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Microsoft Businesses Government United States News

Senator Prods Microsoft On H-1B Visas After Layoff Plans 574

CWmike writes "US Sen. Charles Grassley (R-Iowa) told Microsoft this week that US citizens should get priority over H-1B visa holders as the software vendor moves forward on its plan to cut 5,000 jobs. 'These work visa programs were never intended to allow a company to retain foreign guest workers rather than similarly qualified American workers, when that company cuts jobs during an economic downturn,' Grassley wrote in a letter sent Thursday to Microsoft CEO Steve Ballmer. The letter asked Microsoft to detail the types of jobs that will be eliminated and how those cuts will affect the company's H-1B workers." Reader theodp adds, "On Friday, Microsoft coincidentally announced it would postpone construction of a planned $500 million data center in Grassley's home state of Iowa, although work on data centers in Chicago and Dublin will continue."
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Senator Prods Microsoft On H-1B Visas After Layoff Plans

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  • awesome (Score:5, Insightful)

    by Anonymous Coward on Saturday January 24, 2009 @09:32AM (#26587967)

    What's really going to be awesome is when Microsoft, IBM, et al go to Congress for their annual request for increased H1B visas after laying off thousands of American workers.

  • by matt4077 ( 581118 ) on Saturday January 24, 2009 @09:34AM (#26587975) Homepage
    I can understand that the well-being of american workers is more important than that of visa-holders to an elected politician. However, the impact of losing the job is much higher for H1Bs, as they usually have to leave the country (within 1 week I think). Considering the fact that these are humans, too, maybe it would be acceptable to lessen these restrictions somewhat, i. e. allow these people to stay in the country for a year if they have the financial means.
  • Re:Hey! (Score:5, Insightful)

    by aliquis ( 678370 ) on Saturday January 24, 2009 @09:35AM (#26587983)

    Yeah if they accept giving them the right to work in the country then why shouldn't they work at the same merits as everyone else? I'd assume Microsoft knows better which people they need and want and which they can get rid of than this guy..

  • Re:Republican? (Score:2, Insightful)

    by Anonymous Coward on Saturday January 24, 2009 @09:37AM (#26587991)

    Yeah, I was surprised too. Mostly because, though IANAUSACitizen, I had always assumed that the party which supposedly supports less government regulation and more free markets would... You know... Think that what kind of labor a company must keep should be left to markets (who works for cheapest compared to their skills) instead of government regulation.

  • by betterunixthanunix ( 980855 ) on Saturday January 24, 2009 @09:37AM (#26587995)
    We are in the midst of a major economic crisis, and the more Americans who lose their jobs, the worse it is going to get. If a foreign national loses his job and goes back to his country, then his country will take care of him. The US government needs to focus on the US and US citizens right now, and not allow the needs of H1B guests to trump the needs of Americans.
  • by Rakshasa Taisab ( 244699 ) on Saturday January 24, 2009 @09:49AM (#26588069) Homepage

    So you're kicking out talented and resourceful people so that you can keep some fat lazy Americans in work?

    Yes, that sounds like the best way possible to prepare for bouncing back after the recession.

    Oh... I guess stereotyping never works well, yet the H1B are mainly high-skilled workers. Sending them back home only gives their home country, or what ever country they decide to relocate to, an invaluable resource.

  • They will not (Score:5, Insightful)

    by WindBourne ( 631190 ) on Saturday January 24, 2009 @09:51AM (#26588081) Journal
    They are all simply hiring elsewhere.
  • Re:Republican? (Score:4, Insightful)

    by Opportunist ( 166417 ) on Saturday January 24, 2009 @09:51AM (#26588083)

    I guess every politician who one does not agree with is more likable when he's not in power...

  • by Anonymous Coward on Saturday January 24, 2009 @09:53AM (#26588085)

    I'm pretty sure that Microsoft's "firing criteria" is based solely on the merits/abilities of the individuals in question. They are not going to fire someone just because he's a foreigner, they would much rather fire someone who's local and sucks at his job. That said, I'm pretty sure there are a lot of inept foreigners at Microsoft to fire - but putting pressure on them to protect American jobs? That's just stupid and will lead to Windows 7 being more suxors than before.

  • H1Bs are wrong (Score:5, Insightful)

    by mlwmohawk ( 801821 ) on Saturday January 24, 2009 @09:55AM (#26588111)

    The "guest worker" program is nothing more than a gift to large corporations to get cheap labor that is almost an "indentured servant."

    Seriously, what employer wouldn't want to be in the position to employ reasonably killed labor that *HAS* to work to to say in the country. They are a lot easier to intimidate. They can't raise labor issues for fear of having to leave the country.

    H1Bs come to the US. Work for less than the prevailing wage. Are not "citizens" and do not have the same rights. Can be easily intimidated: "Don't want to work on the week-end without pay? Your fired, now go back to your own country."

    Then if they lose their jobs, not only do they have to leave, but they have to pay to leave. Lose their last month's security deposit on their apartment because they have to break the lease.

    H1Bs reduce the prevailing wage, exploit foreigners, and are generally bad policy for middle class.

    As for Microsoft, or any employer, *all* H1Bs should be dispensed with *before* any american gets laid off.

  • Re:Republican? (Score:2, Insightful)

    by Anonymous Coward on Saturday January 24, 2009 @09:56AM (#26588125)

    Actually, it's none of the senator's business. Gates and Ballmer should have the right to hire and fire anyone they please.

  • Re:Hey! (Score:5, Insightful)

    by evilphish_mi ( 1282588 ) on Saturday January 24, 2009 @09:58AM (#26588147) Homepage
    no they shouldn't they should be allowed to hire the best workers for the job.
  • Re:Republican? (Score:5, Insightful)

    by calmofthestorm ( 1344385 ) on Saturday January 24, 2009 @10:03AM (#26588189)

    1) Everyone is more likeable when not in power.
    2) Neither party actually practices what it preaches to any reasonable degree. If you want to vote for a balanced budget, exactly who do you vote for? Tax and spend democrats or borrow and spend republicans? (feel free to translate to non-depression times to make the question fair)

    Of course that's a gross oversimplification, but balance is always in the middle, so we see parties break with their stereotypical views on issues from time to time. If anything I'd be more worried if we didn't.

    Also not every single member of a party is in complete alignment with the party. I lean left, but I'm still in favor of guns, free markets (to the degree that this is possible while keeping them competitive), and against racism by any name. I fail to see why politicians should be any different, except perhaps more tacit on their views.

  • by Anonymous Coward on Saturday January 24, 2009 @10:05AM (#26588203)

    Can't you just write some code for the Linux kernel or something? You don't need to go hat-in-hand to some faceless HR douchebag begging for a few scraps to do that.

    On a side note, I just hate recruiters. They all ask the same stupid questions, sometimes even the same question multiple ways in the same interview. One of these cunts called me fishing for a reference for a prospective hire that I worked with 5+ years ago and he must've asked me 5 different ways what the hire's strengths and weaknesses were. I just gave him the same answer 5 times. These guys are nothing more than self-inflated gatekeepers. They do the paperwork version of flipping burgers, read a few fluff pieces on yahoo.com about how to hire new staff, and then proceed to ask you the same question 5 ways. Get over yourself, dude. Recruiter jobs are about as difficult to fill (and just as soul-crushing) as sales jobs.

    Technical sales - now there's a terrible job if there ever was one. Can you imagine wading through 4+ years of Calculus, only to be told by your employer that you'll be selling widgets for the rest of your miserable days, and that if your numbers don't improve every year then you're gone? I think I'd really struggle to find a reason to go on at that point.

  • by Anonymous Coward on Saturday January 24, 2009 @10:07AM (#26588231)

    Take for instance Bill Clinton pushed and signed NAFTA. Outsourcing was BIG under the Clinton administration.
    Where are all the folks who worked under the Clinton administration? Oh yes, working for Obama.

  • by Anonymous Coward on Saturday January 24, 2009 @10:16AM (#26588319)

    Sure. As long as skilled WHITE construction workers aren't allowed any of those jobs!

    http://www.youtube.com/watch?v=opxuUj6vFa4

  • by darkstar949 ( 697933 ) on Saturday January 24, 2009 @10:19AM (#26588353)
    The whole purpose of the H1B program was to bring foreign nationals into the country to work because the company said there weren't enough Americans who could fill the positions. However, if a company is now downsizing then it make sense that if you have a technical position that you need less people for, that the guest workers should be the first ones to be downsized. Logically, you can't claim not being able to find people to fill a position if you just laid off two people qualified for the position.
  • by SerpentMage ( 13390 ) on Saturday January 24, 2009 @10:25AM (#26588399)

    You are wrong...

    Social networks...

  • by darkstar949 ( 697933 ) on Saturday January 24, 2009 @10:25AM (#26588401)
    Actually, I would have to go back and read the way the law is written, but the Senator has a valid point in regards to this situation. You can't really sit there and lay off a large number of technical people and then say that you can find people those same technical skills to do the job and ask to bring in guest workers from out of the country.

