Employ American Workers Act sneaks into Stimulus Bill
Employ American Workers Act sneaks into Stimulus Bill
Date: Wednesday, February 18, 2009 3:11 AM
<<<<< JOB DESTRUCTION NEWSLETTER No. 1979 -- 2/18/2009 >>>>>
In the previous newsletter I explained how the U.S. Chamber of Commerce and
the American Immigration Lawyers Association (AILA) ganged up together to
crush the "Employ American Workers Act" (SA306) amendment to the Stimulus
Bill. For a short recap read my op-ed:
http://www.capsweb.org/content.php?id=574&menu_id=8
Bad Week for American Workers
For some unexplained reason K street lobbyists failed to stop SA306! It's
still in the final version of the bill that President Obama signed.
To see for yourselves, go here and scroll to page 494 Section 1611, Employ
American Workers Act
http://appropriations.house.gov/pdf/Recovery_Bill_Div_A.pdf
You can find out more details about the Stimulus bill here:
http://www.recovery.gov/
So far I haven't seen a good explanation why the amendment made it into the
final bill. Perhaps it was a small consolation for the watering down of the
"Buy American" amendment or the defeat of E-Verify, or more likely it somehow
got lost in the shuffle of the 1000+ page bill. Obama has made it very clear
that he wants to expand the H-1B visa program so the inclusion of SA306 was a
pleasant surprise.
One thing for sure, some heads are going to roll at the USCoC and AILA. I'm
sure Charlie is more than just disappointed. LOL!
On the other hand, Charles Kuck, president of the American
Immigration Lawyers Association, expressed disappointment at
the inclusion of the hiring restrictions in the compromise
stimulus bill.
Keep in perspective that SA306 is purely a symbolic victory. It's highly
unlikely that a single H-1B visa will be affected. All the amendment does is
to re-classify banks that receive TARP money as "H-1B dependent". These banks
will merely have to jump a few extra hoops to hire an H-1B, which usually
means they will probably have to file a few more forms, and they might even
have to put a fake ad in the newspaper to appear like they are giving "good
faith" efforts to hire Americans.
For banks that are pigging out on TARP money, hiring an H-1B will be slightly
easier than sponsoring a foreigner for a green card, which isn't very
difficult at all! Another way to look at it is this: banks that are receiving
billions of dollars of bailout money might have to hire a lawyer to process
the forms instead of using an HR flunky. In that regard the Stimulus bill will
succeed in getting jobs for Americans -- in the immigration business.
Articles about SA306 abound, and many of them are already perpetuating myths
that need to be debunked. Here are a few examples, both good and bad.
Businessweek had a very good article on SA306. This excerpt is particularly
poignant:
The amendment falls short of preventing large banks from using H-1Bs
brought into the U.S. by outsourcing firms like India-based Infosys
(INFY), Wipro (WIT), and Tata (TCS.NS), which are among the top
recipients of petitions for the H-1B visa program. In other words,
a bank could still legally force a laid-off American employee to
train a replacement worker who is on an H-1B visa on an outsourcing
firm s payroll.
Those outsourcing firms mentioned are more commonly called "bodyshops". The
ones mentioned are already H-1B dependent because they employ H-1Bs from India
almost exclusively. Allowing bodyshops to contract to TARP banks is a gaping
loophole in SA306.
Patrick Thibodeau of Computerworld is one of the best writers on the subject
of H-1B, and his article on SA306 is no exception, but he goofed
here:
The stimulus bill, once it is approved by the Senate and signed by
President Barack Obama, will require firms that take bailout
funding to make a good-faith effort to hire U.S. citizens before
people who are in the country on H-1B visas.
All employers are required to make a "good faith effort" to hire qualified
American workers before sponsoring an H-1B. Being H-1B dependent doesn't
change that, but it does require employers to jump a few more hoops to game
the system. The problem is that "good faith" means different things to
different people. Take for example this quote from one of the most infamous
immigration lawyers in the business:
When employers feel the need to legalize aliens, it may be due to a
shortage of suitable U.S. workers, but even in a depressed economy,
Employers who favor aliens have an arsenal of legal means to reject
all U.S. workers who apply.
