Tuesday, November 6, 2007
Congress set to triple the H-1b quota in HR 4065!
However, section SEC. 1402 contains a provision that would increase the H-1b quota from 65,000 to between 130,000 and 195,000 per year.
The Programmers Guild has sent this FAX to the 10 sponsors.
FULL TEXT of the bill IS HERE.
Congressman Sensenbrenner HR 4065 Press Release on his website. (It provides no explanation for the H-1b increase.)
REQUEST: It is critical that you phone the following Congressmen and ask that they remove this H-1b provision, which has nothing to do with enhancing border security. You can reach them all toll free at 800-614-2803, and ask to be transferred to their office. You might reference the Programmers Guild fax.
1) Rep. Brian Bilbray [R-CA]
2) Rep. Howard Coble [R-NC]
3) Rep. David Dreier [R-CA]
4) Rep. Tom Feeney [R-FL]
5) Rep. Elton Gallegly [R-CA]
6) Rep. Robert Goodlatte [R-VA]
7) Rep. Daniel Lungren [R-CA]
8) Rep. Sue Myrick [R-NC]
9) Rep. Jon Porter [R-NV]
10) Rep. James Sensenbrenner [R-WI]
Sunday, November 4, 2007
Ten questions for those who believe H-1B is about a shortage of American workers
James Murphy raises ten questions for those who believe the H-1B is about a shortage of Americans to do the job:1) If corporations get all the H-1Bs and green cards they want, can the long term consequence be anything other than total dependence on foreigners for technology?
2) Is Ben Bernanke, Chairman of the Federal Reserve, wrong? He testified to Congress: “Simply producing more engineers and scientists may not be the answer because the labor market for those workers will simply reflect lower wages or, perhaps, greater unemployment for those workers.”
3) Is Vivek Wadhwa of Duke University, a supported of more foreign workers (he is one), wrong? He says “…the problem isn't the supply, it's the demand…we have enough engineers and scientists. The problem is that the salaries aren't there.”
4) Why are law firms, like the notorious Cohen & Grigsby, holding seminars on how to legally avoid hiring qualified Americans? Lawrence Lebowitz’s famous quote explaining of the PERM application process to employers. "Our goal is clearly not to find a qualified and interested U.S. worker, and that, in a sense, sounds funny, but it's what we are trying to do here."
5) Shortage at what price? My undergraduate economics professor made a big deal about it not making economic sense to claim a shortage without a price. For example, claiming that is a shortage of good five cent cigars makes sense. A claim that there is a shortage of cigars is foolish. There is no doubt that there is a shortage of college graduate programmers at $20,000 a year, is there a shortage at what the average American programmer makes? So the question is at what price?
6) If there is a shortage why are real wages going down?
7) Why is it that those employers who claim a shortage of American tech workers laying off so many of them?
8) Is socialist Senator Bernie Sanders (I-Vt.) wrong? He says "What many of us have come to understand is that these H-1B visas are not being used to supplement the American workforce where we have shortages but, rather, H-1B visas are being used to replace American workers with lower cost foreign workers,"
9) Is Nobel economist Milton Friedman wrong when he says the H-1B is a subsidy? He said "There is no doubt, that the [H-1B] program is a benefit to their employers, enabling them to get workers at a lower wage, and to that extent, it is a subsidy."
10) Why not end the H-1B and other work visas and allow a free market solution? An increasing wage will attract more workers to science and engineering and solve any supply shortage that MAY exist. Free markets do not have shortages.
James Murphy has more than 30 years engineering and programing experience and is currently unemployed.
China's President vows computerized armed forces to win IT-based warfare
IDG News Service reports that China's president Hu Jintao intends to "build strong armed forces through science and technology."Hu explained, "To attain the strategic objective of building computerized armed forces and winning IT-based warfare, we will accelerate composite development of mechanization and computerization, carry out military training under IT-based conditions, modernize every aspect of logistics, intensify our efforts to train a new type of high-caliber military personnel in large numbers and change the mode of generating combat capabilities."
Are we crazy? We admit students from China into top U.S. universities and train them in the latest IT technology. We allow top U.S. tech firms to outsource and set up shop in China, providing on-the-job training to our military adversary. As we just reported, Cisco is helping to establish 300 vocational schools in China.
Microsoft and IBM have moved development centers to China. And unlike the USA, the Chinese government is helping their tech workers gain current skills: "The [Chinese] government has established 35 national schools to provide software training, especially in technologies such as .Net, Linux, Java, and Web services. Its goal is to have 800,000 trained software pros by the end of [2005]."
"Both military and civilian sectors in China are actively exploring the information warfare concept, which could be gradually developed into a corps of 'network warriors' able to defend China's telecommunications, command, and information networks, while uncovering vulnerabilities in foreign networks," according to Sinodefence.com, an independent China military-monitoring Web site based in the U.K.
Meanwhile the USA sinks its resources into killing and maiming tens of thousands of America's "best and brightest," fighting mostly imaginary terrorists in Iraq, watching the U.S. dollar lose 30% of its value over the past two years.
Saturday, November 3, 2007
Cisco working with government to open 300 vocational training centers - in China!
U.S. corporations argue for more H-1b workers in order to help America's "Global Competitiveness." So where is the outrage when U.S. corporations act contrary to U.S. interests?Cisco is a large user of H-1b in the U.S., but to our knowledge has not establed any training facilities to the U.S. to allow Cisco to hire more Americans. But Cisco is working the Chinese goverment to open hundreds to vocational training centers in that country.
Cisco will put its capital to work in China in both direct and indirect ways. It will work with the government to open 300 new vocational training centers across China to teach network skills, with Cisco donating $6 million worth of equipment to those schools, known as the "Cisco Networking Academies." Cisco had previously helped the government open 200 such schools, and the company said 90,000 people have been trained.It is hypocracy for U.S. companies to both be lobbying for more foreign workers in the U.S. under the guise of helping U.S. global competitiveness, while at the same time undermining our competitiveness by funding training opportunites for our competition.
This economic treason against the USA is being facilitated by the UN:
Following the G-8 Summit, Cisco Systems, Inc.,United Nations Development Program, the US Agency for International Development (Leland Initiative/EDDI), and United Nations Volunteers (UNITeS), announced the formation of this strategic partnership to help train students in Least Developed Countries (LDC) for jobs in the Internet economy.
Friday, October 26, 2007
Yappy Headed YOH wage study is flawed again
As reported by InformationWeek, Yoh has prepared a press release that again proclaims that tech workers are being paid "near record wages."First Yoh unethically downplays that these wages are only contract wages, which could be as short as one day. They bear no relation to the wages paid to full-time employees, which are substantially lower. Yoh should make that more clear in the future.
Yoh fails to disclose that their "all-time high" wage determination does not factor in inflation. They use a base of 100 in January 2001, reaching 113.60 in Week 36 of 2007, or a 13.6% increase in wages over 6.5 years.
But according to this BLS calculator, inflation during the same period would have raised 100 to 117.72.
Thus when adjusted for inflation, the Yoh study actually finds that IT contract wages have continued to erode during this decade.
Yoh's study is further evidence that H-1b are underpaid. While Yoh cited $50 and $80 per hour as only "average wages," The average H-1b programmer -- who presumably is being brought in because they have the "hot" skills -- is paid about $52,000, according to a 2005 study.
Virtually NO H-1b LCA is for $50 per hour, and I've never seen an LCA for a software developer approach the "average" wage of $80 per hour.
Yoh's website fails to disclose salary ranges for most of their positions. Yoh's LCA filing for H-1b are here - but most are not software development occupations.
We had addressed the bias in Yoh's studies last April - nothing has changed.
Wednesday, July 11, 2007
Microsoft propaganda falsely cites H-1b restrictions as basis for their Vancouver, Canada office
(Also See Paul McDougall's InformationWeek Blog Microsoft's Canada Plan Highlights Need For Immigration Reform.)Microsoft (Nasdaq: MSFT) will open a software development center in Canada by the end of the year, a move that will enable the software giant to hire more foreign workers without running up against the limitations of U.S. immigration law.
Microsoft cofounder and Chairman Bill Gates has been among the most outspoken critics of the current limits on foreign workers who can enter the country. Gates has repeatedly pressed lawmakers to raise the cap on the number of so-called H-1B visas, which are given out to "highly skilled" workers.
