LOBBYING FAILS, H-1B VISA CAP FALLS to 65,000

TIMES NEWS NETWORK[ WEDNESDAY, OCTOBER 01, 2003 12:53:47 PM ]via India TImes ^ | OCTOBER 01, 2003 12:53:47 PM | K YATISH RAJAWAT/ECONOMICTIMES.COM

[11th_VA]

MUMBAI: The annual cap for H-1B visas will now be 65,000. This is a sharp drop from the earlier limit of 195,000 visas.

The US plans to enforce this rule from October 1, 2003.

The Indian IT industry has been lobbying hard to freeze H-1B visa limits at current levels. However, these efforts which had the support of some US corporations to retain H-1B visa limits have failed. (Will Europe be the next big hunting ground for Indian IT pros?)

Indian IT professionals are among the largest users of H-1B visas, as US Big Tech shops big from this technical pool. The H1-B visa cap was raised to 195,000 in 02. This particular legislation had a 'sunset' clause. According to this clause, the limit would have (automatically) lapsed on October 1, 2003. Ergo, the H1-B visa annual cap will now fall back to 65,000 visas.

The H1-B visa issue has generated a lot of controversy in the US. Several trade unions representing (local) technology workers have been lobbying against these work permits. The slowdown in the high-tech industry combined with an overall drop in US economic growth has resulted in a number of job losses.

H1-B visa users have been at the receiving end of criticism from unemployed American professionals for taking away their jobs. These visa users are also seen as representative of the trend towards offshore outsourcing trade jargon for moving to cheaper locations like India which is also under flak for spiriting away US jobs.

The visa was created in the early 1950s to give skilled foreign workers a permit to reside in the United States. The H1-B category was added in 1990 to give foreign workers an opportunity to pick up a job with the intention of remaining permanently in the United States.

In 1999, under pressure from high-tech companies and other manufacturers, Congress expanded the limit from 65,000 to 115,000. It raised the cap again to 215,000 in 00 and to 195,000 in 01 and 02.

Top Indian companies have been curtailing the use of H1-B visas for sending employees to the US. Ergo, it unlikely that the offshore outsourcing trend will be affected. Most companies have shifted to the use of L-1 visas (used for intra-company transfers). However, companies whose basic revenue model is supplying manpower to US corporations, ( body-shoppers, are likely to be hit by this move.

[Reaganwuzthebest]

Please, please explain to me how this is not Marxist. Unbelievable.

You took my quote out of context dawg, not suprising given your tendency to twist words to justify an agenda that is killing the middle class.

Fyi in case you didn't know, politicians are in office to serve and represent everyone, not just corporate CEOs at Wall St.

[RiflemanSharpe]

You took my quote out of context dawg, not suprising given your tendency to twist words to justify an agenda that is killing the middle class.

Fyi in case you didn't know, politicians are in office to serve and represent everyone, not just corporate CEOs at Wall St.


Hear, Hear!!

[taxed2death]

"dollar for dollar".

That's your problem, you simply don't understand that these workers are coming over here and undercutting what Americans should be getting paid. It's no different than scumbag illegals putting legit businesses out of business by using their advantage of NOT having to pay workmans comp, SS, insurance.

WTF do they teach you people down in the big star state?

[luckystarmom]

I from Texas, but I live in California. I've seen first hand what H1-B visas are doing to this country.

There are Americans without jobs because someone from another country is doing that work.

We're not talking about low-level jobs, we're talking about engineers.

If we lose our engineering base, then our country will not be in the front when it comes to inventions. If we lose our engneering base, we will lose our advantage militarily. Our military is the best in the world because we have the best technology.

[null and void]

Nah, translation, someone who thinks their job can't be outsourced. ~ dirtboy

Close.

Translation, someone who doesn't realize their job can be done by anyone with a computer and an uplink, from anywhere on earth, because they think they have "special" knowledge that little brown people can't learn.

His naïveté is astounding, but not surprising, given his deeply seated prejudices...

[Paul Ross]

Our steel industry is dying because it can't compete without government props.

