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Indian government calls H1B visa fee hike 'discriminatory'

charles_schumer.JPG

Sen. Charles Schumer, D-N.Y., left, accompanied by Sen. Ron Wyden, D-Ore., during a news conference on Capitol Hill in Washington, Tuesday, July 27, 2010. Photo Credit: AP Photo/Susan Walsh

By Ariana Eunjung Cha

The government of India is protesting a bill in Congress that passed the House Tuesday and the Senate last week that would significantly raise U.S. visa fees for skilled workers.

In a letter to U.S. Trade Representative Ron Kirk, India's Commerce Minister Anand Sharma said the bill unfairly targets Indian companies and estimated it would cost the country's firms an extra $200 million a year.

"It is inexplicable to our companies to bear the cost of such a highly discriminatory law," Sharma wrote.

The additional fees from the popular H-1B and L visas programs would be used to build operating bases and deploy unmanned surveillance drones to better secure the U.S.-Mexico border--one of the rare issues both Democrats and Republicans have agreed on.

The legislation targets companies that lawmakers say "exploit" U.S. visa programs. A summary of the Senate version listed Wipro, Tata, Infosys and Satyam as such firms, saying that they fly thousands of employees to the U.S. to work at as technicians and engineers for their clients.

The Indian government argues that the bill, which raises fees by $2000 from $2500, is discriminatory because it will primarily impact Indian firms even though they account for fewer than 12 percent of the total visas issued. U.S. companies, such as Microsoft, use these visas in larger numbers but there's a loophole in the bill that says they will only see an increase if 50 percent of employees are on H1B or L visas.

Sen. Charles E. Schumer (D-N.Y.) inflamed Indian media outlets in debate in the Senate on Thursday when he called Infosys, the IT outsourcing giant, a "chop shop"--the term often used for the place where stolen cars are dismantled for resale. He said such companies outsource high-paying American tech jobs to immigrants willing to take less pay. He said he did not want the bill to affect companies that employ Americans and "play by the rules."

The USTR and Schumer's office did not immediately respond to requests for comment.

By Ariana Eujung Cha  |  August 10, 2010; 1:05 PM ET
 
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Comments

As per census Indian companies are paying nearly 1Billion Dollars as Social security tax to US govt per year,and this H1,L1 huge fees increase will impact indian companies.Main concern is,they are targeting only indian based firms like infosys,tcs,wipro etc..;What abt US based IBM,Microsoft,Google other companies,these companies are also bringing lot of Software Engineers from india,but these are exempted from fees increment.

Posted by: sam1980 | August 10, 2010 2:04 PM | Report abuse

The inclusion of that loophole for US-based companies is a breach of good faith with the American people. American companies should have to pay the increased fees, considering that many of those companies are American in name only, and conduct the majority of their operations offshore, as it is.

I have no problem with increasing the fees, but the loophole described here is as crooked as any Blagojevich deal.

Posted by: lonquest | August 10, 2010 2:24 PM | Report abuse

THE US CONSIDERS INDIA A STRATEGIC PARTNER. THE USA AND INDIA NEED EACH OTHER TO FACE THE GROWING POWER OF CHINA AND GLOBAL ISLAMIC TERRORISM.

CHINA, BY USING UNDER VALUED CURRENCY, HAVE
DAMAGED THE US ECONOMY TO A VERY GREAT EXTENT, BUT THE US GOVERNMENT TREATS CHINA SOFTLY.

THIS DISCRIMINATION AGAINST INDIA FIRMS MAY MEAN FEWER EXPORT ORDERS FOR THE US BUSINESS.

Sen. Charles E. Schumer (D-N.Y.) inflamed Indian media outlets in debate in the Senate on Thursday when he called Infosys, the IT outsourcing giant, a "chop shop"--the term often used for the place where stolen cars are dismantled for resale.

HE SHOULD BE SUED INA COURT OF LAW.

Posted by: Anonymous | August 10, 2010 2:57 PM | Report abuse

The higher visa fee is not discriminatory! It applies to ALL companies whose US workforce is more than 50% visa holders. The arguments from Indian companies are specious. The 50% threshold is not a "loophole," it is the whole point - that companies in the US should hire legal US citizens or green card holders BEFORE they hire from abroad. The fact some companies have more than 50% visa holders already as their US workforce is a testament to the fact that they have not been equal opportunity employers as required by law.

Posted by: merbc | August 10, 2010 3:45 PM | Report abuse

"The additional fees from the popular H-1B and L visas programs would be used to build operating bases and deploy unmanned surveillance drones to better secure the U.S.-Mexico border"

So let's get this straight. The cost of bringing one Indian IN is keep five Mexicans OUT.

Also, it's hard to take the indian protest seriously, considering it comes AFTER the bill has PASSED BOTH chambers.