    Microsoft might be allowed to layoff who ever they want to, but on the same token the government is able to deny H1B applications from Microsoft as well.
  • by Anonymous Coward on Saturday January 24, 2009 @10:29AM (#26588427)

    This reeks of anti-competitiveness. MS should be allowed to get rid of their 5000 least productive employees.

  • Re:H1Bs are wrong (Score:5, Insightful)

    by bahbar ( 982972 ) on Saturday January 24, 2009 @10:30AM (#26588441)
    Funny, during my H1b days, I always thought I was paid at least as much as my colleagues. I went through my company closing, and had support of everybody around me. I worked for 3 different companies in 5 years (a couple of big ones), and never once was felt pressured as an H1B. What do I know, maybe I am the exception?
  • Re:Hey! (Score:3, Insightful)

    by Anonymous Coward on Saturday January 24, 2009 @10:31AM (#26588461)
    Exactly how do you enforce that? The best person for the job might be the guy that makes 20K less for that reason alone. I am not gonna single out MS because many companies make hiring decisions this way and it is not good for America or Americans.
  • by slashdotmsiriv ( 922939 ) on Saturday January 24, 2009 @10:33AM (#26588473)

    The laid off personnel was good enough to be hired by MS, meaning that they have the necessary qualifications. H1-B allows foreign workers to work only if there are not enough qualified US citizens for the same positions.

    If MS keeps H1Bs and fires Americans that would be not only illegal but unethical too. After all MS would be nowhere if the predecessors of US citizens they fire did not struggle to build this country. There are limits to open
    immigration policies!

    PS: I am a foreign student, soon to graduate and _attempt_ to enter the US job market. I would expect my own country to get rid first of the equivalent H1Bs in a similar situation.

  • Re:H1Bs are wrong (Score:3, Insightful)

    by cOdEgUru ( 181536 ) on Saturday January 24, 2009 @10:35AM (#26588503) Homepage Journal

    Yes, that will teach them!!! Err.. wait, who are we punishing again? The employers who will merely outsource the whole division or to the families of those H1-Bs who just got laid off. Or do we care?

    The concept of a global workforce is not one that goes away as the global economic tail winds shift. Regardless of whether politicians all of a sudden grow a conscience or not.

    I am on an H1-B. I have been here for the last 9 years, and though I have seen poverty that is far more dire than that around me currently, I am not insulated against what goes on around the country. People who were paid 50k before are pizza delivery guys now, the shame that comes with the inability to afford the basic necessities for your kids, plays all across communities around the country.

    But how do you ever plan to make all of them right, by getting rid of all the immigrant families here now?

  • by darkstar949 ( 697933 ) on Saturday January 24, 2009 @10:43AM (#26588557)
    That is true. However, the assumption is that if you have two people with the same job description, then that is two people whom the company thinks is qualified to do that job.

    Also, since the H1B program is a government program, then they have to hold to the law of the land which assumes that all of the employees are in fact equal (actual work performance not withstanding) which means that the company must justify laying off employees who were filling a job that they are now requesting a H1B visa for.
  • How about... (Score:5, Insightful)

    by Hurricane78 ( 562437 ) <deleted @ s l a s h dot.org> on Saturday January 24, 2009 @10:58AM (#26588665)

    ...keeping those people that are the most competent?

    Makes more sense than keeping incompetent lazy Americans or incompetent lazy foreigners.

    Oh well... why do I expect business decisions of a big company to make sense?

  • Re:Republican? (Score:5, Insightful)

    by Curien ( 267780 ) on Saturday January 24, 2009 @11:07AM (#26588737)

    Many Republicans and other economic conservatives profess to believe in free markets and deregulation. Hypocritically, they staunchly support (and often demand) labor market regulation.

  • by Ralish ( 775196 ) <sdl@@@nexiom...net> on Saturday January 24, 2009 @11:09AM (#26588759) Homepage
    I always twitch when I read these stories, because I always see it as hypocrisy and double-standards.

    You constantly hear about free market economics, capitalism, the global economy, etc... from America, but what it really boils down to as always is supporting the above ideals when it's good for America, and then moving them to the side when things get tough. It's the age old "America does what is best for America" mantra.

    Microsoft is going to hire and fire the best worker for the job, according to their qualifications; nationality and citizenship should be entirely irrelevant. Not only does this make sense ethically, it makes sense economically (from a corporate perspective). Why hire an inferior worker who holds citizenship when I can hire 'x' H-1B worker who is superior (and, make more money as a result)? Making money is what drives companies.

