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Dino Perrotti's picture
Dino Perrotti

American Engineering Careers

Round 6: H-1B Battle - American engineering's "April Fools"

"Good morning, you're fired and getting replaced by a software engineer from India with an H-1B visa ... APRIL FOOLS!" This is a bad joke to play on an engineer these days, because it is just too close to actually being true.

The root of "April Fools Day" goes back to the 1500s when the New Year date was moved from April 1st to Jan 1st. Those who were unaware of the change were open to pranks and jokes. They were the "April Fools".

April 1st, 2007, is still, however, the beginning of the new year for H-1B applications, and it is American engineers unaware of these activities who are once again the April Fools.

Immigration lawyers, representing tech companies and foreign nationals, sent thousands of couriers to hand-deliver H-1B applications to the USCIS, hoping to make it in time. The H-1B cap is expected to be reached within a day or as fast as CIS workers can humanly-possibly process them. Ironically, American technology and Indian outsourcing companies are now battling each other to reserve their place in the biggest rush for fool's gold in modern history.

But who's really the fool here?

Who's the fool?

The H-1B program has been making fools of American engineers since its inception by restraining their trade in a variety of ways. The H-1B program has made fools of guest workers who are treated as indentured servants. The H-1B program is also turning American college students into fools because it discourages them from studying math and science. The H-1B program is now making fools of politicians.  They can't vote to increase the cap for fear of losing their next election, but they must vote to increase it to get campaign contributions from large tech companies.  The H-1B program has also been making fools of American technology companies who are now finding that the visas are being used up by Indian outsourcing companies before they get a chance to utilize them.

Those same technology companies have foolishly shot themselves in the foot by reducing the size of their American engineering workforce while insourcing and outsourcing as much as possible over the past decade. Motivated mostly to increase quarterly profits, this short-sighted behavior has left American companies with a reduced engineering knowledge base and over-dependent on the continuance of guest worker programs and outsourcing practices.

Politicians have proven themselves to be out of touch with their mostly middle-class constituents and disproportionately beholden to their big business campaign contributors.  Politicians have proven themselves to be disconnected from realities in the engineering field by repeating foolish phrases such as "desperate shortage of engineers and IT professionals", "America cannot compete without H-1B guest workers" and "Jobs Americans can't or won't do".

Bill Gates has made a fool of himself by shamelessly misrepresenting an important engineering issue when testifying to Congress in Washington D.C., while his own workers are contradicting his statements at his Redmond headquarters (near Seattle) in Washington state.

President Bush has shown himself to be out of touch with American citizens, foolishly parroting the talking points of big business without considering consultation with engineering or labor organizations.

Senators and House members foolishly ignored the advice of IEEE-USA and IEEE members by pushing ahead with bills containing H-1B cap increases with no reforms considered, first with senior Senators McCain (R-AZ) and Kennedy (D-MA), and then with junior House members, Guiterrez (D-IL) and Flake (R-AZ). This may become the most foolhardy act of all if angry, web-savvy, middle-class engineers decide to mount an internet-campaign against them during the next election cycle.

The H-1B program has now made fools of almost everyone.

Who are NOT the fools?

Some parties, however, have not been made fools of. In fact, they've been playing an April Fools prank on all Americans. Outsourcing companies, 7out of 10 from India, have played a bad joke on American engineers, American companies, American students, and American politicians, playing all of them for fools. The top 10 H-1B requestors of 2006 are all outsourcing companies, who use the H-1B program to train their junior engineers in America, and rotate them back to their country of origin to facilitate outsourcing contracts.  This is a list of the top 10 companies who applied for H-1B visas last year:  

1. Infosys
2. Wipro
3. Cognizant
4. Patni
5. Mphasis
6. HCL America
7. Deloitte & Touche
8. Tata
9. Accenture
10. Satyam

International American-based corporations, Microsoft and IBM are numbers 15 and 18 respectively.

The chief of business and trade services for USCIS, Efran Hernandez, said, " ...there is no preference given to U.S. companies over non-U.S. companies. You have to be a U.S. employer ... That doesn't mean you have to be a U.S. company."

