Thursday, May 17, 2007

India now denies their prior admission that they abuse H-1b by paying way below market wages

On the May 18, 2007 edition of CNN's "India 360: Indian IT troubles for US," Indian companies categorically deny that they use the H-1b to hire Indians at wages below what Americans earn:

Two American senators have alleged that Indian IT companies are displacing American workers by hiring Indians at lower wages and are misusing the H1B visas. . . Indian companies have reacted to this saying these allegations are unfounded and that there has been no abuse of H-1B visas on their part.

In this CNN video, U.S. India Business Council (USIBC) president Ron Somers states that "certainly there has been no abuse" of H-1b visas by these member companies of the India Business Council. NASSCOM also denies that any abuse is occurring.


CALLING INDIA'S BLUFF

However, according to the Hindustan Times in September 2006, a top user of H-1b within the U.S. admitted to substantially underpaying their H-1b workers, citing that underpayment as their "competitive advantage":

Tata Consultancy Services (TCS) vice president Phiroz Vandrevala even admitted that his company enjoys a competitive advantage because of its extensive use of foreign workers in the United States on H-1B and L-1 visas. "Our wage per employee is 20-25 per cent less than US wages for a similar employee," Vandrevala said. "Typically, for a TCS employee with five years experience, the annual cost to the company is $60,000-70,000, while a local American employee might cost $80,000-100,000. "This (labour arbitrage) is a fact of doing work onsite. It's a fact that Indian IT companies have an advantage here and there's nothing wrong in that. The issue is that of getting workers in the US on wages far lower than the local wage rate."

According to this list compiled by InformationWeek, TCS is the 4th largest user of H-1b visas within the U.S. Most likely InfoSys, ranked number one, and Wipro, ranked number two, are also abusing the H-1b to execute similar "competitive advantage" against American workers.

11 comments:

Mr. Kim Berry said...

Note: I've received some objections that the title says "India" rather than "Indian companies." That's a fair point. But publications like Computerworld are using the generic "India" e.g.:

"India has been pushing the U.S. to ease restrictions on how many skilled professionals can enter the United States."

http://computerworld.com.my/ShowPage.aspx?pagetype=2&articleid=4987&pubid=4&issueid=114

And several articles cite Commerce and Industry Minister Kamal Nath objecting to the claim of misuse by Indian companies.

Anonymous said...

ATTENTION AMERICAN TECH WORKERS

Your own government is using you and your career as bargaining chips on the altar of "free trade".


US-India visa row overshadows Doha talks


In this article, India threatens America that they will pull out of trade talks unless they are given more H-1B visas.

Seems India wants to do business here in America but doesn't want to hire Americans!

Your own representative, senators, and president are betraying you and undermining the career that you have worked so hard for your entire life.

This article shows that "free trade" and your livelihood are inextricably linked.

Anonymous said...

It would be great if the Senators push for updating the wage data with DOL and thereby pushing all H1B dependent companies to pay higher salaries to these H1B employees from India. That should be a fair deal with India.

Anonymous said...

As of today some Patni Employees have received letters from Patni as well as from Department Of Labour stating that they will be paid back wages as a result of the employees not being paid the amount said on LCA

The DOL letter states that this amount is to the tune of 2.4 million USD to be paid among 600 employees. Question is how to get information about who these 600 employees are because Patni seems to be holding the names close to its chest, so that there is no Patni wide unrest. The DOL letter also does not state the employee names.

R. Lawson said...

They make Fox news look unbiased. Apparently Senator Durbin is a Republican now. When did he switch parties?

I haven't seen this much bias in journalism in a long time.

R. Lawson said...

They make Fox news look unbiased. Apparently Senator Durbin is a Republican now. When did he switch parties?

I haven't seen this much bias in journalism in a long time.

Anonymous said...

I am not surprised that tech workers who read or are associated with this blog are not able to find a job. They are completely out of touch with reality and where the world stands today. Indian companies use H1B visa to send their staff overseas for long term assignments so that they can provide service to their clients overseas from their centres in India. They do this only because there is not other American visa for this purpose. They may use B1. However American embassy in India itself requested the Indian companies to use H1B so that USA may get tax from such employees. USA can not restrict entry of these workers as it would fall under protectionism and an independent Indian government can retaliate by restricting Indian market to American companies.

Anonymous said...

Since when did Indian companies became INDIA? Likewise, If microsoft asks for more H1B visas, should we say, US asks for more H1B visas? Get your facts straight...Dont be like FOX News...

Questor said...

