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Programming Government The Almighty Buck Politics IT Technology

The H-1B Swindle 719

An anonymous reader writes "A new study shows that companies hire foreign workers for cheap labor, not skill." From the article:"When you look at computer job titles by state, California has one of the biggest differentials between OES salaries and H-1B salaries. The average salary for a programmer in California is $73,960, according to the OES. The average salary paid to an H-1B visa worker for the same job is $53,387; a difference of $20,573 ... H-1B visa workers were also concentrated at the bottom end of the wage scale, with the majority of H-1B visa workers in the 10-24 percentile range. 'That means the largest concentration of H-1B workers make less than [the] highest 75 percent of the U.S. wage earners,' the report notes. "
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The H-1B Swindle

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  • This is news? (Score:5, Insightful)

    by Bob McCown ( 8411 ) on Tuesday October 25, 2005 @03:44PM (#13875097)
    Anyone who has been in the computer industry for more than a few months knows this. Its prevalent everywhere. Don't let them say "there aren't enough engineers to go around", thats pure horse hockey. HIB workers arre cheaper, plain and simple.
    • Re:This is news? (Score:2, Informative)

      This hasn't been news since 1997.
      • Longer than that. At least since the mid-80s.

        They'll even get people in country, tailor job listings so specifically that only the H1B can be hired under it, and then not pay them the wages other workers would get. Shameful.
    • by Axe ( 11122 ) on Tuesday October 25, 2005 @03:57PM (#13875261)
      Data on the public disclosure site lists salaries for H1B workers at the moment they were hired. On average that would be unvervalued by about 4 to 5 years of raises - when most of H1B were hired.

      Other issue is that it does not compare apples to apples: most H1b are non-managerial positions with relatively low experience, while national average includes middle managers. One need to compare H1B to the people in the same position.

      And it looks like reducing numbers of H1Bs does wonders to the IT jobs retention in U.S. indeed. Not.

      • Raises (Score:5, Insightful)

        by drgonzo59 ( 747139 ) on Tuesday October 25, 2005 @04:42PM (#13875795)
        If the companies are using the H1B workers to pay them $20,000/yr less, do you think they'll give them large raises. What if they don't? The H1B code monkeys aren't going anywhere, they'll work for $30,000/yr, it is still better than what they get in their home country. Most of them will underestimate the living expenses and will think they are getting a killer deal. It is like me, when I tell my family in Russia what I make here in America, they are all "ooh"-ing and "aah"-ing like I am some kind of a millionare, they don't know that my car insurance is $200/month and utilites another $150/month and car payments, mortgage, school loans etc etc
        • Re:Raises (Score:4, Insightful)

          by Axe ( 11122 ) on Tuesday October 25, 2005 @04:48PM (#13875864)
          20K per year savings are bogus. Subtract legal fees and compare equivalent positions and there are no savings, only headache of dealing with corporate lawers.

          In all decent companies I know about H1B workers are given raises and are generally well regarded. In my group they are probably the brightest employee.

          Code monkeys are in India. Know your enemy.

        • Re:Raises (Score:3, Insightful)

          by ScooterBill ( 599835 ) *
          The cost in $$ and time of getting a software engineer up to speed and integrated into a company will easily outweigh the cost savings of hiring on the cheap. Companies don't want cheap labor, they want more productivity for their $$. We've hired both local and foreign software engineers and the overiding factor is always the quality of the engineer / the cost. Our highest paid software engineer is local and we consider him to be a bargain even though we pay him very well. Other H1-B workers started at
          • Re:Raises (Score:4, Insightful)

            by chriso11 ( 254041 ) on Tuesday October 25, 2005 @06:38PM (#13876771) Journal
            Yep - you owe me Xmas off! And I'm not going to work every weekend either! Oh, and after 12 hours a day, I'm leaving. Yep, such a primadonna!

            I worked with an H1B visa - as soon as he was a permanent resisdent he told his old company to kiss off and left for a better deal. I have looked at what they are paying new H1B visas (based on the required postings) compared to new college hires, and they were paid ~20% less.

            And I bet you wonder why the number of american kids enrolled in technology and science degree programs keeps dropping. I've got news for you - the kids aren't stupid - they see that there is no real future there. Take a look in the mirror - you get to see one of the causes!

            • Re:Raises (Score:5, Insightful)

              by wealthychef ( 584778 ) on Tuesday October 25, 2005 @08:00PM (#13877235)
              And I bet you wonder why the number of american kids enrolled in technology and science degree programs keeps dropping. I've got news for you - the kids aren't stupid - they see that there is no real future there.

              They ARE stupid if they think that science and engineering has no future. Where do these brilliant students go to make money? These geniuses are either going to leech off their parents or they are not going to be well off if they reject science as an option. Do you think a law degree or a medical degree is so lucrative compared to a good engineering degree? I'm not so sure about that.

              The truth is that kids aren't becoming scientists not because of money, but because they are looking for a way to have a good life, meaning make a good contribution to the world. We put scientists down as geeks and emphasize money over all else. There is zero appreciation for science in the popular culture, compared to Indian and Chinese cultures, where becoming an engineer makes you a respected professional, even a hero to your family.

              The fact is that unless we continue to improve our skills here, we will lose ground. The fact is that complaining about how hard our competition in the labor market works is not going to cut it -- we will have to work as hard as they do. They want it more, so they are getting it. They are offering their labor for a lower price and it is just as good usually. Why shouldn't they get the prize?

              • Re:Raises (Score:4, Informative)

                by billsoxs ( 637329 ) on Tuesday October 25, 2005 @10:40PM (#13877939) Journal
                They ARE stupid if they think that science and engineering has no future. Where do these brilliant students go to make money? These geniuses are either going to leech off their parents or they are not going to be well off if they reject science as an option. Do you think a law degree or a medical degree is so lucrative compared to a good engineering degree? I'm not so sure about that.

                Well let's see:

                Point 1) Our US students that go beyond a BSEE tend to get an MBA. It is easier and typically pays better than a MSEE. More respect in business and shorter hours as well.

                In fact a few years ago the Dean of the School of Management PO'd local CEOs of high tech companies by saying that they needed to raise salaries and treat engineers better - right after the CEO pi--ed and moaned that they could not hire enough US engineers. [Personally, I'd be bored to tears as an MBA but that is me.]

                Point 2) My wife (an MD) makes a lot more than I do... I have a PhD and similar numbers of years of experince. Finally my older brother a JD (lawyer) makes a lot more then me. Both of them are treated better as well. I guess our students are not all that dumb. But then this feeds right into your next point. US businesses do not really care about engineers and there is no real respect for the field. [Again, I'd go nuts in almost any other field - but that is me and I am not typical.]

              • Re:Raises (Score:3, Informative)

                by syphax ( 189065 )
                Do you think a law degree or a medical degree is so lucrative compared to a good engineering degree?

                You forgot an MBA. Regardless, the answer to your qestion, here in the US, is generally *yes*.

                Now, most doctors (at least the ones I know) work crazy hours, and their job description is increasing crappy, thanks to our wonderful health care system. And corporate lawyers (at least the ones I know) tend to work crazy hours, and man I can't imagine anything more life-sucking than corporate law.

                Me, I am trained
              • Re:Raises (Score:4, Informative)

                by Tim C ( 15259 ) on Wednesday October 26, 2005 @01:17AM (#13878536)
                Do you think a law degree or a medical degree is so lucrative compared to a good engineering degree?

                I don't know about the US, but here in the UK I have the distinct impression that a top lawyer will be earning more than a top engineer could ever hope to. For example, I've never heard of a programmer charging more than about £1000/day, while I have heard of lawyers charging £1750/hour. (Of course they won't be pulling that in 8 hours/day, but even 1 hour/day gives them 75% more than the programmer, plus potentially a boat-load of free time)
      • by donutello ( 88309 ) on Tuesday October 25, 2005 @04:49PM (#13875883) Homepage
        Most H1B's are folks who've been in the workforce for a relatively shorter period of time. Most H1Bs are actually dual-status, which means they are applying for a Green Card while working as an H1B. Green Card processing typically takes 4-5 years. They are not classified as H1Bs once they get their Green Cards - which coincides with them acquiring additional experience and raises.

        I make more money now than when I was an H1B and it has nothing to do with my visa status and everything to do with the fact that I have more experience doing what I do now than I did before.
        • by a1englishman ( 209505 ) on Tuesday October 25, 2005 @05:27PM (#13876231) Journal
          Most H1B's are folks who've been in the workforce for a relatively shorter period of time. Most H1Bs are actually dual-status, which means they are applying for a Green Card while working as an H1B. Green Card processing typically takes 4-5 years. They are not classified as H1Bs once they get their Green Cards - which coincides with them acquiring additional experience and raises.

          This argument overlooks the fact that the H1-B program is designed to allow employers to aquire talent that isn't available within the US. That would mean that these people are valuable. They shouldn't be grunts, they should be people who poses detailed and specific information which wasn't avaible in an American candidate. That being the case, the H1-Bs should be appearing near the top of the pay curve, not the bottom.

    • Re:This is news? (Score:5, Interesting)

      by otisg ( 92803 ) on Tuesday October 25, 2005 @04:26PM (#13875617) Homepage Journal
      I've been in the industry for about 10 years now, always surrounded by H-1B workers. They've all been WELL paid (software field). Moreover, INS (now USCIS) has a prevalent wage requirement for H-1B workers. I believe that wage is about $75K for software engineers currently. Thus, any employer offering a salary below this rate to a software engineers should/would be denied the H-1B visa.

      So, I'm not sure if what you are saying is really true, or.... I'm not going to get into that.
      • Re:This is news? (Score:5, Interesting)

        by sapped ( 208174 ) <mlangenhoven AT yahoo DOT com> on Tuesday October 25, 2005 @04:38PM (#13875767)
        I am an H-1B holder and can confirm this. Moreover H1's usually need a few years of experience to get into the country as well. I am often amongst the best paid people in the office because I am often one of the most experienced people.

        As others have pointed out the data is probably very skewed time wise. My recently approved green card application was for experience and salary levels from 2001 due to some quirky laws around the application.
      • Re:This is news? (Score:5, Insightful)

        by vsprintf ( 579676 ) on Tuesday October 25, 2005 @06:20PM (#13876639)

        Moreover, INS (now USCIS) has a prevalent wage requirement for H-1B workers. I believe that wage is about $75K for software engineers currently. Thus, any employer offering a salary below this rate to a software engineers should/would be denied the H-1B visa.

        There is a big difference between should and would. First, there is no active enforcement of H-1B program regulations. That has never been funded by Clinton or Bush, so the DOL simply doesn't do it - they don't have the people. The only way to get enforcement of the regulations is via lawsuit against a company. Second, any company hiring H-1Bs is allowed to use its own method to determine prevailing wage if they want, and the last time I checked, nearly 70% did so. They are also allowed to set the worker's title of course, so it's easy to hire an experienced programmer as an associate. The government's own study (as well as independent ones) have shown H-1Bs are paid 15% to 30% less than resident workers for the same job. (And I gave links to all this stuff the last time this subject came up, so it's pointless to do it again - it doesn't do any good.) Just because your company doesn't abuse the program doesn't mean that other companies are as ethical.

    • Re:This is news? (Score:3, Insightful)

      I agree.

      You wrote exactly what I was going to write.

      There is no shortage of I.T. workers, only a shortage of I.T. workers at a cut rate wage.
  • by ackthpt ( 218170 ) * on Tuesday October 25, 2005 @03:44PM (#13875098) Homepage Journal
    What's beneath it is probably some hideous unethical, if not illegal, practice of hiring only H-1B people into jobs.
  • This is common (Score:5, Interesting)

    by Anonymous Coward on Tuesday October 25, 2005 @03:44PM (#13875104)
    Is anyone suprised by this?
    My employeer scours the fourth world for masters degrees, sponsors thier visa, then pays them $10/hour and forces them into unpaid overtime. After all, if they complain, the company can just stop sponsoring thier work visa ..

    Unethical? Yes.
    Illigal? Not in this state.

    -Annonymousguywhodoesntwanttogetfired
    • I'll bet he doesn't have to pay any benifits to them at all.
    • Unless they are a salaryed employee, unpaid overtime is illegal.
    • by h4x0r-3l337 ( 219532 ) on Tuesday October 25, 2005 @04:12PM (#13875446)
      'employeer'?
      'thier'?
      'illigal'?

      And you wonder why companies hire foreign workers?
  • Cost to hire? (Score:4, Interesting)

    by fataugie ( 89032 ) on Tuesday October 25, 2005 @03:45PM (#13875107) Homepage
    Has anyone considered the cost to aquire and hold H1-B1 papers for a overseas worker? What about when the contract is up? The company is responsible to return the worker, who pays for that?
    • Good point, but im guessing all of that doesn't equal 20,000 a year.
    • Re:Cost to hire? (Score:2, Insightful)

      You know, in the past this was called indentured servitude. You can come to America, but you have to work here for a while for the man getting paid little or nothing. Oh, and don't complain, or we'll ship you back.
    • Re:Cost to hire? (Score:2, Informative)

      by Anonymous Coward
      A quick look at travel.yahoo.com says I can send an indian worker back to India TONIGHT for $1778 going Chicago(ORD) -> Newark(EWR) -> Hong Kong(HKG) -> Bangladesh(DAC)

      Given that HKG is in China, and near Taiwan, and the rest of asia is even closer I think that about covers that.

      Nice try, but please, save it.

      Having dated a Taiwanese girl, I can tell you first hand that they:
      a) pay for the visa processing out of their own pocket.
      b) have to work the first two months withount pay while their visas pro
      • A quick look at travel.yahoo.com says I can send an indian worker back to India TONIGHT for $1778 going Chicago(ORD) -> Newark(EWR) -> Hong Kong(HKG) -> Bangladesh(DAC)

        One problem with this: Dhaka (formerly spelled Dacca, hence the airport code DAC) = the capital of Bangladesh.

        Bangladesh != India.

        Cancelling the contract of the Indian H1-B in question is one thing...but dumping his ass off in the wrong country that same day? Do you plan on kicking his dog too? ;)

      • Geography correction (Score:3, Informative)

        by saha ( 615847 )
        HKG is in China

        Hong Kong is not in China contrary to what you have heard . Hong Kong borders China and is not fully part of China until 2047. In 1997 the British started the hand over process to the Chinese, where the next 50 years the one country - two systems policy is being implemented. Hong Kong is designated SAR, which stands for Special Administrative Region. If you go to Hong Kong they will give you a free tourist visa at the airport and then if you try to cross over to China's border you'll pr

    • Re:Cost to hire? (Score:5, Insightful)

      by _Sharp'r_ ( 649297 ) <sharper@NOsPaM.booksunderreview.com> on Tuesday October 25, 2005 @04:01PM (#13875302) Homepage Journal
      The article and referenced study is useless. It doesn't account for permit fees and the cost of regulation compliance, it doesn't control for the employee's age/experience/skills. It tries to generalize across huge categories of workers (programmer/analyst?) that in reality vary wildly.

      The theory that "funny-named people who speak with an accent tend to have a harder time getting hired for as much money" is as equally sound of a conclusion as this guy's conclusion. At least my theory could actually be proved if you used better information in the study. It's a lot harder to prove a mind-reading result with financial data, as opposed to say, a controlled survey of the people who have hired H1-B workers.

      The article can be summed up as:

      1. Add up some random salary facts
      2. Ignore any major controls for those facts
      3. Draw completely irrelevent conclusion (He makes a socialogical conclusion reading employers minds based on financial data.)
      4. Post a commentary to /. in order to get traffic and notice. Make sure your conclusion is in line with /. reader's financial interests.
      4. ????
      5. Profit!
  • by Trogre ( 513942 ) on Tuesday October 25, 2005 @03:45PM (#13875108) Homepage
    A new study shows that companies hire foreign workers for cheap labor, not skill.

    I'm curious, did anyone at all believe otherwise?

    • by IdleTime ( 561841 ) on Tuesday October 25, 2005 @04:22PM (#13875567) Journal
      Well, I came on an L-1 visa and had close to 15 years experience in my field. I'm paid better than most of my coworkers and I'm currently in the top 5% that the company want to retain at all cost. My company also sponsor green cards for the workers that need them.

      In some areas, it doesn't matter where you come from as long as you have the right skills. I'm from a north european country and can honestly say that I will not get an American citizenship, ever. I probably move back home in 5 - 10 years time and retire.
  • And thats the real problem. Then again, i live in the middle of nowhere. Maybe i should start offering outsourcing for companies in CA who dont want to pay their programmers $80k+ a year
  • LOL... nice theory...
  • Working since 2000 to bring you news of how badly programmers are treated!

    Still, in reality, is this any different than Norm Matloff's reports saying exactly the same thing over the past 5 years? And does anybody REALLY have any doubt that guest worker programs are just ways to lower wages in a given industry?

    The exact same method was used to break up the California Agriculture Worker's Union back in the 1970s- and will continue to be used.
  • ...corporations charge too much for their products.
  • by wealthychef ( 584778 ) on Tuesday October 25, 2005 @03:49PM (#13875165)
    I'm not sure how the assertion that these workers are less skilled is borne out here. This is just more globalization fallout. Apparently, programming skills are not as precious as we would all like to think; there are many workers in China and India that will work for less than half of what we make here; this is the same thing that has happened in other industries historically. The only way to save our skins is to continue to provide more value or agree to work for less. Programming that can be shifted overseas effectively is going to go there and no amount of complaining will do it. I say it's better to attract and hire these people here in America and let them build industries here than to push them out and artificially fix wages high here. Protectionism will not work.
    • Depends on how far you want to go with the protectionism. I'm sure a set of viruses specifically attacking Indian and Chinese IP address blocks would work for a short time. And of course, there's always the option taken by populations who have found their livlihoods threatened: Invasion and war.

      That last would be really interesting- the globalists usually claim that free markets prevent war rather than causing it!
      • That last would be really interesting- the globalists usually claim that free markets prevent war rather than causing it!
        Strictly speaking, a globalist would claim that this kind of situation is caused by the current lack of globalism, and any kind of resistance or protectionist measures are only increasingly more likely to cause conflict of this nature; i.e., delaying and complicating the problem rather than actually doing anything about it.
        • Strictly speaking, a globalist would claim that this kind of situation is caused by the current lack of globalism, and any kind of resistance or protectionist measures are only increasingly more likely to cause conflict of this nature; i.e., delaying and complicating the problem rather than actually doing anything about it.

          There's nothing anybody can do about it, was the claim above. What specifically to the globalists suggest we do about the same skillset being allowed a half a world away at 1/10th the
    • by ameoba ( 173803 ) on Tuesday October 25, 2005 @04:33PM (#13875696)
      Given the numbers, there are only 2 reasonable conclusions : either that H1-B employees are considerably underpaid, or they are being brought in to fill low-ranking (ie - less skilled) positions. Either way, the H1-B program is being abused since it's supposed to find highly-skilled workers that can't be found on the local job market NOT fill up entry level positions with underpaid workers. It's really hard to argue that anyone filling an entry-level position has high-demand, specialized skills, not to mention that -not- filling entry level jobs with domestic workers will only further complicate any real existing lack of skilled domestic workers at higher levels.
  • by vrtladept ( 674792 ) on Tuesday October 25, 2005 @03:49PM (#13875168) Journal
    The Sky is Blue!

    Water is Wet!

    Companies are about making money!
  • So from my pay... (Score:2, Interesting)

    by suitepotato ( 863945 )
    ...I'm a foreign national working on an H1B. I mean, at the pay I get versus what all the pundits, reports, studies, and "in the know" people say I should be getting, I must be.

    Hey, wake up, pay sucks everywhere. Even for those born here. Consequence of the extended hangover from that double bubble burst...
  • Lesser evils (Score:4, Interesting)

    by 0xABADC0DA ( 867955 ) on Tuesday October 25, 2005 @03:52PM (#13875199)
    Do you want those people paid 20k less here, where they will spend some of it on cars, food, etc, or do you want them paid 40k less in India/China? It sucks, but about the only thing that stops this race to the bottom is us being better.

    We need to invest in schools and teach our kids skills (like how to reason). It's the only realistic way to prevent sliding into mediocrity.
    • Re:Lesser evils (Score:3, Interesting)

      by JimBobJoe ( 2758 )
      Do you want those people paid 20k less here, where they will spend some of it on cars, food, etc, or do you want them paid 40k less in India/China?

      An Indian acquaintance (who is a semi-powerful businessman back in India) says that outsourcing was the direct result of reducing H1B visas several years back.

      In most instances, Indians rather immigrate, but with a visa shortage they were contented to be paid significantly less and remain in India. His point was that the US shot itself in the foot, and is about t
  • I don't think anyone reading slashdot is surprised by this. Companies use H-1B people as the closest legal thing to indentured servants.

    The companies do generally pay the legal fees for said person to get a green card. So while the time as H-1B is "bad" compared to being a citizen or green carded, most of them feel it is worth it for the green card. After all the INS listens to high paid corporate lawyers much better than to the poor immigrant. (Or maybe the lawyers just know how to work the system bet
    • by fiannaFailMan ( 702447 ) on Tuesday October 25, 2005 @04:13PM (#13875458) Journal
      ... and I refute the implication that I'm treated like a 'slave' or 'indentured labourer.' Yes I might make less than a US-born programmer, but I make a hell of a lot more than I was getting in the UK. Plus, I get all the benefits of being in California (cool lifestyle, nice weather, affordable stuff, etc.). And as someone else said, it's better for you guys that I'm here spending my money and paying taxes here rather than remaining in the UK and doing outsourced work from there.

      On a side note, I can't vote here despite paying my taxes to Uncle Sam, but I can vote in UK elections by mail.