Posted by: Anonymous | August 10, 2010 3:47 PM | Report abuse

Beware of impact.....US has more to loose if Indian goverment has to reciprocate with taxing US companies in India.

Posted by: Anonymous | August 10, 2010 4:27 PM | Report abuse

How about India deploying a PAKISTAN TERROR SURVEILLANCE tax on US organizations. The tax collected can be used to counter Pakistani terrorist activities in India.

Some of the companies that will be affected - Pepsico, Coca Cola, Motorola, Boeing, IBM, Microsoft, Oracle, Bearing Point, Hewitt, HP, Goldman Saks, JP Morgan, Bank of America, General Motors, Ford, Kellogs, McDonalds, Johnson and Johnson, Metlife, New York Life, Amway, Discovery, Citigroup, Caterpiller, Kodak, Morgan Stanley, Oracle, UPS, Xeroz, American Express, CSC, Cummins.....

Posted by: Pankaj | August 10, 2010 4:37 PM | Report abuse

Finally they have passed something that is good for this country. The House should listen to voters, not any kind of visa holders. Period.

Posted by: Anonymous | August 10, 2010 4:57 PM | Report abuse

This will be a good way to stop legal immigration.

Posted by: Anonymous | August 10, 2010 5:10 PM | Report abuse

India should reply with equal force. put heavy levy on any US good imported in India. Put more taxes on US comapny operating in India. Don't do any defence or nuclear deal with US. kick their butt, so they dont repeat it again.

Posted by: Sunny, NJ | August 10, 2010 5:15 PM | Report abuse

The US economy needs fast growing Indian markets to survive. Application of protectionist measures will impair US organiations operating in India.

US is not the only game in town. World order is changing. And changing rapidly.

Posted by: Anonymous | August 10, 2010 5:24 PM | Report abuse

Another form of racist behaviour...

Posted by: Anonymous | August 10, 2010 5:30 PM | Report abuse

India, go take it somewhere else. Stop your whinning because you have MILLIONS of US Citizens jobs. Which I hope stops very very soon. I would recommend you talking to Mexico.

Posted by: Anonymous | August 10, 2010 7:08 PM | Report abuse

Please, with the over-the-top comments. All they are doing here is raising the sponsorship fee on companies owned and run by ANYONE that are operating within the borders of the United States WITH OVER 50% FOREIGN NATIONALS FOR EMPLOYEES. Anyone raised in the United States will immediately understand what the problem is with this. The U.S. has long had a commission - the EEOC - whose job it is to enforce fair hiring laws. From the EEOC's website: "The U.S. Equal Employment Opportunity Commission (EEOC) is responsible for enforcing federal laws that make it illegal to discriminate against a job applicant or an employee because of the person's race, color, religion, sex (including pregnancy), *national origin*, age (40 or older), disability or genetic information." The EEOC must have been looking the other way for the last 20 years vis-à-vis these foreign companies that the senators mention: I believe these companies have about 90% OF THEIR VAST NUMBER OF EMPLOYEES SPONSORED ON FOREIGN WORK VISAS. Is it just coincidence that they hardly ever find an American or non-Asian candidate that they are willing to hire? It stretches and breaks credibility. If they're going to howl and wail over something as small as this fee increase, might as well just start heaping well-deserved fines onto these companies as well, or simply change the law to prevent these third-party bodyshops from being able to sponsor the foreign work visas at all.

FYI - just last year one of these Indian bodyshops - Satyam - had to be saved from bankruptcy after Chairman Ramalinga Raju confessed that Satyam's accounts had been falsified:

http://en.wikipedia.org/wiki/Satyam_scandal

Posted by: USVoter1 | August 10, 2010 7:34 PM | Report abuse

Here is a typical H-1B, L1 visa usage as i witnessed it on several projects:
-1-Company X (be it a large bank or insurance company like Citibank, AIG, USAA,...) decides that outsourcing is the way to go..., and picks one of the India outsourcing companies like Infosys, Satyam, Tata, Wipro,...
-2-Now, Hundreds, sometimes even thousands of freshly graduated indians from indian schools in their early twenties are sent to the US to train, by the Company X's IT developers and engineers...
-3-After being trained, a wave of indian software developers is rotated back to india to work from there and another wave is flown in..., and same thing repeats for the next months and later years...
-4-After having the Indians trained, Company X starts laying off its software Engineers and Developers for various reasons and putting those engineers on -for the most part- long term unemployment, payed for by the US taxpayers... . This process continues until most of the IT software developers in company X are from India, on various Visas, H1B, L1,...
-5-For some reason, either nepotism, caste system,... it seems that the Indians start hiring only Indians, so now even the full time software developers of company X are Indians either having Visas, or sometimes Green Card or US Citizenships. The reason given for that is that they can't find qualified americans and various tricks are used to circumvent having to hire anybody who is not from India and in many cases from the same caste in india...
-6-Now, The Infosys, Satyam,.. Indian contractors are usually housed several to an apartment somewhere at a walking distance from company X, and send all their earnings to India...

