U.S. to Sharply Cut Number of High-Tech Work Visas

Reuters ^ | September 22, 2003 | Alan Elsner

[AntiGuv]

WASHINGTON (Reuters) - The United States is about to cut the number of employment visas it offers to highly qualified foreign workers from 195,000 to 65,000, immigration experts said on Monday.

Unless Congress acts by the end of this month -- and there is little sign it will do so -- the change will automatically take effect on Oct. 1. Employers, especially technology companies, argue the move will hurt them and the economy.

The change will affect the number of H1-B visas that can be issued each fiscal year. The visas are mostly used to bring high-tech experts from Asia, especially from the Indian sub-continent, to work in the United States for up to three years.

"The fact that Congress doesn't seem anxious to act reflects the political climate, with a lack of jobs for Americans," said New York immigration lawyer Cyrus Mehta.

"The pressure to change the limit will build up again when the economy picks up."

The Senate Judiciary Committee held a hearing on the issue last week. Republican chairman Orrin Hatch of Utah noted that many U.S. high-tech workers are unemployed and the committee needed to find ways of helping them without hurting the country's ability to compete globally.

Vermont Democratic Sen. Patrick Leahy said: "Given the weakness of our current economy, and the rising unemployment we have experienced under President Bush's stewardship, many who supported the increase in 2000 now believe that 65,000 visas are sufficient."

But Patrick Duffy, Human Resources Attorney for Intel Corporation, said finding the best-educated engineering talent from around the world was critical to his company's future.

"We expect that we will continue to sponsor H-1B employees in the future for the simple reason that we cannot find enough U.S. workers with the advanced education, skills, and expertise we need," he said.

Elizabeth Dickson, director of immigration services for the Ingersoll-Rand Company, speaking on behalf of the U.S. Chamber of Commerce, said: "In the near-term, we simply must have access to foreign nationals. Many of them have been educated in the United States. By sending them home, we are at best sending them to our own foreign plant sites, and at worst to our competitors."

Immigration attorneys expect the new rules to set off a scramble by companies to fill their slots early before the ceiling is reached. How quickly that happens depends on the state of the economy, they said.

[1rudeboy]

$60K salaries should be mandated by the government. Didn't you get the memo? Taxes and tariffs are good.

[CasearianDaoist]

Not a tax on email...tax the company that is outsourcing and put a tariff on the vendor.

[JohnGalt]

Rather agnostic on the subject, but I am amazed that such a wealthy element of the middle class can accomplish such a labor market protection but those at the bottom of the labor market can't catch a break on closed borders.


I think the other poster nailed it: American educated employees pay more in taxes, but I think the end result is simply more LB-1 visas and production moved over seas. Labor price protection is a losing battle with modern technology, and deregulation is a better long term strategy, but I hope if nothing else, 60K programmers will stop snickering at Pat Buchanan economic nationalism arguments.

[swarthyguy]

What a red herring! The barn door is flapping in the wind.

Meanwhile, L1 Visa holders, unknown to most, make hay.

[Tank-FL]

It is about time.............................................................................................

[JohnGalt]

Economic localism, and buying from people we can claim to intimately like and trust, is one of the few ways left to exercise our economic liberty.

Hopefully his company pays commissions so he can be rewarded properly and fairly for leading a life of integrity.

Thanks for the post.

[montag813]

"The pressure to change the limit will build up again when the economy picks up."

Congress should pass a law saying that H1-B's must be paid identically with American citizens of equal skill grades. That would really throw water on companies now clamoring for more visas. All they want to do is undermine American workers' wages. IF they want to do that, then outsource. Otherwise we should tax their ass.

[riri]

Well, I am sure planning departments will be busy in the coming months putting together numbers for moving departments overseas.

[upchuck]

Vermont Democratic Sen. Patrick Leahy said: "Given the weakness of our current economy, and the rising unemployment we have experienced under President Bush's stewardship, many who supported the increase in 2000 now believe that 65,000 visas are sufficient."

Translation: "I am a RAT and I will never, ever pass up an opportunity to bash President Bush."

We all know there is little President Bush can do directly to influence the unemployment rate. But, hey, let's not get bogged down in the details. He's the Pres and it's all his fault!! LOL

[trini]

If people want to come here for work, they should come here to become US citizens

It's not that easy.

[.cnI redruM]

The question I raised, is how would you be able to detect the transfer of the actual work product offshore?

[kesg]

Someone explain to me why losing the freedom to hire a highly skilled immigrant who wants to come here legally and work for me on mutually acceptable terms is somehow in my rational self-interest. It isn't. To the contrary, it is yet one more example of government (even a government presently controlled by Republicans) moving one methodical step at a time towards more socialism and less capitalism and freedom.

[Lunatic Fringe]

All this will do is even further accelerate moving more jobs offshore.

I disagree. There are some tech jobs you just cannot send overseas. Desktop support, LAN Administration, etc.

[.cnI redruM]

No, I understand that fairly well. I lived in LA for two years and doubt I saw a single lawn being mowed in BEverly Hills that was being mowed by a US citizen. However, and particularly in the case of H1B Visa jobs, these are people we should try very hard to keep once they come over.

[trini]

Start hiring Americans you (expletive removed)'s, instead of trying to tell Americans they don't have the qualifications so you can hire some foreign POS at 1/3 the pay scale.

I could be wrong, but as far as I know the company must pay the recipient of the visa on the same scale as American citizens or residents would receive in the same position.

[HamiltonJay]

The rise in 2000 was hogwash and 65k was always TOO HIGH.. H1B program should not be, and should never have been more than 10-15k at the very most.

I am glad that congress is acting 3 years too late to undo partially a nearly decade long wrong.

[Lunatic Fringe]

Someone explain to me why losing the freedom to hire a highly skilled immigrant who wants to come here legally and work for me on mutually acceptable terms is somehow in my rational self-interest. It isn't.

During economic growth, I would agree with you. But we need to protect American citizens and the economy during troubled times. Not to worry, I'm sure you will once again be able to exploit intelligent people who have had the misfortune of living in a poor nation- once the economy fully rebounds.

[Anitius Severinus Boethius]

So let me get this straight.

A company that would employ such foreign workers in the U.S. will now just move to India or wherever. Since they can't get enough skilled U.S. workers (so they say), they will move their operations to a foreign country where wages are much lower and the workers will pay no U.S. taxes.

Yep, a win for the American worker and the U.S. tax base!

[CasearianDaoist]

Well...they have to transfer monies and the vendor will need some sort of business entity in the US. If the law is inforced, no board will endorse breaking it, they would be personally liable.