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H-1B Pay Drags Down All Salaries
Information Week ^ | 6-21-06 | David Roman

Posted on 06/21/2006 7:34:30 AM PDT by SJackson

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To: SJackson

PING! Of course they do! Only the computer industry has been targeted, and maybe nurses. Target lawyers (who make a lot more per how then software engineers and have a lot less training, in general) and you will see this program ended as fast as a new Air America show.


21 posted on 06/21/2006 8:15:39 AM PDT by Jack Black
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To: SJackson

DUH!!!! Anyone that works in a tech industry knows that the H1B program is nothing more than a scam... Congress sold out the skilled american workers with this fraud the same way open borders sells out unskilled workers.


22 posted on 06/21/2006 8:16:58 AM PDT by HamiltonJay
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To: Jack Black
PING! Of course they do! Only the computer industry has been targeted, and maybe nurses.

No maybe about it, the Senate bill offered unlimited entry to foreign-trained nurses until 2014. Quite an incentive to those contemplating nursing school.

Hello Nurse! - Is the U.S. stealing health care workers from abroad?

23 posted on 06/21/2006 8:22:40 AM PDT by SJackson (The Pilgrims—Doing the jobs Native Americans wouldn’t do!)
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To: Centurion2000
We were overrun by these guys at my old job (financial services, automotive loans) ... they could code (badly) but had troubles with the toilets. Seems they stood on the rim, squated and did their business. I've never seen janitors ready to kill people before, but I did there.

The janitors have to learn to apprecriate our guests culture. Or import janitors.

24 posted on 06/21/2006 8:24:19 AM PDT by SJackson (The Pilgrims—Doing the jobs Native Americans wouldn’t do!)
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To: SJackson
Immigrant engineers with H-1B visas may be earning up to 23 percent less on average than American engineers with similar jobs, according to documents filed with the U.S. Department of Labor.

In other news, water is wet, the Pope is Catholic, and bears poop in the woods. Anybody who's in engineering or IT knows this. It's the worst-kept secret in the industry. My prior employer (a small company) was masterful at paying Indian body shops $50,000 a year to put a $30,000 a year programmer into a $65,000 a year job. Everybody wins except poor Sanjay who's making less money than the assistant manager down at Papa John's...but it's still six times what he'd be making in Bangalore.

I mean, I'm sitting at my job, literally surrounded by hundreds of folks here on H-1Bs, wondering when my contracting company is going to decide that not only are they moving all the coding jobs to Hyderabad, but they really don't even need QA testers like me in the States either and they can do it all by remote control. The joys of things when your company's new boss is a hardcore move-it-to-India-to-stay-competitive guy.

On the upside, I've gotten to watch a lot of World Cup highlights in the breakroom.

}:-)4

25 posted on 06/21/2006 8:27:31 AM PDT by Moose4 (Dirka dirka Mohammed jihad.)
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To: avacado

I had worked at a Fortune 500 company and many of us were laid off while the H1-Bs remained.

--

Been there, done that.

we were told it was part of a business unit re-alignment.



Hope you're doing OK now.


26 posted on 06/21/2006 8:31:20 AM PDT by NormsRevenge (Semper Fi - Wanna help kick some liberal arse? It's not just a job here at FR, IT's an obsession.)
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To: paulcissa

"It was all completely legal and I'm sure we're saving a ton on payroll"

I could imagine a good portion of the savings goes into a large bonus for the CEO.


27 posted on 06/21/2006 8:41:58 AM PDT by ScottfromNJ
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To: SJackson

The article is mainly about the electronics sector. I am on an H1B visa and my pay is about 25% more than the average wage for my occupation and about 50% more than the prevailing wage. But then again, I'm a research scientist. I believe the large corporations do follow their standard hiring practices, at least the one I work for, but these guys from India probably never thought to make a counter offer for their proposed salaries. And they are probably right out of school so they would be offered wages with that experience level. That being said, there are some serious abuses in the electronics/software areas that are disgusting - both for the foreign worker and for the treatment of the American worker.


28 posted on 06/21/2006 8:42:47 AM PDT by doc30 (Democrats are to morals what and Etch-A-Sketch is to Art.)
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To: SJackson

Companies that hire H1-B's as a way to cut costs are a huge problem. I also think the youth of America is to be blamed as well. A degree in Computer Science is just too difficult for the current "me" generation. Their self-absorbance, their need for instant gratification, and their overall laziness appall me.


29 posted on 06/21/2006 8:48:50 AM PDT by txkev
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To: dawn53
The house they buy??? Obviously, he doesn't know too many H1B visa workers. They don't buy houses, they live in apartments, or rental houses, and pack them with their friends/or family that are also here on H1B status. They send the money back home, just like the Mexican immigrants do.

I'm on an H1B and bought my own home. And I pay more in property taxes since I'm ineligeible for the homestead excemption and save-our-homes cap. All of the H1B's I know don't rent. They buy. And they don't lived packed in their abodes. But then again, they are from Canada or western Europe where living standards are comparable with the U.S. And we don't send money back home. We use it to live here. Please do not make such blanket generalizations when there are a lot of H1B's who are not being exploited by an employer or are hired to displace U.S. workers. The IT sector is giving a very bad reputation to this program.

30 posted on 06/21/2006 8:49:33 AM PDT by doc30 (Democrats are to morals what and Etch-A-Sketch is to Art.)
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To: txkev
Companies that hire H1-B's as a way to cut costs are a huge problem.