--- Immigration Lawyer, Joel Stewart, Esq.
Stewart was actually talking about green cards, which have far more stringent
regulations than H-1B dependent employers.
Indian webzines and newspapers are going ballistic over SA306. Here are two
reactionary examples:
US President Barack Obama will be signing the Stimulus Bill into law
on Tuesday. The bill also includes a clause that restricts American
companies receiving bailout money to hire foreign skilled workers on
H-1B visas -- a temporary work permit needed for foreigners to work
in the US.
American companies aren't going to be restricted from hiring H-1Bs. Only banks
and financial institutions that receive TARP money will be classified "H-1B
dependent", which does nothing from stopping them from hiring H-1Bs.
Let me repeat again in case somebody missed it: SA306 DOES NOTHING TO STOP
BANKS FROM HIRING H-1BS! Only 1% of the employers in the U.S. are H-1B
dependent and they never have a problem hiring H-1Bs -- if they did have a
problem the Indian bodyshops wouldn't be able to staff themselves mostly with
Indian nationals.
This latest measure has Indians in America worried as they make up a
major chunk of the H1-B visa holders.
Indian nationals, and any other foreigner, have nothing to worry about because
the ones already here have visas, and the ones that want to come here that
don't have visas will have no more problems than usual to find a company that
will sponsor them for a visa. All H-1B visa holders are subject to the 65,000
+ 20,000 a year cap and in 2009 and 2010 the caps will reach their limit
because employers are scrapping for every visa they can get. SA306 will not
affect the number of H-1B visas granted because cheap foreign labor is still
very desirable by U.S. employers.
The United States Congress has barred companies receiving government
bailout from hiring Indians and other foreign workers through the
skilled worker visa (H1-B) programme, if they are replacing American
workers.
Indian newspapers are becoming very paranoid because SA306 doesn't mention a
particular nationality. Indians comprise about 65% of the total visas handed
out each year, so it could be argued that they receive a disproportionate
share of the visas, and they will continue to do so unless the Chinese
overtake them.
The provision prevents companies supported by the troubled asset
relief programme (Tarp) from applying for H-1B visas for highly
skilled foreign workers if they have recently laid off US
employees.
SA306 doesn't stop companies from doing this, but they are restricted 90 days
before or after a major layoff. Unfortunately there are big loopholes in the
regulations because the definition of "layoff" is kind of fuzzy. For that
loophole and others, read:
http://www.jobdestruction.info/ShameH1B/H1BLegal.htm
"Legality of Replacing Americans With H-1Bs, A Study of What the Law Says"
"These banks may not be looking to hire lots of new workers any time
soon," said Edward Alden, senior fellow at the Council on Foreign
Relations. "It is the signal that it sends to the rest of the world
that is troubling. We are enshrining the principle that in tough
economic times it makes it harder to hire foreign workers."
***** CONCLUSION *****
Actually the Stimulus bill is business-as-usual when it comes to hiring
illegal aliens, offshoring jobs, and allowing the importation of foreign guest
workers. Nothing changes except our level of national debt and our trade
deficits.
So, by now you may be asking if the inclusion of SA306 is reason enough to
support Obama's Stimulus bill in order to realize a symbolic victory on the H-
1B issue. The very last commentary in this newsletter gives some insight into
the wisdom of the bill.
Lou Dobbs had a very good story about SA306. At the time of the show it was
not known if the amendment would make its way into the final bill. Be sure to
watch the video.
REFERENCES:
http://www.fairus.org/site/News2?page=NewsArticle&id=19873&security=1601&news_iv_ctrl=1721#2
H-1B Amendment Survives Conference Committee
http://www.cnn.com/video/?/video/bestoftv/2009/02/12/ldt.tucker.h1b.blitz.cnn
Lou Dobbs: H-1b Worker Impact ( Feb 12, 2009 )
http://transcripts.cnn.com/TRANSCRIPTS/0902/12/ldt.01.html
Lou Dobbs transcript, Aired February 12, 2009
http://www.businessweek.com/blogs/money_politics/archives/2009/02/stimulus_tighte.html
Stimulus: Tighter H-1B Controls on Bailed Out Banks
http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9127979
Limits on H-1B hiring by bailout recipients still in economic stimulus bill
http://www.timesnow.tv/NewsDtls.aspx?NewsID=29465
Bailed-out US cos cannot hire people with H-1B visa
http://www.ndtv.com/convergence/ndtv/story.aspx?id=NEWEN20090083817
Obama's package, bad news for Indians?
http://www.ft.com/cms/s/0/77ce7932-fa39-11dd-9daa-000077b07658.html
Hire American measures raise protectionism concerns
http://olbroad.com/2009/02/17/understanding-the-stimulus/
Understanding the "Stimulus"
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.fairus.org/site/News2?page=NewsArticle&id=19873&security=1601&news_iv_ctrl=1721#2
H-1B Amendment Survives Conference Committee
An H-1B-related amendment offered by Senators Bernie Sanders (I-VT) and
Charles Grassley (R-IA) to the economic stimulus package has survived the
reconciliation process between the House and Senate and will be part of the
final bill signed by President Obama. Entitled the "Employ American Workers
Act," the Sanders-Grassley Amendment sought to limit entities who receive
funds from the Troubled Assets Relief Program (TARP) -- established by last
year's $700 billion financial services sector bailout legislation
-- from displacing U.S. citizen workers. (CongressDaily, February 13, 2009).
The original text of the amendment as it was printed in the Congressional
Record on February 4th would have barred any recipient of TARP funding from
hiring any H-1B workers. (Congressional Record, S1590). As modified, however,
a caveat was added to the Grassley-Sanders Amendment which watered down the
amendment substantially. (Congressional Record, S1669 & S1803).
The modified amendment was eventually adopted by voice vote. As modified, this
language "isn't as tough as the one Senator Grassley originally proposed...
[but instead the] modified amendment" makes TARP recipients jump through extra
hoops before they can hire those foreign workers."
(BusinessWeek, February 13, 2009).
COMMENT FROM ROB: In a previous newsletter I stated that it appears FAIR
didn't understand that the amendment had been watered down. This new update
proves otherwise.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://transcripts.cnn.com/TRANSCRIPTS/0902/12/ldt.01.html
Aired February 12, 2009
DOBBS: Some good news on the economy tonight, retail sales unexpectedly rising
one percent in the month of January, that after six straight months of
decline. The jump in retail sales, by the way, is the biggest increase in more
than a year. Most economists were expecting sales to decline nearly a full
percent in January after the worst holiday sales season in four decades. They
were obviously surprised.
And we are delighted to be able to report to you more positive signs about the
economy. Of course, you probably won't hear a lot of this amidst all of the
dire talk by a lot of leading elected officials talking about catastrophe,
disaster, depression. Well, homeowners tonight have some good news as well.
Foreclosure filings nationwide were down 10 percent in January from the month
of December.
Business special interests tonight, well, they're intensifying their push for,
because we've got millions and millions more of Americans who are losing their
jobs, the business interests want more foreign worker visas.
The business lobbyists are fighting proposals that would require banks, for
example, receiving bailout money to hire American workers first -- how about
that -- Bill Tucker with our report.
(BEGIN VIDEOTAPE)
BILL TUCKER, CNN CORRESPONDENT (voice-over): A renewed push for H-1B workers
is underway in Washington led by the U.S. Chamber of Commerce, the Chamber
lobbying against a requirement that banks or other financial institutions
receiving bailout money hire American workers ahead of foreign guest workers
and effectively preventing the banks from hiring guest workers, immediately
after or before large- scale layoffs of Americans. The amendment's co-sponsor
is appalled.
SEN. BERNIE SANDERS (I), VERMONT: Just think at this moment, we're in the
middle of a deep recession. We're losing half a million jobs every month.