A bill that would have raised the current cap of 65,000 visas each year -- part of a sweeping immigration reform measure -- failed to gain enough votes to stay alive in the U.S. Senate last week, dashing hopes that more workers would be let into the U.S. in the near term.
But only a few are picking up that immigration is a red herring. CNET got it right in Microsoft sings 'O Canada' amid immigration challenges:
"Microsoft spokesman Lou Gellos said that while the immigration issue was a factor, the company would be opening the center in Vancouver even if it were not for the immigration challenges. "Reuters included this fact also, albeit buried as a virtual footnote in an article that mostly discusses the H-1b visa - Microsoft expands in Canada amid U.S. visa crunch:
Microsoft said in a statement that the Vancouver center will "allow the company to continue to recruit and retain highly skilled people affected by the immigration issues in the United States." But company spokesman Lou Gellos said Microsoft's frustration with the U.S. government's visa policy wasn't the only reason for the expansion in Canada. It is part of a larger program to diversify software development outside of Microsoft headquarters in Redmond, Washington, Gellos said. . . "We would be opening this center in Vancouver even if this visa situation didn't exist," Gellos said.
Furthermore it is not "news" that Microsoft is doing software development in Vancouver, Canada, as this 1992 article reveals: Canada: Microsoft opens workgroup software R&D facility
VANCOUVER, BRITISH COLUMBIA, CANADA, 1992 JUL 28 (NB) -- Microsoft has opened a workgroup software development operation here, the only Microsoft research and development facility outside the United States that will develop products for world markets.
In short, Microsoft is pulling a PR stunt, timing this announcement to make it appear that it was related to failure of the Comprehensive Immigration Reform, which contained a massive H-1b increase provision. Industry raises similar false threats that they are offshoring due to a shortage of H-1b, when in fact H-1b is a primary tool in offshoring.
Thursday, June 28, 2007
NASSCOM's claim that only "small Indian companies" abuse H-1b visa is absurd
Instead the National Association of Software and Service Companies (NASSCOM) issued a statement that "there is little evidence of such fraud, or that restricting the number of H-1 B visas . . . will have any effect on visa fraud."
NASSCOM is being less than honest to the U.S. Senate - they have ignored the questions and raised the Red Herring of "fraud." The NASSCOM Executive Council is a "who's who" of Indian outsourcing firms, comprised of leaders of I-flex, Infosys, Wipro, HCL, and Mr. N Chandrasekaran, Executive Vice President of Tata Consultancy Services (TCS)
TCS is the number one user of combined H-1b and L-1 visas, with nearly 8000 applications in FY 2006.
We have already reported that TCS has boasted that it pays its H-1b workers 25% below market wages, and this this underpayment was its competitive advantage against American firms and U.S. workers.
While about half of TCS business is in the U.S., only about 1000 of their 90,000 employees are Americans. (Meanwhile TCS is planning to hire 5000 workers in Mexico, to assist with Perot's "giant sucking sound" of jobs.)
We also know that the thousands of TCS employees on L-1 visas can work in the U.S. for up to a year while still getting paid their foreign wage - $20,000 per year or less. These Mexicans that TCS is hiring will provide them an additional source of foreign workers that TCS can rotate into U.S. jobs and continue to pay them third-world wages, without the expense of international air fare.
Senators Durbin and Grassley have compiled a 354 page list of L-1 visa users. TCS is on top. They are asking the top users about their usage. We expect another Red Herring response from NASSCOM about "no fraud," avoiding whether they are displacing U.S. consulting firms that pay American wages by bringing in thousands of average skilled staff programmers on L-1 while paying them third world wages.
Congress: How is it not unfair competition to allow consulting firms to pay third world wages at U.S. jobs sites by rotating in workers from foreign sites? Might this be creating an incentive to NOT hire U.S. workers for U.S. jobs?
A large user of L-1 visa is Intel. During the same period that Intel in Folsom, California was laying of its American IT workers, I heard from multiple Indians on L-1 at Intel in Folsom that they and many other L-1 workers were not brought in for their skills. Instead they were new hires in India being brought to the U.S. for training, then would return to India to ramp up Intel operations there. U.S. training may be necessary since Intel blames the Bangalore division for botching the Whitefield Xeon processor project a few years ago.
