H-1B Visas, the AFL-CIO and the Need for Change

Summary: The H-1B visa is not working well for visa holders, certain U.S. workers or the U.S. government. A report published by the AFL-CIO is a fascinating read on the subject.

Get a cup of coffee and read this report.

The AFL-CIO has weighed in on the U.S. visa situation (i.e., the situation involving L-1, H-1B and other work permits). They have produced a report titled, Gaming the System, and it is an interesting 52-page read.

This report looks at the effect of U.S. visa policies, especially around H-1B visas. The authors focus much of their research on the STEM occupations (i.e., Science, Technology, Engineering and Math) and on the education sector. The authors did a fairly good job of chasing the policy, law, lobbying and results of same since the mid-1990s.

Some of the points this paper makes are pretty hard to dispute. For example:

1) It’s hard to argue that job shortages exist when wages have failed to rise in many professions. If scarcity really existed, why have average salaries flat-lined or declined?

2) Visa holders are getting taken advantage of by individuals and companies on both sides of the transaction. There are many documented examples of abuse in this report. One story of Filipino teachers being forced to live 4-8 in a single, roach-infested apartment is tough to forget.

3) Businesses that argued just a few years ago that the U.S. would face a shortage of skilled graduates in STEM disciplines never took into account that other technologies (e.g., low-cost telephony and ubiquitous Internet access) would permit offshore workers to do many of the tasks previously performed within the U.S. by workers in STEM professions. As this report documents, the expected shortages never appeared and wages never rose. These same businesses could actually be at fault for driving away potential college graduates into these fields by their deep layoffs, lack of career path and usage of lower cost offshore workers.

Some of the material in this report is intended to provoke a reaction. One sidebar certainly got my attention. It is found on page 14 and it refers to seminars offered by Cohen and Grisby. It purportedly suggests methods firms might use to avoid hiring U.S. citizens.

Yes, this report is by the AFL-CIO but it’s a pretty good read and anyone who thinks the U.S. visa process is working well or correctly needs to get this report. Beyond the rhetoric, the report definitely leaves you with one very spot-on conclusion: the U.S. visa system is broken, poorly managed and needs an overhaul.

Topics: CXO, IT Employment

About

Brian is currently CEO of TechVentive, a strategy consultancy serving technology providers and other firms. He is also a research analyst with Vital Analysis.

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18 comments
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  • Another report from H-1B oppn camp

    If any of these or previous reports against H-1B visas are correct, why dont' we find people incompetent with 3rd world countries in CS and Math
    jinishans
  • "Purportedly"!?

    It's blatant, not "purported".

    http://www.kermitrose.com/econ200706.html#Best2007
    from that point down through the month, and
    http://lyrelyrepantzandfier.com/

    It's not just Cohen & Grigsby, but Fragomen et al., and the
    immigration lawyers' association. They all seem to believe it's
    perfectly OK to game the system, and even feel put upon that
    they aren't just allowed to bring in the cheap, pliant labor
    straight-away without bothering with their admitted "charade"
    of advertising the jobs for the US labor markets.

    http://www.dol.gov/opa/media/press/eta/eta20080752.htm
    DoL auditing permanent labor certification applications filed by
    Fragomen, Del Rey, Bernsen & Loewy LLP, the largest filer of
    PERM applications in the USA
    Professor8
  • RE: H-1B Visas, the AFL-CIO and the Need for Change

    Companies have created a "culture of bypass" with these visa programs. It's actually legal to discriminate against US local talent and even displace high-skilled professionals.

    That's one of the key issues the AFL-CIO is addressing in Congress and in this paper.

    This employment discrimination has created an overabundance of experienced professionals who can "hit the ground running" and new STEM grads who aren't even considered for US job openings.

    Senator Sanders bill, Employ American Act (S.2804), will prevent downsizing companies from forcing us to train our foreign replacements; the CIR bill will restore our ability to compete for job openings in our own country.

    But establishing US policies that address this oversupply will be the only effective way that we can stop this culture of bypass.

    Donna Conroy, Director
    www.brightfuturejobs.com
    dmconroy
  • RE: H-1B Visas, the AFL-CIO and the Need for Change

    The US issues about 150,000 H-1B visas per year granting 3-year work status. If you add the extensions for an additional 3 years, plus tens of thousands of extension beyond the 6 years, plus those who move to green card status, it is fair to say this program puts over 700,000 foreign workers into a labor market of about 4-5 million total. Most H-1B workers take entry level positions, at or below prevailing wages.

    If we were talking about soybeans or crude oil, the negative effect of this increase in supply would be a foregone conclusion.

    The H-1B program is large; it suppresses career growth for domestic high-tech workers; it hurts job security; it discourages students from entering this field.

