Thought Garage

Is it really true? That in the grand scheme of things around H1B visas, the immigrants and Americans alike are just being played by American companies in search of cost savings?

As I think back on the Indian-Americans I met that night, I can’t help but contrast the kinds of things they said–and the unemotional way they said them–to many of the angry and even ugly comments we got on our High-Tech Sweatshops story after it was published online. It was disturbing to see workers from different nationalities verbally tearing at one another. The situation is reminiscent of earlier eras in American history, when employers played immigrants of different ethnicities against each other to defeat labor unions and keep wages low. Like them, today’s guest workers and American programmers are pawns in somebody else’s game.

Source: Indians in America: Caught in the Middle of Controversy

Business Week ran a cover page story in the magazine this week on High Tech Sweat shops.

This is a no brainer to most Software Techies; how the H1B program works, how Consulting outfits work and how they place H1B consultants in jobs that often involve at least 3 layers of sub-contracts. It won’t be an exaggeration to say there is no Placement firm in the US that has not dealt with these so called ‘sweat shop’s. Small (often under 50 employee) High Tech Consulting firms that predominantly hire ONLY H1B consultants.

There is a well known  criticism that these firms are unduly replacing American workers instead of complimenting the American work force.

This year it is entirely different. Recession is one for sure. But also a variety of reasons. Some of these outfits are under investigation for a variety of fraud ranging from collecting fees for H1B sponsorship to ‘running the payroll’. Not sure how many of them and not sure the extent of fraud. But number of H1B petitions filed is any sign of their activity, then the activity has been completely subdued this year. The quota of H1B petitions for 2010 is still available and unfilled. Remember last year, the quota was over in a day or two and lottery has been put in place to handle the rush.

Overall, it appears many of these small Consulting outfits are not doing well. Many of these firms opted out of sponsoring H1B petitions this year due to recession. Finance companies that accepted TARP money have been imposed with additional restrictions in hiring H1B based consultants. Investigations on I-9 compliance reportedly at almost all organizations. People who left for their countries had hard time getting their visas stamped and have to stay put longer (NPR has a story a while back). Many H1B petitions and renewals are in trouble as these firms have hard time producing end-client letters navigating through the web of layers. 

This grave situation is affecting good and bad firms alike.  Hopefully, once the dust settles, good firms will survive and Consultants with real experience and skill sets to offer will have much better prospects.

Links: America’s High-Tech Sweatshops – Business Week

We are almost in the middle of September, yet H1B cap for year 2010 is still at 45000. That means, companies can still file for H1B petitions, if needed.

As of August 28, 2009, approximately 45,100 H-1B cap-subject petitions and approximately 20,000 petitions qualifying for the advanced degree cap exemption had been filed. USCIS will continue to accept both cap-subject petitions and advanced degree petitions until a sufficient number of H-1B petitions have been received to reach the statutory limits, taking into account the fact that some of these petitions may be denied, revoked, or withdrawn. – USCIS Website

I mentioned (before the season started) that I would be surprised if the Quota limits are reached at all, while some are discussing the chances for a lottery again. This reflects the job market more or less and restrictions imposed on certain firms in hiring H1Bs.

The H1B and L1 Visa Reform Bill is back again. The bill attempts to close loopholes that would otherwise let firms abuse the program and replace US work force instead of complementing US workforce.

I do not believe this would threaten the India’s outsourcing Industry at large, but many do as per this news report found at Yahoo. My own understanding is that currently the H1B visa program has been abused by some, for sure. And it is better for all parties to have a fair system and prevent any abuses. While it may change hiring practices by some Indian IT vendors that rely on loop holes, it benefits India in the long run. There are so many things that are currently ‘normal’ in this whole H1B, are not fair, to those who truly deserve the opportunity to work in US.

Read the complete Press Release here.  Key Excerpts from the Press release:

• The Durbin-Grassley bill would mend the H-1B visa program, not end it, making reasonable reforms while not reducing the number of H-1B visas that are available.
• Require all employers who want to hire an H-1B guest-worker to first make a good-faith attempt to recruit a qualified American worker. Employers would be prohibited from using H-1B visa holders to displace qualified American workers.
• Prohibit the blatantly discriminatory practice of “H-1B only” ads and prohibit employers from hiring additional H-1B and L-1 guest-workers if more than 50% of their employees are H-1B and L-1 visa holders.
• The Durbin-Grassley bill would institute a number of reforms to the L-1 visa program, including establishing for the first time a process to investigate, audit and penalize L-1 visa abuses.

You can Read the full text of the Bill here:

The H-1B and L-1 Visa Reform Act (S. 887) (PDF File)

Its no longer a hearsay or a rumor that some Professionals on H1B had trouble getting Visa stampings in their home countries.  When I first shared a similar story with friends and colleagues almost a couple of months ago, most of them didn’t believe and suspected that there must be something not appropriate with that professional, so encountered issues with Visa stamping. Listen to this NPR’s Market Place story that reports that lots of H1B professionals that left for India recently had trouble coming back.

 

Homeland Security Secretary Janet Napolitano testified before the Senate Judiciary Committee this week. She said her agency is stepping up checks on the H-1B visa program. Those are the visas that let highly skilled foreign professionals work in the U.S. when no qualified American can be found.

Professionals from India — often tech workers — have generally taken a big chunk of those visas. But a lot of them are now finding it harder to get them renewed. So they’re stuck in their home country.

Source: Market Place

It was reported in that story that Homeland Security has stepped up security checks on the H1B visa program and your Visa renewal may take much longer time than it normally do. I would also assume, the current economic conditions have some say in those decisions as well.  With the growing unemployment in almost all sectors, it would be difficult for most employers to justify continue hiring a H1B. So if you are leaving for your home country that need to have Visa renewed, be prepared to wait for a long time.

Most important things to take care of are your current job with your employer and any payments that must be made. Discuss with your employer the possibility of delays and try to setup your laptop such that you can work from India if the need arises. That will ensure you get at least your regular paychecks and keep your cash flow for payments. If it is not possible, make sure to have alternate arrangements for any regular payments. Leave enough reserve in your bank to handle any contingencies or have your friends take care for some.

Also, take all the information required to make any adjustments to all your Loans, Credit Card payments, Apartment leases etc. so that if the need arises you can contact right from India itself and negotiate better terms. Many times, your friends may not be able to discuss even though they may have all the information.