You are quite right. PhD research scientists with necessary qualifiactions in a desired field, or combination of fields, are hard to find. I'm on an H1B while waiting for permanent residency and I'm aware of the employment situation. There might only be a handful of such experts in the world for a given type of research position and the H1B program is a good way to bring them in when U.S. recruiting comes up empty. But when companies sponsor mass groups of people just to cut labor costs, that is a big problem.

31 posted on 06/21/2006 8:54:01 AM PDT by doc30 (Democrats are to morals what and Etch-A-Sketch is to Art.)
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To: SJackson
I could go on with the many benefits that the trickle effects of being here bring to the economy."

Just imagine how much more would trickle down if the H-1Bs weren't depressing salaries.

32 posted on 06/21/2006 8:57:45 AM PDT by Non-Sequitur
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To: 1_Inch_Group; 2sheep; 2Trievers; 3AngelaD; 3pools; 3rdcanyon; 4Freedom; 4ourprogeny; 7.62 x 51mm; ..

ping


33 posted on 06/21/2006 8:59:29 AM PDT by gubamyster
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To: Centurion2000
I was a project manager at a telecom company that had outsourced most of it's work and staff to IBM. I had one H-1B coder from IBM India working for me, really nice guy and a pretty good coder but with an accent that was almost impossible to understand. Every week any team planning to implement changes that weekend had to go before a change control board, actually a conference call, and justify their changes and why they had to go in. Every time I had to go before them I'd make sure my H-1B was on the line, and when I was asked to explain the change and why it had to go in I'd say, "I'll let my developer address that. Valhallibad, can you answer his question please?" The H-1B's 10 minutes of incomprehensible explanation was invariably met with dead silence from the CCB. I'd ask, "Any more questions?" The answer was always, "Nope. Change approved."

H-1Bs have their uses.

34 posted on 06/21/2006 9:06:10 AM PDT by Non-Sequitur
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To: SJackson

I have to chime in with a first-hand observation. Physicians come to the US on H1B visa's from a number of nations. One whom I know immigrated from the Philippines and obtained a job at a clinic run by another immigrant Phillipino physician. The clinic owner requires the new immigrant physician to pay back a cash fee of many thousands of dollars for the privilege of working for him. This reduces her salary greatly but if she alerts the US government, she is afraid that she will be deported because she has signed papers saying she will not work for less than the prevailing wage in her profession. The responsibility is on her and she will put up with the cash payback so she can remain employed in the US. I was told this is not a unique occurrence.

I have also noted recently that some physician clinics have raised their "partnership buy-in" fees from nothing or a few thousand dollars to hundreds of thousands of dollars. I spoke with another immigrant physician (probably on H1B but not confirmed) who is in this position and looking for another job. I don't know if the intent is to exploit immigrants but it in effect greatly reduces the salary paid to young physicians in their first few years of practics, many of whom are immigrants but all of whom make a large salary only for tax purposes and in effect must change jobs (and face the same situation again) or pay back a big percentage of the salary they are paid.


35 posted on 06/21/2006 9:51:20 AM PDT by iacovatx (Exasperated trying to preserve what's left of the greatest events in history)
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To: Lion in Winter

I could not agree with you more.


36 posted on 06/21/2006 9:56:19 AM PDT by Hydroshock ( (Proverbs 22:7). The rich ruleth over the poor, and the borrower is servant to the lender.)
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To: SJackson
...lower compensation paid to H-1B workers suppresses the wages of other electronics professionals.

Excellent!

37 posted on 06/21/2006 9:58:34 AM PDT by Plutarch
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To: txkev
I also think the youth of America is to be blamed as well. A degree in Computer Science is just too difficult for the current "me" generation. Their self-absorbance, their need for instant gratification, and their overall laziness appall me.

It's just supply and demand at work here (and of course the supply is elevated by the H1Bs) - if salaries for CS majors were higher, i.e., less supply and/or more demand, you'd see a lot more people investing the effort to enter the field.

Personally I'm wondering why I worked my @$$ of in engineering school to watch teachers make more than me for 3/4 of a year's work.

38 posted on 06/21/2006 10:30:05 AM PDT by VoiceOfBruck (optional, printed after your name on post)
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To: VoiceOfBruck
"Personally I'm wondering why I worked my @$$ of in engineering school to watch teachers make more than me for 3/4 of a year's work."

Pretty absurd, I agree.

Of course, you don't have to put up with high school kids and the PC education bureaucracy, either. That would require an extra $100k/year just to put up with that.
39 posted on 06/21/2006 10:58:45 AM PDT by webstersII
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To: doc30
The article is mainly about the electronics sector. I am on an H1B visa and my pay is about 25% more than the average wage for my occupation and about 50% more than the prevailing wage. But then again, I'm a research scientist. I believe the large corporations do follow their standard hiring practices, at least the one I work for, but these guys from India probably never thought to make a counter offer for their proposed salaries. And they are probably right out of school so they would be offered wages with that experience level. That being said, there are some serious abuses in the electronics/software areas that are disgusting - both for the foreign worker and for the treatment of the American worker.

As I noted earlier, I think one of the unintended effects is locking certain professions at an essentially entry level compensation structure. That’s not uncommon in unskilled and skilled trades. Clearly it’s a disincentive to education and innovation, note my next comment. My impression is that those issues weren’t addressed by government in the creation of the H1B program, that many of the "shortages" result from an unwillingness by employees to revert to entry level compensation, and that the real incentive is largely cost savings.

40 posted on 06/21/2006 10:59:27 AM PDT by SJackson (The Pilgrims—Doing the jobs Native Americans wouldn’t do!)
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