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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 profits.

Here is a quote from the letter the Senators sent to these foreign companies:

We believe that before increasing the H-1B cap, Congress must close loopholes in the H-1B and L-1 programs that harm American workers.   For example, under current law only employers that employ H-1B visa holders as a large percentage of their U.S. workforce are required to attempt to recruit American workers before hiring a H-1B visa holder.   Most companies can explicitly discriminate against American workers by recruiting and hiring only H-1B visa holders.    As the U.S. Department of Labor (DOL) has said: “H-1B workers may be hired even when a qualified U.S. worker wants the job, and a U.S. worker can be displaced from the job in favor of a foreign worker.”

Please click on the letter.  The questions are really trying to get Infosys and a slew of other companies to explain their business model of labor arbitrage and business process outsourcing through use of guest worker Visas and technology transfer out of the United States.   The Senators ask a series of questions.   Overall, it’s clear both Senators are saying profits based on taking wages out of American workers pockets is plain wrong.   We agree, squeezing workers is not advancing technology and innovation or increasing economic development within the United States.

Even better, the Senators have generated some real press coverage that brings into doubt the Bill Gates show which erroneously claims a great worker shortage.

Senator Grassley did one better, he wrote Nancy Pelosi and Harry Reid a letter:

I’m writing to strongly encourage you to review the (H-1B) program before you make irresponsible commitments to appease these (lobbyists) interests and statutorily increase the supply of H-1B Visas

By the way, it looks like Senator Chuck Grassley has become a blogger.  Use of on-line media to communicate actions to the general public is a great expansion of information!  This means you can visit the Senators website and obtain direct real time information.   I must say Senator Grassley has been working hard on a variety of policy areas, in favor of working America and we must say a huge Thank you!

It’s time to close the loopholes that have allowed this to happen and enact real reform - Senator Chuck Grassley