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McTyrelaw.com. Port of Entry. Special Report

Coming to (Work In) America
By Monica Gutierrez

The on-going H-1B visa debate has mostly centered around the views of two opposing groups. On one hand, those opposed to H-1B visas B mostly labor leaders, native-born tech workers and right-wing, conservatives B insist that there are enough skilled U.S. IT workers. On the other hand those in the tech industry and immigration advocates, contend that there is a grave need for well-educated, skilled IT workers, which is why the demand for foreign workers is high B or was until the recent economic/tech industry recession.

The debate itself is focused around the number of H-1B workers allowed into the U.S. , which is currently at 195,000; however, this number is set to shrink to 65,000 in 2003.

A study by the Information Technology Association of America (ITAA), published Port of Entry. Coming to (Work in) Americain May claims a dire shortage of IT workers B as it has for the last 3 years B but the study is emphatically disputed by many who question the accuracy/veracity of ITAA's report.

One of the arguments put forth is the question of employers' expectations and their unwillingness to pay for the skills and experience they demand. Peter Capelli, director of Wharton's Center for Human Resources puts it this way; "If I can't find a chef at the wage I'd like, it doesn't mean there's a shortage of chefs."

Unfortunately, the segment of the population most affected by this debate B the H-1B workers themselves B are rarely directly represented in the discussion. There are between 400, 000 and 500,000 H-1B visa holders currently in the U.S. Only about 25% - many argue the percentage is much lower B will eventually receive "green" cards. According to INS statistics, the following pertain to the average H-1B worker:

  • Median age is 28 years

  • 72% are male

  • 50% are from India

  • Median salary is $43,000

  • 60% are recruited for IT

If an H-1B visa holder is fired or laid off s/he is then "out of status" which is a kind of "immigration limbo" sending them into a frantic scramble to find a new employer lest they be deported. Finding employment in the tech industry whether one is a native or foreign born can be difficult in the current economic downturn.

A recent study outlines the tech industry's use of H-1B workers over the past 2 years:

Company 2000 2001 2001
number of H-1B applications
Hewlett- Packard 144 150 0
IBM 500+ 500+ 0
Intel 500+ 500+ 0
Microsoft 500+ 500+ 44
Oracle 500+ 500+ 14
Sun 500+ 500+ 10

Much of the opposition to foreign workers comes from native-born IT workers who claim that they are being discriminated against and that H-1B workers will bring down the pay scale because IT companies who hire foreign workers pay them less than market rate. American workers complain that the government and tech industry should give priority to American workers B whether or not they are as well-educated, skilled and trained as their foreign counterparts.

In response to many of the claims made by American workers, the founder of Trusoft, a tech company that employs mostly Russian workers, claims that American-born workers are rarely talented enough, nor are they motivated or passionate about their work. He said he would be "happy to hire more Americans if they came up with exciting ideas". 2.

One problem, is that although there are supposed to be safeguards built into the H-1B program to ensure that foreign workers will be paid "the prevailing wage for their occupation", these guarantees are often and easily circumvented.

According to one laid-off American IT worker, "sub-contractors on visas, most from India, were making $25 to $30 an hour, while an American doing similar work would want $70 to $80 an hour."

Another IT worker, a software engineer who recently received his "green card" after 11 years as an H-1B visa holder, said that there are numerous ways that IT companies cheat foreign workers out of fair wages. In many cases, consulting companies recruit foreign workers by offering a steady salary, but the pay is based on projects that often do not exist or never materialize.

The relationship between the employer and the H-1B worker is such that the visa holder will rarely do anything that might jeopardize his employment with the company, and thus his ability to stay in the U.S. and so the employers always have the upper hand and often take advantage of the situation.

Some scholars argue that IT corporations have created an "indentured servant class" out of H-1B visa holders, using their skills and talent to benefit the U.S, economy and then discarding them, with no regard to their welfare when they are finished using them.

Vijay Prasad, an associate professor and director of International Studies at Trinity College refers to immigrant workers as "high-tech coolies" recalling a derogatory, slang term used in the 19th century for Asians brought to the U.S. to work during the Gold Rush. He claims that foreign workers are recruited by IT corporations to work for a number of years and then most are sent back home, where they cannot find work related to their experience and capabilities.

According to Prasad, 83% of South Asians come to the U.S. with advanced degrees, most in computer engineering or medicine.

One H-1B visa holder was quoted as saying: "When we are hired to work in the U.S. it is because we are obviously skilled and talented and have something of value to give back to the U.S. economy. Keep in mind that we pay taxes, H-1B taxes, etc. We also pay social security, which we will never stand a chance to collect because we are not U.S. citizens. This money is recycled right back into the U.S. economy."

On its website, the Chinese Professionals and Entrepreneurs Association (CPAEA) details some of the problems facing H-1B visa holders:

  • They must be tied to an employer. If they want to leave for any reason (i.e. career advancement, better pay, etc.), the immigration process must start again.

  • They acnnot easily change employers as the process of INS approval is long and tedious.

  • If they lose their job for any reason (i.e. being laid off, fired, etc.), they have approximately 10 days to find another job (though this is not clearly defined by the INS).

  • They do not receive fair promotion in salary or position.

  • There are various delays in INS, state agency and Department of Labor procedures causing stress, frustration and uncertainty because the workers themselves are always bound by dates/deadlines.

  • Because of these uncertainties, decisions related to settling down, buying a home, starting a retirement plan,etc. are difficult, at best.

  • They often experience family separation issues. They are not easily able to visit family in their home country because re-entry into the U.S. may not be feasible.

The Immigration Support Network (ISN) consistently receives complaints of this sort. The ISN passes this information on to the Immigration and Naturalization Service (INS), which in turn rarely does anything to remedy the situation. Thus, the U.S. economy and IT corporations continue to profit from H-1B visa holders, who in turn rarely acquire citizenship nor any sort of political or cultural clout in return for their contributions.



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