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Microsoft Government The Almighty Buck Politics

Microsoft Says H-1B Workers Among Those Losing Jobs 612

CWmike notes that after a US Senator urged Microsoft to lay off H-1B workers first, Microsoft says it is cutting a 'significant number' of foreign workers as part of the layoff it announced last week. But experts say there is nothing in the law requiring a company to cut the jobs of H-1B workers before US workers. David Kussin, an immigration attorney, said, 'In fact, the law is very well designed to say that you have to treat H-1Bs the same as US citizens in all regards.' Another H-1B critic, UC Davis professor Norman Matloff, said the Senator's letter would help their fight. 'If Microsoft doesn't state that they will lay off the H-1Bs first — and they won't state this — then it would be awfully tough for Bill Gates to come back to the Hill and urge an H-1B increase, wouldn't it?'"
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Microsoft Says H-1B Workers Among Those Losing Jobs

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  • by Veretax ( 872660 ) on Tuesday January 27, 2009 @09:36AM (#26621067)
    Could someone explain to me, why Bill Gates would be arguing for H1-B Visas before congress now? I thought he left Microsoft?
  • by Thelasko ( 1196535 ) on Tuesday January 27, 2009 @10:04AM (#26621387) Journal

    It's an easy thing to fix - require that H1B visa holders receive the same pay and benefits for their work as the rest of the workforce.

    It's already required. [wikipedia.org]

    Employers must attest that wages offered are at least equal to the actual wage paid by the employer to other workers with similar experience and qualifications for the job in question, or alternatively, pay the prevailing wage for the occupation in the area of intended employment, whichever is greater.

    You're ignoring two things:
    1. Companies have ways of working around this rule. This typically involves saying that the visa holder has skills not available in the U.S. workforce.
    2. By importing workers, the company effectively shifts the supply curve [wikipedia.org] and lowers wages across the board.

    I will also add, laying off foreign workers first is a form of protectionism. [wikipedia.org] Protectionism is never a good economic policy.

  • by khasim ( 1285 ) <brandioch.conner@gmail.com> on Tuesday January 27, 2009 @10:19AM (#26621553)

    http://tvtropes.org/pmwiki/pmwiki.php/Main/AtlasShrugged [tvtropes.org]Meanwhile, contrast the "reality" described in that book with the current news.

  • by zach_the_lizard ( 1317619 ) on Tuesday January 27, 2009 @10:38AM (#26621839)
    Shopping around the world for labor and materials ultimately lowers the price of goods. That house, that food, and even that education would get cheaper. Except that our government (and also many governments in Western Europe, IIRC) have strict price controls and anti-competitive rules in many of these sectors.
  • Re:WHO IS JOHN GALT? (Score:3, Informative)

    by EvolutionsPeak ( 913411 ) on Tuesday January 27, 2009 @10:44AM (#26621949)

    Mod parent up. People would do well if they read a book about the ideas that made this country great and those that are tearing it down. If one can't at least see that a man has the right to his own life and what he has earned through legitimate business, contracts to the mutual benefit of both parties, then perhaps one lacks the capability to reason.

  • by Firehed ( 942385 ) on Tuesday January 27, 2009 @10:44AM (#26621955) Homepage

    HIS best interest? The vast majority of his fortune is or will be going to various charities. It's in OUR best interest to see his company prosper financially, as much as we'd hate to admit it (and I think most of Slashdot becomes nauseous at the idea)

  • by htnmmo ( 1454573 ) on Tuesday January 27, 2009 @10:48AM (#26622011) Homepage

    One place I worked at, it was no secret why were hiring H1-B workers. It was much cheaper.

    Whenever we hired Americans my boss would interview them, I'd interview them, another peer would interview them. Indian workers just kinda showed up.

    One guy was fresh out of training and needed a lot of hand holding to do basic things. Any random CS grad would have been the same.

    The best people we had were American. That sounds ethnocentric but the people I'm talking about included Russian-American, Indian American, etc. either first generation or immigrants.

    I remember another time when someone contacted me about developing a small site for them. They explained how they hired an indian firm for $2,500 and after months of not getting the project done hired another for $3,500 and the didn't complete it either. He decided to share this information with me after I quoted him $10k for his project. He ultimately decided to try and find another outsourcing firm. Months later I checked and he didn't have the site done. He wound up spending almost the same in and got nothing in return.

  • by operagost ( 62405 ) on Tuesday January 27, 2009 @11:08AM (#26622389) Homepage Journal
    Basically, when you buy the cheap crap at K-Mart or Wal-Mart, you're shopping around in China, Pakistan, South Korea, and Taiwan.
  • by renimar ( 173721 ) on Tuesday January 27, 2009 @11:26AM (#26622747)

    Both H1B employees and you earn the exact same paycheck; but your employer does not have to pay Social Security nor FICA taxes on the H1B employee. So, the cost to the employer is several tens of thousands dollars LESS than hiring an American.

    WRONG. As an H-1B holder, and a former TN-visa holder, I pay all the same taxes an American citizen or Green Card holder does. My employer pays the same 6.2% (or whatever it is) Social Security Tax that he pays for my American citizen co-worker. How do I know this? I work for a small company, so my boss bitches about it whenever he has to deal with payroll, like it's my fault he has to pay that 6.2% on top of my salary to the Federal Government. I see all the deductions the government takes on my W-2s when I file taxes. Neither my employer nor I see get any special breaks for having an H-1B employee. In fact, in order to hire me, he has to pay thousands into a special fund which, ostensibly, goes towards programs to help train Americans in high tech jobs; it probably went to pay for Senator "I am not a crook" Stevens' Bridge to Nowhere instead. Again, not my fault.

    Salary? I'm getting the same as my American citizen co-worker. So: same salary, same taxes, but my employer has to pay into a special fund for the "privilege" of hiring an H-1B and he had to pay a lawyer to properly process the H-1B. I've cost him more than an American Citizen. On the flip side, I've also (presumably) provided enough of a skillset to make such a cost worthwhile.

    You know what we do get? The shaft, when we lose our jobs. Yeah, all that unemployment insurance money they take out of my paycheque? I don't get to collect it when I lose my job, unlike an American citizen, or a Green Card holder. I get a nice pink slip and a 'GTFO the country before we deport your ass'.

    It sounds to me that if there's H-1B shenanigans going on, the fault lies with the employers committing it, the lawyers who processed their paperwork, the employees who went along with it, and the bureaucracy for simply pushing paper along. Go after them for immigration fraud. There are some of us doing it by the book and trying to play by the rules.

  • by Anonymous Coward on Tuesday January 27, 2009 @11:32AM (#26622833)

    Workers on TEMPORARY 3 year guest worker visas should not be buying houses. How do they even get a loan?

  • Re:WHO IS JOHN GALT? (Score:5, Informative)

    by Bender0x7D1 ( 536254 ) on Tuesday January 27, 2009 @11:39AM (#26622933)

    So medical doctors would be the richest people in the world. I can choose to go without a car. I can choose not to use roads. I can choose to raise my own food and make my own clothes. However, when I get very sick, I can either find a doctor and pay them whatever they want, or die. Sure, if I want to hold strongly to my beliefs, I can tell the doctor to go screw themselves. However, death is kind of a big deal. You don't get to change your mind.

    Plus, this was the attitude that allowed Crassus to become one of the richest people in history. His fire brigade would show up at your house fire and refuse to work unless you sold him everything for pennies on the dollar. Again, I could hold to my beliefs and watch it burn, or I could sell it and salvage something from the fire.