      The other down side is that if my job goes, my visa goes with it soon after and I'm on the next plane back. However it becomes a lot easier to go through the green card application process when you're based here.
  • I can rest assured now knowing that my job is safe-- I make less than a H1B visa employee.
  • Saying that these H-1B visas have no skill is a bit stretching it. Even for California 53K is a lot to pay for an unskilled worker.
  • System or people? (Score:4, Insightful)

    by Malc ( 1751 ) on Tuesday October 25, 2005 @03:57PM (#13875259)
    Is this really caused by the industry, or by the H1b workers themselves? I think many H1b workers are less aggressive in increasing their salaries than native Americans (not a reference to First Nations). Some of the impediments that kept H1b workers in their places afraid to lose their jobs were removed years ago. The main one of these being the ability to switch jobs immediately and then apply for a new H1b with the new employer. I've been an H1b and was earning more than the average in the TFA back in 2000 in Colorado. Part of the reason I had a good salary was due to a work colleagues going and demanding (without my knowledge) that I have a higher salary. My cultural background hadn't prepared me to fight for my salary in this way, which is required in the US. On top of that, I was much more forthcoming and stubborn about my salary than many of my other H1b work colleagues from other cultures.

    Some might argue that the industry is taking advantage of H1b worker's cultures to keep their salaries low. I think it's more the other way around. This subject seems to garner quite a lot of hysteria and sensationalism and is a very good tool for politicians and certain media companies who claim to report news to further their own agendas.

    BTW, I'm no longer an H1b. I moved to Canada, a country that is more accepting of immigrants.
  • by spoonyfork ( 23307 ) <spoonyfork@@@gmail...com> on Tuesday October 25, 2005 @03:58PM (#13875266) Journal
    Ask the H1Bs in the US how they feel about their jobs being taken away by the B and C list programmers back home in Bangalore. Imagine working your ass off to come over here for the opportunity only to have the guy from your CIS101 class who thought HTML was a programming language steal your job. Global economies are teh suck.

  • Arrogance (Score:3, Funny)

    by COMON$ ( 806135 ) on Tuesday October 25, 2005 @03:59PM (#13875283) Journal
    I think the greater problem is with American arrogance. I think it is an eye opener for us to see that, no you dont need 90K to survive and have a great life. It is the American dream to look down on the rest of the world or your neighbor so that you can feel better yourself. So what you have to buy last year's model of sports car, or your home only costs half a million dollars. There are worse things to happen.

    We think just because we are American that that entitles us to higher pay than the rest of the world. If we werent so arrogant we wouldnt see the outsourcing of jobs we do. Accept the fact that 53K is a good wage and anyone can live quite happily on that amount.

  • by Chris Burke ( 6130 ) on Tuesday October 25, 2005 @03:59PM (#13875292) Homepage
    No kidding it's a swindle. That's the whole thing that pisses me off about it! I have no problem in general with some American losing their tech job in favor of some non-American gaining a tech job. What I have a problem with is that what really happens is an American loses their well paying tech job, some non-American gains a usually well paying job by their standards but still vastly less than what it replaced, and then the executives give themselves phat bonuses for saving money.

    They have no incentive to pay them well. As always, they will pay only the absolute minimum necessary to get someone to do the job, and yes considerations like "quality" are fortunate if they are considered at all like all non-bean-countable aspects of business. The result is more money concentrated in the hands of the few, fewer well-paying jobs for skilled people in this country, and oh yeah a little bit different distribution of what wealth remains. Gutting the American middle class for fun and profit!

    And if the ones getting those not-so-bad paying jobs in India think they aren't going to be next when the greedy whores realize that someone in China will work for a third of what the Indian does, well, they'd be exactly like we were not so long ago. :)

    I wish there was some reasonable way to cap the salary of executives to, say, 20x what their average employee makes, including outsourced/contracted work (which is part of what makes this seem impractical to me). Cap their bonuses and other compensation similarly. Then you'd stop seeing employers struggling to pay their employees less and less, they'd have an incentive to pay them more. Since they'd be paying more for employees, you might see them caring more about quality that they're getting for their money no matter where they are hiring from.

  • That H1-B employees might also be less productive than US nationals? After all, most likely English would not be their native language and communications skills are important to quality productivity. Of course, if you're a die-hard marxist, everyone should be paid the same anyway...
    • Indians.... (Score:3, Insightful)

      .... speak English, very often better than USians or even British people (gramatically speaking, the accent is a completely different matter, I know of people from different regions in the US that struggle to understand people from other US places, and don't ask a Londoner with strong Cockney leanings to try to understand a person from Glaswog).