-7-Now, the following situation develops: Hundreds of thousands, even millions of American software developers and engineers are now collecting long term unemployment, defaulting on their mortgage, student loans, and not paying much taxes since they no longer can find jobs... . Also, now there is absolutely no incentive for any smart kid coming out of high school to go into engineering or computer science, since he or she have witnessed how the engineers they knew ended up on long term unemployment, and had to train their Indian replacements.
-8-But looking at the bright side now the CEO and executives of company X can claim huge savings and collect millions upon millions in bonuses... .
Also, now individuals like Azim Premji, Nandan Nilekani, and other Indian labor importers have become billionaires, for doing nothing other than importing Indian inexpensive labor paying them Indian fixed salaries (i.e. very little), and working them 10 to 12 hour days, and than rotating them back to India...

Posted by: UnemployedSeniorSoftwaredeveloper | August 10, 2010 7:43 PM | Report abuse

India increased visa fee for Indian Americans/Persons of Indian origin (so called own ambassdors). The visa fee for 5 years Entry visa ( for former Indians) is double than visa fee for 10 years tourist visa( for foreigners).The reason given by Indian govt. is internal security (border control) and by Indian consulates is revenue.Indian govt and Indian consulates are discriminating their own people by refusing visa to visit their motherland and act like dictators. Why crying over these rules? Is it not typical Indian double chracator????

Posted by: Anonymous | August 10, 2010 8:35 PM | Report abuse

Dear Senator Schumer,
Bravo. What a brilliant idea.
Taxing (only)Indian companies to pay for the cost of enhancing our protection on the Mexcian border.

Thats a great business model.

Now, what if India decides to retaliate and charges all American products imported into India a special tariff to pay for a construction of a fence along the Indo Chinese and Indo Pak border would we object?
After all a trade barrier is a trade barrier!
Its a pity you did not consult with Prof Bhagwati of Columbia about trade barrieres and other barriers before implementing this idea.
Of course you are hoping it pays off in November; ( As the Iron Lady Margaret Thatcher once famously said, its the duty of politicians to ensure they are re-elcted)what if it does not.

You risk being branded as a cheap politican who has run out of ideas and is reduced to picking on a bunch of guys who play by the rules unlike the madrassa born US educated guys like Faisal Shehzad.

Its a pity that our senators have demonstrated that when push comes to shove we forget the greatness of America and behave more like a banana republic.

President Obama ran on the platform of change. I know my vote would be to change you given the paucity of ideas your team has come up with.

Posted by: mrblunt | August 10, 2010 9:17 PM | Report abuse

To the commenter who wrote the fake sarcastic letter to Senator Schumer: your comparison is a bit off. You would have needed to say: "what if India decides to retaliate and raises fees on all American companies who do major business within the borders of India while hiring virtually all Americans shipped in from the U.S. as employees, to pay for a construction of a fence along the Indo Chinese and Indo Pak border...

...this would be the appropriate comparison to the "bunch of guys who play by the rules".

Posted by: USVoter1 | August 10, 2010 11:10 PM | Report abuse

All we want is an end to the discrimanatory hiring practices of foreign IT companies.

We want an open and free hiring process that includes all qualified applicants.

Equal Opportunity for all U.S. workers.

Yet it is clear that some companies use the H-1b visa to support a closed hiring process, that discriminates against U.S. citizens.

The racist comments by Vineet Nayar (that U.S. citizens are "Unemployable"), a CEO at a top Indian IT company shows that racism is present in the hiring practices of foreign IT companies doing business in the United States.

This is a job Ad for a Java Programmer in New York City:

http://usa.lucidjobs.com/jobdetail/X5848172LD

The job Ad stipulates that only H-1b candidates will be considered for the position.

I guess "U.S. Citizen" is not the "Correct" ethnic origin to do "Java Programming" in New York City USA.

Why are U.S. citizens not being allowed to freely compete for this Java Programming job in New York City, USA???

Posted by: jake_leone | August 11, 2010 1:10 AM | Report abuse

US is reeling under financial crisis and INDIA has become $2Trillion economy why should INDIA complain?
Atleast US is doing right thing under law unlike INDIA that is full of CORRUPTION from top-2-bottom.....look they could not even stay-away from their PRIDE CWG games corruption SAGA?
Go ahead US....these people have including [Anand Sharma] have habit of cribbing.....

Should US not prosper, many indian workers benefit from US H1 to L1 to Z1 etc.etc. visas apart from US jobs are already being OUTSOURCED to INDIA that has not become $2TRILLION ECONOMY........
Mr Sharma should check top to bottom corruption back in INDIA.

