H1B Training Program to be axed (or screw the worker)

[Dave Farber <dave () farber net>]

Delivered-To: dfarber+ () ux13 sp cs cmu edu
Date: Wed, 11 Feb 2004 19:36:35 -0500
From: Pike236 () cs com
Subject: H1B Training Program to be axed
To: dave () farber net
From Wired Magazine:
http://www.wired.com/news/business/0,1367,62234,00.html?tw=wn_tophead_4

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Facing a drop in funding and a tough job market for technology 
professionals, the Department of Labor is poised to kill a program that 
trains Americans to fill positions held by foreign guest workers.

The department created the H-1B Training Program in the late 1990s as a way 
for Americans to learn skills in high demand by employers. The funding came 
from fees employers of foreign workers paid to get H-1B visas, which 
allowed the foreigners to take technical jobs that went unfilled during the 
dot-com boom. The Labor Department used those fees and other funding to pay 
$328 million in scholarships and grants to community groups to develop 
training programs for U.S. citizens and permanent residents.

But the flow of funds could soon come to a halt. In its budget proposal for 
fiscal 2005, the Bush administration is seeking to eliminate H-1B training 
grants. The grants, the budget proposal states, "have not been proven 
successful in raising the skills of U.S. workers in specialty occupations."

Current recipients of funds, some of whom received grants as recently as 
this month, say the move to eliminate H-1B-funded training programs is 
premature.

"It would kill a program that mitigates the need for foreign workers by 
training U.S. citizens," said Mike Wilson, chief executive of the Bay Area 
Technology Education Collaborative, which runs training programs in the 
greater San Francisco area. "That's a hard one to swallow."

Wilson has high hopes for his latest project: a joint effort with the Bay 
Area Council, an economic development group, and area employers to help 
workers acquire skills needed for H-1B positions. Last week, the council 
received a grant of nearly $3 million from the Labor Department for a 
program that would retrain about 750 workers.

But while he remains optimistic about future programs, Wilson admits that 
earlier attempts at training technology workers were hurt by the downturn 
in the job market that began about three years ago. Against a backdrop of 
mass layoffs and limited new hiring, many workers trained in computer 
skills had difficulty finding positions.

According to the Labor Department, the main impetus for shutting down the 
H-1B Training Program is a change in visa rules that will effectively 
eliminate its main source of funding.

Up till now, training grants were funded by a $1,000 fee the federal 
government charged employers every time they hired a H-1B worker. The 
charge was initially $500 and was raised to $1,000 in 2000. Congress also 
raised the annual cap on H-1B visas from 65,000 to 195,000 to accommodate a 
spike in demand during the dot-com boom.

When the technology job market turned soft, however, Congress chose not to 
extend the elevated visa cap. As of October, the annual visa limit fell 
back to 65,000. Additionally, employers of H-1B workers no longer have to 
pay the $1,000 fee for each visa holder they employ, the Labor Department 
said.

The White House's statement that the H-1B training grants "have not been 
proven successful" should not be construed to mean that the program is a 
failure, said a Labor Department spokeswoman. Rather, she said, no one has 
yet evaluated the program to determine, one way or another, whether it has 
reduced demand for H-1B visas and improved skills of U.S. workers.

Raul Garcia, acting president of the Bay Area Council, believes grant 
recipients can do a better job of reducing H-1B visa demand by focusing on 
people who are at risk of being laid off. The council's latest grant 
program, half-funded by local businesses, is built on the concept of 
training working people who need to update their skills.

"Technology moves so fast. If they're not retrained, they're going to lose 
their jobs in months," Garcia said. He's hopeful retraining will dampen 
demand for new specialist visas in Silicon Valley, one of the nation's 
largest regional employers of H-1B workers.

Recently laid-off workers say they too can benefit from government-funded 
training.

Patrick Ronan, a British native and permanent resident of the United 
States, credits the H-1B training grant program with helping him find 
gainful employment after he was laid off by United Airlines.

Although Ronan worked with computers at United, he had no formal training 
in PC operating systems or network computing, and therefore had limited job 
opportunities.

Through an H-1B grant-funded program in Oakland, California, however, Ronan 
completed certification programs to become a computer technician and a 
Cisco Certified Network Associate (CCNA). Afterward, he landed a job 
installing computers at the Oakland Unified School District.

"There are jobs, but you need to have some qualifications," Ronan said. "My 
training at United Airlines suited me fine for where I was at, but it would 
have been no use outside the airline industry." 

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