Showing posts with label prevailing wage. Show all posts
Showing posts with label prevailing wage. Show all posts

Tuesday, June 26, 2007

Microsoft, Oracle, and Google demand that H-1b remain a source of cheap labor

Microsoft, Oracle, and Google are lobbying the Senate for an increase in the H-1b visa quota, arguing that they have thousands of job openings that they cannot fill with Americans. But is that the true motive?

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 10, 2007

Immigration attorney Philip Boyle argues that H-1b puts upward pressure on the salaries of U.S. software professionals (we respectfully disagree)

In his commentary "In My Turn: Immigration reform -- Vermont style," immigration attorney Philip Boyle make the outrageous claim that the H-1b program actually increases the wages of U.S. software professionals, writing:

"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."