Posted by: Anonymous | August 11, 2010 1:57 AM | Report abuse

In human histiry if u create hurdle or trouble you find that that country or human race become great like germany , japan even USA itself.

Thats sound great but i love this as indian i always welcome this. I never visited USA someday may be i travel in USA as visiter ofcourse.

I dont able to understand business model. so political leader do something but end of the day people who work good, find new win race.

Hey some complains about USA companies:-
1) management always USA person no indian.
2) quility work always done by them, labour like work forwarded to india.
3) Earliear nobody ready to work in greyyard shift.


Good/likable thing about USA:-
1) they are most of curruption free
2) always enjoying their work
3) they are very loyal to their work
4) Always ready to help you when you stuck somewhere in work.
5) never ever find attitude in usa person taking everything in easygoing.
6) enjoying vacation like anything

So lots of good thing in USA. I ma Gujarati & our side there is joke when we born we only have one dream "one day we will get green card".
Hopes never die & i want quility life like every usa citizen having their.

Posted by: Anonymous | August 11, 2010 3:41 AM | Report abuse

What US government doing is indeed just a token/gesture to show that they are addressing unemployment issue and keeping a check on Jobs taken away by India and China. It is a pure political gimmick to gain more votes in midterm polls.
I really don’t think this would impact the way the work is being done. Indian cos benefit by sending their employees to US to get the work offshored and have a person or 2 stationed at client location to co-ordinate. They prefer a person from same team back offshore for continuity and for easy knowledge transfer. Adding an additional $2000 cost far outweighs the intangible benefits. Besides, Indian cos use half the time slot of a H1B visa, i.e only half the time employee with visa is stationed in US, so remaining half the time employee is stationed in India and draws much lesser salary from company treasure, if it was a full time employee in US the cost is almost doubled.

This bill’s cons on US might be increased off shoring, which will reduce costs further for Indian cos and reduce tax payed by these companies in US, indirectly reducing revenues of US.

But, The usage of word 'Chop Shop' is completely uncalled for. I hope sooner than later Senator would understand and clarifies his remarks specific to this phrase usage.

Posted by: Anonymous | August 11, 2010 5:56 AM | Report abuse

I dont think this bill going to affect anyside significantly.It barley incurs a cost of around $250 million on the whole indian IT industry which has a revenue of $60 billion per year. And again the indian IT companies will again charge the american companies for the incured increase in this cost.

In the view of most Americans indian IT workers equate to Call centre employees.Lets get the facts straight.No call centre employee comes to US on a H1B/L1B.Its the Highly Qualified Software professionals who take these visas.

In my opinion this movie is a sheer political gimmick.Outsourcing is and will be the most productive and economic model unless US comes with an innovative solution.They can start with making their kids to choose Science and Engineering as a career.

Posted by: Anonymous | August 11, 2010 10:39 AM | Report abuse

wfwfwfwgw

Posted by: Anonymous | August 11, 2010 10:59 AM | Report abuse

send the darn coke back to Atlanta, and a pepsi bottle up the schumer's a$$

Posted by: Anonymous | August 11, 2010 12:46 PM | Report abuse

Indian IT Companies will change the rules and ask their US Clients (Citigoup, AIG,BOA,PEPSI) to pay the charges of H1/L1 visa to bring the consultant to USA

Posted by: Anonymous | August 11, 2010 1:14 PM | Report abuse

Why we are all bothering , let the companies pays the fees, they are making milloions of dollars and we are the one who worked hard and also take tension.

Posted by: Anonymous | August 11, 2010 1:23 PM | Report abuse

I like this bill, this will stop the misuse up to some level I guess..

Posted by: Anonymous | August 11, 2010 7:51 PM | Report abuse

fee hike wont stop

Posted by: Anonymous | August 11, 2010 8:12 PM | Report abuse

This is a simple adjustment of costs which would be passed from Infy,wipro,TCS,CTS on to US Companies.. Most of the Indian companies have already running LEAN which means 80-90% of work would be done in India. Only the 10-20% of the folks would come and they are trying their best to overload the people already here by assigning multiple projects. So they will try their best to reduce costs and if not they will rewrite the Offshore contract with the new rates which would include the Legal Fees.

This is another step against H1B as they have already targeted H1B early this year with the Neufeld Memo. With that step they have further proved the point that this administration is clearly against H1B. Untill good times comes back rolling like unemployment rate below 5%.. There would be further newer,stricter,costlier laws for Legal to-be immigrants or non-immigrants..

I have gone through the comments from supporters of the bill and they are unaware of the fact that H1B and L1 pay taxes and Social security unlike Millions of illegal mexcians who are a liablity why not try collecting taxes and social security from them. ( well u can't even imagine about that )

Posted by: to be immigrant | August 11, 2010 10:08 PM | Report abuse

The law should also CAP number of visas a company can apply for. I completely agree with UnemployedSeniorSoftwaredeveloper and hope all like you will get benefited from this law. Better salary and job security! There is L1 abuse happening from many companies, more than H1.

Posted by: Anonymous | August 11, 2010 10:54 PM | Report abuse

This just goes to prove that the recession brings about the "best" in our politicians. Calling foreign blue chip companies "chop shops", criminalizing babies born to undocumented aliens in US etc, the list goes on. Our politicians are great at championing bizarre stuff but are clueless on how to improve the economy and create jobs. The mantra seams to be "blame the foreigner, legal or illegal", have to see how it helps us and our economy.

Posted by: Engineer | August 12, 2010 1:35 AM | Report abuse

Discriminatory from every angle. Imposing burden on people who have no representation in there home country India. Shame on Democrats, who cannot do anything in three years to recover the economy and blame republicans. Maximum damage to US economy has been caused by China, still there is no embargo on Chinese dumps in wallmart, target, and other retails. Shame on democrats to refuse to existing immigration laws and make porous border less porous. All talks and no actions OBAMA had ideas of reducing mexican migration with technology and other cost effective means during his campaign! What happened to democrats? Indians in US have choice to vote republican, irrespective of likes, just because....a poor representation of Indian interests is penalized on lawfully migrating people at request of American corporations.

Posted by: hardhitter71 | August 12, 2010 2:06 AM | Report abuse

blah blah blah. Discriminatory? So are tariffs. And yet they're still used. Deal with it.

Finally the US is protecting its IT workforce.

CLOSE THE LOOPHOLE!!!!!!

Posted by: JERiv | August 12, 2010 8:39 AM | Report abuse

Oh, and I TOTALLY agree with UnemployedSeniorSoftwaredeveloper.

I'm a very young IT professional (early thirties), and I do not see a future in this career. Anyone who asks me about programming, I tell them to pursue another career. Same for everyone I know whose kids are now ready to go to college. They tell them to stay away from IT like it's the plague.

There is simply no future for developers in the US as long as companies continue full-scale offshoring of their IT departments.

There is NO security in an IT job in today's US market. Every developer I know is already looking into how they can switch to another career. We have no hope for the future.

No developers in the US? That's BS. More like much cheaper recently graduated labor in India.

Oh, and offshore does NOT mean a better product. These IT employees are recent grads. I look at their code, and I physically cringe. HORRIBLE. Sometimes I think they do it on purpose, so they can charge us to fix it later.

Posted by: JERiv | August 12, 2010 8:47 AM | Report abuse

I'm partially in the same boat as UnemployedSoftwareEngineer. I am now one of the underemployed after five jobless months. I was laid off by a major insurance company by a former H1B VP who has greatly increased outsourcing to one of these companies that anchor four more jobs offshore with an H1B. He has since hired a disproportionately large percentage of Indians to fill the gaps he created.

I’m not claiming we should scrap the whole program, just keep reins on it. This seems little more than a stopgap / publicity stunt as far as impact. But while the US remains a sovereign nation, there must be some right to represent what is best for its people.

If you want to scream to me about discrimination, you need to change two little hurdles before I'm inclined to listen.

1. Change the skilled visa programs' very definition to be "flood the US with as many fairly smart people as you can" from “filling gaps in the skilled labor force”. While there are fields where there is a need, the lion’s share of H1B (and I suspect L) visas is going to companies that are displacing Americans to fill with foreign labor.

2. Change the definition of discrimination. This word gets thrown around WAY too much. Discrimination is what we do in every day of our lives. We find some reason to choose one thing over another. ILLEGAL discrimination is based on certain criteria: race, religion and gender being the big three. This is discriminating against foreign companies. While India may be "hardest hit" (as mentioned above this is likely to have minimal impact), it is not because of religion or race--that is a side effect in India's case.

At this point I’ll listen to discrimination. Next you’ll just need to identify why a nation’s government is supposed to look out for the desires of other nations before its own people and demonstrate why we’re supposed to abandon the standards of humanity we’ve set in support of 60-90 hour work weeks.

Clear these minor obstacles and I’m all ears.

John80224

Posted by: John80224 | August 12, 2010 10:16 AM | Report abuse

The US Senator should be working on policies to create jobs locally. USA should concentrate on supporting local businesses so that they hire local talents. Currently most of local business are losing out to internet retailer as they have lower cost base and online people don't pay taxes. So government lose money in taxes, people lose jobs (local store closes) & people left with no money to buy stuff from business. WOnder what government is doing to create a level playing field for online & local businesses. It's imp to create more jobs rather getting involved in discreminatory statement. Statement makes me wonder what Senator thinks about work that IBM, GOOG, AAPL does vis-a-vis infy, tcs, wipro etc.

