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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

Posted on 10/01/2003 9:39:39 AM PDT by 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.


TOPICS: Breaking News; Business/Economy; Crime/Corruption; Foreign Affairs; Government; News/Current Events; Politics/Elections
KEYWORDS: gat; h1b; h1bvisas; immigrantlist; l1visas; nafta; onetermpresident
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To: Bikers4Bush
I know lots of guys who lost their jobs to the imports not because they were more efficient but because they were cheaper.

That's what economic efficiency is. Go study capitalism and competition. It's not a bad thing.

21 posted on 10/01/2003 10:01:39 AM PDT by Texas_Dawg (Paleos and Naderites: anti-war, anti-capitalism, anti-Bush. And the difference in these 2 is what??)
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To: Texas_Dawg
You probably employ illegals too.
22 posted on 10/01/2003 10:01:51 AM PDT by Bikers4Bush
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To: 11th_VA
Round em up - ship them out, Rawhide!!!
Next come the illegals, I hope.
23 posted on 10/01/2003 10:02:03 AM PDT by familyofman
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To: Texas_Dawg
Good. Cheaper stuff.

Great, when things go deflationary, I'm sure banks will reduce the amounts folks carry on their mortgages to reflect that.

Sorry, but once again, the H1-B program is now predicated on a falsehood, and so therefore are your positions on it...

24 posted on 10/01/2003 10:02:21 AM PDT by dirtboy (CongressmanBillyBob/John Armor for Congress - you can't separate them, so send 'em both to D.C.)
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To: BushisTheMan
Not more efficient.

Clearly the people purchasing the labor deem it to be more economically efficient.

25 posted on 10/01/2003 10:02:34 AM PDT by Texas_Dawg (Paleos and Naderites: anti-war, anti-capitalism, anti-Bush. And the difference in these 2 is what??)
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To: 11th_VA
Sanoity would be lowering teh cap to less than 5,000 but this is a start hopefully we can get these visas completely abolished.
26 posted on 10/01/2003 10:02:42 AM PDT by harpseal (stay well - Stay safe - Stay armed - Yorktown)
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To: Texas_Dawg
How embarrassing it would be to lose your job to some 3rd worlder because he's deemed more efficient than you, dollar for dollar.

No, dollar for dollar they are cheaper and easily manipulated because the company holds the key to them getting over here in the first place. If you think about it, dollar for dollar, the Mexican army is cheaper than ours, even with the bribes. Why don't we just contract out to them?

27 posted on 10/01/2003 10:02:55 AM PDT by KC_Conspirator (This space for rent)
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To: 11th_VA
Sanity prevails ...

It's a start, but still not sanity. No jobs should be given to non-citizens if there are qualified citizens who can do that job, period. That would include revoking visas and hiring US citizens who are unemployed or underemployed.

28 posted on 10/01/2003 10:03:28 AM PDT by grania ("Won't get fooled again")
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To: Texas_Dawg; clamper1797; sarcasm; BrooklynGOP; A. Pole; Zorrito; GiovannaNicoletta; Caipirabob; ...
Ping on or off.
29 posted on 10/01/2003 10:03:30 AM PDT by harpseal (stay well - Stay safe - Stay armed - Yorktown)
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To: txdoda
A sad day for GW Bush as he looks to add technology to exporting of manufacturing and other services jobs out of the US permanently. He suceeded in doing nothing while watching 3.3M jobs disappear.
30 posted on 10/01/2003 10:03:42 AM PDT by Swanks
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To: Texas_Dawg
I know about capitalism and competition, I also know about economics.

When you artificially flood a market with additional product it lowers the price, it's called dumping and it's about time that we stop being the third worlds dumping ground.

31 posted on 10/01/2003 10:03:49 AM PDT by Bikers4Bush
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To: 11th_VA
This probably would have been renewed if it hadn't been an election year.
32 posted on 10/01/2003 10:04:15 AM PDT by dfrussell
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To: dirtboy
Sorry, but once again, the H1-B program is now predicated on a falsehood, and so therefore are your positions on it...

I don't really care what it's "predicated on". My point was simple: these people only make what they do because other Americans are banned from purchasing the labor they prefer. Pretty lame imho.

33 posted on 10/01/2003 10:04:28 AM PDT by Texas_Dawg (Paleos and Naderites: anti-war, anti-capitalism, anti-Bush. And the difference in these 2 is what??)
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To: Bikers4Bush
When you artificially flood a market with additional product it lowers the price, it's called dumping and it's about time that we stop being the third worlds dumping ground.

"Dumping". Uh huh. You might now about capitalism and competition but you clearly don't believe in either.

34 posted on 10/01/2003 10:05:22 AM PDT by Texas_Dawg (Paleos and Naderites: anti-war, anti-capitalism, anti-Bush. And the difference in these 2 is what??)
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To: Texas_Dawg
Might I ask, what do you do for a living?
35 posted on 10/01/2003 10:06:13 AM PDT by jmc813 (How ironic is it that Arnold turned out to be the spoiler?)
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To: harpseal
"Sanoity would be lowering teh cap to less than 5,000 but this is a start hopefully we can get these visas completely abolished.

The politicians are starting to realize they are facing a lynching squad called the "Pissed off American Voter" in 2004.

36 posted on 10/01/2003 10:06:49 AM PDT by JustAnAmerican
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To: jmc813
Might I ask, what do you do for a living?

I'm a stockbroker.

37 posted on 10/01/2003 10:06:56 AM PDT by Texas_Dawg (Paleos and Naderites: anti-war, anti-capitalism, anti-Bush. And the difference in these 2 is what??)
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To: Texas_Dawg
Man... how lame these people must feel. How embarrassing it would be to lose your job to some 3rd worlder because he's deemed more efficient than you, dollar for dollar. No wonder they need the government to try to ban people from competing with them.

If people want to compete in teh American Market let them immigrate to the USA without demanding special rules. I thought you were against the government picking winners and losers but no you want the government to subsidize companies with cheap labor from abroad who do not have the freedom to leave their jobs without the employer's consent or back to their native land they go. In short you are arguing for a form of slavery.

What is really lame is the companies trying to wanting a special rule by the government so they can bring in a supply of indentured servants to avoid paying a free market wage.

38 posted on 10/01/2003 10:07:21 AM PDT by harpseal (stay well - Stay safe - Stay armed - Yorktown)
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To: harpseal; Cool Guy
WHAAAA HOOO!!!!

The good guys won one single solitary battle today.

One thing tho: There is ONE H1-B I like. Cool_guy.

39 posted on 10/01/2003 10:07:55 AM PDT by Lazamataz (I am the extended middle finger in the fist of life.)
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To: Texas_Dawg
I don't really care what it's "predicated on".

I figured you wouldn't.

My point was simple: these people only make what they do because other Americans are banned from purchasing the labor they prefer.

Trade barriers are as old as the hills. How many other countries allow the amount of foreign skilled labor that we do, other than countries with both genuine shortages and lots of cash, such as Saudi Arabia?

Pretty lame imho.

I consider the source of that comment and realize I'm on the right track. The political stability of this country is based upon a large, stable middle class. You could care less, which is telling about where your allegencies lie.

40 posted on 10/01/2003 10:07:55 AM PDT by dirtboy (CongressmanBillyBob/John Armor for Congress - you can't separate them, so send 'em both to D.C.)
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