Sunday, January 20, 2008

Programmers Guild presents at Sloan West Coast Program on Science and Engineering Workers

On Friday January 18, 2008 Kim Berry represented the "perspective of the U.S. worker" at the Sloan West Coast Program on Science and Engineering Workers, held at UC Davis. PowerPoints of the presenters are in the above link, and an html-friendly version of my PowerPoint is here. The conference was the first of several being sponsored by a Sloan Foundation grant.

Norm Matloff's newsletter gave this account:

Kim Berry of the Programmer's Guild gave a really outstanding talk. I had seen his slides earlier, and they were fine, but his delivery greatly enhanced the content. Here was a real victim, speaking calmly yet with contained anger at the fact that all our respected institutions--both major political parties, the business community and academia--are complicit in maintaining that sham known as H-1B. His account of hiring decision meetings in which he participated, in which qualified American applicants were repeatedly rejected in favor of H-1Bs, ought to have been videotaped; his speech would have been just as effective the Cohen & Grigsby "TubeGate" videos.

I wish the entire event had been videotaped. But since no one else was taking video, and since some people might not want to ask or respond to hard questions on record, I chose not to tape my presentation. But here are a few of my talking points:

SLIDE 2: H-1b Influx is independent from labor market – 2000-2004 record H-1b influx

There is talk about revising the current 85,000 visa cap to a "market-based" cap. We have already tried a market-based cap: In 2001-2004 we had a virtual market-based cap. As documented by the San Jose Mercury News, during this period 25% to 50% of U.S. tech workers in Silicon Valley were pushed out of the job market. And during this same period H-1b influx was higher than at any time during the growth years of 1990-2000. How bad would the economy have to get before a "market-based" cap kicked in?

SLIDES 11-15 Americans are being displaced by H-1b’s lack of U.S. worker recruitment

http://www.hireamericansfirst.org/ was launched on January 13, 2008. Already we have gathered dozens of testimonials of substantial harm by the H-1b program. These 5 slides summarized those testimonials.

SLIDE 25 Programmers Guild H-1b Reforms

The closing slide summarized the reforms that the Guild believes are necessary to add some level of protection for U.S. workers:

  • True prevailing wage of at least what average Americans earn within the same job classifications.
  • H-1b and L-1 LCAs only approved after the employer has conducted good faith, transparent recruitment, and was unable to find any qualified U.S. candidates, at any price.
  • H-1b only granted to U.S. business entities with as direct hires - not to consulting firms (Indian or otherwise) to be re-shopped against American job seekers.
  • H-1b to include a $1,200 annual fee that would be used to fund $15,000 scholarships for American college students in STEM programs - consistent with legislation that Senator Sanders has introduced twice.

I liked Stan Sorscher's graphs showing how until about 1980 the economic gains of industrial advancements were shared at all wage levels "what's good for GM is good for America." But since then the gains have disproportionately gone to the top income levels (the elite? The CEOs?). He continued by speculating that globalization is a force that separates the good of business from the good of citizens (one of his last PPT slides).

Lisa Spiegel, immigration attorney Duane Morris had argued that America benefits from H-1b since the $1500 fee is used for training programs. During my presentation I asked how many people would sell their careers for $1500? No hands went up.

AMERICAN WORKERS DON'T WANT TRAINING?

As Norm reported in his newsletter, Jack Trumpbour of Harvard SEWP reported that Industry had told him that one thing they liked about workers in China is that 100% would take advantage of training programs, while in the USA only about 10% of workers were interested in training programs. I disputed this - in my experience at serveral companies, nearly 100% of workers were interested in and attended training programs when available. Jack Trumpbour stated that he would investigate this claim further. From PAGE 5 of Trumpbour's study:

    However, many other managers in China implicitly faulted U.S. engineers by noting that 100 percent of Chinese engineers will take training programs offered by the company, while U.S. workers pursue these activities in puny single-digit percentages. IBM China specifically expressed disappointment about the low U.S. participation in company training, but other global companies in China soon confirmed this disparity.