8/13/07

Attn: Brewster Rhodes
Governor's Regional Director for SW Ohio

Hi Brewster,

Thank you for returning my telephone call regarding real concerns I expressed to you about the TATA Consultancy opening a 1000 person (250 jobs transferred from Reno, Ohio) IT outsourcing data center in Miami Twp, Ohio. I am an Information Technology worker who resides in Miami Township, Ohio where I have concerns about state & possible local grant incentives being proposed for the TATA Consultancy, what are the terms and limitations of these grants, and additional legal concerns about TATA unfair treatment of its workers and employees.

As we briefly discussed, I do not think that TATA is a good fit for state and local grants in Ohio based on their past corporate record. TATA is the largest foreign IT outsourcing firm in the USA and the biggest recipient of H1-b and L-1 federal visas that continue to cause immigration concerns while American jobs are shifted overseas.. According to recent news articles listed below, TATA has been accused in a class action lawsuit of skimming excessive and illegal wage taxes from their H1-b & L-1 employee staff, while unfairly declaring these funds as inflated corporate revenue that contributes to illegal corporate profit. In my opinion, any state or local grant with TATA will be a real concern with area labor unions because the Communication Workers of America have had clashes with TATA on a national level. Consequently, I am currently researching more about TATA for next week’s Miami Township Trustee meeting where an organized protest may occur.

Please find enclosed specific articles that highlight my concerns about TATA, however some of these articles may be archived or unavailable unless a newspaper subscription is paid for. I can provide full text articles if you would like and these may be available through the Lexis-Nexis service. I am also forwarding this list to Brad Biggs and Jamie Gentry from the Ohio Department of Development for further consideration. I trust that you will find this [proposed grant to TATA is a concern and could be an embarrassment to Gov. Strickland and his Department of Development Staff. As you requested, I will keep you posted regarding any changes regarding these issues about TATA grant funding.

With concern, Steve Neago

cc. Brad Biggs with the Ohio Department of Development
Jamie Gentry with the Ohio Department of Development


Offshoring giant (TATA) tries spiffing up its image 2/12/2004
http://seattletimes.nwsource.com/html/businesstechnology/2002116733_tataindia12.html

TATA employment hiring criteria (1997) alleged to be discriminatory, Appeals Court ( 58 Cal. App. 4th 273 ) finds that TATA employee contracts “ appear to address certain unenforceable [labor] contract provisions which may be severed from a contract. There is merit to Tata's claim that section 17200 "does not give the courts a general license to review the fairness of contracts but rather has been [***22] used to enjoin deceptive or sharp practices."
http://www.zazona.com/shameh1b/Library/Legal/CAPS_vs_HP_Tata.txt

Lieff Cabraser Heimann & Bernstein, LLP Announces Filing of Nationwide Class Action Lawsuit Against Tata America International Corporation For Requiring Workers to Hand Over Federal and State Tax Refunds 2/14/07
http://www.lieffcabraser.com/press_releases/tata_press_20060214.htm

Unjust Enrichment Lawsuit Filed Against Tata 3/2/2007
http://www.latimescom/news/printedition/california/la-me-visafraud2mar02,1,823639.story?coll=la-headlines-pe-california

County sues over software, Tax platform full of errors, suit charges (Charleston, SC) 3/7/2007 http://www.charleston.net/assets/webPages/departmental/news/Stories.aspx?section=business&tableId=133295&pubDate=3/7/2007

Class Action Lawsuit filed 3/13/07 in US District Court of Northern California ( 3:06-cv-00963-VRW ) For Requiring Workers to Hand Over Federal and State Tax Refunds 3/14/07 - 1- 800 971-8881
http://www.lieffcabraser.com/pdf/20070314-tata-order.pdf


Federal Court Denies Effort by Tata America International to Dismiss Class Action Lawsuit against Tata for Requiring Workers to Hand over Federal and State Tax Refunds 3/14/07
http://home..businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20070314005963&newsLang=en

{Senator} Clinton woos the outsourcers that workers fear 7/30/07
http://www.latimes.com/business/careers/work/la-na-buffalo30jul30,0,4444162,full.story

Indian IT firm eyes area
BY MIKE BOYER | MBOYER@ENQUIRER.COM
The Cincinnati Enquirer
Last Updated: 2:31 pm | Friday, August 10, 2007

http://news.enquirer.com/apps/pbcs.dll/article?
AID=/20070810/BIZ01/308100009/-1/all

The information technology unit of India's largest industrial
conglomerate is interested in creating a corporate office employing
1,000 in either Butler County or Clermont County.

Tata Consultancy Services, part of the Tata Group consisting of
nearly 100 companies with $22 billion in revenues, assisted by the
Cincinnati USA Partnership and the Ohio Department of Development,
has been looking at sites in the region for a few months.

It has narrowed its search to sites in Butler County's West Chester
Township or Clermont County's Miami Township, according to local real
estate sources.

