Too Many Visas for Techies?

Business Week ^ | Aug. 18-25, 2003 | Spencer E. Ante in New York, with Paul Magnusson in Washington

[sarcasm]

Bob Simoni has been fuming ever since Toshiba America () replaced him last year with a foreign worker. Simoni recently found a short-term gig, but he wants Congress to do something about the H1B visa program that allows companies to bring in skilled foreign workers. The 39-year-old software engineer says he lost his job to such a person, in his case an Indian. Toshiba says the outsourcing of jobs "enables us to be more efficient." But to add insult to injury, says Simoni, Toshiba asked him to train his replacement: "I never thought this could happen in my field."

[sarcasm]

ping

[freedumb2003]

"If there are more restrictions, then we'll see a lot more offshoring," says Kiran Karnik, president of the National Association of Software & Service Cos., an Indian tech trade group.

Nonsense! If offshoring was so damn great they would offshore now instead of picking up the tab for H1Bs and all the associated costs of having ofshorers here.

I normally feel that those who lose to ESL workers deserve it, but I think that H1B workers are supposed to replace only those positions that are underfilled with qualified US workers.

Since this is no longer the case, I have come around to the feeling we need to drastically reduce the program -- let the companies offshore if they think it will work (in most cases it won't).

[LibertyAndJusticeForAll]

[The L1 is generating the most controversy. Instituted in 1970, it has no numerical cap, unlike the H1B. Since 1998, the number of L1 holders has surged 58%, to 58,000 last year.
Critics say the visa has become the preferred tool to replace well-paid Americans with lower-wage foreigners. Partly, that's because the rules governing the L1 are far less restrictive than those for the H1B. While the H1B is filed for individuals, companies can file L1 petitions on behalf of dozens of workers at once. This, say critics, makes it hard for authorities to scrutinize each application. And unlike H1B holders, workers with L1 visas need not be paid "prevailing wages," nor must employers attest that attempts have been made to recruit a U.S. worker for the post.]

Please note at the end of the article, the so-called tech organization in favor of the visas is a group of foreigners, not Americans.

[hedgetrimmer]

A SILICON Valley based venture capital company has voiced its willingness to finance Malaysian IT firms and help them get clients in the United States seeking customer interactive services.

http://biz.thestar.com.my/news/story.asp?file=/2003/8/15/business/6030727&sec=business

BPO=business process outsourcing.

Malayasia wants to get their hands on the 263 billion outsourcing business (RM500Billion)

[harpseal]

Lets get on board comprehensive remedy for out trade problems.


In no particular order of importance.

1. Get rid of government subsidies for offshore investment of US companies. OPIC is the first such program which should go but support of World Bank programs that subsidize the outflow of Capital would be another.

2. Use tariffs on those nations which are engaged in unfair trade practices such as currency manipulation (China and India for example), those nations which refuse to open their markets to US products (China for example with its 50% tariffs on US consumer goods and non tariff barriers), those nations that subsidize competition to American Industry (airbus for example) and those nations which have slave conditions for their workers.

3. Use tariffs and other means to prevent the relocation of jobs offshore that are essential to the national defense. If necessary take control of the company seeking to export vital technology or industry by means of eminent domain (No I do not like this last option and I will only defend its use as an absolute last resort like say in the case of rare earth magnets essential to smart bomb technology).

4. An immediate end to guest worker programs. If people wish to come to the USA to work and make a life let them immigrate according to the rules.

5 Provide economic development zones where the corporate income tax is zero for operations within these zones. In order to operate in this zone a company must agree to only purchase American components if available and employ only American citizens or legal immigrants in these operations. These economic development zones shall be eventually be expanded to include every bit of every state once the benefits are shown I would like them to be totally implemented immediately but I realize4 that may be overreaching.

