hoopla over Durbin/Grassley bill to reform H-1B/L-1

hoopla over Durbin/Grassley bill to reform H-1B/L-1


Date: Thursday, April 05, 2007 3:09 AM


<<<<< JOB DESTRUCTION NEWSLETTER No. 1669 -- 4/05/2007 >>>>>

Count me as one of the few who don't share the same enthusiasm for the bill
to reform H-1B/L-1 that was introduced to the senate by Durbin and
Grassley. The "H-1B and L-1 Visa Fraud and Abuse Prevention Act of 2007" is
generating loads of excitement by well intentioned people who are buying
into overblown hoopla. Both senators have pitiful voting records on H-1B
but that doesn't seem to generate a bit of skepticism by those that are
jumping on the bandwagon to support the bill. Durbin and Grassley voted for
the H-1B program in 1990 and they have voted in favor of every single
increase in the yearly cap, and yet nobody seems to question their motives.
Isn't that kind of weird?

The page at Senator Grassley's website probably explains why so many good
journalists and organizations that have good intentions have bought into
this bill. It sounds good and that's good enough for those that are too
desperate or time starved to contemplate complex issues.

Grassley's website is more like a self-serving advertisement for the bill
-- it's what it doesn't say is what's important.

http://grassley.senate.gov/index.cfm?FuseAction=PressReleases.Detail&PressRelease_id=5339

On the web page Grassley says that, "This is about protecting the American
worker". Actually it's about placating angry Americans and playing
politics.

Unfortunately the bill is still not on Thomas.gov. The contents can be seen
on the Congressional Record yet -- follow the steps in the previous
newsletter to read it.

Let's compare a few things Thibodeau wrote in his recent article versus
what the Grassley page says. Thibodeau is an excellent journalist on H-1B
issues but he, like many others, are buying into this bill without giving
it much critical thought.

My comments are listed as "reality checks".




Thibodeau:

Two U.S. senators have proposed legislation that would toughen the
H-1B visa program -- especially its enforcement provisions --
while also attempting to give U.S. workers first crack at
technology job openings.

Grassley:

The Durbin-Grassley bill would require all employers seeking to
hire an H-1B visa holder to pledge that they have made a
good-faith effort to hire American workers first and that the H-1B
visa holder will not displace an American worker.


Reality Check: If Durbin and Grassley were serious about giving Americans
first crack at jobs then employers would be required to look for Americans
first instead of giving a pledge to be patriotic plutocrats. Good faith in
the corporate world means nothing, but just for the record employers have
been giving lip service to hiring Americans since Durbin and Grassley voted
in favor of the H-1B program in 1990. It's an easy out -- employers just
say there aren't qualified Americans.

Check this recent statement out:

http://www.ocregister.com/ocregister/news/nationworld/washingtonbureau/article_1640569.php
"H-1Bs have increasingly become a controversial visa. Employers complain
that the numbers are so restrictive that companies will have to move
projects offshore so take advantage of the talent in such places as India
and China. They insist if the American workers were available they'd hire
them."




Thibodeau:
Sens. Dick Durbin (D-Ill.) and Chuck Grassley (R-Iowa), who
announced the filing on Monday. As part of the announcement, the
two lawmakers said the measure would authorize the U.S.
Department of Labor to hire 200 additional employees "to
administer, oversee, investigate, and enforce the H-1B program."


Grassley:
The Durbin-Grassley bill would give DOL more authority to conduct
employer investigations and streamline the investigative process
by, among other things, permitting DOL to initiate its own
investigations and eliminating the requirement that the DOL
Secretary personally authorize an investigation.


Reality check: It's wonderful to hear that 200 more DOL workers will be
hired to investigate and enforce H-1B regulations, and it is a positive
change that the DOL secretary doesn't have to authorize every
investigation. Unfortunately there isn't a requirement that investigations
be done if beleaguered Americans file complaints to the DOL. Those 200
workers aren't required to do anything unless they feel like it, and just
how often do bureaucrats feel like doing work?

If Durbin and Grassley were serious about helping Americans they would set
up a system that allows American workers to utilize those 200 workers to
investigate complaints because most of the time complaints by displaced
American workers are ignored. If I was a betting man I would guess that any
extra manpower will be used to help H-1B visa holders, not U.S. citizens.




Thibodeau:
In addition, the measure would require companies to advertise job
openings for 30 days on the DOL's Web site before submitting
applications to hire H-1B workers. And the DOL would be required
to post on its site summaries of all the H-1B applications
it receives.

Reality check: So just what is the big deal about companies advertising on
the DOL website? There is nothing at all that requires them to interview or
hire qualified Americans -- they just have to post a job ad. What is the
difference between posting at the DOL or DICE? The DOL already provides LCA
data so they already meet that requirement to post summaries. Duh!

Actually this requirement doesn't change a thing. Employers already use the
DOL to post job ads for green cards. The problem is that the DOL doesn't
have the authority to make employers interview Americans or to hire them,
so the job ads are just a charade.

See this:

http://www.jobdestruction.info/ShameH1B/Library/Archives/AZDES.htm




Thibodeau:
The bill also includes a variety of other provisions, including
one that would prohibit employers from hiring H-1B workers and
then outsourcing them to other businesses and another that would
require companies to pay prevailing wages to both H-1B and
L-1 visa holders.

Grassley:
The Durbin-Grassley bill would prohibit employers from hiring H-1B
employees who are then outsourced to other companies. This is a
method that some companies use to evade restrictions
on hiring H-1Bs.

