic as you deem my opinion to be, the cheapest as you can make it gets worse all the time until there is an entire staff with no rights and no help.

Anonymous said...

For more info on H1B, check out Dr. Norman Matloff's H1B/Offshoring newletter. Here is a link to the archive:
You can email him at matloff@laura.cs.ucdavis.edu to subscribe to it.

Anonymous said...

You should send this link to your congressmen (senators and House representative) to alert them to H1B abuses.

You should also this to whitehouse.gov

I already did.

Mukesh Speak said...

H-1B as a remedy for labor shortages and as a means of hiring "the best and the brightest" from around the world

strongly support), the vast majority are ordinary people doing ordinary work. Instead of being about talent, H-1B is about cheap labor.

H-1B visa holders may only work for sponsoring employers after approval by the Departments of Labor and Homeland Security.

Although most of the non-compliant H-1B workers had posted wages from employers in fields associated with technical or

specialty occupations, the report noted that one H-1B worker had earnings from a restaurant and janitorial service.

H-1b visa

Anonymous said...

First of all i'm an H1b worker. I wanted to say that if out sourcing is stopped there wont be products produced in USA for cheaper price, they are now. An average american earning person's salary can be given to 4 people in other countries. The idea comes from an america and its logic is produced outside. The green card given to an outside person should give advanatage to america but its not giving since people who earn would send away their money back home (the major issue), if the govt says you get a green card if you stray here only and invest here only........... then the green card applications would come down. Remove diversity visas as they are occupying ordinary american jobs, with out any talent brought. I dont agree H1b is a fraud. H1bs are being looted with many mid vendors and big big commissions (indian consultancies) ultimately h1b is not enjoying high salary nor usa. Change H1b process and working completely. Without talent of an H1b indian companies would not have developed that much. even indian companies might have survived taking americans in usa without bringing H1b holder. All of H1bs sent back can easily make an OS like windows in a matter of days.

Unknown said...

Very interesting. My cousin is actually looking for a Florida h1b visa attorney. Do you know where he can find one? Thanks.

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