6. Scale back unnecessary regulation including the tort system. Institute a cap on punitive damages, limits on class action suits, and limits on liability to the actual percentage of liability with no plaintiff able to collect if said plaintiff was involved in the commission of a felony at the time of the alleged tort or was more than 49% negligent in the alleged tort. Note that the loser in a frivolous lawsuit shall pay the attorney fees of the winner. There are many other regulatory structures that also need to be included that need to be included such as repealing the Family leave mandate, getting rid of OSHA etc.

7. Increase the domestic content in purchases by the Department of defense and give absolute preference in non-domestic content to proven allies of the USA over say the French or Germans. The only reason any content for DOD purchase may come from non US allies is that content is not available elsewhere and is essential.

8. Do not allow expense involved in moving operations overseas to be included in business expenses under the IRS code.

9. Prosecute for perjury anyone who has made a false statement in order to employ an H1B or L1 visa worker. I will be lenient on the actual perjurer if he/she was ordered to make this false statement and he/she provides testimony to aid in the conviction of the person ordering the perjury. Just because a person is a CEO does not give them a pass on criminal behavior.

10. Prosecute anyone who orders the transfer of vital defense technology or funds a R&D project that could be of use to our military overseas except to strong allies of the USA. Make the necessary enhancements to our espionage laws so that continued support or funding of any R&D in a nation whose government has threatened the USA is guilty of espionage. The UK and Australia come to mind as meeting these criteria for being eligible for transfer of technology first. There will be other nations and a gradation of what can be transferred to which specific nation. Under no circumstances may technology be transferred to any nation whose government has threatened the USA within five years without a complete change of government or specific exemption from Congress and the administration.

11. Deport all illegal aliens immediately and take measures that prevent the entry of any more illegal aliens. Fine all companies knowingly employing illegal aliens Criminal sanctions should be imposed on anyone helping an illegal alien stay in the USA in violation of our laws.

12. Decrease the punishing levels of taxation on companies and eliminate the double taxation on corporate dividends. See effects of item 5 for how minimal this will be if item 5 covers the entire USA. Eliminate all IRS provisions that inhibit free use of independent contractors by businesses for example section 1706.

13. Eliminate the minimum wage so that the worker can be paid based on productivity. Overtime compensation will remain the same but instead of 150% of the "wage" the worker would receive 150% of the production pay. If one through 13 are enacted # 14 becomes an irrelevancy as no one will be working for that low a wage.

[harpseal]

Ping

on or off this economy -trade ping list let me know.

[harpseal]

So who doen't want to get their hands on $263,000,000,000.00?

[harpseal]

Now when it comes to what one is willing to do for a piece of that money there have always been people who will do anything for money. I have my lines.

[Rubber Duck]

Says AEA President William T. Archey: "We still want to have access to the best talent."

The L-1 visa program doesn't do that. Keep the H1B but require not only prevailing wages be paid, but a 10% premium over the prevailing wage. If you want the best talent, pay for it. If you want to replace American workers on the cheap, go sell your product in India.

[expat_panama]

let the companies offshore if they think it will work

And let people be free to do what they want in the market, --we could call it the 'free market' -- what a concept!   Let's agree that no one here is in favor of illegal immigration (or illegal anything for that matter).  Why don't we also agree that ideas like raising my import taxes and government control of my shopping choices do not make for a free market.

[freedumb2003]

we could call it the 'free market' -- what a concept!

The free market ain't free. I don't have time to explain to a neophyte the entirety of the implications of the free market in a global economy, but post #6 above is a nice summary of some things that can be done to ensure that what Americans view as a "free market" can truly exist.

[Redbob]

Memo to Simoni: There's training, and then there's training...

The limit on H1B visas ought to be 0.0

[harpseal]

Why don't we also agree that ideas like raising my import taxes and government control of my shopping choices do not make for a free market.

Might I point out you have NO Constitutional right to import anything without paying duties set by Congress. Since everything imported from China for example hurts teh USA IMHO raising tariffs for these items is more than in order it is necessary for our national survival. Now if we really want to address the problem then lets implement the proposals in post #6