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This Businessweek article about the retaliation against US companies hiring (cheaper) H-1 employees to displace more expensive workers infuriates me.

The fraud identified in the Feb. 12 announcement echoes patterns outlined in the October USCIS report. Specifically, Vision Systems Group is accused of filing petition requests with the government showing the H-1B visa workers would be employed in Iowa to take advantage of lower requirements for wage rates. But the workers were allegedly placed in locations on the East and West coasts. Whitaker says that by doing so, the company “dislocated and displaced United States workers that could have done those jobs.”

In other cases uncovered in the investigation, foreign workers have allegedly been placed in jobs and locations not previously certified by the Labor Dept., displacing qualified American workers and violating prevailing wage laws. The companies and foreign workers allegedly submitted false statements and documents to state and federal agencies supporting their visa petitions.

 

Yes, I’m no fan of breaking rules. I’m no fan of screwing people either just because they’re not locals either. But as an entrepreneur, I face similar type of issue, the issue of cost.

H-1 is a sensitive part of the immigration issue because they’re highly trained/educated workers who can fill the labor needs of American companies without the companies having to rely on outsourcing. Often, unions and “patriots” are against increasing the H-1 pool. I wouldn’t be surprised that if there was a referendum on whether or not US should continue the H-1 program, the union idiots and they’re army of drones would vote note. Why? Because we have to “protect the American jobs” and not give them away to foreigners… let alone bring them over here while we got a financial crisis.

But let’s look at the facts..

1. Shortage - There’s a friggin’ SHORTAGE of qualified, highly skilled workers in US, especially in science and technology. I’m not the only one who thinks this… ask people who need technical people, like Bill Gates:

The U.S. cannot maintain its economic leadership unless our work force consists of people who have the knowledge and skills needed to drive innovation,” Gates told the Senate committee that oversees labor and education issues.

Gates, whose charitable foundation has given away more than $3 billion since 1999 for educational programs and scholarships, noted that about 30 percent of U.S. ninth-graders fail to graduate on time. “As a nation, we should start with this goal: Every child in the United States graduating from high school,” he said.

“We simply cannot sustain an economy based on innovation unless our citizens are educated in math, science and engineering,” Gates said.

 

Gates said the nation’s economy depends on keeping the country’s borders open to highly skilled workers, especially those with a science or engineering background. Federal law provides 65,000 H1-B visas for scientists, engineers, computer programmers and other professionals every budget year. High-tech and other employers say that’s not enough.

“Even though it may not be realistic, I don’t think there should be any limit,” Gates said, adding that Microsoft hasn’t been able to fill approximately 3,000 technical jobs in the United States because of a shortage of skilled workers.

 

If you’re too lazy to read, hear the words come out of his mouth (slightly toned down but has the same impact)

Microsoft is not the only one who needs talented labor pool. Just think of ANY company that uses a computer to do anything. Just go to Silicon Valley or Wall Street and throw a dart at any building. The execs there will tell you that filling positions that require technical + critical thinking are often UNFILLED even in times of recession because there aren’t that many. The good ones are sucked up by big tech companies like Microsoft and Google.

2. Tax - Instead of pouring billions of dollars OUT of US to companies in India and China, why not bring them here so we can TAX them? Very simple. Outsourcing - billions out, zero in. H-1 visas - billions stay, and tax come in.

This is a HUGE benefit because we, as American society, have incurred ZERO costs in training and educating these highly skilled workers. We get ALL the benefits minus all the costs. What happens when a H-1 worker loses his job? Nada. No unemployment insurance, no medicare, nada. IN fact, we kick them out.

3. Not as much a cost issue as people think - American people tend to think that H-1’s are “cheaper” replacements. Really? Hmm.. Information Week doesn’t seem to think so. IN fact, it costs $10,000 just to bring them:

Another new amendment being proposed by Sen. Bernie Sanders (I-Vt.), slated for Senate debate today, seeks to impose a new $8,500 surcharge on employers for each H-1B petition filed. The fee would be collected from employers for each new H-1B worker, H-1B visa renewal, or sponsorship of an H-1B non-immigrant applying for a green card, or permanent residency.

Currently, the U.S. charges a fee of $1,500 for each H-1B petition that gets earmarked to fund training and education programs for U.S. workers.

So if it costs a company $10,000 just to legally have a foreign worker come to US, why would the company pay the SAME salary that it was paying to a comparable American worker? OF course, not.  You would pay LESS. That’s the justification for lower H-1 wages.

That article was written in 2007. And just like every other government fees, the price is UP.

4. Opportunity - There are TON of companies started by foreigners or kids of foreign workers. Who? Hmm, let’s see…

• Google - Sergey Brin (Russia)
• PayPal - Max Levchin (Ukraine)
• Yahoo - Jerry Yang (China)
• eBay - Pierre Omidyar (Iran, born in France)
• BEA - Alfred Chuang (China)
• Diamond Multimedia - Lee Chong-Moon (Korea)

Now, if they had been barred from coming to US, how would these companies have formed?

*sigh*

The days of national protectionism and unionization is over.  It’s time for free market capitalism to kick in once again. If H-1 visa people is what the market demands, then it shall be.

Sourced from WikiLeaks: