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.

[ampat]

Imagine that, our elected reps actually represented us over foreign money.

[Texas_Dawg]

And the is what GW things is a good program. 3.3M jobs loss is not enough for this administration.

Isn't it funny how you so-called conservatives end up in total agreement with the most rabid Bush-haters? Yeah... you're REALLY conservative there.

[adam_az]

Does India allow tens of thousands of US citizens to move to India to work in IT, or in any other field?

No?

Than it's not "free" trade.

[RiflemanSharpe]

That's an insult to hones carpet bagging yankees everywhere.

HEHEHEHE!!

[RiflemanSharpe]

Than it's not "free" trade.

Thi nation has many trade agreements, I have yet to see one that was fair to the Us worker.

[riri]

It's funny how your blind devotion to one man mimics that of the Clintonista's in every way.

It's a freakin' personality cult with you people.

[Texas_Dawg]

But the system only works when everyone is on a level playing field.

OK. So if you believe the system works (as you say you do), then you'd support freely open immigration (and therefore free competition) with India?

In this instance, I feel it's the government's job to protect its citizens against foreign interests through tarrifs and similar controls. Bring on the flames! ;-)

So you are for raising tariffs/taxes (same difference) on business? And THAT is capitalist? No... sorry... you may be a patriot (unlike the fringe protectionists here, I would never claim you're not), but you most definitely are not a capitalist.

[Lazamataz]

You're the totalitarian here.

OOOO! Nice twist on an old theme. Should I make subcatagories for the MCDP's? Maybe instead of MCDP #2, we can have MCDP #2-A, MCDP #2-B, and so on.

Remember, the MCDP list is a work-in-progress.

And I promise not to farm it out to Bangalore.

[Lion in Winter]

You are such a jerk callling ANY American worker lame. MANY, MANY American workers are VETERANS who fought this country's wars.

Something INDIANS WHO WORK HERE CANNOT CLAIM TO HAVE DONE FOR THE USA. Their silly Indian government WILL NOT EVEN help us out with the Iraq situation. They STINK with that attitude.

[Texas_Dawg]

Thi nation has many trade agreements, I have yet to see one that was fair to the Us worker.

Workers of the US, unite?

[Texas_Dawg]

It's a freakin' personality cult with you people.

Just like you and whoever you support for President.

[Paul Ross]

This is good news. The Congress-critters, realizing that anything else would have been horrendously negative news in their districts. They will probably now try and lay low when the H-1B whores (oops) I meant lobbyists come with their campaign fund stashes. They will always say they kept it at 65,000 when it could have easily been zeroed out under the financial circumstances the country faces.

[Lazamataz]

That's an insult to hones carpet bagging yankees everywhere

Indeed. As a proud carpet-bagger from New York, any comparison to China_Dawg is a mortal insult.

[Bikers4Bush]

How does foreign countries subsidizing their industries in order to drive ours into bankruptcy so we then have to depend on them for certain goods and services add up to free trade?

Please educate us all, we'll be waiting for you brilliant response with bated breath.

[Texas_Dawg]

Does India allow tens of thousands of US citizens to move to India to work in IT, or in any other field?

OK, so if we got them to do that as part of the open immigration deal would you support it then?

[RiflemanSharpe]

That's an insult to hones carpet bagging yankees everywhere
Indeed. As a proud carpet-bagger from New York, any comparison to China_Dawg is a mortal insult.


My humblest apologiezes, sir.

[Lazamataz]

OK, so if we got them to do that as part of the open immigration deal would you support it then?

Our current immigration levels are just fine, China_Dawg.

Besides, I understand Mainland China is getting much more livable these days. Why would you want to come here?

[adam_az]

I think you need to go study what is meant by economic efficiency. (And if even then you wanted to argue these company owners are making inefficient purchases with their money, how totalitarian can you get that you want to ban them from doing so?)

You are making the Fallacy of Composition, you phony economist.

[Lazamataz]

:o)

[Texas_Dawg]

How does foreign countries subsidizing their industries in order to drive ours into bankruptcy so we then have to depend on them for certain goods and services add up to free trade?

Please educate us all, we'll be waiting for you brilliant response with bated breath.

Like I say and you don't deny, you're not a believer in capitalism, so naturally I wouldn't expect you to understand why capitalism is superior to socialism (subsidized industries, etc.).