One man who was not made into a fool is billionaire, Azim Premji (net worth: 6.4 billion), the owner of Wipro, who, thanks to the this program, is now on the Forbes list of the world's richest men, along with Bill Gates. Another billionaire created by outsourcing and the H-1B program is Shiv Nadar, (net worth: 1.2 billion), owner of HCL Technologies. These are just two examples of engineering companies from India listed above, who are reaping the rewards of this international corporate welfare program. The list goes on and on as these practices continue under the noses and behind the backs of American voters.

Who cares?

Americans have been notoriously apathetic about politics and American engineers are guilty, too. On top of that, engineers are, by nature of their work, very passive and introverted. It has taken engineers a decade to begin to wake up to this problem. Most are still ambivalent about the struggle that engineering and labor organizations such as IEEE-USA, AFL-CIO, CWA, Washtech, Programmers Guild, Compete American Workers, The American Engineering Association, TORAW, and Techsunite, to name a few, are currently having with lawmakers on their behalf.

Currently, there is a massive lobbying campaign in the Capital by big business to dramatically expand guest worker and legal immigration programs beyond just engineering and IT professions. In fact, every high and low skilled job in America is on the way to the auction block, sold to the lowest bidder. While most engineers and other US citizens sit on their hands, Senate and House lawmakers, who are heavily influenced and lobbied by large corporations, take advantage of the apathy and continue to attack middle-class Americans.

So continue to enjoy playing pranks and practical jokes on your close friends on April 1st every year, but be careful what you say and do because next year, the "April Fool" may be you.

Related Articles and Opinion

What People Are Saying

Accordign to the National

Accordign to the National Foundation for American Policy, there are labor shortages in America. The Economist wrote that "The United States is fortunate that it can solve its talent problem ... by simply expanding the supply of visas" and "Raise the cap on H1B visas-or better still abolish it-... and the world's brightest will come flooding in. Mark Adams wrote that "As well as increasing innovation in a host country, skilled migration also increases entrepreneurial activity and business start-ups. James Sherk wrote that raising the H1B cap would raise $69 bilion dollars in eight years. The Economic Times wrote "that hiring skilled foriegn nationals on H1B visaas is associated with increases in employment at US technology companies." James Sherk wrote that "Raising the visa cap would increase wages for many more Americans than would see thier wages fall. Stuart Anderson wrote that " A myth has been perpetuated that H1B visa holders are indentured servants. This is far from the truth. A sampling of US employers and immigration lawyers found that individuals on H1B visas change companies frequently. Even Bill Gates says to abolish the H1B cap.

Hmmm... Let's see. So, there

Hmmm... Let's see. So, there are 65K+20K H1B visas per year. The population of the US is approx. 300 million. So each year US accepts 0.02% of its population as foreign temporary workers. Since one can stay on H1B visas for at most 6 years, that means that at any time there are at most 0.12% of the US population on H1B visas. Of course, this is assuming that every H1B visa holder is staying for all 6 years, that is not the case. So, _at most_ one out of 1000 people is H1B (much less than that, actually). And because of this, people are claiming that they cannot get a job. Yeap, right ...

I guess you are not a

I guess you are not a engineer as you mix up the numbers. What you should be concerned about it how it affects the employed/unemployed engineering population.

I saw data that there are 2 million engineering jobs in the US. I find that hard to believe, but lets say there are 5 million engineering jobs (electrical and computer). Now 85,000 workers per year at 6 years gives 510k on H1B visas. Now, use that number against the 5 million jobs versus 300 million (counting housewives, 10 yr olds and 70 yrs old is not relative). It's more like 10%. I have worked in engineering firms and I have seen 1sthand that workforces where that number was near 20%.

Wake up!

I think US citizens will be

I think US citizens will be on the engineer's side of this issue, once they know what's going on!

I didn't know of any

I didn't know of any "massive" immmigration during WWII.