    Based on my experience I do not believe these claims by IBM managers that only 10% of workers in the USA would take advantage of company training programs. But we need some specific examples.

    Tuesday, December 18, 2007

    NFAP's Stuart Anderson's dishonest use of H-1b statistics

    According to a December 16, 2007 article in The Hindu Business Line, NFAP Executive Director Stuart Anderson has released a "study" titled "The impact of high-skill immigration restrictions on America." A key finding of his "study" is that "The 10 most cited outsourcing firms of:

    • Wipro,
    • Infosys,
    • TCS,
    • Satyam Computer Services,
    • Patni Computer Systems,
    • Cognizant Tech Solutions US,
    • HCL America,
    • Deloitte and Touche LLP,
    • Accenture, and
    • MphasiS

    used "only" 14% of the total H-1b visas in 2006.

    Anderson then makes the absurd leap to conclude that "The “vast majority of H-1B visas go to US high-tech companies, financial institutions, and US Universities.”

    Anderson reaches these conclusions because he is paid by Industry to lobby to increase the flood of H-1b workers. Although he shows a total disregard for his fellow American citizens, he frets over the welfare of Indian companies. "“Any new restriction on high-skill immigration will hurt the US industry, as much as Indian firms."

    In May 2007BusinessWeek published a list of the Top 200 H-1b users.

    This list reveals that there are many other outsourcing firms that are not in the top 10, pushing the use of H-1b by outsourcing firms well about the 14% represented by NFAP, for example:

    RankEmployerH1-B Visa Count
    1INFOSYS TECHNOLOGIES 4,908
    2WIPRO 4,002
    3MICROSOFT3,117
    4TATA CONSULTANCY SERVICES3,046
    5SATYAM COMPUTER SERVICES2,880
    6COGNIZANT TECH SOLUTIONS U.S.2,226
    7PATNI COMPUTER SYSTEMS1,391
    8IBM1,130
    9ORACLE1,022
    10LARSEN & TOUBRO INFOTECH947
    11HCL AMERICA910
    12DELOITTE & TOUCHE890
    13CISCO SYSTEMS 828
    14INTEL828
    15I-FLEX SOLUTIONS817
    16ERNST & YOUNG774
    17TECH MAHINDRA AMERICAS770
    18MOTOROLA760
    19MPHASIS751
    20DELOITTE CONSULTING665
    21LANCESOFT645
    22NEW YORK CITY PUBLIC SCHOOLS642
    23ACCENTURE637
    24JPMORGAN CHASE632
    25POLARIS SOFTWARE LAB INDIA611
    26COVANSYS611
    27PRICEWATERHOUSECOOPERS591
    28QUALCOMM533
    29GOLDMAN SACHS529
    30KPMG476
    31MARLABS475
    32UNIVERSITY OF MICHIGAN437
    33UNIV. OF ILLINOIS AT CHICAGO434
    34UNIVERSITY OF PENNSYLVANIA432
    35THE JOHNS HOPKINS UNIVERSITY432
    36SYNTEL CONSULTING416
    37CITIGROUP GLOBAL MARKETS413
    38BEARINGPOINT413
    39UNIVERSITY OF MARYLAND404
    40KEANE386
    41HTC GLOBAL SERVICES382
    42IGATE MASTECH378
    43HEXAWARE TECHNOLOGIES362
    44CAPITAL ONE SERVICES362
    45COLUMBIA UNIVERSITY355
    46LEHMAN BROTHERS352
    47YAHOO!347
    48U.S. TECHNOLOGY RESOURCES339
    49INTELLIGROUP336
    50HEWLETT-PACKARD333
    51RAPIDIGM330
    52MERRILL LYNCH329
    53GOOGLE328
    54CITIBANK322
    55DIS NATIONAL INSTS OF HEALTH DHHS322
    56YALE UNIVERSITY316
    57NOKIA314
    58TEXAS INSTRUMENTS313
    59CAPGEMINI309
    60HARVARD UNIVERSITY308
    61EMC305
    62SUN MICROSYSTEMS303
    63RITE AID301
    64BLOOMBERG298
    65GENERAL ELECTRIC292
    66AMGEN289
    67McKINSEY U.S.286
    68MORGAN STANLEY285
    69STANFORD UNIVERSITY279
    70WASHINGTON UNIV. IN ST. LOUIS278
    71VERIZON DATA SERVICES276
    72NYC-HHC HARLEM HOSPITAL CENTER276
    73UNIVERSITY OF PITTSBURGH275
    74INDIANA UNIVERSITY273
    75OHIO STATE271
    76EVEREST CONSULTING GROUP269
    77UNIV. OF MINNESOTA269
    78AMTEX SYSTEMS268
    79UNIV. OF WISCONSIN AT MADISON268
    80SUNY-STONY BROOK262
    81AMAZON GLOBAL RESOURCES262
    82CLEVELAND CLINIC FOUNDATION256
    83DALLAS INDEPENDENT SCHOOL DISTRICT255
    84UNIV. OF CALIF. AT DAVIS254
    85NORTHWESTERN251
    86SYNTEL250
    87UNIV. OF MISSOURI AT COLUMBIA247
    88GLOBALCYNEX247
    89KANBAY246
    90AMERICAN SOLUTIONS242
    91UNIV. OF FLORIDA INTL. CENTER240
    92UCLA239
    93DUKE UNIV. MEDICAL CENTER238
    94MOUNT SINAI MEDICAL CENTER236
    95BANK OF AMERICA236
    96SOFTWARE RESEARCH GROUP234
    97BAYLOR COLLEGE OF MEDICINE234
    98MASSACHUSETTS GENERAL HOSPITAL232
    99CIBER232
    100VERINON TECHNOLOGY SOLUTIONS230
    101EVEREST BUSINESS SOLUTIONS226
    102VOLT TECHNICAL RESOURCES224
    103OKLAHOMA STATE UNIVERSITY223
    104COMPUNNEL SOFTWARE GROUP222
    105U.S. TECH SOLUTIONS221