Meanwhile the stress of being forced to lay off highly skilled Americans led to the suicide of a top manager at Intel Folsom in 2003. As Intel brings in foreign workers, they do not even attend career day at nearby CSU Sacramento.
While under the “spirit of the law” TCS is a bodyshop, and thus all of its employees “provide labor for hire for unaffiliated employers," it appears that under the letter of the law TCS can continue to second-source L-1 workers by a) assuring that the L-1 reports to a TCS employee, and b) assuring that the TCS employee is providing a service related to a contract that TCS holds with the client:
L-1 Visa Reform Act of 2004, signed into law December 8, 2004
SEC. 412. NONIMMIGRANT L-1 VISA CATEGORY.(a) IN GENERAL- Section 214(c)(2) of the Immigration and Nationality Act (8 U.S.C. 1184(c)(2)) is amended by adding at the end the following:
(F) An alien who will serve in a capacity involving specialized knowledge with respect to an employer for purposes of section 101(a)(15)(L) and will be stationed primarily at the worksite of an employer other than the petitioning employer or its affiliate, subsidiary, or parent shall not be eligible for classification under section 101(a)(15)(L) if—
(i) the alien will be controlled and supervised principally by such unaffiliated employer; or
(ii) the placement of the alien at the worksite of the unaffiliated employer is essentially an arrangement to provide labor for hire for the unaffiliated employer, rather than a placement in connection with the provision of a product or service for which specialized knowledge specific to the petitioning employer is necessary.
See INA § 214(c)(2)(F), 8 U.S.C. § 1184(c)(2)(F), as added by Pub. L. No. 108-649, Sec 412(a).
Tuesday, June 26, 2007
Microsoft, Oracle, and Google demand that H-1b remain a source of cheap labor
The DOL prevailing is split into four levels, with level one being about the 17th percentile of what average Americans are paid for the same job classifications. Currently most H-1b use the level one wage. Senator Durbin sponsored an amendment whereby only 30% of the H-1b at any company could be paid at level one. (The remainder could be paid at level two - which would still be below average.)
Oracle's vice president Robert Hoffman, who speaks for CompeteAmerica, opposes the amendment. "Thirty percent is an artificial barrier," said Hoffman.
Why does Hoffman oppose the amendment? Here are the DOL wages for Computer Programmer in Los Angeles:
- Level 1 Wage: $21.59 hour - $44,907 year
- Level 2 Wage: $27.88 hour - $57,990 year
- Level 3 Wage: $34.18 hour - $71,094 year
- Level 4 Wage: $40.47 hour - $84,178 year
The wage for an average-skilled American computer programmer in Los Angeles is over $64,000 per year. Yet Oracle objects to having to pay their H-1b workers more than $44,907.
How do we know that Microsoft, Oracle, and Google do not need H-1b due to a labor shortage?
According to the Wall Street Journal, Microsoft received résumés from about 100,000 graduating students in 2004, screened 15,000 of them, interviewed 3,500, and hired 1,000. Microsoft receives about 60,000 résumés a month for its 2,000 open positions.Working at Google is among the top choices of U.S. graduates, flooding Google with 1300 resumes per DAY.
Sunday, June 24, 2007
YouTube-Gate: Cohen & Grigsby train how to NOT hire qualified Americans
For those under age 40, "YouTube-Gate" is a twist on the Watergate scandal that brought down President Nixon. Our objective is that Congress end these H-1b, PERM, and related employment-based immigration scandals by revising the statutes to provide true protection for U.S. workers.Our five-minute YouTube of an immigration seminar by the law firm of Cohen & Grigsby has received over 80,000 hits on YouTube, and resulted in major media coverage. The video prompted Senator Charles Grassley and Congressman Lamar Smith to write a letter to Labor Secretary Elaine Chao to investigate whether U.S. companies are abusing the H-1B visa program.
Today we documented that three of the eight IT classified ads in the Pittsburgh Tribune-Review today are suspect fake PERM ads. (We need a hard-copy of the June 24th Philadelphia Daily News.)