The Durbin-Grassley bill would prohibit companies from hiring H-1B
employees if they employ more than 50 people and more than 50% of
their employees are H-1B visa holders.

The text of the bill:
"The employer shall not place, outsource, lease, or otherwise
contract for the placement of an alien admitted or provided
status as an H-1B nonimmigrant with another employer;'' and"


Reality check: The bill does seem on the surface to make it tough for
outsourcers, especially for companies like Tata that employ almost 100%
H-1B or L-1 visas from India. I'm not sure how foreign based bodyshops are
going to skirt this one because if the truth is told, the foreign owned
bodyshops are 100% racist because they only hire foreign nationals from
their own country and usually they are of one culture, race, or caste. As I
have proved many times, Tata hires almost exclusively young males of the
Brahmin caste. Infosys and similar ilk are not better. Other Indian
bodyshops have similar policies, and bodyshops that broker for nurses and
teachers from the Philippines are no better. Whatever country they are
based in they are usually racist, sexist, and ageist.

The requirement that bodyshops can't outsource to other employers is an
easy one to get around. When bodyshops contract out work they will have to
call them Tata contractors instead of employees of the company who is
outsourcing. What is the big deal about doing that?

The prevailing salary requirements in the bill are tougher than what we
have now but that doesn't change the fact that attempts at wage price
controls just don't work in economies that are dictated by supply and
demand. Imposing prevailing wages will definitely rile the cheap labor
lobby as they are very intolerant of anything that might force them to pay
more.

CONCLUSION: I fully expect the cheap-labor-lobby to oppose this bill.
Unlike the lap-dogs that claim to represent American workers, the corporate
robber barons like Bill Gates don't compromise, and they don't wag their
tail every time somebody throws them a bone. While so many techies are
desperate to compromise and capitulate, the other side is unanimous in
their desire to have unrestricted access to cheap foreign labor.

Durbin and Grassley are throwing crumbs to the masses.

+++++++++++++++++++++++++++++++++++++++++++++++++++

http://www.infoworld.com/article/07/04/03/HNsenateh1bbill_1.html

H-1B bill give U.S. workers first shot at tech jobs

Legislation proposed in the Senate would also boost the Labor Department's
enforcement powers on the visa program


By Patrick Thibodeau, IDG News Service

April 03, 2007


Two U.S. senators have proposed legislation that would toughen the H-1B
visa program -- especially its enforcement provisions -- while also
attempting to give U.S. workers first crack at technology job openings.


The bill, called the H-1B and L-1 Visa Fraud and Abuse Prevention Act of
2007, was introduced in Congress last Thursday by Sens. Dick Durbin
(D-Ill.) and Chuck Grassley (R-Iowa), who announced the filing on Monday.
As part of the announcement, the two lawmakers said the measure would
authorize the U.S. Department of Labor to hire 200 additional employees "to
administer, oversee, investigate, and enforce the H-1B program."

It also would enable the DOL to conduct random audits of employers that use
H-1B visas and give the agency more power to investigate H-1B applications.
Currently, the DOL can investigate applications only for "completeness and
obvious inaccuracies." Durbin and Grassley said their legislation would
give the DOL authority to check applications for "clear indicators of fraud
or misrepresentation of material fact" and double the review period from
seven days to 14.

In addition, the measure would require companies to advertise job openings
for 30 days on the DOL's Web site before submitting applications to hire
H-1B workers. And the DOL would be required to post on its site summaries
of all the H-1B applications it receives.

The bill also includes a variety of other provisions, including one that
would prohibit employers from hiring H-1B workers and then outsourcing them
to other businesses and another that would require companies to pay
prevailing wages to both H-1B and L-1 visa holders.

Supporters of the H-1B program, primarily IT industry trade groups, said
foreign nationals are needed to fill critical jobs for which there aren't
enough U.S. workers. But opponents claim that H-1B holders are being used
to depress the wages of U.S. workers and to support offshoring efforts.

Durbin and Grassley announced the filing of their bill on the same day that
the U.S. Citizenship and Immigration Services agency began accepting H-1B
applications (download .pdf) for the federal government's 2008 fiscal year,
which begins Oct. 1. Demand for the visas is expected to be brisk, with the
annual cap of 65,000 standard visas potentially being reached within a day
or two. An additional 25,000 H-1B visas are set aside for workers with
advanced degrees from U.S. universities.

A spokesman for the IEEE-USA, the political lobbying arm of the Institute
of Electrical and Electronics Engineers Inc. said the Washington-based
professional association would support the Durbin-Grassley legislation. The
IEEE-USA has long sought reforms to the H-1B program.

Compete America, a Washington-based industry group that supports raising
the H-1B visa cap, didn't have an immediate comment about the new bill. In
contrast, when U.S. Reps. Luis Gutierrez (D-Ill.) and Jeff Flake (R-Ariz.)
last month introduced an immigration reform bill that included a proposal
to increase the annual H-1B cap to as many as 180,000 visas, Compete
America quickly issued a statement in support of that measure.

The legislation filed by Durbin and Grassley also includes several
provisions that would affect the L-1 visa program, which lets multinational
corporations relocate employees to the U.S. through intracompany transfers.
For example, the bill would prohibit so-called blanket petitions for L-1
visas, requiring companies to submit a separate application for each visa
they're seeking.

Grassley and Durbin are both on the Senate Judiciary Committee, and a
spokeswoman for Grassley's office said that the bill would be referred to
that panel for a hearing.



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