Comment On Offshoring and H1B Visa abuse....
(3/16/08) 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.And From The Star Ledger
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.
Editorial: Going after the skills of foreign workers (3/16/08) Excerpt
A well-intended visa program needs expansion and reform.
Four years ago, the Office of Management and Budget found the program "vulnerable to fraud or abuse" and made several suggestions for reform, none of which has been implemented.Thanks to Global Writers, a blog which according to their about: The blog is linked to the ILO International Training Centre course ‘Communicating labour rights’. Blog
In most cases, the H1-B program does not require that employers hire a U.S. worker who may want a particular job, and a U.S. worker can be displaced from a job in favor of a foreign worker, according to the Department of Labor. In fact, contrary to widely held belief, most employers using the H1-B program do not have to search at all for a U.S. worker willing to fill a job.
Of the 10 companies that filed the most requests for H1-B visas in 2006, seven had headquarters in India. Those companies use H1-B visas mainly to send workers to the United States for training before bringing them back to work in low-wage countries.
Oversight has been less than rigorous. The Department of Labor certified 99.5 percent of the nearly 1 million applications that it reviewed from 2002 to 2005. A check of the same applications by the Government Accountability Office found thousands of instances where the wage rates being paid to H1-B workers fell significantly below the prevailing wage, a violation of the rules. And that GAO review merely looked at the information provided by the employers themselves, without verifying the information's accuracy. In fact, the H1-B program does not require any verification of the information presented by employers. Many of the workers brought in under the program actually earn less than the median U.S. income.
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