    When you're willing to advocate preferential treatment for an American citizen not because they are better equipped to do the job but purely because they are an American, you're throwing away your ideals of free-markets and global economics. Coming from a republican I find this especially amusing, as it tends to be the republicans that are the strongest advocates of pure-free market economics.

    This is potentially a great move from a PR perspective. Most Americans aren't going to call someone out for taking a position that strengthens their ability to gain employment, but from an ideological perspective, it's flimsy at best.

    Disclaimer: America isn't the only country that does this kind of stuff, but as arguably the most vocal advocate of the above economic philosophies, it's probably the most hypocritical for doing so.
  • Re:Republican? (Score:5, Insightful)

    by Cheeze ( 12756 ) on Saturday January 24, 2009 @11:15AM (#26588801) Homepage

    Wasn't it Microsoft that went before a senate committee asking for more H-1B visas because they could not find enough qualified workers?

    At that instant, Microsoft's H-1B visa workers became an issue with the senate.

  • Re:Hey! (Score:3, Insightful)

    by Curien ( 267780 ) on Saturday January 24, 2009 @11:17AM (#26588815)

    Cause aside from despotic tyranny - that is about the only system where a government official can order around a business he/she does not own.

    People should be free, not inanimate entities.

    But I'll compromise. If they give up their special favors from the government, I'll support the government removing extra responsibilities:

  • Re:Hey! (Score:3, Insightful)

    by ericartman ( 955413 ) on Saturday January 24, 2009 @11:26AM (#26588873)

    No. it is time companies look at what is best for society not just their bottom line. You and I are not allowed to do just what is best for ourselves, we cannot steal even when needed, we cannot race down the road in an effort to save a job. Companies must somehow become a functioning member of society, their existence cannot be governed solely by the drive to make more profit. Companies cannot just benefit from the idea they are entities in our society they also must learn to live with us. Just because it is more profitable for Microsoft to keep cheap labor does not make it right.

  • by wfstanle ( 1188751 ) on Saturday January 24, 2009 @11:27AM (#26588883)

    Maybe you missed something. At the bottom of the summary, it says that Microsoft it would postpone a data center in his home state. That will cause unemployment in his home state to rise and his hopes of reelection to diminish. It's all about getting reelected. It's never too early to think of your chances the next time you face the voters in a poll, especially if your popularity is waning.

  • Re:H1Bs are wrong (Score:2, Insightful)

    by Anonymous Coward on Saturday January 24, 2009 @11:49AM (#26589029)

    As an H1B worker myself, I have a few comments to offer. Although I'm sure there must be some abuse on all sides, after all we are all humans,

    1) I don't work for less than the prevailing wage. In fact both I and my employer must prove that's not the case each renewal cycle. Contrary to most people, my wages are a matter of public record and any of my colleagues or anyone who has ever applied to a similar position in my company can challenge that at any time. If they can prove I work for less than the prevailing wage, I'll be fired;

    2) it is certainly true that I have a little bit more incentive to work hard and not lose my job, because if I do than I have to move. To move to a different country. Have you ever done that? It's a pain. It's very inconvenient -- no to mention very disruptive to my son, who was born in this country and to whom growing up American is all he has ever known all his life. However being able to show years of experience working at a top-notch American company along with all the promotions and commendations I have earned while doing that will find me a good job almost immediately in my home country. Heck, I already had a very good job there before I was hired into this one. This job and the wages it pays are not the reasons why I decided to become a guest worker in America. My admiration for this country, its people, ideals, culture and society have been more important to me. A desire to contribute to this society is what keeps me here. We all know we don't get to pick our parents but we do pick our spouses (well most of us anyway). Similarly, you don't get to pick where you're born but you certainly get to pick your alliances and who you admire.

    I can't stress this enough: please understand H1B workers tend to be highly successful in their countries of origin. You can't compare dollar amounts alone when making this decision, you must compare quality of life. It really doesn't matter that I do twice the dollar amount at my current job. I have exactly the same quality of life I was used to. The things I can afford and the quality of life I can provide for my family are not that different. If it came down to money alone, it would be a poor financial decision to sell your stuff, say good bye to all your friends and relocate to a different continent only to start over again, this time with no safety net. To put it bluntly, we're not desperate destitute illiterates who will risk crossing the border at night for a few pennies.

