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H-1B hiring ban sought for US cos getting bailout

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Posted: Feb 06, 2009 at 1252 hrs IST
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Washington In what could be worrying for Indian software professionals, two US Senators have introduced amendments to the economic stimulus bill, which if passed would prevent US companies receiving the federal bailout money, from hiring H-1B visa holders.

The amendment if approved by the Senate would have an immediate impact on Indian software professionals, as it is they who are the major beneficiary of the H-1B visa program.

An amendment in this regard has been co-sponsored by the Republican Senator from Iowa, Chuck Grassley and the Senator Bernie Sanders from Vermont.

Introducing the amendment on the floor of the Senate, Senator Sanders said: "It is essentially saying that there would be a suspension of H-1B program of any institution, which would be receiving TARP (Troubled Assets Relief Program) funds for just one year."

Seeking bi-partisan support to his amendment, Sanders said: "I firmly believe that companies going through layoffs that employ H-1B visas (holding workers) have a moral obligation to protect American workers by putting them first during these difficult times."

Sanders also quoted a recent media report that said that the American banking industry had requested for more than 21,000 visas for foreign guest workers over the last six years.

"Hiring American workers for limited available jobs should be a top priority for businesses taking taxpayer money through the TARP program," Senator Grassley said, adding if banks are going to be getting American taxpayer money than they should be hiring American workers.

"With the unemployment rate at 7.2 per cent, there is no need for companies to hire foreign workers through the H1-B programme when there are plenty of qualified Americans looking for jobs," Grassley said.

He said he supports the H-1B program, but it should be used in the way it was intended as a temporary measure to supplement a company's need for hi-tech or specialised workers when none are available in the US.

Observing that H-1B and other work visa programs were never intended to replace qualified American workers, Grassley argued now that many qualified bank employees are unemployed, banks who want to hire workers shouldn't have a hard time finding what they need from an American workforce.

Grassley along with Senator Dick Durban had introduced a comprehensive H-1B and L visa reform bill in the previous 110th Congress. This was aimed at giving priority to American workers and crack down on employers who deprive qualified Americans of high-skill jobs.

The Senator has also asked questions of both US and foreign-based companies about their use of the H-1B visa programme.

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H1B Workers not returning home by cathy on 05 Nov 2009

I live out in Silicon Valley, CA and we have no shortage of East Indian workers. And you say your worried about having to pay our SS or Medicaid taxes etc., and yet I tend to see most of our OGBYN establishments filled to capacity with lines of pregnant East Indian women all throughout the Bay Area; And I mean “ “EVERYWHERE” from Fremont, Sunnyvale, Mountain View, Santa Clara etc. And you know it, and I know it,why this is all happening, the word is “ANCHOR BABY”.

My Feelings on the situation by Jason on 21 Feb 2009

It's all about $$. If a company can hire a worker cheaper, they will. It is not about whether or not an American worker can be found for the job. Also, the U.S. has systemic problems.Look at it like this:(1) education cost -- In India, someone can get an M.B.A. and an M.S., for less than what an American would pay to go to Junior College.(2) retirement cost -- In India, someone can build a home and have a maid for nominal cost.(3) medical cost - medical is less exthese (1) and (2) are based on conversations with my own INDIAN coworkers, one of which even showed me pictures of the home she's building back home from her earnings here, complete with maid service. (she says this is normal)Anyway, the lower costs to the employee translate into lower costs for the employer. I mean, would you rather hire a fresh M.B.A./M.S. graduate who has 90K in loans to pay off [who is going to want wages to offset those] or ... someone who has same credentials [and no loans to pay]?

H1-Bs by SS on 11 Feb 2009

My fellow Indians please stay quiet as always. No voices no raises always suppressed this is what our life has become. If not for Indians and Mexicans the economy would have long sunk. I’m totally cool with no more H1-B employment, as long as I don’t have to pay social security taxes and Medicaid taxes. Tell my why I should pay these if I don’t get treated an equal? Can anyone imagine a day without no Indians or people with Indian origin in the USA? No software system from banking to railways to the grocery store nothing will function easily. We underestimate the power of ourselves and that is the price we pay for diversity. Will there ever be a day we can all see past our differences I wonder. Is there light at the end of this tunnel?

No Surprise by AV on 08 Feb 2009

This was expected to happen a long time back. No Surprise !!!

Hail Senators for Standing up for Americans by AD on 08 Feb 2009

It is about time that such a bill is enacted when so many Americans are being laid off. It is public money that is given to all these companies as bail out and it is only appropriate that they hire americans first. Congratulations for taking the right step. Lot of foreign companies are finding loopholes in American Immigration System and bringing foreign workers to work here even on B1/B2 visas for months.

H1B by Prem on 08 Feb 2009

It is wrong for the American companies to get bailout money from the companies, laying off thousands of employees, but hiring foreign nationals in H1B. It is an appropriate move by the senators and I hope that this bill must pass.

Nothing going to happen by Anil on 07 Feb 2009

If these politicians really care about people then they would have approved the stimulus bill as soon as it is put in front of senate. Every senator wants his pet amendment in high profile bills like this. All the lobbying firms working for the major corporations would go bankrupt if this happens as all of them would move to india if they ban H1bs. There is no american who seriously works, they have lot of their own issues. divorse, church, obortion, fertility treatment, etc etc....

