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Started By
Message
re: H-1B Visa Bill Introduced In US, Minimum Pay More Than Doubled
Posted on 1/31/17 at 11:25 am to Alltheway Tigers!
Posted on 1/31/17 at 11:25 am to Alltheway Tigers!
quote:Ah, THIS is the thing I was missing about the H1B controversy. My understanding was that the current H1B laws required employees to pay the "prevailing wage" for the position that the foreign worker would fill, which sounded fair to me. What I didn't understand is that there are H1B workers who are exempt from this requirement--those who have Master's degrees, OR make $60,000 or more.
It closes the loophole since the original $60k minimal was not index to inflation.
It means a company could be justified getting a visa for a $75k foreign worker to replace a $100k US citizen.
As you said, that allows a company to hire someone for $75,000 when an American worker would cost $100,000 in a free, competitive market. That depresses wages for American workers, and displaces them.
I know some H1B workers who earn less than $60,000 (their industries are lower paying but still skilled) but genuinely have skillsets that are not easily replicable by American workers--for instance, language skills and training in translation/interpretation. It doesn't sound like these people will be affected by this change to the H1B law.
1
Posted on 1/31/17 at 11:30 am to Hog on the Hill
quote:
My understanding was that the current H1B laws required employees to pay the "prevailing wage" for the position that the foreign worker would fill, which sounded fair to me
No sweat. I think there's a lot of misunderstanding about this, especially from folks who aren't in the tech field.
When the "prevailing wage" for these jobs surpassed $60K (probably 25 years ago), they started developing foreign talent instead of domestic talent. It has gotten especially out of hand the past 10-15 years.
If we are going to encourage the next generation to go into STEM fields, we have to fix this H-1B problem. It was originally designed to attract the best and brightest from other parts of the world to America's most innovative companies. Now it's just being abused by greedy companies that either develop this low cost talent for their own workforce or contract out to companies that do.
Many of the H-1B visa employees can lose their sponsorship if they lose their job, meaning they often can't switch or negotiate for a higher wage without returning home and re-applying.
A $130,000 minimum would help develop talent that are either American citizens or green card holders, as companies would rather hire and train someone from Arkansas and Mississippi for $100,000 than a foreign worker for $130,000. Ideally they would index it to inflation. Of course the high skilled foreign worker earning $185,000 at Google or Tesla has nothing to worry about. They are still helping American companies innovate.
This post was edited on 1/31/17 at 11:35 am
Posted on 1/31/17 at 11:36 am to HailHailtoMichigan!
quote:
Where will the money come from to pay more for tech workers?
Replace the H1B worker with an American at the same salary.
Posted on 1/31/17 at 11:38 am to HailHailtoMichigan!
quote:
Don't support at all. Tech labor from india has played a large role in the growing affordability of information devices and technology for US consumers. You raise those input costs and it will get ugly with the consumer backlash
Companies will probably just off-shore most of it. It won't affect prices, to be honest. It will just be done in Buenos Aires and Bangalore and Manilla and so forth. It's essentially impossible to keep track of the flow of that kind of work, much less actually tax it or erect some sort of barrier.
Posted on 1/31/17 at 11:39 am to GRTiger
quote:
Replace the H1B worker with an American at the same salary.
Except that when the American develops their skillset and becomes valuable to these companies with complex tech, they can actually negotiate for better wages with at least a little bit of leverage.
quote:
Companies will probably just off-shore most of it.
Low level IT functions have largely already seen this. Less so with mid levels. It's a lot harder to do that.
This post was edited on 1/31/17 at 11:42 am
Posted on 1/31/17 at 11:41 am to AbuTheMonkey
There's a reason they're not offshoring now when they can.
Hint: It sucks arse to do so.
So many failed projects that our company gave up on it.
Hint: It sucks arse to do so.
So many failed projects that our company gave up on it.
Posted on 1/31/17 at 11:47 am to StormyMcMan
Is there a provision to stop them from outsourcing the job to India?
Posted on 1/31/17 at 11:47 am to gatorrocks
quote:
There's a reason they're not offshoring now when they can.
Hint: It sucks arse to do so.
So many failed projects that our company gave up on it.
They are off-shoring. My own office has sent thousands of jobs down to Buenos Aires over the last fifteen years. The Argentinians are 1/3 the price, speak English very well, are educated, are extremely tech savvy (a lot more so than our American counter-parts, if I were being honest), and on and on. The incentive is there for these people and the companies, and there is not much to stop it.
H1B needs fixing to curb the abuse. I don't think anyone denies that. But off-shoring knowledge economy jobs for major companies is inevitable. You're not going to stop that flow no matter what you do.
This post was edited on 1/31/17 at 11:49 am
Posted on 1/31/17 at 11:48 am to gatorrocks
quote:
There's a reason they're not offshoring now when they can.
Hint: It sucks arse to do so.
So many failed projects that our company gave up on it.
This is true. The H-1B visas mostly impact the mid level jobs that are a bit harder to outsource than the more basic IT functions. It's not impossible, but it's very difficult and a lot of companies try and fail.
This post was edited on 1/31/17 at 11:49 am
Posted on 1/31/17 at 11:50 am to AbuTheMonkey
No doubt. But what you said is exactly what would need to happen. They'd have to offshore the whole department.
Most companies aren't willing to do that. The loss of control for smaller companies can't be executed properly.
McDonalds? Yeah, they can.
McDowells? No.
Most companies aren't willing to do that. The loss of control for smaller companies can't be executed properly.
McDonalds? Yeah, they can.
McDowells? No.
Posted on 1/31/17 at 11:55 am to member12
quote:
Except that when the American develops their skillset and becomes valuable to these companies with complex tech, they can actually negotiate for better wages with at least a little bit of leverage.
Sure, but that's a common situation. If the company values the worker, they will negotiate. If not, they will start over with a new employee.
Posted on 1/31/17 at 11:56 am to GRTiger
quote:
Sure, but that's a common situation. If the company values the worker, they will negotiate. If not, they will start over with a new employee.
Yeah I have no problem with that. That's how our market works when we don't allow companies to circumvent this with a gaping loophole like the H-1B visa.
Posted on 1/31/17 at 12:03 pm to StormyMcMan
All this will accomplish is forcing US based companies with good, smart people to open and move operations to a foreign shore.
Posted on 1/31/17 at 12:04 pm to 50_Tiger
quote:
And im about to get PAIIIIIIDDDDDDD!!!!!!!!!!
OR
You will get laid off as the whole company moves over seas...or is put out of business by another one that is over seas.
Careful what you wish for
Posted on 1/31/17 at 12:04 pm to Sao
Impossible to assume that without knowing what other policies Trump will enact
Posted on 1/31/17 at 12:06 pm to Sao
quote:
All this will accomplish is forcing US based companies with good, smart people to open and move operations to a foreign shore.
So what? We should just sit back and let businesses exploit the H1B program?
Posted on 1/31/17 at 12:09 pm to Centinel
quote:
So what? We should just sit back and let businesses exploit the H1B program?
Not advocating for either. But if this idea sprouts buds companies with high H1B populations will adapt. They have to - and we will pay the increase for whatever product they sell.
Posted on 1/31/17 at 12:09 pm to Sao
quote:
and we will pay the increase for whatever product they sell.
Companies will start bringing more IT in house.
Posted on 1/31/17 at 12:12 pm to BigJim
My company is global already my friend. Were not going anywhere.
Posted on 1/31/17 at 12:19 pm to 50_Tiger
This is great news for me
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