      I work with Polish, Chinese, Pakistanis, Indians, Spanish, Japanese, Italians and of course USians and British people, and frankly the language is a non issue in mos
  • Sigh. (Score:5, Interesting)

    by Gruneun ( 261463 ) on Tuesday October 25, 2005 @04:02PM (#13875317)
    That means the largest concentration of H-1B workers make less than [the] highest 75 percent of the U.S. wage earners

    Yet, the oppressed foreigners keep taking advantage of the visas. Shame on the evil corporations for taking advantage of these poor people. To think, they could be spending more on their own countrymen and supporting their grossly disproportionate wages.

    Rather than say, "Hey, you're trying to pay less for programmers!" we should be saying "Hey, are we getting paid too much? Are we pricing ourselves out of positions?"

    Don't get me wrong. I've been a programmer for quite some time and it sucks, but supply and demand concepts aren't limited to one country. The world is getting smaller and more connected. National economies are merging into a world economy. No amount of artificial propping-up by local governments is going to keep it from happening. Get used to it.
    • "Free" Markets (Score:5, Insightful)

      by Vicissidude ( 878310 ) on Tuesday October 25, 2005 @05:00PM (#13876002)
      Rather than say, "Hey, you're trying to pay less for programmers!" we should be saying "Hey, are we getting paid too much? Are we pricing ourselves out of positions?"

      No. Any cheap work that could be done overseas is already being done overseas. The work that's left in the US would stay in the US regardless of what pay programmers demand. So, companies can only reduce the amount they pay in wages by artifically increasing the workforce and reducing the demand for high-skilled workers.

      This has nothing to do with "free" trade in labor and everything to do with market manipulation. These companies do not want to deal with the free market as it's currently structured. So, instead of dealing in the free market, they'd rather redefine the labor market in their terms.

      These companies would rather have completely open borders in the US where everyone from everywhere could freely enter. We've already heard Bush say exactly that. Labor costs in the US would plummet. So would the standard of living, but companies and the current administration don't actually care. The only reason they don't push that through now is that they've been pounding security for the last four years. Also, the majority US citizens, both Democrats and Republicans, don't want any more foreigners entering the country to take away jobs. If anything, people want the foreigners to leave so we could actually get some work and decent pay raises around here.
      • Re:"Free" Markets (Score:3, Interesting)

        by Gruneun ( 261463 )
        These companies do not want to deal with the free market as it's currently structured.

        If you're requiring a certain structure, it ceases to be a free free market. What you're attempting to do is prop up the economy by limiting the number of competent workers that can come in and work here. This mindset has failed miserably in the past. It happened to the textile industry. It happened to the steel industry. It's happened to the automotive industry. Now, it's hitting the IT industry. The standard of li
    • Re:Sigh. (Score:3, Insightful)

      by jrcamp ( 150032 )

      Don't get me wrong. I've been a programmer for quite some time and it sucks, but supply and demand concepts aren't limited to one country. The world is getting smaller and more connected. National economies are merging into a world economy. No amount of artificial propping-up by local governments is going to keep it from happening. Get used to it.

      I will not get used to it. There's a difference between competing in a free market and having your own government bring in non-US citizens to compete directly

  • Yeah, send 'em home, where they'll make even LESS money! I bet they'll feel really great about that.

    If we'd just stop sending people over there to put guns to their heads and force them to come work here, they'd be so much better off.

    Giving somebody 75% of an American wage to leave their home country, where the average wage is something like 7.5% of here, is not exploiting them; it's a win for the employer and a win for the employee. They can work here for a year and make what they'd make in 10 years back
  • by janolder ( 536297 ) on Tuesday October 25, 2005 @04:04PM (#13875344) Homepage
    While I'm sure there is some validity to the article, I do wonder whether the authors compared apples and oranges. What happens to an H1-B holder after a few years? He becomes a permanent resident. What also happens in that time-frame? His pay increases.

    In other words, I strongly suspect that the data can partly be explained with the lower average experience (or time on the job, if you will) of H1-B holders. I certainly see that at my workplace.

    I work for a quickly growing 600 employee company with a significant H-1B percentage. Part of my job is interviewing and recommending engineers. I have never been pressured to hire an H1-B candidate over a permanent resident or a citizen. Our one and only concern is qualification. I've also never seen a case where the hiring team's choice of a candidate was overruled on the basis of cost.

