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IP: Re: FIRMS GO OUTSIDE BOX, TO CONGRESS TO SOLVE HIGH-TECH WORKERSHORTAGE from Educause


From: David Farber <farber () cis upenn edu>
Date: Sat, 15 Apr 2000 17:00:35 -0400



X-Sender: larry () pop walltech com (Unverified)
Date: Sat, 15 Apr 2000 12:59:37 -0700
To: farber () cis upenn edu
From: Larry Tesler <larry () nomodes com>
Subject: Re: IP: Re: FIRMS GO OUTSIDE BOX, TO CONGRESS TO SOLVE HIGH-TECH
 WORKERSHORTAGE from Educause

From: "Ralph Sierra" <ralph.sierra () erols com>

...  And let's own up to another fact, companies bring
foreign workers in because they can get them for a third less than hiring
American workers - plus (typical of American management's short-term
thinking) they figure they may need to dump these workers in a year, and
getting rid of foreigners will be easier than getting rid of Americans.
But, of course, the sky isn't falling, and the foreign workers end up
staying until they get their green card.  Meanwhile, Americans don't get
these important jobs as congress continues to do the bidding of American
corporations.

If Ralph or anyone has objective statistical data to support these 
assertions, not rumor or surmise, I'd like to see it.

I think the well-known statistics speak for themselves. Employers 
don't leave hundreds of thousands of jobs open to fool Congress into 
approving larger visa caps. Desperate to fill jobs and stay 
competitive, they would hire anyone semi-qualified or trainable.

Can employers get foreign workers for a third less than American 
workers? We surely would if we were allowed to do so. But as an 
employer, I can't get an H-1B visa for a worker unless I agree to 
pay him or her according to published tables of prevailing salaries. 
I have to state the salary on the visa application.

If I want to offer stock options to entice workers to work for less 
than prevailing pay scales, I can only interest American workers in 
this trade-off. The government won't let me reduce the pay of 
foreign workers below prevailing levels, even if I grant them 
options.

One foreign worker for whom I got an H-1B visa never appeared for 
work. I lost over four months of recruiting time and thousands of 
dollars of legal expense. And his salary was no lower than American 
workers of similar skill. Did I recruit him to save money? Nobody 
else remotely qualified applied. I finally did find an American who 
could do the job. He had not been available earlier. He did not 
"need" the job. He left a few months later and took another.

If I want to save money by using foreign workers, the only way I can 
do it is to contract with a company based in a country with much 
lower pay scales, and have the work done over there. That would not 
help the U.S. economy. It would only increase the trade deficit. 
Hiring a foreign worker keeps the money here. The money is taxed and 
spent here. The money creates new jobs for people with skills that 
we do have in this country. That is why, after years of raising visa 
caps, unemployment is at record low levels.

Yes, it would be great if Americans who currently support their 
families by working in restaurant kitchens, driving taxis, or being 
bank tellers could get jobs as operating system engineers and VLSI 
designers. But for most of them, there is no way to get there from 
here in this life.

The situation would be different if more American students chose 
technical paths in their schooling and in their career. But many 
would rather be VC's, lawyers, and employers.

I have a foreign engineer in my company, masters degree in C.S., for 
whom we are trying to get a green card. If we do not succeed, he 
will have to leave the country after a few years. All my investment 
in his development will benefit some foreign competitor. Am I 
suffering from short-term thinking?

Many European workers expect to take off the month of August. 
American workers tend to take shorter vacations, which has less 
impact on schedules. This is yet another reason to hire American--if 
I could only find enough American engineers looking for work.

Is it easier to dump a foreign worker? Try to lay off an American 
Silicon Valley engineer, or even look at him wrong, and before the 
week is out, he has a higher-paying job in a startup about to do an 
IPO. Lay off a foreign worker, and he can't work for two to eight 
months because his new employer has to go through the visa 
application process. It would always be two months if we removed 
visa caps. But it would still be harder to do than laying off an 
American worker, at least here in Silicon Valley.

The situation Ralph describes is the opposite of the reality I have 
experienced in my current company, and previously at Apple.

Larry


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