    106SYMANTEC220
    107JSMN INTERNATIONAL218
    108UBS216
    109CVS PHARMACY213
    110THE PENNSYLVANIA STATE UNIVERSITY213
    111UNIVERSITY OF WASHINGTON213
    112NORTEL NETWORKS212
    113UNIV. OF CALIF. AT SAN FRANCISCO211
    114UNIVERSITY OF MASS. MEDICAL SCHOOL210
    115SPRINT/UNITED MANAGEMENT209
    116HOUSTON INDEPENDENT SCHOOL DISTRICT209
    117PURDUE208
    118GLOBAL CONSULTANTS207
    119EMORY UNIVERSITY207
    120UT HEALTH SCIENCE CENTER207
    121UNIV. OF COLORADO207
    122VANDERBILT UNIVERSITY205
    123OBJECTWIN TECHNOLOGY205
    124DIASPARK204
    125HSBC BANK USA203
    126EBUSINESS APPLICATION SOLUTIONS203
    127BROADCOM203
    128PRINCE GEORGES COUNTY (MD.) PUBLIC SCHS203
    129MICRON TECHNOLOGY202
    130COUNTRYWIDE HOME LOANS198
    131TEXAS A&M198
    132APPLIED MATERIALS195
    133SCHLUMBERGER TECHNOLOGY194
    134UNIVERSITY OF IOWA194
    135IBM GLOBAL SVCS. INDIA194
    136DELOITTE TAX194
    137CUMMINS193
    138ITECH U.S.191
    139COMPUWARE189
    140INTL. STUDENTS AND SCHOLARS OFFICE186
    141UNIV. OF CALIF. AT SAN DIEGO185
    142WALGREEN'S184
    143HOWARD HUGHES MEDICAL INSTITUTE184
    144USC183
    145VISION SYSTEMS GROUP182
    146T MOBILE USA180
    147MULTIVISION178
    148ELECTRONIC DATA SYSTEMS177
    149MASSACHUSETTS INSTITUTE OF TECHNOLOGY175
    150CALIFORNIA INSTITUTE OF TECHNOLOGY174
    151CASE WESTERN RESERVE UNIV.173
    152UNC AT CHAPEL HILL173
    153UNIV. OF ALABAMA AT BIRMINGHAM172
    154DEUTSCHE BANK170
    155CATERPILLAR170
    156HALLMARK GLOBAL TECHNOLOGIES169
    157CYBERTHINK169
    158CORPORATE COMPUTER SERVICES167
    159ADVANCED MICRO DEVICES167
    160MEGASOFT CONSULTANTS166
    161ENTERPRISE SOLUTIONS165
    162FREESCALE SEMICONDUCTOR163
    163UT SOUTHWESTERN MEDICAL CENTER163
    164FIRST TEK TECHNOLOGIES161
    165MICHIGAN STATE161
    166RESEARCH FDN OF THE STATE UNIV OF160
    167COMSYS SERVICES160
    168VIRGINIA TECH160
    169JUNIPER NETWORKS160
    170UNIVERSITY OF ARIZONA158
    171IOWA STATE UNIVERSITY157
    172UNIVERSITY OF VIRGINIA157
    173FEDEX CORPORATE SERVICES157
    174CREDIT SUISSE FIRST BOSTON156
    175BRISTOL-MYERS SQUIBB156
    176VERIZON SERVICES156
    177EBAY155
    178AJILON CONSULTING154
    179GENERAL MOTORS153
    180CAMO TECHNOLOGIES152
    181MARVELL SEMICONDUCTOR151
    182CMC AMERICAS150
    183UT M.D. ANDERSON CANCER CENTER149
    184NVIDIA149
    185AT&T SERVICES147
    186WEILL MEDICAL COLLEGE OF CORNELL146
    187AXIOM SYSTEMS146
    188WAYNE STATE UNIVERSITY146
    189MAYO CLINIC ROCHESTER146
    190NORTH CAROLINA STATE146
    191GENENTECH146
    192MAKRO TECHNOLOGIES145
    193SVAM INTERNATIONAL144
    194MEMORIAL SLOAN-KETTERING CANCER143
    195NUTECH INFORMATION SYSTEMS143
    196XPEDITE TECHNOLOGIES143
    197AUTOMATIC DATA PROCESSING143
    198LOUISIANA STATE142
    199FANNIE MAE141
    200MINDTREE CONSULTING/TD>141