The financial industry has laid off itself 100,000 American workers and their
response is, gee, maybe we can get cheap labor from abroad.
TUCKER: We called the Chamber for an explanation or a comment. It declined.
However, "New York Times" writer Tom Friedman (ph) argued in his column
earlier this week that such hiring restrictions would be protectionist.
Those comments are in line with the Chamber's public comments. Friedman
(ph) also argues that such restrictions would be stupid.
For evidence, he points to a new study from the Harvard Business School trying
to examine the impact of H-1B workers from 1995 to 2006, on applications for
patents. The study concludes that a 10 percent increase in the H-1B visa
program result in a one to two percent increase in patent applications by
people with Indian or Chinese surnames residing in the U.S.
And when there's a decline in the number of visas, there's also a drop in the
number of patent applications. Norman Matloff, an ardent critic of the H-1B
program and this Harvard study says the study is seriously flawed.
NORMAN MATLOFF, UNIV. OF CALIFORNIA, DAVIS: It's got lots of math in it.
It's got lots of references. It's from Harvard no less. A lot of people on
Capitol Hill are going to pay attention to this study, but they shouldn't.
They shouldn't be fooled.
TUCKER: That's because the study does not prove that H-1B workers or even
foreign-born workers were the recipients of the patents. It establishes a
correlation of patents being granted to recipients with non-English names.
The study's author says he understands and welcomes the arguments surrounding
his study.
BILL KERR, HARVARD UNIVERSITY: This is a very, very sensitive program and
there's both sides of this debate have lots of arguments and both sides can
point to places where there are very adverse effects of the H-1B program there
and are also very beneficial effects of the program.
(END VIDEOTAPE)
TUCKER: Now Kerr says he'll be happy if the impact of his study is to generate
more research into the H-1B program. As for the U.S. Chamber and its lobbying
efforts against American workers, well Lou we still don't know if they are
successful or not whether they killed the Grassley/Sanders Amendment because
as Dana reported up at the top of the show, that bill just started getting
printing, so nobody knows what's going on.
DOBBS: We know what -- you know, the Senate, this House are the tools of the
Chamber of Commerce and that hasn't changed with an election. But let's go
back to Harvard...
TUCKER: Yes.
DOBBS: That's the Harvard Business School...
TUCKER: Right.
DOBBS: ... we're talking about, not Harvard University. That's Harvard
Business School. It's not entirely clear how the funding for that grant worked
out for that study. Harvard Business School paid for it with funds from whom?
Do we know that?
TUCKER: No...
(CROSSTALK)
TUCKER: I talked to the author. He said 100 percent of the business school, he
accepted no sponsorship money.
DOBBS: Oh OK and did -- I wish he would have accepted one thing and that was
probably a lesson in methodology because to extrapolate from non-English
surnames that someone is automatically an H-1B visa holder is utterly...
TUCKER: It's flawed. DOBBS: It's not a flaw, it's stupid. It is utterly
ridiculous. You know look, I mean I -- business has to follow what the Chamber
of Commerce tells it, but I'd like to see at least some intellectual
integrity, particularly at Harvard Business School. Thank you very much.
TUCKER: You're welcome.
DOBBS: Bill Tucker. Anywhere in the country just give me intellectual
integrity. An incredible home invasion to tell you about caught on videotape.
We'll have that story and the amazing conclusion.
Also ahead illegal aliens suing an Arizona rancher who caught them on his
property and Democrats killing one of the most effective programs to fight
illegal immigration, we're going to be right back.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.businessweek.com/blogs/money_politics/archives/2009/02/stimulus_tighte.html
Stimulus: Tighter H-1B Controls on Bailed Out Banks Posted by: Jane Sasseen on
February 13
By Moira Herbst
In the final version of the stimulus bill, Senate and House negotiators agreed
to stricter limits on banks and other firms that take taxpayer bailouts that
use the H-1B visa program.