Posted by: Anonymous | August 12, 2010 11:00 AM | Report abuse

Supporting local companies has a subtle but impacting flaw. In my case as well as what UnemployedSoftwareEngineer laid out is this. For every startup that becomes Google, there are a thousand that carve a niche or fold. I spent much of my career in such companies. Meanwhile large companies are sponsoring (most all of) the visas.

A few years down the road, the H1B has been working for a large company where there is growth opportunity, becoming a senior/lead/manager while the small company worker has honed his craft but hasn’t advanced his career. At this point, the H1B, now with green card, is hiring and nepotism often abounds (as anecdotally demonstrated by me and UnemployedSoftwareEngineer).

We’re starting to see this more and more. Small to medium companies, traditionally with lower pay and less opportunity, still largely hire citizens and green cards, while the best jobs in terms of career growth and opportunity are going to visa holders or former visa holders.

In such a scenario, it’s hard to tell kids in the US that STEM jobs will be there for them after college.

Posted by: Anonymous | August 12, 2010 11:34 AM | Report abuse

Supporting local companies has a subtle but impacting flaw. In my case as well as what UnemployedSoftwareEngineer laid out is this. For every startup that becomes Google, there are a thousand that carve a niche or fold. I spent much of my career in such companies. Meanwhile large companies are sponsoring (most all of) the visas.

A few years down the road, the H1B has been working for a large company where there is growth opportunity, becoming a senior/lead/manager while the small company worker has honed his craft but hasn’t advanced his career. At this point, the H1B, now with green card, is hiring and nepotism often abounds (as anecdotally demonstrated by me and UnemployedSoftwareEngineer).

We’re starting to see this more and more. Small to medium companies, traditionally with lower pay and less opportunity, still largely hire citizens and green cards, while the best jobs in terms of career growth and opportunity are going to visa holders or former visa holders.

In such a scenario, it’s hard to tell kids in the US that STEM jobs will be there for them after college.

Posted by: John80224 | August 12, 2010 11:39 AM | Report abuse

Political leaders are same in every country. They could have done 100 different things, which would really help the citizens. Increasing the H1b fee to rediculous levels will leave the company to outsource the complete project, which also eliminates other 5, 6 surrounding non specific tech/non tech jobs. H1b is a visa given to the foreign skilled worker working in USA, whereas outsourcing is moving the work completely out of the country. They work one against the other. If you want the company not to outsource, it should be able to find the right skilled people at the reasonable cost locally.
This bill is certainly short cited.

Posted by: Anonymous | August 12, 2010 4:06 PM | Report abuse

For all the people who say that they are replaced by H1b...Look below how the Total Indian life changed with the globalization.

Brushing, in the past done with a local tree stick, now with Colgate paste.
Bathing, done with local flour and herbs, now bath soaps.
Clothing, produced by local weavers, now brands like GAP, American eagle.
Breakfast, used to be home made, now cereal from Pepsi
Lunch, used to be home cooked, now subway and pizza hut
Entertainment, used to be local shows, now with ESPN, MTV, FTV
Agriculture seeds, used to be a local system borrowing from the best produced, now Monsanto.
Pleasure drinks, used to be less alcoholic tree products, now bud light, foster and Johnny walker, pepsi, Coke.
and 100s more...
Globalization has changed every aspect of common man's life in a less prepared country like India for such big tsunami. It has deprived so many people from what they been doing for generations. So in a country like India with 1+ billion people, education is the only means of survival.
And it flows towards the opportunities. So in this game of globalization, who benefited more is subject of discussion.

Posted by: Anonymous | August 12, 2010 4:30 PM | Report abuse

There are 12 million undocumented non tax paying workers replaced so many americans in that category....no problem.
Thousands of manufacturing jobs moved to China and displaced real strong american work force....no problem.
Anually 65000 H1bs given to the real good people to work in the technology...BIG PROBLEM.
Only reason is last category americans has 24/7 access to Internet.

Posted by: Anonymous | August 12, 2010 4:51 PM | Report abuse

There you go !!
So finally is America so poor that it needs MONEY from a deveoloping country like India to fund its security?? that too a mere 100 or 200MN$.
A complete shame to American policy makers.

Posted by: Anonymous | August 12, 2010 4:57 PM | Report abuse

I was a senior programmer for a $5 billion corporation for 11 years and I lost my job and was replaced by an Indian from InfoSys. I say raise the visa fee to $10,000 and charge it to all companies who offshore any American jobs to foreign workers.

I did find another job but had to take a big pay cut to start out in a new place.

With this particular legislation if InfoSys doesn't want to pay it, then they can take their workers out the U.S. and take them back to India where the hell they belong.

I also support boycotts of American companies who offshore American jobs to foreign workers. I also think these companies should also be heavily fined for taking jobs out of the U.S.

