Thread regarding Verizon Communications Inc. layoffs

http://betanews.com/2012/10/25/h-1b-visa-abuse-limits-wages-and-steals-us-jobs/#comments

It is America that wanted to tear down the frontiers for trade based on demand and supply. They called names like protectionist economies and blamed other countries. They offshore all the manufacturing to China. They thought they will maintain technology edge. But slowly that dominance is also eroding. If you are a owner of a private enterprise in USA, you will do everything legally possible to reduce costs. And the new bread of slavary is invented by American firms. That is temporary work visa program. If americans reduce their greed then this issue will be solved.

It is America that wanted to tear down the frontiers for trade based on demand and supply. They called names like protectionist economies and blamed other countries. They offshore all the manufacturing to China. They thought they will maintain technology edge. But slowly that dominance is also eroding. If you are a owner of a private enterprise in USA, you will do everything legally possible to reduce costs. And the new bread of slavary is invented by American firms. That is temporary work visa program. If americans reduce their greed then this issue will be solved.

How about a market mechanism that would determine once and for all not only who is right, but that would determine what the market-clearing price for skilled immigrant labor actually is, informing future immigration policy formation?

Right now, H1B visas are issued on a first come, first served basis, for a flat fee, and the number is arbitrarily capped. Such a system tells us nothing about how much an H1B visa (and thus a skilled immigrant worker) is actually worth to an employer. And because the number is capped and the fee low, the system actually encourages a lottery or jackpot approach—in other words, employers would apply for as many visas as possible, hoping to get enough. This is an irrational system.

It would make much more sense to allocate H1B visas via an auction process. If H1B visas were auctioned to employers each year in a sealed bid process, with the bids allocated from highest to lowest until the available permits were exhausted, supply and demand would establish the market-clearing price for the right to hire a skilled immigrant worker. Because of the likely higher fees resulting from the auction mechanism, employers would have no incentive to hire an immigrant worker if an equivalent American Worker were available, which would lead to more accurately determining areas where shortages of American workers actually exist.

It is not, because it is an inside insidious job, done quietly in the night. No noise. No jobs. No pay. No Medical. Gone. Poof. Yet 'the companies' great minds encouraged the folks to study what they did and were hired and fired for, then back filled with H1Bs eventually citizens, pushing out incumbents, hiring those of similar backgrounds.

Disney is the worst of them all - they have a corp office in Orlando, very close to the park, it's on Celebration way - it's like an IT factory, they've built it recently. The carnage is taking place there, not in the park. They are working with a ton of outsourcing companies and laying people off. So for example, they would work with Accenture, and let's say you work for 50 bucks/hr - Accenture tells them, hey I will replace that guy for 30 bucks/hr. But the issue is they cannot find anyone who will do it for 30, so they go to Accenture India and they bring someone from there to work on-shore in Orlando here. So, accenture pays the guy 20 bucks and they pocket 10. The guy is totally underpaid in US terms, but in Indian terms he just doubled his salary.

So you have armies of folks like that who come through Infosys, TATA, Accenture, Deloitte, it's the same concept - the consulting companies have relationships in IT departments, they walk around and look what parts of business they can take, and they pitch low cost resources - it works most of time.

This has nothing to do with 'best and brightest" concept that #H1B was to cover - this is pure labor arbitrage where the outsourcing companies are making a ton of money by f---ing American workers.

All management at the target company knows about this, they are part of this scam as well.

Finally, here is the kicker - the visa application process is expensive and cumbersome (I think it's over 1000 bucks to apply). Also, if you apply you have about 10% chance of being accepted. So, what Infosys (and other) does is compensating the cost - so they will make let's say 10,000 applications, they pay ten million for that but they will manage to get only 1,000 people a visa - it's still good for them as they make 30K per resource a year, the average tenure on a contract is three years. So on each person they make 90K in three years, so on 10 million invested, they get 90 million in outsourcing revenue - this stuff is pure margin for them (let's say 80% margin as overhead is minimal).

So, if you look at the stats with TATA, Infosys, WIPRO, etc. bring in 3K every year, there is ton of money in this game - this is HIGHLY profitable for them, as contracts are long term and they go so deep in that the client have very difficult time getting rid of the folks who get hired.

I hope this helps...

I do not think anybody is covering this thoroughly - there some right wing nutcases who focus on this, but as it relates to serious reporting, I think #H1B is not covered properly by the mainstream media

Americans getting replaced by H1b workers - please do the following to raise public awareness of this issue.

American workers getting replaced by H1bs brought in by contracting firms

Those of you who want to raise awareness of the public just like the Disney folks and the Edison folks did about replacing American workers at your companies by H1bs. I would suggest you to please google and see which journalists have written on H1bs replacing Americans. There are lots of them writing about that and they are always looking for new stories. Please find their email address and write to them to educate the public and the Govt and stop this abuse.

Confidentiality will be maintained if you request the journalists to do it.

You will not see IT workers in the park grounds.

They will be in office spaces.

Please read articles about Disney workers being replaced by temporary guest workers.

I was at Disney recently. I looked around the park grounds and didn't notice anything to support this.