The proposal by Senators Bernie Sanders (I-Vt.) and Charles Grassley
(R-Iowa) was added to the economic recovery package in the Senate on Feb.
6. A conference committee retained the provision in the version of the bill
that is expected to win final congressional approval in the coming days.
The U.S. Chamber of Commerce and the American Immigration Lawyers Association
had lobbied against inclusion of the provision.
The amendment that passed isn t as tough as the one Senator Grassley
originally proposed on Feb. 5, which would have prohibited firms from hiring
H-1Bs altogether. The modified amendment in the final bill instead makes TARP
recipients jump through extra hoops before they can hire those foreign
workers.
"The very least we can do is to make sure that banks receiving a taxpayer
bailout are not allowed to import cheaper labor from overseas while they are
throwing American workers out on the street," said Sanders in a statement.
Here s a link to all of the companies that have received assistance through
the TARP program and which are required to follow the new H-1B hiring
guidelines.
The amendment falls short of preventing large banks from using H-1Bs brought
into the U.S. by outsourcing firms like India-based Infosys (INFY), Wipro
(WIT), and Tata (TCS.NS), which are among the top recipients of petitions for
the H-1B visa program. In other words, a bank could still legally force a
laid-off American employee to train a replacement worker who is on an H-1B
visa on an outsourcing firm s payroll.
Rising unemployment is leading to more scrutiny of the H-1B visa program and
its effects. On Feb. 12, federal authorities announced 11 arrests and the
indictment of one firm as part of a coordinated, nationwide crackdown on H-1B
fraud. Such efforts are likely to hamper efforts by companies like Microsoft
(MSFT) and Oracle (ORCL) to expand the H-1B visa program without considerable
reform.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9127979
Limits on H-1B hiring by bailout recipients still in economic stimulus bill
House, Senate negotiators leave restrictions in compromise version of $787B
stimulus plan Patrick Thibodeau February 13, 2009 (Computerworld) A provision
intended to require banks receiving federal bailout funds to give hiring
priority to U.S. workers over foreigners with H-1B visas was left in the
economic stimulus package when U.S. House and Senate negotiators agreed on a
compromise bill this week.
The $787 billion stimulus bill was subsequently approved by the House of
Representatives today, and a vote in the Senate is expected tonight.
The provision designed to curb the use of H-1B visas was proposed last week by
Sens. Bernie Sanders (I-Vt.) and Chuck Grassley (R-Iowa) as an amendment to
the Senate's stimulus legislation. The proposal initially sought to bar H-1B
hiring by financial services firms receiving bailout money, but it was later
modified to restrict such hiring.
The stimulus bill, once it is approved by the Senate and signed by President
Barack Obama, will require firms that take bailout funding to make a good-
faith effort to hire U.S. citizens before people who are in the country on H-
1B visas.
Opponents of the measure said it is so restrictive that affected financial
services firms will likely stop hiring H-1B workers altogether. However, the
provision doesn't prevent them from using offshore outsourcing contractors,
which typically are heavy users of H-1B visas.
As a result of the conference agreement, Sanders said in a statement today
that he expects the H-1B provisions to be adopted along with the rest of the
stimulus bill. He added that what may have prompted the negotiators to keep
the H-1B restrictions in the bill were all of the ongoing layoffs and other
job losses. "With thousands of financial services workers unemployed, it is
absurd for banks to claim they can't find qualified American workers," Sanders
said.
The proposed restrictions require firms that receive money under the federal
Troubled Assets Relief Program (TARP) to comply with hiring rules set for "H-
1B dependent" firms those with more than 15% of their workers on visas.
Those rules set a number of strict requirements for hiring H-1B holders,
including a need for companies to attest that they actively recruited American
workers and are not displacing or replacing U.S. citizens with foreign
workers.
However, the impact of the new legislation on offshoring of IT work may be
limited. Ron Hira, an assistant professor of public policy at Rochester
Institute of Technology and co-author of the book Outsourcing America, claimed
that many TARP-recipient banks "have huge shadow workforces people who work
for the bank indirectly through outsourcing contract firms."