Payback time by babuds on 07 Feb 2009

These Two senators seem to be against globalization of services. If USA do not want H1-B workers let them ban the program altogether. But before doing so they should pay back the Social Security Tax and Medicare Tax collected from each individual H1-B candidate, who are either not given or not opted for US citizenship, need to be immediately returned, with interest and without any delay. Starting from the beginning of the program millions of h1-B candidates have been cheated of their hard earned money in the guise of SS TAX and Med TAx. Let them return it.

H-1B hiring ban sought for US cos getting bailout by karpakarajan v chettiar on 07 Feb 2009

let us share the available food among us. let us share the burder / job among us. if job is less; all of us shall have more liesure for relaxation and enjoyment. until there is a time, when there is a food crisis; there is a water crisis; or there is an epidemic or holocaust; why should we worry to the extend we are worrying now.

Curtailing H-1B Visa and Hiring American Workers by Arun K. Potdar on 07 Feb 2009

It is really a puzzling issue. H Categories of Visa's came into existence primarily because of lack of same skilled American Employees. Employer has to prove to the Immigration and naturalization Services that efforts to recruit American workers at an affordable price has not yielded any positive results. What good results are going to come out of this. I need Nurses and I can't find them and rate of educating nurses is so poor that about 1,00,000 jobs in the country cannot be filled. It is nothing but a political posturing to garnish votes in the next congressional election. I wouldn't worry much if I have the skills and education currently in short supply. I don't know any Nurse laid of or standing in unemployment line. If I find one I will hire her for a song instead of paying a premium wages currently demanded.

Stop outsourcing first.. by Sam on 07 Feb 2009

I think at this juncture they have to stop outsourcing the jobs as if the companies can find lot talented people who are ready to work for the hourly rate they pay to the folks in india... I see lot many companies are sending folks on B1, L1 and H1-B don't see 65 percent of people here not spending money in usa so how come the economy will grow instead outsourcing countries will be in good shape as cash is flowing there...i see outsourcing company employees are enjoying very much than the people who really come on H1-B US Sponsored Companies...In some instances I do feel go in outsouring some jobs but I see lot many jobs are moving outside USA That is not a good sign and its showing the impact on many hard working folks...let us see what happens in usa...

raclal issue by vbs on 06 Feb 2009

Senator seems to be bent on introducing some bill or other to bring down immigrants. I would like to let know Senator that its not only the Americans who paid taxes during boom times, it is the immigrants too. Now during bad times, senator wants to bring in amendments so the locals can enjoy the immigrants tax money too..

naive proposal by abc on 06 Feb 2009

Interestingly enough, H1-B folks are amongst the highest tax payers while they take back almost negligible from the American system.

H1B BAN by harun on 06 Feb 2009

GREAT TO READ MY FELLOW BLOGS JUSTIFYING THE BAN ON H1B VISAS FOR COMPANIES SEEKING A BAIL OUT.OBVIOUSLY THE COUNTRIES INTEREST RATHER THAN JOBS OF INDIANS MUST BE IN THE US PRESIDENTS MIND.WE NEED TO ACCEPT FACTS AND NOT BE PARTISAN IN ISSUES THAT CONFRONT THE NATION,BE IT A RIOT ACCUSSED SKIPPING COURT OR A MAVERICK USING VIOLENCE AGAINT FELLOW COUNTRYMEN TO ACHIEVE HIS GOALS.COMMON GUYS.

H1B VISA by Atul Malwadkar on 06 Feb 2009

NEWS ABOUT H1B VISA

Increased Offshoring for Indian IT companies by Ananthanarayanan on 06 Feb 2009

This will increase more offshring business as Indian IT companies already have 80:20 plan where 80% percent of the employees working from India and 20% at customer site. And indian companies can get American contract workers to cover-up the onsite (Physical) work and most of the work can be carried out from India. Thanks Senetors for helping India

I hope but after Satyam there is great untrust on us [Indians] by Verma on 06 Feb 2009

I hope but after Satyam there is great nontrust on us [Indians] for outsourcing.

Right Approach by Amit Alok on 06 Feb 2009

There is nothing wrong as it protects the interest of their people. Indian government should prepare themselves to fight with this situation.

Difference between US govn by raj on 20 Feb 2009

Any goverment will work for the benefit of their own people. But in India the government will work only for MLA's and MP's

H1b Visa by Avinash Baranwal on 06 Feb 2009

Good move my US for their citizens sake...Does our Indian Politicians have the similar vision/courage to do so???

Comment: by Tejaswi on 06 Feb 2009

Bye Bye Free Market welcome Protectionsim

Re: Comment by to Tejaswi on 07 Feb 2009

Well someone need to explain words like protectionism, socialism etc to me again!!!

They are correct by Akash on 06 Feb 2009

They are correct.We could do same for it.Why should they let there own people starving for jobs and non countrymen enjoying the cash outflow to any other country whether it is India, Pakistan, China, Brazil e.t.c

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