  • by ShyGuy91284 ( 701108 ) on Tuesday October 25, 2005 @04:24PM (#13875590)
    Is there really anything wrong with that? Most large companies already outsource many jobs overseas. Since these people are not citizens, they may plan on making some money here, and spending it at home to improve their life there. There's nothing wrong with that morally of course, but that would be bad for the US economy. I don't know many foreign people that have worked in the US, but the few I have have eventually gone back to their native country. I might go to Japan someday and work. I wouldn't expect to get full pay as a foreigner though since it might not go back into their economy. Now if I was registered as a citizen and wasn't getting equal pay, then it might be something to bitch about.... But in typical working situations, people that get payed are expected to just put the money back into the economy, and that doesn't always happen w/ non-citizens.
  • Devils IT Advocate (Score:3, Insightful)

    by KrackHouse ( 628313 ) on Tuesday October 25, 2005 @04:33PM (#13875705) Homepage
    If you're opposed to H1Bs ask yourself a question... Are you using anything that wasn't made in America? Think of all the American jobs lost because you weren't checking for "Made in the USA". So why is it that cheap foreign labor is just fine when it makes your shoes and electronics cheap but "immoral" if it happens to affect the industry that employs you? The American car industry tried that in the early 80s and it backfired. Import tarrifs were needed to keep prices equal with the Japanese which raised prices for CONSUMERS un-naturally. Nobody wanted to pay the inflated prices so sales tanked costing 50,000 jobs. Sure, Americans working at the Honda dealership lost their jobs but at least the Japanese couldn't embarass us with their amazing productivity right?

    I do not want to pay more for my stuff because you can't compete with foreigners. The alternative is that we just offshore the work in which case they don't spend money in America which is even "worse" for the economy. Please read Bastiat's famous plea [bastiat.org] to ban sunlight for the benefit of candlemakers if you disagree. They were making fun of this type of logic in the 1800s.
  • by erroneus ( 253617 ) on Tuesday October 25, 2005 @04:36PM (#13875738) Homepage
    People start dragging out their same tired old positions on the topic of H1B visas and don't seem to be talking about the actual article. It's unsurprising. We have all decided our positions on the issue long ago. (Aren't we all just so Pavlovian?)

    This article is about bringing to light some general evidence of illegal practices that are defrauding the U.S. Government. It's a serious crime that doesn't get punished often enough and it's pretty sad. I actually still believe in the whole free market drive. If programmers are available from somewhere else cheaper, then let it be. Maybe programmers are overpaid anyway. I don't know enough about it to really know if that's the truth or not. But when we're talking about defrauding the government in order to lower your businesses operating expenses, then I'd say someone needs to be held accountable and should be barred from holding office in a publically trade corporation.

    Businesses that operate (and compete against others) using illegal activity should be shut down plain and simple. If the evidence offered by the article is skewed or incorrect then of course that should be discussed and wouldn't it be nice if we had evidence offered that would counter the article's assertion? ...anyway...
  • by mkcmkc ( 197982 ) on Tuesday October 25, 2005 @04:40PM (#13875785)
    World per-capita income is something like US$10K/year. For those of us who have been making more than this, we may consider ourselves lucky. (And just that--lucky--not morally entitled.) It's only fair that other people in the world get a turn at the trough, and in any case, it's inevitable. No point wailing about it.

    There are two things that you actually have the power to do to help yourself:

    • Look for employment niches that cannot be economically off-shored, H1B'ed, etc., in the near future. They exist, and that's where the hidden hand of capitalism is telling you to go.
    • Stop spending money. You don't need three cars, you don't need cable, you don't need to eat out, and rice and beans are really cheap. There's a storm coming, and it's time to save like you've never saved before. (Yes, if everyone does this, the economy will crash. That's inevitable, too, as long as so much wealth is concentrated in so few hands.)

    Complain if you like, but above all, act.

    Mike (trying to practice what he preaches)

  • Oh please! (Score:3, Insightful)

    by sprayNwipe ( 95435 ) on Tuesday October 25, 2005 @04:43PM (#13875809) Homepage
    (Disclaimer: I'm a dirty foreigner caught in red tape)

    I've had to go through a number of processes and trust me, H1B's are hardly "easy ways to get cheap labor" for employers.

    Maybe you're forgetting that the usual visa cost for one of these is $20,000? Or that the visa only lasts for, at most, 5-6 years?

    What about the fact that most cases where "dirty foreigners" are needed are in skilled creative fields like games, which also (suprise suprise) end up having lower salaries?

    Or maybe that you have to apply about a year in advance, and that makes ultra-skilled people gravitate towards visas like the L-1 and the O-1(that can be renewed indefinitely), thereby skewing salary surveys?

    If employers want cheap labor, they'll outsource to India, not go through years of government red tape and tens of thousands of dollars per employee.

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