The TARP-related hiring provision "will rectify some of the indefensible
practices of quasi-nationalized banks," Hira said. "But unfortunately, it
doesn't close the loopholes where most of the abuse occurs."
Hira said the amount of outsourcing by Wall Street firms has actually
increased since the bailout program began last fall, citing deals such as
offshore outsourcer Tata Consultancy Services Ltd.'s October agreement to
acquire a unit of Citigroup Inc. that does business process outsourcing and IT
services work. Similarly, Wipro Ltd. agreed in December to buy Citigroup's IT
subsidiary in India.
In addition, Hira contended that "many, if not all, of these banks have human
resource practices where they force their American workers to train foreign
replacements, and subsequently lay off the American workers." That practice
"sometimes results in tragedy," he added, citing the 2003 suicide of a former
Bank of America Corp. programmer who reportedly was laid off after training
his replacement.
On the other hand, Charles Kuck, president of the American Immigration Lawyers
Association, expressed disappointment at the inclusion of the hiring
restrictions in the compromise stimulus bill.
"These banks will not able to hire qualified foreign talent to pull them out
of this mess if that was necessary," Kuck said. "Maybe we've got all the
homegrown talent we need to pull us out of this mess, because now we have to
hope we do."
While the restrictions don't prevent employers from hiring H-1B holders, Kuck
predicted that the affected firms will be unlikely to do so because of the
added cost and work that will now be involved. The key advantage of the H-1B
program, he said, is the ability it gives companies to quickly hire people to
fill available jobs.
"There are very few employers that are going to wait that period of time to be
able to do that [under the restrictions] when they have to bring somebody on
board right away," Kuck said. "You are effectively saying, 'You can't use the
program.'"
The big question, according to Kuck, is whether companies receiving TARP funds
will be able to bring in "the best person available to do the job."
That's a separate issue, he said, from the low-level work that typically is
going to outsourcing firms.
While the H-1B hiring restrictions made it into the final version of the
stimulus bill, the negotiators dropped a related provision that would have
required businesses taking bailout money to use the federal government's E-
Verify system to vet the employment status of their workers.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.timesnow.tv/NewsDtls.aspx?NewsID=29465
Bailed-out US cos cannot hire people with H-1B visa
2/14/2009 6:42:20 PM
The United States Congress has barred companies receiving government bailout
from hiring Indians and other foreign workers through the skilled worker visa
(H1-B) programme, if they are replacing American workers.
The bar comes even as information technology firms in the US and India is
demanding an increase in the H1-B visa, which is capped at 65,000 a year now.
Indians account for a majority of those with H1-B visa, issued to non-
immigrant skilled workers for up to six years.
Restricting hiring of H1-B visa holders forms part of American Recovery and
Reinvestment Act, widely known as the stimulus bill that was passed by the
Congress yesterday. With thousands of jobs being cut by US companies almost
daily over the past few months, there have been widespread apprehensions that
these positions could go to low-cost foreign workers or might be outsourced to
places like India.
The government data for 2008 shows that about 5.7 lakh Indians were issued H1-
B and other non-immigrant visas. Experts believe the Congress' move would
certainly impact hiring of H1-B visaholders, thus affecting in a big way the
engagement of Indian techies in the US, but might not affect outsourcing of
jobs to places like India.
About two years ago, the US had cut down the H1-B visa limit to 65,000, from
1, 95,000 a year previously. Information technology firms, both Indian and
American, have been asking to raise the cap to allow the companies in the US
greater access to the growing talent pool across the world.
Senator Bernie Sanders, who along with another Senator Charles Grassley had
moved the proposal for such restrictions, said that about a dozen banks which
are getting over USD 150 billion as the bailout money have sought visas for
over 21,800 foreign workers in past six years to replace sacked Americans.
These banks have announced at least one lakh job cuts in the recent months,
Sanders noted. Earlier this month, India-born international economist Jagdish
Bhagwati also argued that the provision to restrict hiring of H1-B visaholders
would deprive the US of the best global talent which comes in the form of
highly trained and talented people.