I know this sounds mean but these are not the times to be nice. Get rid of the people who are slicing up the American dream and sending it back to foreign countries and put America back to work.

Posted by: Sidney Vaught | August 13, 2010 9:15 AM | Report abuse

@Anonymous | August 12, 2010 4:30 PM

Yep, India has gained more than the US has lost. This overall social concern is part of why at least many of us don't espouse immediately dropping the entire visa program and going completely protectionist. But except for keeping a quota, there has been nothing else about this law that's been enforced. It's been giving an industry what it wants while letting them do so under false pretenses.

Goldman-Sachs, Enron, WorldCom, ... We've seen time and time again in the past decade or so what happens when companies are given all they want--they use it with little consideration even to their own long-term existence and none whatsoever to any greater good.

There are points where rapid change overheats and burns itself out--which would be bad for everyone.

Also, there's a question of what American ideals are to endure and which ones are not. There are many foreign workers who are working 60-90 hour weeks as a matter of course. And the US is largely driving that trend that we ourselveS deemed inhumane coming out of the Industrial Revolution.

Posted by: John80224 | August 13, 2010 9:21 AM | Report abuse

Discriminatory?! You are INDIANS from INDIA! You have NOT right to be granted a visa to the United States...NONE! With our massive unemployment H visas should be suspended, let alone making it cost prohibitive for ANY foreign national to come to the United States and take a job from a US citizen! Deal with your own problems in your OWN country!!

Posted by: DahktaD | August 13, 2010 11:50 AM | Report abuse

Discriminatory?! You are INDIANS from INDIA! You have NOT right to be granted a visa to the United States...NONE! With our massive unemployment H visas should be suspended, let alone making it cost prohibitive for ANY foreign national to come to the United States and take a job from a US citizen! Deal with your own problems in your OWN country!!

Posted by: DahktaD | August 13, 2010 11:56 AM | Report abuse

Assume you get H1B for 3 years, that is approx 6000 working hours. ( 2000 Hours each year)
Assume you make @ 50 USD per hour
that makes it 6000X50 = 300000 USD

Now get a percentage of impact due to increase:
2000/300000 % = .66 %

So the impact of this change is less than 1 % of earning of H1 B

So relax ! Its not going to change anything except satisfying emotions of some stakeholders on either side.

Posted by: shailendrasingh | August 13, 2010 1:17 PM | Report abuse

I agree with the Sen. Charles E. Schumer! The companies must really have to stop abusing the H1b visa and definately there are so many Americans that can do the jobs instead of Indian to come and take the job in the time when the economy is still down. IT USA - defend your US workers!

Posted by: Anonymous | August 13, 2010 5:19 PM | Report abuse

A very positive change. Mr Sharma would do well to encourage Indian companies to employ US citizens first if they choose to operate in the US. I believe India will have little recourse against US companies that bring so many Indian jobs to India, unless of course they want to see those jobs move elsewhere in Asia.

Posted by: Anonymous | August 13, 2010 6:52 PM | Report abuse

Way to go USA!!!
Support American workers
Not insourcing or out sourcing

Posted by: Anonymous | August 14, 2010 12:30 AM | Report abuse

India increased visa fee for Indian Americans/Persons of Indian origin (so called own ambassdors). The visa fee for 5 years Entry visa ( for former Indians) is double than visa fee for 10 years tourist visa( for foreigners).The reason given by Indian govt. is internal security (border control) and by Indian consulates is revenue.Indian govt and Indian consulates are discriminating their own people by refusing visa to visit their motherland and act like dictators. Why crying over these rules? Is it not typical Indian double character????

Posted by: Anonymous | August 14, 2010 5:26 AM | Report abuse

""Another form of racist behaviour...""

Youre an intellectually bankrupt idiot

Posted by: Anonymous | August 14, 2010 8:36 AM | Report abuse

Indian H1Bs and L1s have DESTROYED the careers of hundreds of thousands of US IT workers. There is a lot of anger out there and Schumer finally seems to get it.

Posted by: ITdude | August 14, 2010 10:37 AM | Report abuse

I guess Americans will be asked to travel to India and train them there, instead of bringing Indians to America. Indian visa fees should be cheap along with the overhead costs. I would travel to India for couple of months.


Posted by: Anonymous | August 14, 2010 11:24 AM | Report abuse

Please note this bill will affect only the employers who have more than 50% of employees holding H1b visa. Hence this will definitely help some non-IT tech companies, who are genuinely looking for talent and skills in US campuses. I liked this bill as it is intended to prevent the exploitation of loopholes in US immigration laws.