Actually, the evidence is now in, and the U.S. steel market...with the tariffs...is the most competitive (read cheapest) in the world. Cheaper than ALL our competition. China, France, Germany, Italy, Spain, South Korea. We were on the verge of losing ALL of our domestic industry. We have 53 producers. 30 have filed Chapter 11, and many were chucking their tax and pension obligations. The imports were dumping. And hoping to start gouging as soon as their efficient U.S. competition was killed off. (There are only 3 countries where the labor-ton ratio is better...Italy, Spain and South Korea). The tariffs were adjusted with exemptions to only apply to the culprits in the dumping. By providing some temporary relief from import competition, the President’s 201 decision is enabling the U.S. steel industry to make a radical change in its cost curve. Over the course of 2002, a significant segment of the U.S. steel industry was able to lower both its capital and labor costs. This has allowed the U.S. industry to stem its floodtide of losses. In the long run, it may also mean lower prices for steel consumers. The President’s steel program has had a beneficial impact on U.S. users of steel. By encouraging the return of facilities to production, the program likely kept prices from rising as high as they would have otherwise. The exclusion process allowed a substantial quantity of imports to enter the U.S. market without the payment of 201 duties. The prices of most products made from steel rose little if any in 2002. At the same time, prices for many steel products, such as hot-rolled sheet, were rising more rapidly out-side the United States than they were in it, increasing the relative competitiveness of U.S. industries that consume steel. After one year, the results of President Bush’s 201 decision have been solidly positive. The industry has already undergone substantial consolidation, and is begin-ning the process of restructuring and rationalizing production. However, this process has only just started. Industry profits remain low. Moreover, the industry dramatically slowed investment in new technology and equipment in the early 2000s; it must reverse this trend to remain internationally competitive. However, the industry can afford to make these investments only if the President’s program continues to provide protection from wholly unfettered import competition for its full three-year term, and if the program is administered in a manner that prevents surges of imports from countries exempted from the 201 duties.

[Texas_Dawg]

Actually, the evidence is now in, and the U.S. steel market...with the tariffs...is the most competitive (read cheapest) in the world.

Well I'd hope so. With all of us being forced by the federal government to pay for them, at least they can compete now. Wow... that's impressive.

[Swanks]

WTF do they teach you people down in the big star state?

They taught him at Yale and Harvard. Texas_Dawg is GW Bush.

[RobRoy]

I am one of those $100+ an hour contractors (mainframe cobol stuff) and I agree with you. If someone can do my job better and cheaper they deserve it, no matter where they are from.

The sad news is that this WILL be the end of the US as we know it - but countries come and go. When both physical and mental jobs can be shipped overseas, there is nothing left for the millions of americans who earn their money by what could be called a "JOB," other than significantly lower pay. Entrepreneurs will do just fine - those that make it.

[pyx]

I'm just not dumb enough to think I could argue a socialist out of believing the things you believe in your falsely loaded questions. If you believed in capitalism, you wouldn't even ask things so stupid.

Or do you fear revealing truly who and what you are ?
Again, I repeat my questions;
1.) What is your opinion of the lowering of the quality of life and the lowering of living standards for middle-class America in the IT sector as a result of flooding the market with "3rd worlder's", as you call them ?
2.) Do you believe that its prudent to ignore or worse, ridicule the effects of job loss on large sectors of America as has occured in the IT and manufacturing sectors ?
3.) What is your opinion of those who spent huge sums of money and expended large amounts of time and energy when they retrained after job losses within the manufacturing sector for jobs in the IT sector at the advice of economists, educators, the government, the media and business leaders ?

Were you an economics major in college? Just curious.

Why are you curious about what I studied at school ? I will tell you that I took a single major at a smaller college the first time around and a double major at a large university the second time around. Capitalism is the best thing when everyone is playing by the same sets of rules. I worked at jobs ranging from working in an iron ore foundry to tractor trailer driving to working at a stock exchange (amongst other work) to pay for my own education both times.

Again, kindly sincerely address the questions I have asked above.

[null and void]

My political leanings? Bro, go look up the zip code that gave more money to President Bush in 2000.

I note that you skillfully implied that you live in that zip code, without actually saying you do...

[Texas_Dawg]

The sad news is that this WILL be the end of the US as we know it - but countries come and go.

Maybe "as we know it", and countries do come and go. But this won't be the end of us just yet. It will actually make us that much stronger in the next cyclical economic upswing (as opposed to sending businesses overseas completely or out of business altogether).

[Texas_Dawg]

Is it possible is someone can run a IP trace on the Dawg? Eiether he could be traced back to China, or his employer can be notified of a employee that is not doing his job.

Yeah, when the economics of your ideas are just proven wrong, attack the messenger. Sounds like a good brownshirt... but that's nothing new for national socialists like you.

[Texas_Dawg]

I note that you skillfully implied that you live in that zip code, without actually saying you do...

No... I don't live there now (I did during the 2000 election campaign). My friends and family do. I'll be back there at some point I'm sure. I'm enjoying Manhattan for now though.

[GOP_1900AD]

Throughout history, great war has always occurred after each of these globalization cycles. If anyone thinks globalization is unique to the late 20th and early 21st century then think again. The only unique thing about our particular cycle is the rapidity of the travel and communications.... in past cycles they were slower. But at the end of the day it is the same beast....

[JNB]

Actually Texans are more reasonable than the "Dawg". Far more conservatives in Texas are in the mold of Ralph Hall who was against NAFTA then the Dick Armey mold.

[Texas_Dawg]

Why are you curious about what I studied at school ?

Because had you been an economics major you'd be embarrassed to even ask such questions. Don't you think it's funny that of all the angry paleos on this thread who think we're all doomed, etc., that none of them were economics majors AND capitalists?

[null and void]

Is this 65,000 more people a year?

Yes but don't worry. We're only suffering a net job loss of 40,000 jobs/month...

[harpseal]

Ping on or off let me know