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February 12, 2000

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Labor unions go to Congress

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A P Kamath

As Congress gets ready to review a bill to increase the number of H1-B visas from 115,000 to 200,000 a year, powerful trade unions have attacked the program.

They have called the H-1B program and its expansions "the worst possible scenario for US workers". The hi-tech industry leaders had pleaded for an increase in number of foreign workers allowed into America.

Labor leaders say the hi-tech industry, in search of big profits, want to import foreign workers -- ost of them from India -- and pay them far less money than what a qualified American high-tech worker gets.

David Smith, the director of policy of the AFL-CIO, told a House Immigration subcommittee this week, "Any attempt to raise the annual caps on the number of H-1B visas must be made only in the context of responses to questions that remain unanswered from last year's debate:

"What is the effect of H-1B workers on US workers? Have government and the industry alleging a skill shortage invested in the resources of the current US workforce? Have the government and the industry acted with due diligence in predicting its future worker needs and invested in the education of US students at all levels? Is the industry that is claiming the shortage one that has a record of adhering to US labor laws to protect US workers, or is there reason to believe that the industry seeking to avoid those lawful obligations by the importation of foreign workers?

"Is the temporary foreign worker program narrowly tailored, closely monitored, well-documented, and proven not to shortchange qualified US workers? As was the case in 1998, these questions have not been answered, nor their solutions explored. Until there is a full debate with complete information, Congress should not consider increasing the number of H-1B workers.

"It is premature to even consider another increase in the number of H-1B visas," Smith said.

Cataloguing various scandals connected with H1-B visas, he said: "Rather than clamor for more visas, the IT industry should support efforts by federal agencies to access the full extent of fraud and abuse in the H-1B program and implement effective strategies to deal with the problem, instead of taking the side of unscrupulous employers and job shops."

Hitting at powerful high-tech companies that assert America is losing millions of dollars each year because of a shortage of skilled workers and that the quota for 115,000 for such workers from abroad is too small, Smith declared:

"There is no substantial proof of a widespread worker shortage as claimed by the information technology industry.

"We know that the wages of IT workers have not escalated as would be expected in a tight labor market," he said "and that the industry continues its pattern of laying off tens of thousands of workers, a practice that has profound effects on older IT workers."

Smith said since January 1, 1999, IT companies have been responsible for the layoff of over 28,000 US workers.

"Examples of these layoffs include 5,180 workers who lost their jobs at Electronic Data Systems, 2,150 at Compaq, 3,000 at NEC-Packard Bell and 1,100 at IBM. We fully expect mass layoffs to occur within the first few months of 2000, as Y2K problems are resolved," he continued.

He said the numbers indicated that the IT skills shortage is not of the magnitude alleged claimed or that employers prefer a new worker with the hot 'skill of the minute' and don't want to invest in training employees who may easily qualify for the same job.

"Training of current workers, investment in education, and enforcement of labor laws," he said should be encouraged, "rather than discussing yet another expansion of the H-1B program."

Smith said policymakers and industry should ensure the American workers were prepared for the job demands of the present, predict future skills needs, and see that government, industry and labor worked together to ensure that the workforce was prepared to meet those needs.

The trade unions are not happy with the "compromise" suggested by a Silicon Valley congresswoman, who wants legislation to help foreign hi-tech students stay back in America after their graduation. She also wants American industries set aside money to train more American workers.

Smith noted that the millions of dollars computer firms give American schools and colleges does not absolve the IT of its responsibilities to American workers.

"A few gifts of software cannot compensate for teachers who are trained in IT skills. Nor can research grants to a privileged few universities open the doors to a degree leading to a IT career, especially those groups underrepresented in the IT workforce, such as women and people of color," he said.

"The IT industry should invest its own astronomical and ever-growing profits in higher education by providing educators and substantial scholarship opportunities. The AFL-CIO has long placed its faith in the US worker, and invested in the educational opportunities available to the America's children."

The Institute of Electrical and Electronics Engineers, a New York-based professional society that represents over 225,000 engineers, backs Smith's views.

"What we really need is adequate recruitment from underrepresented minorities like Hispanics, women, and African-Americans," IEEE President Paul Kostek has said.

He does not understand the mathematics of shortage of high-skilled workers and the industry's claim there will be at least 43,000 more petitions beyond the 115,000 allotment for the fiscal year.

Kostek, who testified during the hearing on Thursday, asked: "Where did they come up with that number?"

Alison Cleveland, a policy director at the US Chamber of Commerce, tried to answer critics of the program:

"For the third year in a row, business was unable to hire those skilled workers that they need, and this situation is only going to continue to get worse. While the H-1B program is not the only answer to addressing the issue of skill shortages, it is an important part. There are glaring flaws in the administration of our current immigration system, which are being addressed in the debate over the reorganization of the Immigration and Naturalization Service."

EARLIER REPORTS:
Top senators urge huge increase in H1-B visas
Legislation planned to nearly double H1-B visas
H1-B visa quota getting exhausted

Next: The BRAIN Act

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