We also expose the Cohen & Grigsby client companies that are running the fake job ads. The client with the most H-1b processing is foreign outsourcing firm Hexaware. These H-1bs harm the U.S. economy by facilitating the transfer of U.S. jobs and technology overseas. And Congress has an obligation to suspend laws that harm our country.
Prevailing wage? In their second video Cohen & Grigsby cite the "prevailing wage" requirement of H-1b. The majority of H-1b programmers use the Level One prevailing wage. The Level One prevailing wage for Lawyer in Philadelphia is $24.75 hour! I doubt that the attorneys in this video would contend that wage would protect them from displacement.
TIP: This website http://video.qooqle.jp/dl/ is one of many that allows you to download YouTube videos. (This is how we grabbed these training videos before the law firm removed them.)
Sunday, June 10, 2007
Immigration attorney Philip Boyle argues that H-1b puts upward pressure on the salaries of U.S. software professionals (we respectfully disagree)
"H-1B workers must be paid prevailing wage or better. Hence, these workers have a positive impact on wages which a tax would thwart."If Philip Boyle is sincere - which, as an attorney is highly unlikely - then he should advocate for flooding in foreign immigation attorneys into Vermont. After all, the Level One DOL prevailing wage (which is applied for most H-1b applications) for LAWYER of $25.65 hour - $53,352 year would certainly put upward pressure on his meager salary.
The reporters at the Burlington Free Press should also rally for more H-1b reporters, as their DOL prevailing wage of $12.65 hour - $26,312 year would put upward pressure on their salaries.
By far largest user of H-1b in Vermont in 2006 was iTech. iTech LCA wages are here – as low as $36,000 minimum BS degree and specialized knowledge. iTech made the Programmers Guild “lowest paid” list. ITech is owned by an immigrant from India and is engaged in shipping work back to India, the same as the firms that have yet to respond to the Durbin/Grassley inquiry.Boyle argues that the H-1b cap should be raised because H-1b is used to hire new grads from Vermont universities. But not one of iTech’s openings is for new grads – all require at least 2+ years of experience.
(Boyle ignores an alternate solution of giving H-1b preference to U.S. grads - or to eliminate H-1b entirely and allow supply/demand forces to draw more Americans to pursue advanced degrees – that same force that draws sufficient Americans to pursue law degrees.)
The reason iTech uses H-1b is not because no Americans are available, but rather because they hire disproportionately Indians from India – not graduates from Vermont colleges, as Boyle alleges. (Of the 80 iTech green card certifications in 2005 and 2006, 77 were for workers from India.)
iTech is second only to Goldstone Technologies in 2000-2006 LCA filings in Vermont. Goldstone is an Indian company that uses H-1b because they don’t hire Americans. (On p.22 of John Miano’s study he found that Goldstone wage are $12,000 below Expected OES wages.)
Here is an ITECH AD TO HELP PROCESS THEIR EMPLOYEES’ GREEN CARD APPLICATIONS. This person will administrate the PERM job ads that reject qualified American job seekers, as explained by the immigration lawyers in the Cohen & Grigsby video. PERM ads are described at www.programmersguild.org/RIR/
Philip Boyle does not care about Americans getting American jobs because he only profits when American jobs get filled by foreigners. If he truly belived that flooding in H-1b workers would boost wages rather than displace Americans, he would be calling for more H-1b within his own profession. As it stands, we call him "Liar Liar."
Saturday, June 9, 2007
Patni Computer Systems H-1b settlement fails to compensate American Worker victims
As reported by AHN Media Corp: Patni Computer Systems Inc. has agreed to pay $2.4 million in back wages as part of a settlement with government authorities who claim the company underpaid employees recruited under the H-1B employment visa. . . Patni is one of the nine IT companies that U.S. legislators last month asked to explain their use of the H-1B visa. The issue with wages is that under the H-1B work visas, companies are supposed to pay the workers it brings into the country the prevailing U.S. wages for those jobs so that foreign labor doesn't unfairly compete with American labor for jobs. The company, which has about 13,000 employees, was awarded 1,391 H-1B visas in 2006.
