POLITICS - Carlini's Comments

H-1B REFORM: COST SAVINGS KEEP IT FROM HAPPENING

Filed Wednesday, March 29. 2006

As more people are very concerned about their jobs and others taking them (for reasons ranging from they are better skilled to they are just cheaper to hire), let’s talk about H-1B openings again.

Contrary to the great employment numbers blared out on news programs every week, there are many people who are still out of work in the IT and telecom areas. Going from a $90,000 job at Motorola in 2001 to jobs paying no more than $27,000 in the last five years, a reader asked me if the economy has really gotten any better. It hasn’t for him. For others, it is turning dark as well in various industries.

Better Skilled or Just Cheaper Labor?

In a recent InfoWorld article by David Margulius, he asks if the U.S. can stay on the throne of IT (http://www.infoworld.com/article/06/03/24/76663_13OPanalysts_1.html ). He starts out by saying:

Should we really care if the U.S. falls behind in IT? Some argue that tech is the only sustainable lead we have on the rest of the world and it’s worth holding on to. Others say we’re so far ahead economically and militarily that we could lose a lot of altitude in 20 to 30 years and still maintain some kind of edge.

Staying on the throne? I think America is being flushed down in the name of cost reduction. Now that GM and Ford are being hit by bad sales, perhaps the government will wake up. Still, it doesn’t look like it based on the latest action by Congress on H-1B visas. Out-of-work IT people making two-thirds less just don’t buy new cars any more.

There is a growing fallacy hyped by some reporters that some people think U.S. IT people are “lacking” or unskilled as compared to others. In the comments section of the InfoWorld article, someone makes the point that foreign workers are somehow better skilled. This is the attitude some people are taking as an air of superiority to IT people here. The plain truth is that companies are just bringing in cheap labor to lower costs.

This was reported on ePrairie back in 2002 and 2003. Even though job erosion in the IT area has been around even before Sept. 11, 2001, it really soared after with H-1Bs. Most did not see it or did not report on it.

“Cheaper labor” is the key phrase rather than “superior IT skills”. Some companies are purposely not hiring Americans. Ask anyone out there who has sent in hundreds of resumes. Also look at the database where many of these companies have requested (and have been granted) H-1B status jobs.

Americans must be superior in many respects to their foreign counterparts because companies keep telling them they are “overqualified”. How can the lack of skill sets be the reason why foreign workers are being hired? The real reason is that companies would rather pay $40,000 to $50,000 rather than $90,000 to $100,000. This was covered in several editorials:

The Silent Technology Tsunami: Carly Fiorina, Major Mergers (2/16/05)

Are Guest Worker Programs Causing Backlash Amid IT Downsizing? (1/4/06)

H-1B Program: Some Companies Addicted, Some Actually Overdosing (1/25/06)

Are Economic Indices Accurate

Low unemployment? Maybe. High underemployment? Definitely. This seems to be the consensus by those who are still looking for that replacement job after they left Lucent, Motorola, Tellabs and others in the last five years. I have received comments from others who feel it’s time to do something as things are not getting better. One worker opposing the H-1B program sent in this insight:

We’re up against a very formidable foe. The foe is an alliance between big business and the federal government. The purposes of the alliance are to ensure that incumbent politicians are reelected and to save a great deal of money in labor costs for big business.
The mechanism that delivers the alliance’s aims is for big business to save hundreds of billions of dollars per year in labor costs by opening U.S. borders to cheaper labor from abroad and for them to pass about 1 percent of the savings to the reelection campaigns of politicians as a kickback.
I know from personal experience that it’s a shock to realize the federal government is as corrupt as this. The sad fact is that it is.
If IT workers had their heads screwed on properly, they would form a pressure group and commit 1 percent of their incomes to it. If they were to do this, they would have the most powerful lobby in Washington and could immediately squelch the attack on their incomes. While the employers of IT workers are well-organized for self-advantage, the sad fact is that IT workers have proved firmly resistant to the same.