"In terms of broader considerations like the people who are coming in on H1-B
visas -- they're frequently highly trained and talented people and ...
a lot of our progress and prosperity depend on having such people,"
Bhagwati, Professor of Economics at the Columbia University had said.
The American Immigration Lawyers Association, which also has been opposing the
measure, described the Congress approval as "disappointing" and argued that
this would prove to be counterproductive as it prevents the US companies to
hire the best available global talent.
The amended stimulus bill would require the banks receiving the bailout money
to hire only Americans for two years unless they could prove they were not
replacing laid-off Americans with guest workers, Sanders had said.
"With thousands of financial services workers unemployed, it is absurd for
banks to claim they can't find qualified American workers," Sanders said.
"While we are suffering through the worst economic crisis since the Great
Depression, the very least we can do is to make sure that banks receiving a
taxpayer bailout are not allowed to import cheaper labour from overseas while
they are throwing American workers out on the street," he said.
In addition to banks, the Sanders-Grassley provision also restricts hiring of
guest workers at any other firm that receives funds under the Troubled Asset
Relief Programme or from emergency loans made by the Federal Reserve.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.ndtv.com/convergence/ndtv/story.aspx?id=NEWEN20090083817
Obama's package, bad news for Indians?
Sarah Jacob
Tuesday, February 17, 2009 (New York)
US President Barack Obama will be signing the Stimulus Bill into law on
Tuesday. The bill also includes a clause that restricts American companies
receiving bailout money to hire foreign skilled workers on H-1B visas -- a
temporary work permit needed for foreigners to work in the US.
This latest measure has Indians in America worried as they make up a major
chunk of the H1-B visa holders.
For 24-year-old Kirti Raghuveer, the US government's latest move does not
spell good news. He works for AIG -- one of the earliest companies on Wall
Street to be bailed out for $85 billion dollars.
"I feel like bad luck is smiling all over me. I have been working at AIG since
October and I was supposed to apply for my H-1B in April. But now, with this
news, I don't think that will be possible," he said.
This is also a difficult time for 25-year-old Vijay Jadhav, an MBA student who
took a loan to pay for his college tuition. Vijay is supposed to graduate this
summer and has been frantically applying for jobs in a market where 350 US
companies have received American taxpayers money in some form or the other.
"It was always my dream to come here, live in this city and work on the Wall
Street. But in this tough market, this new rule has distressed the student
community," he said.
The H-1B visa programme is a controversial one. While respected entrepreneurs
like Bill Gates and the New York Times columnists like Tom Friedman have been
arguing against restricting this programme, there are many others who are
supporting the restrictions as they believe these visas take jobs away from
Americans.
Now, Congress's decision will only make life tougher for Indians in America,
who are trying to survive in an already tough economic environment. The silver
lining for India, however, is that this could stem to our long-standing brain-
drain problem.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.ft.com/cms/s/0/77ce7932-fa39-11dd-9daa-000077b07658.html
Hire American measures raise protectionism concerns By Alan Beattie in
Washington
Published: February 14 2009 02:00 | Last updated: February 14 2009 02:00
The final stimulus bill that emerged on Capitol Hill yesterday may have been
portrayed by Barack Obama, US president, as a success for the US economy. But
finance ministers from the Group of Seven meeting in Rome today will remain
concerned about the protectionist signals it may be sending.
Apart from the Buy American provisions restricting government spending to US
companies, other items in the bill could also give cause for alarm. An
amendment proposed by Bernie Sanders, a leftist independent senator for
Vermont, and Charles Grassley, a Republican from Iowa, would restrict the use
of foreign worker visas by financial institutions being bailed out by the
federal government. The provision prevents companies supported by the troubled
asset relief programme (Tarp) from applying for H-1B visas for highly skilled
foreign workers if they have recently laid off US employees.
"The very least we can do is to make sure that banks receiving a taxpayer
bail-out are not allowed to import cheaper labour from overseas while they are
throwing American workers out on the street," Mr Sanders said.