    We should have public policy that raises our standard of living. The H-1B program lowers our standard of living.
    Sorscher
    • H1B Visas are 65,000 not 150,000 per year

      Correction: H1B Visas are 65,000 not 150,000 per
      year.
      karthik_79@...
      • Correction 65,000 is the low number

        In addition to the 65,000 H1B issued each year an addition 20,000 are granted to students with advanced degress along with an uncapped amount granted to educational and non-profit organizations. Now add to that number the number of renewals each year and you are well over 150,000. As the reports states DoL can't tell you how Many H1B visa holders are in the country.
        palmeida@...
  • H-1B Visa program needs to be immeditely suspended

    And permanently discontinued after all visas expire, no extensions!

    The fact that DoL can't tell you how many people are in this country under the program means that it's out of control, not in the best interests of the country, and a major security risk.
    Dr_Zinj
    • Re: H-1B Visa program needs to be immeditely suspended

      DoL does not manage visas of any kind, included H-
      1B visas. DHS (Department of Homeland Security)
      manages them.
      stilwebm
      • Doesn't matter

        It's still out of control.

        It's time to change these slave labor conditions, NOW.
        Wintel BSOD
  • RE: H-1B Visas, the AFL-CIO and the Need for Change

    For 20 years, the H-1B visa system has bypassed the entire domestic workforce so companies could have cheap, indentured labor.
    Millions of IT professionals are out of work.
    Millions of IT graduates never got a chance.
    mike@...
  • RE: H-1B Visas, the AFL-CIO and the Need for Change

    In the late 90's the then Republican-controlled congress doubled the H1B visa quota. I was doing content art in, arguably, the best job I'd ever had (you think IT is a rough field, try art). The day one of the producers asked me if I knew of a good book on Photoshop available in Russian I knew my fellow American-born artists and I were in trouble.

    The two artists who, eventually, took my job were nice guys and very talented. They came from a Russian equivalent of Disney and were highly professional. They spoke almost no English, but one of them managed to explain to me that, by regulation, they were not even allowed to look for another job for three years lest they be sent back to an area where they were subject to being sniped at (and where they made starvation wages). Not much chance any of them were going to demand better working conditions (which were abominable, with 30 hour work days and the like), higher wages, or form a union.

    When I and scores of others were laid off (some of whom had moved here from other states for the job) there were not five workers left whose native language was English, and two of those were Canadian. No doubt workers all over the world desperately need US jobs, but charity begins at home.
    John Mayer
  • Sat in on a conf call just yesterday...

    Sat in on a conference call just yesterday where senior management announced a program where US workers were being laid off and their positions outsource to India. When no one in the US has a job who will buy the goods and services these companies selling?
    Keeping Current
  • RE: H-1B Visas, the AFL-CIO and the Need for Change

    Don't just limit the subject to H1B's. My entire field, product design and molding, has been decimated by "offshoring" for lowest cost. Many small companies that I used to design for don't even have QC anymore. They just open a box from China, and sell whatever they find in there. Designing products in the U.S. for China is a joke. They make what they want, ship it to you, and your choice is sell it or go out of business. Sure, people know Chinese products are junk, but you don't have a choice, or a job.
    robertcape@...
  • Hahahaha,,,,

    The sponsored ads on the right of this talkback...

    # H1b Visa Employer
    Official USA Visa Lottery Plan for Success in Your Future.
    www.usagc.org
    # Immigrate to Canada
    Canadian Immigration Canadian Point System
    optus.ca

    So you either employ foreigners or emigrate to Canada.. hahaha LOLROTF
    ADboy
    • When (if) you grow up, you might want a job.

      You'll likely find, on current trends, that your job prospects are better
      outside North America. Instead of flipping burgers (which several
      American older IT workers are still doing), you could get a meaningful
      job someplace that actually VALUES talent at something other than
      manipulating people - like the semi-mythical USA that I grew up in.

      First, destroy education (Jarvis-Gann). Then, destroy competitive
      media (your radio choices are now NPR and ClearChannel, with less
      and less differentiation every day). Once people have forgotten how
      to read and get all their "information" from the same talking heads,
      you can proceed with the largest transfer of wealth in the history of
      humanity - to the ultra-rich.

      To see what it's likely to be like if the US continues as it is, visit
      Singapore. But if you do, bring lots and lots of money - and be very
      careful not to talk to anybody who doesn't absolutely fawn over the
      ruling family. It's safer that way for all of us.

      "Life, liberty and the pursuit of happiness" - an obsolete concept?
      Jeff Dickey
  • RE: H-1B Visas, the AFL-CIO and the Need for Change

    The H1b program is possibly the worst US government program we have seen in the past 50 years. A complete and undeniable disaster.
    G.Washington
    • I'd rate that up there with..

      anchor babies and lack of border enforcement.
      Wintel BSOD
  • RE: H-1B Visas, the AFL-CIO and the Need for Change

    SS/DD (Same story, different decade) This conversation has been ongoing since the early 1970's with the industrial sectors (steel, manufacting) and the US did not listen then. Many jobs have moved offshore with the labor force paying the price and the corporate leaders "suffering" with the bonuses for controlling labor costs.
    dwidlak@...