    Monday, December 10, 2007

    Gary Scholten, CIO at Principal Financial Group Inc., pays H-1b programmers $43,000 while lobbying for more

    As reported in ComputerWorld: "National tech policy battle plays out in Iowa as caucus nears":
    "Gary Scholten, a senior vice president and CIO at Principal Financial Group in Des Moines, . . . related his IT workforce concerns directly to three Democratic candidates: New Mexico Gov. Bill Richardson and Sens. Barack Obama and Christopher Dodd."

    Among Gary's concerns is that the U.S. is not flooding in a sufficient number of H-1b workers, causing them to have to hire from the local community college, and to set up IT operations in Pune, India.

    So what DIDN'T Gary tell the candidates?

    Principal Financial Group Headquarters are at: 711 High Street / Des Moines, IA 50392-0001 USA. That is the same address as the LCAs for Principal Life Insurance Company. These LCAs reveal H-1B applications filed by Principal Life Insurance Company:

    Approved H-1B applications: 110 Total jobs: 168

    Principal's H-1b usage includes many software development positions paying between $43k - $50k.

    Gary likely didn't mention that many of these H-1b come through training programs, in the USA, that are closed to American Citizens, for example, through Premier IT Solutions Inc - which cites "Principal Financial Group" among their top clients.

    Gary also likely didn't mention that many of the "HELP WANTED" on their website are PERM FAKE JOB ADS, like THIS ONE - run solely to obtain green cards for their dozens of H-1b programmers:

    Job Title: IT Application Analyst-(PeopleSoft)
    Job ID: 208545
    Location: IA - Des Moines

    B.S. in computer science, information systems, engineering or related field (or foreign equivalent) plus 5 years experience in the job offered or in a related occupation such as Programmer Analyst or similar duties under a different job title. Experience to include ERP applications (PeopleSoft, Financial Suite, or HRMS suite), PeopleTools, and RDBMS.

    THE PROBLEM IS APPARENT: Search for "IT" in Principal Financial Group's job openings. You'll find either positions for new graduates, or positions that require 3-6 years of experience in specific languages and applications. There are NO OPENINGS for Americans with BS degrees and several years of experience, but need the same "on the job training" that is extended to new graduates to get them up to speed.

    And as long as employers can flood in H-1b programmers at $43,000, the market forces that would make that happen do not exist.

    Shouldn't Presidential candidates get the full story?

    Thursday, November 15, 2007

    Lou Dobbs challenges Bill Gates to debate H-1b visa

    Bill Gates has asked Congress for an "unlimited number" of H-1b visas. Watch Lou Dobbs ask Gates to discuss the matter. (We suspect that Gates will decline this opportunity to explain to the world his reasons for wanting an H-1b increase.) Lou Dobbs Transcript November 13, 2007 IS HERE



    BILL TUCKER, CNN CORRESPONDENT (voice-over): There is no shortage of students studying for careers in Math and Science. There is a shortage of jobs. That's the simply bottom line finding of a new study from the Urban Institute.

    The study shows that between 1985 and 2000 435,000 U.S. citizens and permanent residents a year graduated with Bachelors, Masters, and Doctoral degrees in Science and Engineering. That's three times the number of jobs in Science and Engineering added per year, 150,000 during that time.

    Separately Michael Teitelbaum at the Alfred P. Sloan Foundation told Congress last week that neither he nor a separate study by the RAND Corporation can find any evidence of worker shortages. These studies are not anomalies.

    VIVEK WADHWA, HARVARD UNIVERSITY: Bottom line is that all of our research at Duke and now at Harvard shows the same thing. That there is no shortage of engineers; there's no shortage of scientists. Companies aren't going abroad because of skills. They're going abroad because it's cheaper.

    Sunday, November 11, 2007

    Bias against American tech workers by Dan Miller and Juliana Barbassa

    Eight firms used 87% of all H-1b applications in 2006 Harrisburg, PA – and all eight are owned and managed by Indian immigrants, with average salary around $45,000

    Dear Dan Miller and Juliana Barbassa,

    Please consider the Programmers Guild's objections to the bias in Dan's article Tech workers push for immigration reform in today's Patriot News. Dan's article is leveraged from a prior AP article Tech workers still looking for immigration change by Juliana Barbassa.

    Note that I am quoted in the AP article, but in such a way that it appears that the Programmers Guild supports expansion of the green card quota, which we do not. Instead, as I had told Juliana on the phone, we believe that H-1b should only be granted in the rare cases where no qualified Americans are available - at any price. Then there would not be so many H-1b trying to use this temporary visa as a basis to obtain citizenship. (What I didn't say on the phone was that I don't believe a temporary work visa should even be a path to citizenship - it should only be used until an American can be located and trained to fill the job: If I took a job in Switzerland on a temporary work visa, I not would be so arrogant as to demand that I be granted Swiss citizenship.):

    Legal immigrants who feel squeezed by limits on the number of green cards issued each year are trying to separate their complaints from the protests by illegal immigrants. . .

