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Cyberactivism on Trade, Economics and Labor Arbitrage

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Entries from April 2008

Straight From the Horse’s Mouth - It’s about Cheap Labor

April 24th, 2008 · 1 Comment

Straight From the Horse's Mouth

If you can find high-quality talent at a third of the price, it’s not too hard to see why you’d do this

says EDS chairman Ron Rittenmeyer.

So much for the talk of domestic shortages of engineers. EDS has shifted literally tens of thousands of jobs overseas.

EDS owns the India-based offshore outsourcing firm, MPhasis, which uses the H-1B & L-1 visa programs to facilitate this transfer.

WashTech, a local of the CWA (AFL-CIO) has an action item to demand the extension of student worker Visas be set back to it’s original.

If you are a Professional worker and have your own personal horror story on wage arbitrage, displacement through insourcing and/or offshore outsourcing, may we request you join Hire Americans First and add your story so the facts of how guest worker Visas are used to displace US Professionals cannot be dismissed.

For your viewing pleasure, another group has made a series of you tube videos worth watching:

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Finally Ex-startup CEO turned Academic Vivek Wadhwa also agrees we should get rid of the lottery on the H-1B Visa program. But we should not allow any increases in H-1B or the creation of an F-4 Visa and instead…

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Tags: H-1B

DHS Illegally Changes Rule to Increase Foreign Guest Workers

April 8th, 2008 · 9 Comments

Michael Chertoff, per Bill Gates and George Bush’s demands, bypassed Congress and increased foreign guest workers through a ruling and executive order.   No input from US workers, no votes, nothing.   Even worse, Bill Gates claims a weakened America is a good thing!

DHS Changes Rule

The U.S. Department of Homeland Security released today an interim final rule extending the period of Optional Practical Training (OPT) from 12 to 29 months for qualified F-1 non-immigrant students. The extension will be available to F-1 students with a degree in science, technology, engineering, or mathematics who are employed by businesses enrolled in the E-Verify program

One small problem. Students graduating in Science, Technology, Engineering and Mathematics majors are about three times the total number of new jobs created in the United States for these majors.   So now, to make matters worse, DHS increases the ability to hire foreigners, insuring more Americans cannot get a job! UI

PAUL ALAMEDA, President AFL-CIO, DPE

The projection is the growth in this industry is about 120,000 jobs per year and this is in the high tech meaning math and science degrees. And we’re graduating in excess of 300,000 with bachelors, masters and PhD’s from United States universities

The below Lou Dobbs segment goes into more detail:…

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Tags: Globalization · H-1B

Senators Grassley & Durbin Confront Firms, Stand Up for American Professionals

April 2nd, 2008 · 2 Comments

DURBIN AND GRASSLEY ZERO IN ON H-1B VISA DATA

God bless Senators Dick Durbin and Chuck Grassley.  They are asking some tough questions on H-1B and L-1 Guest worker Visas and how they are being used. 

For some background, H-1B guest worker Visas are a temporary, corporate sponsored method to bring in foreign labor.  The program is supposed to be about supplementing the US labor force with specialty skilled professionals who cannot be found domestically.  But instead, the program often bypasses American professionals capable of performing the work desired.  In other words, the H-1B guest worker visa is often used as a labor arbitrage vehicle.    Labor arbitrage is a method to increase profits by squeezing wages of workers.

Business Week has published a handy table showing how the biggest users of these insourcing methods (bringing in cheaper labor via guest worker Visas) are Indian firms which specialize in providing technical services at lower costs.

From his press release Durbin is calling it out:

The H-1B program can’t be allowed to become a job-killer in America - Senator Dick Durbin

So in other words, if companies cannot offshore the job, they are insourcing, or bringing over cheaper labor under guest worker Visas to labor arbitrage American workers and pocket the…

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Tags: H-1B