Senator wants to use H-1B funds to train Americans

Economic Times, India ^ | THURSDAY, JULY 10, 2003 | K YATISH RAJAWAT

[Willie Green]

For education and discussion only. Not for commercial use.

US senator John Mica, known in India for his bill restricting the use of L1 visas, wants the US government to fund training of US citizens from the money collected from H1-B visas holders.

According to sources, Mr Mica is looking for funds to create a government programme  to help workers who have lost their jobs. He has moved a bill, called the Job Assistance and Creation Act. The bill directs the secretary of labour to make grants to regional consortia, which meet the specified criteria. This will improve the job skills in specific industries. Among the industries covered is the technology services industry.

According to Nasscom officials, the US labour department can train laid-off workers from the funds collected from the H1-B visa holders. The US government collects around $1,000 from a H1-B visa holder.

It has collected more than $350m in the last few years from the H1-B visa holders as taxes. This year the sum collected is around $180m. The funds are to be used for training US citizens but remain unutilised till now. The issue acquires importance as tech unions in US are claiming that H1-B and L1 visa holders have been taking away jobs.

Mr Mica´s bill also directs the secretary of commerce to provide financial assistance by way of grants to establish and support entities, which provide business incubator services to small and medium-sized businesses. These are necessary to support the initial operations of a new business, including planning, technology services and legal matters. The bill also throws up some procedural hassles for outsourcing and layoffs.

The bill seeks amendment of the Worker Adjustment and Retraining Notification Act to require employer notification of federal and state elected officials prior to dislocation of workers. The bill also seeks amendment of the Immigration and Nationality Act to require submission of H1-B labour condition applications at the same time as H1-B nonimmigrant classification petitions.

According to lawyers, this is a small procedural change in the visa issue process but can have an important impact.

Typically, six months are given to file a “labour condition application” (LCA) after the petition is approved. The application basically states that the wages of the visa holders are in line with the industry and no employee has been specifically laid-off and replaced by the visa holder.

According to lawyers, by submitting the LCA at the same time as the petition, the issue of visa can be delayed or denied. Moreover, it can be used to create a procedural roadblock and may affect companies sending employees to US for work.

Legal sources say the US legislation does not even deal with the matter of visa issues. The main objection to such a legislation from Nasscom and the Indian government is that they prevent Indian software services companies from carrying out business in the US. Indian companies have saved the US companies more than $16bn over the years by providing services at competitive rates.

[lelio]

I suppose its a start. I would like to see the US move towards a foreign income tax, using those funds to reduce our own income tax rate.

[Support Free Republic]

Lighten Up, Francis!

Fundraising posts only happen quarterly, and are gone as soon as we meet the goal. Help make it happen.

[Willie Green]

Trained for what?

Trained to become trainers, I suppose.
It's a "service" economy and "training" is a service.

[BooksForTheRight.com]

Congratulations to the senator.
If only other senators would take interest in the huge numbers of laid-off tech workers and the extreme increase in outsourcing to India.

[Cacique]

Probably to speak hindi so they can move to India and get one of those jobs we are so good at exporting.

[superloser]

YES! It is about time someone realized we are a sovereign nation and have the power to govern ourselves without being dictated to by others.

[only1percent]

Wouldn't it be better just to put teeth in the existing requirements that there is no American able to fill any job for which an H1B is granted? If we do that, than we can look on H1Bs completely positively, since no American will be prejudiced and many Americans benefited by bringing unavailable talent to the U.S.

[Reaganwuzthebest]

Here's a better idea Congress... and you don't need a Doctorate's degree or be a lawyer to figure it out: why don't you just do away with the H1-B program?

Oh I forgot, not only are they not going to do that, but they're pushing for a guest worker program from Mexico and the world now. Then Congressman Mica can put in a bill to help those displaced workers as well.

[Rodsomnia]

Just what we need another federal program.

[crazykatz]

Trained to be security guards!!

[harpseal]

Since the H1b law speciifes that there must be no American who can do the job and they must pay the prevailing wage how aboutr we just enforce those parts of the law and put a few perjurers in prison. That also gets rid of the H1B visa holders today.