    3) I have never felt like an indentured worker. I am treated very well by my company, I make just as much money as everybody else in my position, I have the same perks, health care and fringe benefits. Sometimes I get picked for a promotion or raise, sometimes somebody else gets picked instead. I like to think I'm treated well by my company because I'm a good investment. I don't want to be measured by any other system.

    4) If you must rely on the accident of your place of birth to obtain or retain a job, all that tells me is that you are probably not very good at it. In my experience, competent hard-working people will take care of themselves in any country you care to mention, under any economy you can think of.

    Finally, I'm a guest in this country now but that doesn't stop me from expanding my network and getting to know, understand and respect people. If I'm forced to leave, next time I need to hire in my hypothetical future job I might as well sponsor some current American colleague whom I've grown to admire for the quality of his/her work. The US will then have lost not one, but two skilled workers. Despite all the talk I know this country is smarter than that.

  • by Splab ( 574204 ) on Saturday January 24, 2009 @11:58AM (#26589109)

    In Denmark we have a fixed grace period, however foreign workers do have a hard time getting a job since there is a minimum required pay for keeping the green card (which in effect puts the foreign worker in the top 50% payment), this severely reduces the gain for companies when hiring foreigners.

    On a side note, I thought the US was build on people coming from bad situations to live the American dream, you guys sure have changed your mindset lately.

  • Stupid argument (Score:5, Insightful)

    by yabos ( 719499 ) on Saturday January 24, 2009 @12:00PM (#26589131)
    Why do you think every single H1-B holder is some loser without anyone to care for and has no obligations except to themselves? How do you know if they have family back home they're sending money to? Seriously that's a stupid argument and you're assuming some foreigner is working for less money than a native. From my experience the foreigner will make the same as a native at a company like MS.
  • Mein Kampf!? (Score:2, Insightful)

    by cpscotti ( 1032676 ) on Saturday January 24, 2009 @12:01PM (#26589153)
    America for Americans? (Not that I find it bad, nor that I agree with it, but this really made me remember the illustrious "Mein Kampf")
  • Re:Republican? (Score:4, Insightful)

    by WindowlessView ( 703773 ) on Saturday January 24, 2009 @12:08PM (#26589203)

    a republican doesnt like foreigners. sounds normal to me.

    Or more surprisingly, a Republican who likes American workers? Wall Street must really be broke if they are slumming like this.

  • Re:How about... (Score:2, Insightful)

    by Savior_on_a_Stick ( 971781 ) <robertfranz@gmail.com> on Saturday January 24, 2009 @12:23PM (#26589337)

    Non compete clauses are generally unenforceable.

    There are high profile exceptions to that, but for most of us, it's safe to ignore them.

    They tend to be extremely one sided, and rarely go to court for that reason.

  • by DoofusOfDeath ( 636671 ) on Saturday January 24, 2009 @12:24PM (#26589345)

    So you're kicking out talented and resourceful people so that you can keep some fat lazy Americans in work?

    There's so much wrong with your characterization of the issue that it's hard to figure out where to start...

    H1B workers can be paid significantly less than native workers. If you're carrying $100k in student loans from having been educated in America, and the H1B program brings in someone who can afford to work for $30k/year, you're screwed. Being undercut by inexpensively educated foreign workers makes one neither fat nor lazy.

  • Re:Republican? (Score:5, Insightful)

    by commodore64_love ( 1445365 ) on Saturday January 24, 2009 @12:27PM (#26589375) Journal

    >>>Think that what kind of labor a company must keep should be left to markets (who works for cheapest) compared to their skills) instead of government regulation.

    That's true, but since it was the *government* who brought the foreign workers to the U.S., it's no longer a free market. It's entirely reasonable to say to Microsoft, "If you layoff American workers, we the government will take a hands-off policy and no longer help you with your future labor shortages. Figure it out on your own." The Republican policy can best be described as non-interference (sounds like Star Trek).

  • by 0xdeadbeef ( 28836 ) on Saturday January 24, 2009 @12:32PM (#26589431) Homepage Journal

    The real fault with the H1B program is that it is structured in a way that encourages companies to offshore jobs.

    No, the real fault with the H1B program is that it is nothing more than a scam to undercut the market rate for specialized skills and to depress all salaries by keeping guest workers beholden to their sponsoring corporation.

    Instead of keeping those skilled workers under the gun of deportation, give them green cards, put them on the road to citizenship, and that solves all problems. They are able to shop the market, so salaries aren't depressed. They won't return to their home country, so offshoring is diminished. They bleed competing countries of their best and brightest and push the lowest performers out of our own market, thus making our country as a whole more competitive.

  • by aaarrrgggh ( 9205 ) on Saturday January 24, 2009 @12:34PM (#26589457)

    Oh Bullshit! I own a small engineering firm and have interviewed over 40 people in the past 12 months. Made offers to about five, and hired three. Still have about five unfilled positions.

    We contemplated hiring a few H1Bs, because those were the only people that responded to us through Monster (well, other than recruiters wanting 30% first year salary). Some were actually citizens or Canadians, but all of the same ilk-- will work for anything, but difficult to divine what skills they really had.

    As for the 87% of remaining candidates, they were awful. Send a freaking thank-you letter! Research the company in advance! Understand what they do and how you think you might fit in.

    As for the Entitlement Generation-- you better get over it quick. Hoping to make 10% more starting than last year's graduates isn't a very logical strategy. Figure out what you need to make starting to survive, and work up from there. If you are as good as you think you are then you will get rewarded in time... and you will gain valuable experience.

    As for firing H1Bs first, that is just the dumbest, most protectionist idea ever. You need to keep the people with the best value when you are cutting back, independent of national origin. Since many H1Bs are underpaid, they do have an advantage on the denominator but not necessarily on the numerator.

    Granting new H1Bs now is pretty stupid politically, but doesn't make much of a difference in the real world. Deny them to companies that are laying people off or to the independent contractor job shops, but keep the only viable immigration option for talented people that actually want to move here open!

  • Re:Republican? (Score:3, Insightful)

    by timeOday ( 582209 ) on Saturday January 24, 2009 @12:48PM (#26589595)
    But even xenophobia has its price. That's why they border is still open; the left wants to be nice to everybody and the right is addicted to cheap labor.
  • Re:H1Bs are wrong (Score:3, Insightful)

    by drsquare ( 530038 ) on Saturday January 24, 2009 @01:02PM (#26589721)

    As for Microsoft, or any employer, *all* H1Bs should be dispensed with *before* any american gets laid off.

    That assumes that all workers are seamlessly interchangeable. Let's suppose you have 5,000 H1Bs doing complicated work on the kernel of Windows 7. Then you have 5,000 Americans inventing catchphrases for the talking paperclip. If MS decide to cut costs my abolishing the paperclip division, they can't move those workers over to the H1B work because they're just not qualified for it.

  • Re:Republican? (Score:4, Insightful)

    by DiegoBravo ( 324012 ) on Saturday January 24, 2009 @01:39PM (#26590069) Journal

    Having friends (and relatives) in both sides of the issue, I really sympathize with you and by no way deny this is actually happening. This H-1B fever never should be started at all, and actually damaged a lot of american works (blame the government of course.) My point is that now you/companies can't treat non-americans like disposable resources as a lot of people is advocating here... you know, that kind of treatment is what originally started this whole issue against locals.

  • by ClosedSource ( 238333 ) on Saturday January 24, 2009 @01:42PM (#26590103)

    Of course there are lots of people in the world that would love to legally work in the US even temporarily . The H1Bs are among the luckiest ones.

  • Re:Republican? (Score:4, Insightful)

    by htnmmo ( 1454573 ) on Saturday January 24, 2009 @01:48PM (#26590163) Homepage

    The free market doesn't work without consumers.

    The reason it's profitable to use cheaper labor is because you're selling to higher earners. If you make sneakers at $1 a pair, you make a profit by selling them for $60.

    If you outsource a large number of your workforce and don't have other jobs they can do at the same pay, they won't be buying lots of $60 sneakers.

  • by Stew Gots ( 1310921 ) on Saturday January 24, 2009 @01:52PM (#26590209)

    Outsourcing was BIG under the Clinton administration.

    You are right about Clinton. The jury is still out on Obama.

    Let's remember that Clinton was THE poster boy for the Democratic Leadership Council, the corporate propaganda outlet of the Democratic Party. This group is largely responsible for there being no real difference between parties when it comes corporate influence on policy and legislation. They wanted to get a piece of the corporate gravy train and they sold their souls to get it.

    The future? Well, did you discern any difference between the number of private corporate parties given at the Democratic versus Republican conventions? I didn't. Do we think that $175 million of largely corporate money for the inauguration will be free? Regardless of much integrity Obama may have, it is hard to ignore that kind of pressure. Telecom immunity, anyone?

  • by RightSaidFred99 ( 874576 ) on Saturday January 24, 2009 @01:55PM (#26590235)

    Bullshit. If you're working for "less than you are worth" you can find another job. If you can't, then by definition you're working for exactly (or more than) you are worth.

    When some whiny bitch H1B IT worker goes and watches a garbage man, or a construction worker, or a dude who works in 115 degree weather fixing roads and then legitimately claims that he's "worth" more than he can negotiate out of willing employers, uhh.. well, I'll know he's lying.

    People working H1B's are better off than the majority of people in America, much less the rest of the world. Whining about it won't generate much sympathy.

  • by thejynxed ( 831517 ) on Saturday January 24, 2009 @01:58PM (#26590259)

    And now that outsourcing issue is starting to bite these giant conglomerates in the ass. These USA-trained IT specialists are starting competing companies back on their home turf and elsewhere, poaching prospective H1-B employees right from under the noses of IBM, MS, Apple, etc. I've personally met people (some of them with PhD's) who have decided to return home to either start their own competing companies or to go work for a company back on their home turf. Many of them because of the way they were treated here as employees and because the salaries they would earn back home would let them live like kings and take care of their extended families. They stuck around long enough to gain extra education and training/job experience and now they are gone.

    It's why places like Bangalore and Mumbai are growing so rapidly compared to even ten years ago. The companies and employees there are catching up to the rest of the world very rapidly (and in some cases surpassing them, UK for example), and selling their services to countries we probably wouldn't. They can undercut any pricing offered by US or European companies, and even Chinese and Russian companies have been taking them up on the offer, where previously they only wanted to deal with US and European tech companies.

    The H1-B program needs more carrot for the employees, and less stick if you ask me. Give them more incentive to keep their skills in-country, instead of taking off back home (ex. stop threatening to revoke their work visas over trifling shit, like changing addresses). If they pass security checks and everything else that goes along with it, keep them here, period. If anything, the corporate side needs more stick, and a good whacking with it. Stricter job advertisement rules, quotas, oversight, etc are all a good start.

    Quite frankly, we aren't in a position to keep kicking them out, especially when it comes to engineers, doctors, and mathematicians. Anyone saying otherwise has lost touch with the reality of our situation.

  • Re:Republican? (Score:5, Insightful)

    by SwedishPenguin ( 1035756 ) on Saturday January 24, 2009 @02:15PM (#26590387)

    If you want to vote for a balanced budget, exactly who do you vote for? Tax and spend democrats or borrow and spend republicans?

    Obviously, if you want a balanced budget, you have to vote for those willing to raise taxes along with increased spending. Though as an outsider looking in, it appears to me that both parties wants to borrow and spend, neither party really seems willing to raise taxes to pay for increased spending, or for existing spending for that matter.

  • Re:Republican? (Score:3, Insightful)

    by jo42 ( 227475 ) on Saturday January 24, 2009 @02:16PM (#26590401) Homepage

    Congress: "Too bad. We won't help you import non-americans; find a different solution to your labor shortage."

    Bill: Moves all of Microsoft to India.

  • Re:Republican? (Score:1, Insightful)

    by Anonymous Coward on Saturday January 24, 2009 @02:34PM (#26590567)

    Grassley actually has pretty good track record for the whole 'responsible government' thing. He's a lot closer to the traditional ideals of the Republicans than those that were visible over the last 8 years.

  • Re:Stupid argument (Score:1, Insightful)

    by Anonymous Coward on Saturday January 24, 2009 @02:55PM (#26590753)

    Why do you think every single H1-B holder is some loser without anyone to care for and has no obligations except to themselves? How do you know if they have family back home they're sending money to?

    Thus completely taking away money that would go to support our local economy. Money that could be used to help American workers not lose jobs. Awesome.

  • by Your.Master ( 1088569 ) on Saturday January 24, 2009 @03:14PM (#26590923)

    They didn't fire engineers en masse. HR, marketing, lawyers can be fired and engineers hired without any inconsistency.

    Also, you COMPLETELY fail to see the GPs point. Those 5 million educated americans are still going to be 5 million educated americans. But the many educated non-americans in america are no longer going to be in america, reducing your odds in the lottery of success.

  • Comment removed (Score:5, Insightful)

    by account_deleted ( 4530225 ) on Saturday January 24, 2009 @03:29PM (#26591071)
    Comment removed based on user account deletion
  • Re:H1Bs are wrong (Score:3, Insightful)

    by sledge_hmmer ( 1179603 ) on Saturday January 24, 2009 @03:44PM (#26591271)

    Being an H1-B that works for a Fortune 500 non-IT company, I have to second your comment. I get paid on par with my colleagues and even right now with our business being severely affected, I have not faced a single incident of intimidation tactics to make me work harder.

    From all the comments I have read on /. when H1-B related articles come up, it seems like the IT industry in particular has problems with H1Bs being hired at lower wages and being underqualified. If I recall correctly, companies like Tata Consultancy, Wipro and Infosys are some of the largest users of H1B quotas and they primarily bring in people from India.

    Maybe I am biased since I did my university education in the US, but I believe the H1B program needs to be restructured to give preference to US educated applicants over others. This will keep the country from losing talent that wants to stay and also help towards removing wage depression.

  • Re:Republican? (Score:3, Insightful)

    by corbettw ( 214229 ) on Saturday January 24, 2009 @04:21PM (#26591729) Journal

    You're talking about a United States Senator getting Microsoft to do something. Like or not, if he doesn't put US citizens first, he won't remain a Senator past the next election cycle.

    Not to mention, if someone has to lose their jobs, which one is better for the country as a whole? The one making $100k a year (and being taxed at that level, plus spending at that level) who when he loses his job will collect unemployment here and possibly have his home foreclosed here, or the guy making $50k a year, who when he loses his job goes back to his own country and takes his economic loses with him? If someone has to lose a job, then the US as a whole is better off if the second guy is the one to go.

  • Re:Republican? (Score:4, Insightful)

    by commodore64_love ( 1445365 ) on Saturday January 24, 2009 @05:24PM (#26592345) Journal

    >>>The government did not bring anybody to the US. The companies did.

    Only because the government ALLOWED it to happen, therefore it is NOT a free market. It is a briber's market, where Microsoft paps politicians' pockets so they can get approval to bring-in foreigners.

    In a truly free market, government and Microsoft would not talk to each other at all. Microsoft would have to deal with its labor shortages in a different manner (perhaps hire some U.S. engineers w/o jobs, instead of willfully ignoring them).

  • by miguel ( 7116 ) on Saturday January 24, 2009 @05:24PM (#26592353) Homepage

    It is worth pointing out that the real problem is not really the democrats or the republicans but with the system that has allowed anyone with deep enough pockets to make government do whatever they want.

    The NAFTA agreement was not really aimed at helping any of the people in the three participating countries, NAFTA was always designed to help the big corporations reduce their cost of operations. At the same time, NAFTA contained enough provisions that it undid a number of constitutional guarantees and local laws (at least for Mexico it did) and new trade courts ended up having more power than national courts for any trade dispute.

  • Re:Republican? (Score:3, Insightful)

    by commodore64_love ( 1445365 ) on Saturday January 24, 2009 @05:28PM (#26592387) Journal

    I fail to see the drawback.

    Maybe that would give the U.S. just the excuze it needs to revoke all MSFT agreements in schools, governments, et cetera, and switch to open-source, or Apple Macintosh. Or not. I don;t really give a damn where Microspank keeps its offices, anymore than I care my car came from Japan.

  • Re:Republican? (Score:3, Insightful)

    by GileadGreene ( 539584 ) on Saturday January 24, 2009 @06:37PM (#26593031) Homepage

    In a truly free market, government and Microsoft would not talk to each other at all. Microsoft would have to deal with its labor shortages in a different manner (perhaps hire some U.S. engineers w/o jobs, instead of willfully ignoring them).

    In a truly free market, the government wouldn't apply any restrictions to the flow of goods or workers into and out of the country. There'd be no need for MS to beg for H1Bs because the government wouldn't be preventing workers from other countries entering the US in the first place. What you're describing as "truly free" is simply a different set of restrictions than the current ones.

  • Re:Republican? (Score:3, Insightful)

    by E++99 ( 880734 ) on Sunday January 25, 2009 @02:19AM (#26596081) Homepage

    How is barring foreigners from working in the US assuming a role of non-interference? Non-interference would mean that anyone could come work here, and wouldn't need a visa in the first place.

  • Re:Republican? (Score:3, Insightful)

    by ultranova ( 717540 ) on Sunday January 25, 2009 @12:38PM (#26598699)

    Why not vote for a those willing to cut both taxes and spending (e.g., Libertarians)?

    Because cutting taxes and spending will benefit the rich and harm everyone else, and most people are not rich.

    Furthermore, all those "the poor should beg for charity in the streets" and "why should I pay for anyone's hospital bills ?" comments associated with libertarians make it very clear what life would be like for most people in a libertarian world: short and nasty. That's why libertarians will never hold a significant amount of power: their position is against the best interests of most people.

    Finally, there's nothing like recession to drive home the need for social security.

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