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H-1B “Guest Worker” Admissions

H-1B “Guest Worker” Admissions. George F. McClure Region 3 PACE. Why Guest Workers?. Useful when no resident engineers can be found to do the work H-1B visa process faster than 4 years to produce a college grad Guest workers are indentured, won’t complain. Nonimmigrant H-1B Dates to 1990.

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H-1B “Guest Worker” Admissions

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  1. H-1B “Guest Worker” Admissions George F. McClure Region 3 PACE

  2. Why Guest Workers? • Useful when no resident engineers can be found to do the work • H-1B visa process faster than 4 years to produce a college grad • Guest workers are indentured, won’t complain

  3. Nonimmigrant H-1B Dates to 1990 • 65,000 visas per year set by Immigration Act of 1990 • Visa good for 3 years, renewable for another 3 years • Quota first reached in Sep. 1997, again in May 1998 • Cap raised to 115,000/year for 1999 and 2000 • To 195,000 for 2001 through FY2003

  4. “Our Own Workers Should Be Hired First” • In theory, no displacement of U.S. workers for H-1Bs • In practice, H-1Bs hired, often without looking very hard for citizen engineers first • Why? H-1Bs get the same benefits as other workers – can it be economic?

  5. IEEE Had 13 H-1Bs • 10 IT engineers, two editors, and a translator • Terms expired for three • Now down to ten • General manager says pay was comparable; couldn’t get engineers when the H-1Bs were brought in • See the list at www.zazona.com

  6. Prevailing Wages, the Mantra • Prevailing wages must be paid to H-1Bs, IF • It is a “H-1B dependent” company • Over 15% H-1Bs if over 50 total employees • Higher percent for smaller companies • On average, wages to 30% lower than U.S. • Savings through H-1B amount to subsidies to companies by U.S. taxpayers – Milton Freidman

  7. Foreign Students Subsidized, Too • Difference between tuition charged and actual cost of education at U.S. colleges = subsidy • Foreign students at many state colleges get in-state (lower) tuition = bigger subsidy by taxpayers • Even illegal alien students can benefit • Most engineering grad students are foreign

  8. Why Did the Music Stop? • Dot-com collapse • September 11 • Wall Street scandals • 163,000 H-1Bs came over in 2001 • Estimate 90,000 in 2002 • “Reverse brain drain” now the talk – offshore outsourcing grows (Fortune, Nov. 11, 2002, pp. 39-40)

  9. 528,000 IT Jobs Lost in 2001 - ITAA • Information Technology Association of America, a pro-immigration group with 400 member firms and a global subsidiary, had been leading the charge for more H-1Bs • Demand forecast by hiring manager polls • This shrinkage tracks rise in engineering unemployment – a quarter million jobs lost

  10. Record Engineering Unemployment • Second quarter 2002 unemployment for engineers rose from 3.6% (1Q) to 4.0% • EEs rose from 4.1% to 4.8% • Computer scientists/systems analysts from 4.8% to 5.3% • Overall unemployment rate declined a half percent while EE/CS unemployment rose • Third quarter only mgr/prof. up (to 3.4%); EEs down to 4.0%, CS down to 4.6%

  11. Where Are the Students? • High unemployment discourages student entry • A 4-year transport lag – not in sync • Fewer students in pipeline = call for more H-1Bs • While jobs are scarce, we can have a million H-1Bs competing for them • Students don’t see opportunity for them; BS grads 22,911 in 1992, 24,524 in 2001

  12. Are Visas Abused? • Holders are not tracked • 3 million holders of expired visas stay as illegal aliens (National Review, Oct. 28, 2002, p. 34) • Dept. of Labor investigates only if a complaint is made: who is to complain? • The employer, who likes an uncomplaining hard worker? • The guest worker, who fears he may be ejected?

  13. U.S. Patriot Act Calls for Visa Tracking • Aftermath of 9-11 • Linked database pilot system demonstrated • None fielded • Likely candidates lack interconnected databases • Visitor visas may be cut from 6 months to one month, but tourism industry opposes this

  14. What Should Be Done? • A new cry to raise the cap will be heard in 2003 • Drop the cap back to 65,000 where it started • Eliminate the H-1B visa renewal for the second three years • Require all users of H-1Bs to recruit U.S. workers first, and not displace them with H-1Bs • Institute a visa tracking system for guest workers and students

  15. How Else Can Foreign Tech-Workers Apply? • B-1: Visitor for business • E: Treaty trader or investor • F: Academic student • J: Exchange visitor • L-1: Intra-company transfer - unlimited • O: Extraordinary ability • TN: NAFTA Professional

  16. Business Permanent Immigration: 120,000/Year • EB-1: Extraordinary ability – professors, researchers, multinational executives – 40K/yr • EB-2: Advanced degree professionals – 40K/yr • EB-3: Baccalaurate degree professionals, certain skilled and unskilled workers - 40K/yr

  17. Visa-Funded Training Program • Starting in 2000, a $1,000 fee was charged for every H-1B visa ($500 earlier) • Law called for retraining of displaced U.S. workers with fees • All H-1Bs are degreed; no trainees were degreed • $138 million in training fund at last report (May 2002)

  18. OMB Recommendation • Office of Management & Budget called training program ineffective; • Said to use the money for faster certification of foreign workers • CWA objected to moving the money • GAO did an investigation, issued report • IEEE-USA recommended direct grants to affected engineers for retraining, not done

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