“We derive a significant portion of our revenues from a limited number of clients in a few select industries. In 2003, 2004 and 2005 our largest client and one of our principal shareholders, General Electric, accounted for 41.2%, 31.7% and 22.1% of our revenues and our second largest client, State Farm Insurance, accounted for 17.4%, 14.9% and 11.5% of our revenues.” . . . Our attrition rates have been high due to a highly competitive labor market in India. . . . We are currently cooperating with the US Department of Labor with respect to compliance matters related to our past and present labor practices. We estimate the liability to be up to $2 million. . . . Most of our employees are Indian nationals. The ability of our software professionals to work in the United States, Europe and in other countries depends on our ability to obtain necessary visas and work permits. As of December 31, 2005, a majority of our software professionals in the United States held H-1B visas . . Wage costs in India have historically been significantly lower than wage costs in the United States and Europe for comparably skilled professionals, which has been one of our competitive strengths. . . Presently, we benefit from the tax holidays given by the Government of India forthe export of IT services from specially designated software technology parks and special economic zones in India.”
The Programmers Guild identified Patni as #27 on the list of the lowest-paying H-1b employers. When will Chao go after the top 25?
Tuesday, June 5, 2007
Letter to Governor Schwarzenegger objecting to his support for an H-1b increase
Dear Governor Schwarzenegger, (916-445-2841)
Among your key campaign promises was that you would represent the People of California rather than bowing to special interests.
But yesterday in your letter advocating for an increase in H-1b visas you violated that promise. I challenge you to disclose the source of that letter, which is a clear promotion of the special interests of the American Immigration Lawyers Association, foreign consulting firms, and billionaire CEOs.
1) By advocating for retention of "an employment-based application process" you are supporting the current flawed system where employers are able to hold H-1b workers as indentured servants while they sponsor the workers' green card applications. I witnessed NEC Roseville IT department specifically seek out H-1b candidates after two of their DBAs left for better opportunities at Intel Folsom. Do you support freedom or indentured servitude?
2) By advocating that the H-1b quota "must be based on the demands of the market" you are driving California workers and consulting firms out of business: The largest users of H-1b are Indian consulting firms. Last fall Tata Consultancy Services (TCS) boasted, "Our wage per employee is 20-25 percent less than US wages for a similar employee," explaining that the underpayment gave them their competitive advantage over American workers and the American firms who employ them. Do you support more H-1b for Indian consulting firms that displace Americans with $38,000 wages?
3) H-1b allows employers to hire foreigners even when qualified Americans are available. The California Department of Transportation (CALTRANS) has sponsored dozens of H-1b workers, even as U.S. Citizens were waiting and reachable on the civil service list. Do you support hiring foreign workers for state jobs when Americans are reachable on lists?
4) CEO Larry Ellison is worth $20 billion dollars. Oracle is lobbying against a $1200 annual fee on H-1b that would be used to fund scholarships of up to $15,000 so that Americans can pursue science and engineering degrees. Do you share Oracle and Compete America’s opposition to scholarships for Americans?
5) You state, "I am concerned that the current bill may make the H-1B program harder to administer." The only material change is that, under the Durbin/Grassley amendment, employers would first have advertise the position, make a good faith effort to hire Americans, and attest that no Americans were being displaced. Do you believe that Americans should be displaced from their careers because employers find it an administrative hassle to run help wanted ads and conduct interviews?
6) You cite “between 2004 and 2014 there will be nearly one million new jobs in math and computer sciences,” but ignore that more than 100,000 Americans graduate with degrees in these fields each year. Please explain why you support industry’s call for an H-1b influx that would fill every job and then some.
7) You claim that there is a shortage of tech workers in California. So can you explain why on the day you sent your letter there were ZERO classified ads for Computer Programmers in the Sacramento Bee.
I look forward to hearing an acknowledgement that you have considered these points, and hope that upon further consideration you will withdraw your letter in support of an H-1b increase.

Sincerely,
Mr. Kim Berry
Sacramento, California
UPDATE: When I attempted to deliver the letter the Governor's staff was rude. I explained that I wanted to hand it to the appropriate staff. She said "I need a name." She said that the letter had to be dropped in the mailroom. When I told her I wished to meet with staff she gave me a form to fill out, but would not let me borrow a pen to fill it out. I bummed a pen off a security worker and filled it out. She would not let me attach the letter to the hand-written form.