    The green card application system is akin to ''indentured servitude,'' said Kim Berry, president of the Programmers' Guild, a group that opposes current work visa laws. ''It takes years for the green card sponsorship to happen, and they can't leave, can't ask for a raise unless they want to lose their place in line.''

    The article states:

    "It gets too frustrating sometimes," said Sandeep Bhatia, a software engineer from Mumbai, India, who first applied for a green card in 2001. Since then, Bhatia has completed an MBA.

    Of what relevance is getting an MBA? Is there a shortage of MBA holders in the USA? I've known several programmers who obtained an MBA at night school. Typically it has no value in the programming profession. Note that none of the positions on the Harrisburg, PA Craigslist cite MBA as even a desired qualification.

    The article states:

    American-born tech workers who criticize the visa system argue the annual influx of 65,000 foreign workers like Bhatia takes jobs from Americans and puts a damper on all salaries.

    Out of the entire article, that is the only sentence supporting the viewpoint of American Citizen (not "American-born") U.S. workers. Everyone that you quote in your article is a special interest - immigrant seeking citizenship, immigration attorney seeking to expand business, or business trying to maximize profit. You fail to interview a single U.S. worker or representative organization, nor evaluate whether the concerns are valid.

    a) Please see the comments from the290 signers of the October 15th IEEE rebuttal letter. Many claim to have been directly harmed by H-1b, and many have indicated that they will speak to the media.

    b) I have personally witnessed cases where qualified Americans were not hired solely because an H-1b applicant appeared to have slightly higher qualifications. But in every instance the Americans who were passed over were highly qualified to fill the positions. Bodyshops FIRST bring in H-1b workers, THEN they swamp job ads with the resumes of their H-1b staff. At that point it is ILLEGAL for employers to give any preference to Americans over temporary foreign workers.

    c) Here are the H-1b applications for 2006 in Harrisburg, PA, sorted by number of employees sought.

    We typically see that the largest H-1b users are Indian-run organizations that blatantly discriminate against workers who do not share their nationality, and pay below market wages.

    Bingo. The top user is Mphasis Corporation with 90 applications, all within a salary range of $42,000 to $47,382. And as expected, the management of Mphasis Corporation are Indians.

    The second largest user is Fortune 500 Systems, Ltd, requesting 20 "programmer analyst," all at a salary of $40,000. Here are the names of their software developers.Would you agree that this suggests a bias against hiring Americans? Their website conceals ownership information. But the LCA Records reveal that the CEO is DNYANOBA (KEN) KENDRE - the same as the CEO for the fourth largest user, below.

    The third largest user is iBusiness Solution, LLC, requesting 17 programmer analysts with salary ranges from $48,000 to $52,000. They appear to be owned and managed by Indians. The LCA was filed by President Srivastava Pramod.

    The fourth largest user is Global Heathcare Group - not IT related. CEO "DNYANOBA (KEN) KENDRE" is an Indian "from Latur district in Maharashtra" - same CEO as the second top user. Here he is shaking hands with the Governor Edward Rendell of PA, apparently getting congradulated for displacing skilled Americans with Indians earning $40,000 salary.

    The fifth largest user is Satyam Computer Services, Ltd, a large Indian consulting firm, requesting 10 programmers with salaries ranging from $47,020 to $67,413.

    The sixth largest user is Prima Technologies, LLC, requesting 7 "computer programmer" for $48,000. The LCAs reveal that the owner is "Nagesh Chilakapati" - and the only street address on their website is in India.

    The seventh largest user is CLUTCHPOINT,LLC, requesting 4 "system analysts" for salaries of $48k and $49k. The LCAs reveal that the CEO is SIVARAMA KARISHNA GOGINENI - sounds Indian to me. Google does not even find a website for them. Their LCA address is 600 North 2nd Street, Suite # 500. To avoid the risk of libel, let's just call these facts "suspicious."

