The L-1 visa controversy

[Dave Farber <dave () farber net>]

Date: Thu, 19 Jun 2003 11:46:08 -0400
From: Tom Rombouts <rombouts () compuserve com>


Hi Dave -

In the past you have had a variety of items on possibe abuses of the U.S.
H-1B visa rules in the high tech sector.  Below are two short items on
similar concerns about the growing use of U.S. L-1 visas.

TWR


from:
http://www.computerworld.com/careertopics/careers/labor/story/0,10801,81401
,00.html

Bill in Congress would curb L-1 visa use for foreign workers

A congressman calls the L-1 a "back door to cheap labor"

By PATRICK THIBODEAU
MAY 21, 2003

WASHINGTON -- Legislation was introduced in Congress this week that would
set curbs on the use of the L-1 visa, a controversial visa program that,
like the H-1B visa, allows U.S. companies to bring in foreign workers.
The L-1 visa enables companies with subsidiaries abroad to transfer to the
U.S. from other companies executives or workers with specialized skills.
But critics contend that foreign outsourcing firms use it to import
lower-paid workers who then replace higher-paid U.S. employees.

U.S. Rep. John Mica, (R-Fla.) called the L-1 visa a "back door to cheap
labor" in his legislation. His bill would require that employees be
transferred from their own subsidiaries and not from third-party
outsourcers.

The bill's intent is to block foreign outsourcing firms, so-called "body
shops," from using the visa to move foreign workers into U.S. positions.
But the legislation may face opposition from all sides.

Mike Emmons, an Orlando-based activist who said he lost his consulting job
because of L-1 visa, lobbied Mica heavily for action on the visa and said
he's disappointed with Mica's legislative fix. Emmons said the legislation
includes a large loophole that would allow a U.S. company to set up shop in
India or some other country, hire workers there and then move those
employees here.

"This is a pretty minuscule bill," said Emmons.

However, Vic Goel, a Greenbelt, Md.-based immigration attorney who
represents high-tech companies, said the legislation could prevent a
multinational firm from bringing in foreign workers to help clients. For
instance, the foreign workers may have played a key role in software
development and are needed to implement, service and maintain the software.


"The idea is to find a solution that promotes business and closes the door
on the abusers," said Goel, explaining that such a solution could involve
finding a way to differentiate between "project-based [work] vs. simple
provisioning of warm bodies to fill seats."

According to Mica, there are currently more than 325,000 L-1 visa holders
in the U.S.

H-1B visas allows foreign workers to take jobs in the U.S. for as long as
six years. Someone with an L-1 visa can work in the U.S. for up to seven
years.



from:
http://www.alternet.org/story.html?StoryID=16197

HIGHTOWER: A Loophole for Busting High-Tech Wages

By Jim Hightower, AlterNet
June 17, 2003

Once again, we're offered a sterling example of the incredible ingenuity of
big American corporations - outfits that never cease to amaze with their
clever ability to stiff their own employees.

Their latest ingenious gimmick is an obscure provision in our nation's
immigration laws. It's called the L-1 Visa, and apparently the "L" stands
for Loophole. It's certainly a big one, allowing such corporations as
Cigna, General Electric, and Merrill Lynch to import low-wage technology
workers from India to replace their American employees.

The L-1 Visa was meant to allow U.S. corporations to transfer a few of
their own foreign employees from an overseas branch into company offices
here. But now, these corporations are driving an immigration truck right
through this L-1 loophole, having already used it to bring some 325,000
computer engineers, programmers, and other high-tech employees from abroad,
mostly from India.

Here's how the game is played: The foreign workers are hired wholesale by
Indian-based recruitment firms that then ship them to their U.S. branches,
claiming that they are L-1 transfers. Once here, these workers are
contracted to American corporations. The gimmick is that, technically, the
immigrants are still employed by the Indian firms - but the bottom line is
that major U.S. corporations have been able to smuggle in foreign workers
and pay them a third to a half less than the Americans they replace.

The L-1 Visa does not require that imported tech workers be paid the
prevailing wage, nor is there a limit on how many can be brought in. Not
only does this loophole allow Americans to be displaced, but it's also
common for the corporations to require their American employees to train
the foreign workers who will be given their jobs.

To help stop this wage-busting ripoff, Call Rep. John Mica: 202-225-4035.


[ end - TWR ]



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