O the hypocrisy of the WWII

O the hypocrisy of the WWII immigrants..I am sure your parents lied about their nationality and allegiance during immigration...and 60 years down the line it is very funny to see an immigrant named "Dino Perroti" ( whose name sounds like someone from a sicilian background) talking about the evils of H1 program.. And by the way out of the 65000 H1 visa, how many are issued to Indian Engineers? Approximately 20,000 ? What about the rest 45,000? I think we should be more worried about these 45,000 than worry about the american enginners who are past due their usefulness and cannot contribute to the economy of their own country.And software engineering is just one branch of engineering. I do not hear the same crib from aeronautical or civil engineers. H1 B program is not equal to job losses in software engineering. Last i checked on the employment statitics of American engineers, it shows me a rate of unemplyment lower than the national average. I wonder whether the displaced engineers are any good to work for US companies or contribute to the US economy. Google the world's most popular search engine has a H1 B program co-founder and a H1 B program principal scientist. So rather than letting go of your frustrations on the H1 B program, better do an introspection of yourself and your skill set and you may be surprised to find out that you need to improve.
Its like the illegal irish immigrants post the WWII era saying that immigration is illegal.

How brilliant!! IT is the

How brilliant!! IT is the new evil Big business in the US now?? IT is the one big business whose political might is near non-existent considering its economic might.
And that was pretty sweeping - American engineers, American people, American politicians and American companies, all fools, incredible!
The Americans aren't doing the Indians a favor. American companies make use of the cost arbitrage and make their internal processes faster, better and cheaper by using Indian vendors.
The whole article is an exercise in misrepresentation.
How may I ask is the average American citizen made a fool of? If I'm the middle-class average Joe subscribing to the usual set of American services, from groceries to health-care, from airlines to online-shopping my everyday expenses come down drastically because the American companies use more reasonable Indian/Filipino/Eastern European vendors. The American companies are thus the winners. They are able to provide better services at lower cost.
American IT companies are the winners because they've quickly beat the Indians at their own game of cost arbitrage and are now moving in on Indian turf picking up all the best deals in India.
American politicians are the winners since they've a nice issue that they can play around with, rouse passions and make a general mess of.
Competent American engineers are the winners because as American IT companies quickly scale up, their careers are shooting up exponentially.
Ostensibly, losers seem to be incompetent American engineers who do not have the wherewithal to compete with the Indians, Filipinos and Eastern Europeans and are neither able to keep up with their more competent American peers. But don't be fooled, even these incompetent whiners are winners as they're still a part of an industry where talent, especially US based talent is hard to come by and are therefore moved up the value chain of their careers irrespective of whether they deserve it or not.
And the primary misrepresentation and myth- Indians training under the people they will replace. I've never gotten a person who comes here to "train". The Indians are high quality engineers who're well trained and come here to support us or rather train the American Client's IT people, who btw are American, in the systems that they've implemented for the American company!!

Interesting article about

Interesting article about how H1B is abused.

http://sonyvellayani.blogspot.com/2007/04/evil-called-desi-consultant.html

I have impression as US

I have impression as US Corporations wants: to fire as many workers in US as possible to satisfy Wall-Str and to increase CEO compensation; to allow as many new H1Bs in to US as possible, and send them back later without Green Card hope; to lower US worker's paycheck to be competitive; to reduce or increase CO2; to increase population with buck in pockets in US; to lower healthcare cost for workers, not top execs; to increase number of techies out of college; and on and on and on.

It is pretty contradicting.

My parents were part of the

My parents were part of the post WWII immigration. They came under the Displaced Persons Act of 1948.

They did not lie about their skills and they did not take jobs from, nor contribute to salary deflation of Americans. They were not among the highly touted but few scientists who came in that group. They WERE hard-working, paid their taxes, became citizens and were willing to assimilate.

To compare that immigration situation to this one is to compare apples to oranges.

From 1941 to 1950, 1,035,000 people immigrated to the U.S. The population at that time was 150 million.

Our current population is 300 million and we are allowing another 1 million new immigrants every year.

The US Census bureau predicts that because of the current massive immigration, by 2050 our population will be 420 million.

I'm just glad I'll be dead by then. (And I just pray that in the meantime my job won't be given to some underskilled, low-wage immigrant worker.)