  • by Anonymous Coward on Tuesday January 27, 2009 @12:04PM (#26623433)
    But the fact is that every single H1B in Microsoft is paid at the exact same wage as their US counterparts. I find the gross misunderstanding of the H1B system on this board and others extremely troubling. What you'll find with companies like Microsoft is that the majority of their H1B employees hold advanced degrees from some of the best US universities. It makes no sense to lose your competitive advantage by sending these people home. As such, these employees come under the "Masters" quota in the H1B lottery specially earmarked for people with advanced degrees from US universities. And in fact if they are being paid the same salaries, it is more expensive to hire and retain H1B employees because of the quite substantial visa and lawyer fees involved. No for profit company would do this if they did not genuinely believed they were getting some kind competitive advantage. This fact is true of not just Microsoft, but practically every tech company in the US. Heck, some 60% of Qualcomm is foreign born/H1B. I recently graduated with a MS in EE degree from one of the top 10 schools in the country and 90% of my class was foreign. And they certainly weren't dumb by any means. Most of them graduated with 6 figure salaries right out of school. Again, no wage deflation/displacement of local workers. The fact is, the shortage that Gates spoke about to congress is very real. Where this system is being abused, and is overdue for a fix is in the IT/services domain. Primarily contractors outside the country that flood the system with H1B applications and play the odds to get some x number of their employees work visas every year and then proceed to contract them out to US companies at lower than existing wages. But painting every US company that hires H1Bs to fill some very real needs with the same brush as these companies is dangerous and will prove counterproductive in the long run.
  • Shopping around the world for labor and materials ultimately lowers the price of goods.

    No it doesn't; it increases the profit margin of the people providing the goods. Why on Earth would they lower prices when they're making good money? Demand is not perfectly elastic in the real world (especially for necessities like food, housing, health care, etc.), so lowering the price won't necessarily make a seller more money by increasing the amount demanded. Therefore, it's in their best interests to just pocket the money, and that's exactly what they do.

  • by hey! ( 33014 ) on Tuesday January 27, 2009 @12:19PM (#26623709) Homepage Journal

    You don't get it.

    It's not immigration of people with engineering degrees that drives down wages. It's continually bringing in entry level people and expelling experienced people that does that.

    Everyone here seem to grasp that the fact that music files are so readily and perfectly copyable changes the economics of sharing copies. What some people miss is how the same kinds of things make the economics of knowledge different than, say the economics of automobiles. Even having and automobile industry creates lots of related jobs, in suppliers, distribution, sales, advertising and the like. But if you brought in a bunch of low wage braseros to run your automobile plant, you'd definitely have that many fewer jobs for American auto workers.

    But has Linus Torvalds living in the US decreased the net employment of American software engineers by one?

    Software is different in that making software tends to generate more jobs making software.

    Think about it. Some team comes up with this great software framework that makes doing something that was hard before, easy. Does this mean people who were doing that stuff lose their jobs? No. What happens is that there is a new demand for people who can use that framework to do things that weren't possible before.

    Let's say we're talking about Geographic Information Systems. You can do the kind of things GIS does by programming in Fortran with nothing but bare metal and a library with a handful of trig functions. But back when this was the the only way to do GIS, almost nobody did, except maybe in the oil industry or defense. But when GIS becomes so simple minded that non-technical managers can do simple analyses of store siting decisions, none of those few people are going to lose their jobs. In fact, there's a whole new industry of people employed doing jobs that didn't exist before.

    Employers make their hiring decisions based on marginal calculations. In the Fortran-and-bare-metal days, many things were theoretically valuable, but not worth the expense and uncertainty to try. When what was hard before becomes easy, this opens up a new universe of things to do, which equals new employment opportunities.

  • Re:B*cough*s*it (Score:5, Informative)

    by jeff4747 ( 256583 ) on Tuesday January 27, 2009 @12:32PM (#26623933)

    The Average American can go to India to get an education. They can even go to Russia, and they can live in India, or any other country. Apply for the permits and you can be living there.

    No, actually they can't. Take a look into the rules those countries have in place to protect their workers from immigrants.

  • by nahdude812 ( 88157 ) * on Tuesday January 27, 2009 @02:00PM (#26625623) Homepage

    They may be a little cheaper, but they can't be that much cheaper or they couldn't afford to live here.

    Actually that's not true. H1B's often accept a dramatically reduced standard of living, with the intent to make as much money as they can for the duration of their visa, then take it home with them. Sometimes this is still much better than the conditions they left at home.

    H1B's make on average 23% less than their citizen counterparts [ddj.com].

    The citizen counterparts tend to want things like kids, gadgets, a nice car, good clothes, a house, etc. The H1B tends to have 1 week's worth of clothes, takes public transportation or has an inexpensive used car, lives here alone (maybe with family back home), lives in a one-room studio apartment, and maintains a minimum of optional expenses.

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