    The eighth largest user is CYBRID, INC. requesting 3 "Software Engineer" for salaries of $60k to $65k. The LCAs reveal that president is "Kanthy Vaylay." Their website conceals ownership and management information. Google for their address "4807 Jonestown Road" suggests that this is a mail box drop. Their website is strikingly similar to Independent H1B which bills itself as a H-1b sponsorship bodyshop and with greencard services.

    THESE EIGHT FIRMS ACCOUNT FOR 167 OF THE 192 H-1B APPLICATIONS IN HARRISBURG, PA, IN 2006

    Why is it that the vast majority of businesses in Harrisburg are able to meet all of their staffing needs without a single H-1b visa, but that eight Indian-owned businesses account for 87% of all H-1b applications in that city?

    This sampling supports the Programmers Guild's contention that H-1b are underpaid and used disproportionately by Indian bodyshops that discriminate against U.S. workers that are not the same nationality as the owners.

    The article states:

    Kelly Lewis, president and CEO of the Technology Council of Central Pennsylvania, estimated that workers holding H-1B visas make a small number of high-tech employees in the midstate. "We're probably just in the general Harrisburg area short 500 to 1,000 technology professionals right now," Lewis said.

    Indeed. TCCP represents several Indian-based bodyshops that would flood in as many H-1b consultants at $40k per year as possible, giving them a competitive advantage against firms that hire Americans at market wage.

    The article states:

    Tom Richwine is president of Immigration Support Services, a company in Silver Spring Twp. Richwine said his company helps about 1,000 employers nationwide process H-1B visas and green cards. H-1B visas represent just 0.7 percent of the nation's work force, "so it's not like we are displacing U.S. workers with foreigners," he said. Richwine said the federal government must provide more new H-1B visas and increase green cards available for high-tech workers. "We could easily absorb 150,000 [new H-1B visas] a year without any problem," he said. "We've got to provide a path to come to the U.S."

    Tom is a biased in that he is probably getting rich on the backs of thousands of qualified American tech workers by processing H-1b applications. Given his bias, journalism standards suggest that an opposing interest should have been asked to rebut his claim.

    FACT: H-1b are concentrated in the tech sector, which has about 3,600,000 workers. Over 500,000 H-1b have flooded into this sector since 2000, while the total number of jobs has remained flat.

    FACT: Even the optimistic BLS projection for 2002-2012 project only 146,500 "[t]otal job openings due to growth and net replacements" annually "Computer and mathematical science occupations" (SEE PAGE 83)

    FACT: The tens of thousands of Americans graduating with BS degrees in this field are facing unfair competition with skilled H-1b workers willing to work for $40,000 in order to get out of their overcrowded countries.

    FACT: There is no requirement to even consider qualified Americans before sponsoring and H-1b, and industry lobbyists are adamantly opposed to adding any such protection. If such a protection were added and enforced, the number of H-1b entering the U.S. would drop substantially, and the "Green Card Backlog" bemoaned in this article would not be a factor.

    FACT: The Craigslist postings for Software professionals do not suggest that any special labor shortage exists. There are only a few posts per day, just as for the other occupational categories.

    Tuesday, November 6, 2007

    Congress set to triple the H-1b quota in HR 4065!

    Author Rep. James Sensenbrenner [R-WI] represents HR 4065 as "To amend the Immigration and Nationality Act to strengthen enforcement of the immigration laws, to enhance border security, and for other purposes."

    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

    The media has been buzzing with articles making claims like this in e-Commerce News - Microsoft Steps Across Border to Sidestep Immigration Rules

    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.

    (Also See Paul McDougall's InformationWeek Blog Microsoft's Canada Plan Highlights Need For Immigration Reform.)

    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

    Last month U.S. Senators Durbin and Grassley wrote a letter to nine of the top Indian outsourcers regarding their use of H-1b, such as their wages, age of workers, number of U.S. citizens on staff, and their efforts to recruit Americans. To our knowledge none of the receipients have responded to the questions posed in that letter.

    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).