Gov. Ted Strickland met with local officials a couple weeks ago to
brief them on the project, which would include transferring 300 jobs
here and creating 700 new jobs. A spokesman for the governor's office
and Tata didn't immediately return calls for comment.

Greg Jolivette, president of the Butler County Commission, confirmed
this morning that the county is competing to win a major new economic
development project from an international company, but declined to
identify it.

"I think we have a real good chance," Jolivette said.

George Lang, president of West Chester Township Trustees, also
declined to identify the company but added "it would have a
significant positive impact on economic development in West Chester."

A decision is expected within a month, according to sources, who said
one of the factors being weighed by Tata is whether to acquire an
existing building or build a new facility in an office campus
setting. One source said Tata was looking for about 150,000 square-
feet of space in an office-campus setting, not in a single building.

One of the sites believed under consideration is adjacent to the
Streets of West Chester retail center off Union Centre Boulevard
across Interstate 75 from the under-construction Ikea store.

"One of their criteria was for a high visibility site and we think
West Chester lends itself to that," said an official who declined to
be identified.

Tata Consultancy Services provides business IT services and
outsourcing similar to Texas-based EDS. It has more than 94,000 IT
consultants in 47 countries and generated $4.3 billion in revenues in
its last fiscal year

India firm could employ 1,000
Tech company checking sites in Butler, Clermont
BY MIKE BOYER | MBOYER@ENQUIRER.COM
The Cincinnati Enquirer
Last Updated: 5:12 pm | Saturday, August 11, 2007

http://news.enquirer.com/apps/pbcs.dll/article?
AID=/20070811/BIZ01/708110326/-1/all

WEST CHESTER TOWNSHIP - The information technology unit of India's
largest industrial conglomerate is interested in creating a corporate
headquarters employing 1,000 in either Butler or Clermont county.

Tata Consultancy Services has been looking at sites in Hamilton
County and surrounding counties for several months and has narrowed
its search to sites in Butler County's West Chester Township or
Clermont County's Miami Township, according to local real estate
sources who asked not to be identified. Tata is part of the Tata
Group, consisting of almost 100 companies with $22 billion in
revenues and has been assisted by the Cincinnati USA Partnership and
the Ohio Department of Development.

A spokesman for Tata didn't return calls for comment Friday.

Greg Jolivette, president of the Butler County commissioners,
confirmed that the county was vying for a major new economic
development project from an international company.

"I think we have a real good chance," he said.

Clermont County Commissioner Bob Proud confirmed that sites in the
county are being considered for a major project. He declined further
comment.

A decision is expected within a month.

One of the sites thought to be under consideration is vacant land
adjacent to the Streets of West Chester retail center off Union
Centre Boulevard across Interstate 75 from the under-construction
Ikea home furnishing megastore. In Miami Township, the Ridgewood
Corporate Center off I-275 also is thought to be a site under
consideration.

The Ridgewood site, originally developed by the former James River
paper company, is considered the No.1 site for the planned $70
million headquarters for the National Institute for Occupational
Safety and Health.

Tata Consultancy Services, India's largest software exporter,
provides business IT services and outsourcing similar to Texas-based
Electronic Data Systems. It has more than 94,000 IT consultants in 47
countries and generated $4.3 billion in revenues in its last fiscal
year.

Enquirer reporter Cliff Peale contributed.

Anonymous said...

I used to work in Tata Consultancy Services earlier. Frankly, I was shocked to see the level of staff exploitation as well as lack of ethics in their client work culture, contrary to the general impression created by them to the Industry in U.S . I remember that they completely copied a major Benchmarking study from one client to another without any sincere effort altogether. It is sad and disgusting to see the American Industry running after and incredibly enriching these Indian IT firms, who fundamentally grew from highly unethical and exploitation driven business models. THE SIMPLEST WAY THAT ALL OF US AMERICANS CAN FIGHT AGAINST THIS OUTSOURCING PHENOMENON IS BY MAKING LIFE DIFFICULT FOR THE INDIAN IT FIRMS HERE AND THEIR TOP EXECUTIVES IN U.S. So far, apart from all these localized discussions, which have been conveniently brushed aside by the people concerned, let us face it, NO INDIAN IT FIRM AND ITS TOP EXECUTIVES HAVE REALLY FELT THE HEAT IN U.S , HENCE THEY ARE BECOMING MORE AND MORE BOLDER AND AGGRESSIVE IN THEIR OUTSOURCING APPROACH..

Anonymous said...

Check out this interesting article on Indian Programmers, interesting to know that most of staff which is brought from India by these firms is not high quality even within India. this makes exploitation easier for these firms, possibly..

http://www.ere.net/erenetwork/groups/posting.asp?LISTINGID=%7B51C94521-9052-4DBD-8C8B-D4A1EF18DCB0%7D