Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

When high-tech corporations take the low road to cheaper labor
Portland Press Herald ^ | Nov 5, 2015 | Jonette Christian

Posted on 11/05/2015 10:55:41 AM PST by ConservingFreedom

Last year, the Walt Disney Corp. fired 250 tech workers and required them to train their foreign replacements.

Southern California Edison did the same to 500 IT workers, saving $20 million annually by paying their replacements barely half of what the fired employees earned. Fired Americans have also trained their foreign replacements at Toys R Us, New York Life, Harley-Davidson, Cargill, Pfizer, Northeast Utilities and others.

Training your foreign replacement is euphemistically called "knowledge transfer." And when it's complete, companies often offshore the entire division overseas.

U.S. Sen. Orrin Hatch, R-Utah, has introduced the "I-Squared" bill, which would more than triple the number of foreign worker visas that allowed these companies to displace Americans and outsource their jobs. Maine independent Sen. Angus King is co-sponsoring this legislation. We hope he reconsiders his priorities.

It's all legal. Foreign guest workers are hired through multiple visa programs. The H-1B program, used at Disney, enables employers to import up to 85,000 foreign workers every year if high-skilled Americans cannot be found. By bringing in the "best and the brightest" to do "the jobs Americans can't do," the argument goes, we'll ensure the vitality of our tech sector, creating good jobs for all.

But these programs were never intended to allow corporations to displace Americans in mass firings, and then outsource technology divisions. Obviously, there's a gap between reality and political narrative.

The H-1B workers at Disney weren't filling unfillable positions - the positions were already filled. And the replacements weren't "the best and the brightest" - they had to be trained by the Americans they replaced. And they certainly weren't job creators if they replace existing workers.

One fired Disney worker provided The New York Times with his annual performance rating: His supervisor described his "outstanding" performance, saving the company thousands of dollars. His resume listed top-level skill certification and command of seven operating systems and 15 program languages. Americans can do math!

Even worse is the L-1, which allows multinational companies to transfer workers from overseas, and Optional Practical Training, for recent foreign graduates. These programs have no wage floor, no cap on numbers, no recruitment or displacement requirements and virtually no federal oversight.

Electronics for Imaging, a publicly traded Silicon Valley company with over a half-billion dollars in revenues, was paying its foreign workers $1.21 an hour to install computers, when the prevailing rate in Silicon Valley was $19 to $45 per hour.

The workers were imported on the L-1 visa. Since there's no wage requirement in the L-1 program, the company had had violated minimum-wage laws, not foreign-worker laws.

Of the 10 biggest employers of H-1B workers, nine are foreign outsourcing companies, and they aren't creating jobs for Americans. Silicon Valley giants constantly demand that Congress raise the cap. And Democrats are no more sympathetic than Republicans.

When last year's "comprehensive immigration reform" fizzled, massively expanding foreign worker visas, President Obama, by executive action, quietly issued work permits to the spouses of foreign workers, thereby expanding the cap without consulting Congress.

Mark Zuckerberg, et al., may be clamoring for more imported workers, feeding the press bogus "labor shortage" stories, but does the labor market really need the Hatch-King proposal? As reported in The Atlantic, a compelling body of research by the National Bureau of Economic Research, the Rand Corp. and the Urban Institute finds no evidence of widespread labor shortages in science and engineering occupations.

Only half of U.S. technology graduates find a technology-related job, while two-thirds of newly created science, technology, engineering and math jobs are filled by low-skilled foreign guest workers. According to the Government Accountability Office, over half of H1-B workers are paid entry-level wages - hardly what one would expect if they were truly exceptional.

Not surprisingly, studies by the liberal Economic Policy Institute and others document that H-1B workers have only average skills and that hiring H1-B workers drives down the wages of other workers and has minimal, if any, effect on job creation or innovation.

Our foreign worker programs need a radical overhaul, not a massive increase. And the political narrative in Washington promoting these programs needs a reality blast. Priorities should change. One reform is obvious: Require employers to pay their foreign workers higher salaries than Americans. If they're uniquely brilliant, they deserve the higher wage.


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: corporatewelfare; h1b
Navigation: use the links below to view more comments.
first 1-2021-30 next last

1 posted on 11/05/2015 10:55:41 AM PST by ConservingFreedom
[ Post Reply | Private Reply | View Replies]

To: Parmenio; ColdOne; Yossarian; knittnmom; sf4dubya; Mr. Peabody; wally_bert; dowcaet; ...
H-1B ping. Let me know if you're not on the list and want to be added (or are and want to be removed).
2 posted on 11/05/2015 10:56:45 AM PST by ConservingFreedom (a "guest worker" is a stateless person with no ties to any community, only to his paymaster)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ConservingFreedom

Kill it


3 posted on 11/05/2015 10:58:28 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: ConservingFreedom

If you can’t export the process, import the cheap labor.


4 posted on 11/05/2015 11:00:35 AM PST by Yo-Yo (Is the /sarc tag really necessary?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ConservingFreedom

Anyone have the numbers as to how many of those foreign workers wind up collecting welfare and food stamps because they fall into the welfare system? Sounds like a backdoor scheme for the taxpaying citizens to subsidize these private corporations AND, ADDED BENEFIT FOR obozo, ET AL, do a CLOWARD-PIVEN number on the already busted treasury.


5 posted on 11/05/2015 11:02:01 AM PST by Dick Bachert
[ Post Reply | Private Reply | To 1 | View Replies]

To: ConservingFreedom

Hatch has always been a RINO and an idiot....he took it upon himself to declare that Utah is supporting Bush, we didn’t get a say as to who we wanted...heck no, he thinks he runs this State...

Time for the likes of RINO Hatch to be put out to pasture!!!


6 posted on 11/05/2015 11:02:08 AM PST by HarleyLady27 (I have such happy days, and hope you do too!!!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: HarleyLady27

RINOs are politicians whose sale price has been met.


7 posted on 11/05/2015 11:14:42 AM PST by henkster
[ Post Reply | Private Reply | To 6 | View Replies]

To: Dick Bachert

You NAILED it.

Big Biz wins

Obama eventually wins

Americans bend over.


8 posted on 11/05/2015 11:15:13 AM PST by stephenjohnbanker (My Batting Average( 1,000) since Nov 2014 (GOPe is that easy to read))
[ Post Reply | Private Reply | To 5 | View Replies]

To: Dick Bachert


9 posted on 11/05/2015 11:17:42 AM PST by kabar
[ Post Reply | Private Reply | To 5 | View Replies]

To: ConservingFreedom

Excellent article, thanks for the ping.


10 posted on 11/05/2015 11:17:59 AM PST by Menehune56 ("Let them hate so long as they fear" (Oderint Dum Metuant), Lucius Accius (170 BC - 86 BC))
[ Post Reply | Private Reply | To 2 | View Replies]

To: ConservingFreedom

Thus my tagline:

“ILLEGAL IMMIGRANTS impose SLAVE WAGES on LEGAL Immigrants.”


11 posted on 11/05/2015 11:19:45 AM PST by G Larry (ILLEGAL IMMIGRANTS impose SLAVE WAGES on LEGAL Immigrants.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: stephenjohnbanker

It’ll be worse than being made to bend over.

These predatory cultures we’re importing will be hunting us in our own country one day.


12 posted on 11/05/2015 11:20:02 AM PST by skeeter
[ Post Reply | Private Reply | To 8 | View Replies]

To: ConservingFreedom

Part of the problem is various government policies and regulations. Not all of the problem, but work is needed there too.

Businesses aren’t purely slave drivers. They need to compete on costs or go out of business.


13 posted on 11/05/2015 11:22:25 AM PST by cymbeline
[ Post Reply | Private Reply | To 1 | View Replies]

To: G Larry
ILLEGAL IMMIGRANTS impose SLAVE WAGES on LEGAL Immigrants.

And legal immigrants impose slave wages on Americans - as the article shows.

14 posted on 11/05/2015 11:24:58 AM PST by ConservingFreedom (a "guest worker" is a stateless person with no ties to any community, only to his paymaster)
[ Post Reply | Private Reply | To 11 | View Replies]

To: ConservingFreedom

Wish someone with a whole lot of influence would start a BOYCOTT movement....pick just one high profile company...and sink the SOB...hit them in the pocket PERIOD!


15 posted on 11/05/2015 11:25:06 AM PST by Doogle (( USAF.68-73..8th TFW Ubon Thailand..never store a threat you should have eliminated))
[ Post Reply | Private Reply | To 1 | View Replies]

To: kabar

Thank you for those charts. They went into my IMMIGRATION IMAGES KEEPER FILE. Might I urge others to copy them as well because we’re going to need them — A LOT — in the coming days. Just pray that those with whom we share them READ and UNDERSTAND them.


16 posted on 11/05/2015 11:35:42 AM PST by Dick Bachert
[ Post Reply | Private Reply | To 9 | View Replies]

To: stephenjohnbanker

I was afraid of that. We need to send some folks to prison!


17 posted on 11/05/2015 11:36:50 AM PST by Dick Bachert
[ Post Reply | Private Reply | To 8 | View Replies]

To: ConservingFreedom

It is necessary to focus on the part of the problem that is fixable, or you will achieve nothing.


18 posted on 11/05/2015 11:44:06 AM PST by G Larry (ILLEGAL IMMIGRANTS impose SLAVE WAGES on LEGAL Immigrants.)
[ Post Reply | Private Reply | To 14 | View Replies]

To: ConservingFreedom

bfl


19 posted on 11/05/2015 11:54:51 AM PST by FourPeas ("Maladjusted and wigging out is no way to go through life, son." -hg)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Dick Bachert
Here is the paper where the images came from: Welfare Use by Legal and Illegal Immigrant Households--An Analysis of Medicaid, cash, food, and housing programs

We are importing poverty and excess labor. The costs to the taxpayers are enormous. And the benefit to the economy a net negative. The corporations are privatizing the profits and socializing the costs. Our education system, health care infrastructure, and prison facilities are being overwhelmed.

20 posted on 11/05/2015 11:55:38 AM PST by kabar
[ Post Reply | Private Reply | To 16 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-30 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson