Imagine that.. Someone is interested in taking Bill Gates and his legacy, Microsoft, to task for laying off American workers. The complaint from US Senator Charles Grassley of Iowa ties the current financial crisis and the trend of increasing unemployment to companies who abuse the H-1B visa program of hiring foreign workers for American jobs.
Political life in Washington may be as fragile as anything else vulnerable to the impact of severe economic downturns. Where was all this angst over visas and foreign workers during the summer of 2007 when Congress and the White House tried to pass McCain/Kennedy shamnesty? There’s hardly a difference. A primary responsibility of the federal government is to defend its citizens from foreign attack. Whether that is from the typical source of armed forces of another country or countries, the sinister terrorism from radical groups without a well-defined geopolitical base or an economic invasion on our shores and borders from foreign sources the task is understood. You protect your own citizens first and once protected then and only then do you extend assistance to those who are not citizens.
One could say better late than never except these occasional expressions from elected officials are more often political in nature and for their vested interest and not yours. Senator Grassley is an elected official with some volatility. Similar to a company’s stock which responds wildly and unpredictably to changes in the market. But this recent press release and letter from the Senator does have some usefulness. To bring some attention to both inequities in the labor market as well as a renewal notice that immigration policies including visa programs and offshore outsourcing are by no means dead issues. With the election of the most liberal senator in the US to the Office of President of the United States you can bet the farm on the fact the issue of amnesty will rear its ugly again this year or next.
For Immediate Release
January 23, 2009
Grassley Works to Ensure American Workers are Priority
WASHINGTON – Senator Chuck Grassley today said that in a time of economic downturn, American workers must be a top priority for American companies. Grassley reiterated those words after he sent a letter to Microsoft urging the company to make efforts to retain qualified American workers during the recently announced lay-offs.
Microsoft employs thousands of people through the H-1B visa program. This temporary work visa program allows American companies and universities to employ temporary foreign guest workers who have the equivalent of a U.S. bachelor’s degree in a job category that is considered by the U.S. Citizenship & Immigration Services to be a “specialty occupation.” The purpose of the h-1b program is to help companies hire foreign guest workers on a temporary basis when there is not a sufficient qualified American workforce to meet those needs. However, the program is not intended to replace qualified American workers.
In October 2008, U.S. Citizenship and Immigration Services released an internal report that found the H-1B program has more than a 20 percent violation rate. The fraud identified in the report included jobs not located where employers claimed, H-1B visa holders not being paid the prevailing wage, forged documents, fraudulent degrees, and shell businesses. In one instance the H-1B position described by the employer was “business development analyst.” However, it turned out that the H-1B visa holder would be working at a laundromat doing laundry and maintaining washing machines.
Grassley has been a leader in the effort to improve the H-1B visa program. In the 110th Congress, he introduced a comprehensive H-1B and L visa reform bill with Senator Dick Durbin that would give priority to American workers and crack down on unscrupulous employers who deprive qualified Americans of high-skill jobs. He has also asked questions of both American and foreign based companies about their use of the H-1B visa program.
Here is a copy of the text of Grassley’s letter
January 22, 2009
Mr. Steve Ballmer
Microsoft Corporation
One Microsoft Way
Redmond , WA 98052-6399
Dear Mr. Ballmer:
I am writing to inquire about press reports that Microsoft will be cutting approximately 5,000 jobs over the next 18 months. I understand that the layoffs will affect workers in research and development, marketing, sales, finance, legal and corporate affairs, human resources, and information technology.
I am concerned that Microsoft will be retaining foreign guest workers rather than similarly qualified American employees when it implements its layoff plan. As you know, I want to make sure employers recruit qualified American workers first before hiring foreign guest workers. For example, I cosponsored legislation to overhaul the H-1B and L-1 visa programs to give priority to American workers and to crack down on unscrupulous employers who deprive qualified Americans of high-skilled jobs. Fraud and abuse is rampant in these programs, and we need more transparency to protect the integrity of our immigration system. I also support legislation that would strengthen educational opportunities for American students and workers so that Americans can compete successfully in this global economy.
Last year, Microsoft was here on Capitol Hill advocating for more H-1B visas. The purpose of the H-1B visa program is to assist companies in their employment needs where there is not a sufficient American workforce to meet their technology expertise requirements. However, H-1B and other work visa programs were never intended to replace qualified American workers. Certainly, 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.
It is imperative that in implementing its layoff plan, Microsoft ensures that American workers have priority in keeping their jobs over foreign workers on visa programs. To that effect, I would like you to respond to the following questions:
* What is the breakdown in the jobs that are being eliminated? What kind of jobs are they? How many employees in each area will be cut?
* Are any of these jobs being cut held by H-1B or other work visa program employees? If so, how many?
* How many of the jobs being eliminated are filled by Americans? Of those positions, is Microsoft retaining similar ones filled by foreign guest workers? If so, how many?
* How many H-1B or other work visa program workers will Microsoft be retaining when the planned layoff is completed?
My point is that during a layoff, companies should not be retaining H-1B or other work visa program employees over qualified American workers. Our immigration policy is not intended to harm the American workforce. I encourage Microsoft to ensure that Americans are given priority in job retention. Microsoft has a moral obligation to protect these American workers by putting them first during these difficult economic times.
Sincerely,
Charles E. Grassley
United States Senator
The following is an excerpt from Microsoft’s website on the testimony of Bill Gates at a Congressional hearing in May 2008
U.S. immigration policies need to allow American companies to hire the best talent. Gates calls on Congress to reform immigration policies to allow more highly skilled professionals to work for companies in the U.S. “At a time when talent is the key to economic success, it makes no sense to educate people in our universities, often subsidized by U.S. taxpayers, and then insist that they return home,” he said. “To address the shortage of scientists and engineers, we must … reform our education system and our immigration policies. If we don’t, American companies simply will not have the talent they need to innovate and compete.” Gates urges Congress and the White House to address this problem by extending the period that foreign students can work in the U.S. after graduation, raising the cap on H-1B visas, creating a clear path to permanent residency for high-skilled foreign-born employees and increasing the number of green cards. “The shortage of scientists and engineers is so acute that we must do both: reform our education system and reform our immigration policies.”
Funding for basic research should be increased. Gates believes basic research funding is an essential part of keeping American companies competitive and sparking new industries. “Even though we know that basic research drives economic progress, real federal spending on basic research has fallen since 2005,” he said. “I urge Congress to increase funding for basic research by 10 percent annually for the next seven years.” Gates said that federal funding for basic research supports the education of the next generation of scientists and engineers, and provides the raw material that U.S. companies transform into commercially successful products.
Here is one reaction by an elected representative obviously enamored by Mr Gates and a believer that the Darth Vader of IT brought worthwhile technology to the masses.
“Bill Gates has played a key role in our nation’s economic and technological growth for more than 20 years and I found his testimony today informative and compelling. I was most struck by Gates’ strong appeal to Congress to fully fund the America COMPETES Act. This new law makes a significant commitment to our country’s future by investing in math and science education and federal research. I will continue to vigorously advocate for funding of the America COMPETES Act,” said Rothman.
The excerpt below combined with asking government and the taxpayer to do his research for him are the things Bill Gates was really interested in.
I personally witness the ill effects of these policies on an almost daily basis at Microsoft. Under the current system, the number of H1-B visas available runs out faster and faster each year. The current base cap of 65,000 is arbitrarily set and bears no relation to U.S. industry’s demand for skilled professionals. For Fiscal Year 2007, the supply did not last even eight weeks into the filing period, and ran out more than four months before that fiscal year even began.
In summary the view from this blog is as follows. For regular readers the views here on Microsoft are known. As an example there are reports on another lawsuit against MS called ‘vista capable’ where customers are upset that hardware requirements for vista exceeded those stated or some such nonsense. While this blog detests the attitude of MS toward customers and the repeated crap software sold, if customers have not learned by now what they can expect from MS they deserve what they get. But that is not the central point of this post.
There was mention of funding research in the information provided. That’s nice. The question would be is it the taxpayer’s responsibility to pay for research or educating future employees? Is it fair for the private sector to benefit from those expenditures rather than fund their own research? There are technology transfer programs with the federal government whereby arrangements are made to move publicly funded research to the private sector. Is a fair monetary exchange made for those transfers? And for the last point is Senator Grassley’s latest expression of discontent to Microsoft just another politician trying to make points with voters?
As this post really relates to the current economic conditions and the mass frenzy to push bailouts and stimulus packages on the public dime something else needs to be said. Once government does something undoing it is nearly impossible and if it is possible there is much more pain and suffering involved than would have been present with precise and reasoned action. There is no need for speed since no one in Washington nor anywhere else can guarantee that any solution suggested will work.
If these spending programs are to be deployed then they should be done in such a way as they can be stopped on command and rather than huge outlays smaller amounts should be floated as test balloons to avoid even larger mistakes. The experience thus far with AIG and others in their arrogance to spend taxpayer money should be proof enough that planned spending will not work without deadly force as a protection. Just today CITI has decided to buy a private jet. Ya, they say it will not be paid for with bailout funds. Right. If you need bailout funds then you don’t have enough of your own money or you lied about needing bailout funds. In any event you don’t need to buy a private jet. Has this post made the point clearly?
Stanford Matthews
MoreWhat.com
First of all here’s how the employment, or unemployment picture is painted. From the month of June 2010 the report was dismal but expected by anyone with a brain.
The excerpt below links to an interesting analysis of how the price at the pump is determined. This blog cannot speak to the validity of this appraisal but it is interesting nonetheless. In other words it is worth a read.