Posted by: Anonymous | August 15, 2010 10:08 AM | Report abuse

Really stop getting indians into US. Employ only US citizens and continue to work projects for 4 years instead of 2 years. Since US staff neither has the required skills nor the brains to complete projects as quickly as indians do this will also take care of the fact that there will no longer be unemployment - because their projects will never be complete LOL :) ! Seriously India , bring back your people and expand to others countried, levy tax on US products - that's the best way to tackle this issue. We needn't even fight them. Withdraw your brains and talent and then bite the dust.

Posted by: Anonymous | August 15, 2010 12:28 PM | Report abuse

Bravo Senator!
But is this enough? To truly hold the real purpose of H1B, companies should not be allowed to have more than 50% of H1b or L1 employees. Fee hike might be a good step but it might not really be a long term solution.
I am an Indian H1B employee, I followed all the right channels and was never given a job for a lower salary or which would have replaced a citizen's job. I appreciate that about this country and it is the protection and value it gives its citizens that drove me to come here. But I now see that very essence of this nation compromised.
I believe I have the skills to contribute to this nation and I will work hard to achieve it through the right means. In the wake of this when I see these "chop shops"(befitting title!) exploit the system and take american jobs it hurts me. This situation has affected my relationships with some wonderful american colleagues and friends who are unable to distinguish me from a body shop employee since we all hold the same title - H1B. The H1B visa had a purpose - to add skilled workers from around the world to the growing american workforce and it should do just that. And you don't need more than 65000 a year for that or body shops for that either. As for the L1 - don't get me started on that. SCRAP IT!

Posted by: concernedImmigrant | August 15, 2010 5:56 PM | Report abuse

This is a law, which fails to understand the issue is not with the h1 visa but the outsourcing. I cannot see americans working as developers. It is very rare. 90% of the tech jobs are asians. And most of the americans are not willing to work in the tech jobs, they choose to go to the managment, arts... If asians are out of this country, there are not many americans who replace that job. It means, that job will not exist or outsourced. It means, the economic activity created by that asian american in America is moved to Asia. It is bad to the economy activity of which country? America or India? It is america which is going to be worst hit. Think about it guys...

Posted by: Anonymous | August 16, 2010 2:11 PM | Report abuse

PLEASE KEEP READING - The H-1B allows U.S. employers to temporarily employ foreign workers in specialty occupations. The regulations define a “specialty occupation” as requiring theoretical and practical application of a body of highly specialized knowledge in a field of human endeavor.

http://en.wikipedia.org/wiki/H-1B_visa

I worked for a company that has outsourced to an Indian company TATA Consulting Services. TATA has no employees that know the systems or language we use. They have gone to 5 days of training and are requiring us to train.

Using the above definition, tell me how this is an acceptable use of H-1B?

I also agree the fee should be paid by the US companies, not the Indian companies.

Posted by: Anonymous | August 16, 2010 6:57 PM | Report abuse

call back your troops from around the world and ask them to stand every 100 metres,u will cover your border with mexico.you will also save billions of dollars to improve your economy.

Posted by: Anonymous | August 17, 2010 8:38 AM | Report abuse

you will be able to give jobs for 31690 people to guard the border.Americans will get their jobs and no worry of outsourcing or employing foreigners.Take my idea Mr senator u will hit 2 birds with one stone,,,,stop mexicans and give employment.

Posted by: Anonymous | August 17, 2010 8:49 AM | Report abuse

“Posted by: Anonymous | August 16, 2010 2:11 PM”

How do you mean, you can’t see Americans working as developers? I can assure you, there are many of us out there. In many large corporations, Americans largely aren’t ALLOWED to in deference to outsourcing, onshoring and what is becoming a growing segment of often nepotistic hiring by formerly “temporary” workers who have become the management in these companies.

Posted by: John80224 | August 17, 2010 3:57 PM | Report abuse

Every empire in the history comes down eventually. The mogul empire came down, the roman empire came down and now its time for the american empire to come down. And whenever an empire comes down you can tell much in advance by the signs. And this is one of the signs. I remember earlier US imposed a tariff on china based tires. Politicians are trying hard, real hard to come up with these bad ideas. The truth is, US should be proud to have immigrants coming in. It gives them an advantage. I wish India attracted so many immigrants. It would have been great with idea coming from all over the world. But unfortunately it doesnt, due bad infrastructure, hot weather , bad politics in india etc.
Just look at the sorry state of education in US. All the programs that are being created are not doing any good. Image if all the immigrants left america to their own countries. It will be a nightmare for america. Finally you will see a blonde cleaning floors!!
The empire is coming down guys.
And all those ho worry about India companies like Infosys and Wipro, tcs. I guess they down know / understand their business model. They are not coming down anytime soon. They make their software products and have business around the world and not just US.
I wish these politician understood the root cause the jobs problem and try fixing the root cause and not just the symptom.

Posted by: av | August 17, 2010 11:45 PM | Report abuse

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