"These banks may not be looking to hire lots of new workers any time soon,"
said Edward Alden, senior fellow at the Council on Foreign Relations. "It is
the signal that it sends to the rest of the world that is troubling. We are
enshrining the principle that in tough economic times it makes it harder to
hire foreign workers."
The White House and Congress are being pulled in two directions: on one side,
the political imperative to benefit US workers; on the other, lobbying from
multinational companies and trading partners. Mr Obama appeared in Peoria,
Illinois, with Jim Owens, CEO of Caterpillar - a staunch opponent of Buy
American and a consistent, if sometimes minority, voice in favour of new trade
agreements.
But the final version of the stimulus bill contained a relatively strong
version of the Buy American measures, with broad restrictions on buying
foreign-made iron, steel and manufactured goods softened by a reminder that
international trade agreements need to be respected. Robert Gibbs, White House
spokesman, said: "Where we ended up . . . is the right compromise that
respects the [Buy American] laws that we've had on our books for many, many
years while also ensuring that the language doesn't create unnecessary trade
disagreements."
The stimulus bill and its Buy American provisions have also provoked
accusations of hypocrisy. While the administration has resisted pointing the
finger at its trading partners, lawmakers and activists have said Canada and
the European Union, which have complained about the provisions, have their own
restrictions on procurement. Public Citizen, a campaign group, cites a report
from the US trade representative's office from last year which says many
European governments have de facto restrictions on buying US products, an
accusation the European Commission says is unwarranted. "Even for procurement
that is not covered by the GPA [the World Trade Organisation government
procurement agreement], there is no equivalent 'Buy European' provision," the
Commission said.
Business associations representing multinationals were disappointed. Harold
McGraw, chairman and CEO ofMcGraw-Hill and chairman of the Business
Roundtable, an association of CEOs, said: "If we aren't being a good global
partner . . . we are going to pay a price."
Editorial Comment, Page 6 Analysis, Page 8 Lex, Page 16
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://olbroad.com/2009/02/17/understanding-the-stimulus/
Understanding the "Stimulus"
Shortly after class, an economics student approaches his economics professor
and says, "I don't understand this stimulus bill. Can you explain it to me?"
The professor replied, "I don't have any time to explain it at my office, but
if you come over to my house on Saturday and help me with my weekend project,
I'll be glad to explain it to you." The student agreed.
At the agreed-upon time, the student showed up at the professor's house.
The professor stated that the weekend project involved his backyard pool.
They both went out back to the pool, and the professor handed the student a
bucket. Demonstrating with his own bucket, the professor said, "First, go over
to the deep end, and fill your bucket with as much water as you can."
The student did as he was instructed.
The professor then continued, "Follow me over to the shallow end, and then
dump all the water from your bucket into it." The student was naturally
confused, but did as he was told.
The professor then explained they were going to do this many more times, and
began walking back to the deep end of the pool.
The confused student asked, "Excuse me, but why are we doing this?"
The professor matter-of-factly stated that he was trying to make the shallow
end much deeper.
The student didn't think the economics professor was serious, but figured that
he would find out the real story soon enough.
However, after the 6th trip between the shallow end and the deep end, the
student began to become worried that his economics professor had gone mad.
The student finally replied, "All we're doing is wasting valuable time and
effort on unproductive pursuits. Even worse, when this process is all over,
everything will be at the same level it was before, so all you'll really have
accomplished is the destruction of what could have been a truly productive
action!"
The professor put down his bucket and replied with a smile, "Congratulations.
You now understand the stimulus bill."
- - - - - - - - - - - - - - - - - - - - - - - - - - - - Newsletter Homepage:
http://www.JobDestruction.com/shameh1b/JobDestructionNews.htm
Support this Newsletter and www.JobDestruction.com by donating:
www.zazona.com/Donations.htm
To Be removed from this mailing list, reply to this email with UNSUbSCRIBE in
the subject window
Back to archives