This lack of Congressional action and collusion seems very plausible. Looking the other way is very evident in many industries (not just IT). They say many jobs are being taken over by workers using phony social security cards.

A carpet installer pointed out to me that there’s no rush to stop all these phony social security numbers being used in many other industries. It’s a source of revenue at the end of the year to the government as those using phony social security cards don’t file for refunds. That’s an interesting observation.

Wake Up, Congress!

In light of the Senate working on immigration reform, you would think reforming the H-1B visa issue for IT workers would be a top priority. Unfortunately, it isn’t. While there are issues about border security as well as total amnesty for the estimated 11 million illegal aliens, reforming or eliminating guest worker programs is not on the agenda.

Foreign workers taking jobs – whether they are legal or illegal – have put a negative spin on the economy no matter what the figures say.

More people are getting more vocal about foreign worker programs being very anti-American. Is this a call to arms by some? We see riots in France about job reform. Are we at the edge of tolerance for Congressional indifference in this country? Does anyone else see the economy from this view? If you don’t, you’re not seeing the whole picture and you better wake up.

Carlinism: Looking the other way does not give you an insight on what’s really happening.

Last modified on 2008-11-19 19:00

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Thank you for this article. It is time that more news sources present the truth of the situation and the reality we all, as Americans face. During my long term unemployment, I had to send out thousands, not hundreds of resumes, in the hopes that I would receive just one response, just one opportunity, just one call. Today, there are no opportunities available to even distribute that many resumes to. I am on the verge of homelessness. I am an American Technical Worker. My life was destroyed by the competition offered by the flood of H-1B labor. Young, foreign, mostly male imports are replacing Americans. I was replaced by a male. That is one less female in the workforce. This male was 10 years my junior, many years less experience. There is no justice here. The lies continue. The lives are destroyed forever. My life is over.. and I am only 42 years old. What does my future entail? My options are gone, my opportunities are gone. There is no dream for this American. My dream was stolen. My hopes were stolen. My aspirations gone. I live my life in short increments, when I'm fortunate enough to find employment. No benefits, no vacation, no holidays, no health insurance. Deep in debt, no way out. They have devastated us with floods of young, cheap foreign labor. They have robbed us of our lives. Many comparisons can be made between our experiences and those victims of Hurricane Katrina. We are just as devastated. We are American Technical Workers. Once, the future of the country. Today, just a disposible entity. I had dreams too. Unfortunately, I cannot pursue my dreams in my own country. Foreign nationals have more rights than American citizens. This must stop. We must take charge. We must fire any politician that destroys our country and robs us of our livelihoods. We must stand as one. There is no future left. Our children will be left to bear the destruction. Is that what you want? I don't.

#1 Toni Chester on 2006-03-29 20:18

I do not agree with you as your premise that they can do it better or more cost effectively is NOT panning out. I have heard of many workers come in and NOT get the job done. I have also heard of some projects in India looking for Americans to head them up because they do not have the right project management skills. So to generalize and say ALL of this is good is pure hogwash. And to go back to the Founding Fathers has no relevance, Someone can either get the job done - or they can't. If they can't, they are NOT viable and just because they may be cheaper - that does not mean they can do the job better. I am sure you have heard of the saying - You get what you pay for. In some mission critical projects- the requirement is to get someone who knows what they are doing - cost is secondary and is usually HIGHER than the commodity rate.

#2 James Carlini on 2006-04-02 00:32

HENRYK - Twenty years ago is not today. Immigration laws are not being enforced and your arguments, although lengthy, do not reflect what is really going on. It is one thing to come here to assimilate into the country, it is another thing to colonize here and just take advantage of the economic prosperity and not put anything back. Your view that H-1Bs are a blessing "as we are getting the cream from other societies"? Hmm ..many would disagree with you there. No one is talking about entitlements. In fact, it is recent demonstrations where illegals are asking for entitlements that would NEVER be granted in any other country. What would they do in Poland or Russia to illegal immigrants or workers? Surely not give them any "entitlements". Sorry but your arguments don't fly.

#2.1 James Carlini on 2006-04-03 11:00

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