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June 2002, Week 1

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From:
Jerry Leslie <[log in to unmask]>
Reply To:
Jerry Leslie <[log in to unmask]>
Date:
Thu, 6 Jun 2002 18:31:48 -0500
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Paul Taffel ([log in to unmask]) wrote:
: H-1B visa applicants are required to submit proof that the salary being
: paid is at least that of workers who perform the same job function in
: the same geographic area.

From:

  http://www.zazona.com/ShameH1B/H1BFAQs.htm#AreUSWagesProtected?

                         "Are US Wages Protected?
   The short answer is NO

   Employer's are required to pay H-1Bs the prevailing salary. The
   problem is defining what the prevailing salary is.  The National
   Occupational Employment and Wage Estimates (SESA) is published by the
   government to use as a guide to determining prevailing salaries. The
   employer can choose to use the SESA or they can choose any salary
   survey they want to, even their own. The DOL said that they don't
   verify these "Other" surveys so "prevailing salary" is anything the
   company says it is. To see how this loophole works go to LCA Images.

   The OIG reported that prevailing salaries don't protect US wages -
   "There is no certainty that U.S. workers wages are protected by the
   LCA programs requirement that employers pay aliens the higher of the
   prevailing wage or actual wage paid to their employees who are
   similarly employed." [1]

   Even if prevailing wages could somehow the enforced, the laws of
   "supply and demand" dictate that as you bring more workers into the
   labor market, wages will decrease. This means that the prevailing wage
   will go down for all workers in that glutted labor market."

From:

   http://www.zazona.com/ShameH1B/Library/Archives/LCAs.htm

                       "Labor Condition Applications

   The process of hiring an H-1B begins when employers file a Labor
   Condition Application (LCA) with the Department of Labor, form ETA
   9035. In this application the employer is required to attest: (1) that
   it will pay H-1B aliens prevailing wages or actual wages, whichever
   are greater; (2) that it will provide working conditions that will not
   adversely affect the working conditions of U.S. workers similarly
   employed; (3) that there is no strike or lockout at the place of
   employment; and (4) that it has publicly notified its employees of its
   intent to employ H-1B workers. In addition, the employer must provide
   the information required in the application about the number of aliens
   sought, occupational classification, wage rate, the prevailing wage
   rate and the source of such wage data, the date of need and period of
   employment.

   Notice that employers have two options that they can use to specify
   Prevailing Wage, they can check the box for "SESA" or "Other". If they
   check "SESA, then they must comply with the National Occupational
   Employment and Wage Estimates. The loophole in the H-1B law is right
   on the LCA. If they check "Other" they can specify any survey they
   want to, even their own. The DOL said that they don't verify the
   "Other" surveys so "prevailing salary" is anything the company says it
   is.

   You Decide if American Companies Comply with the Conditions Set by
                             the H-1B Visa Law"

   Then there are images of actual LCAs for your review.


: H1-B is not (in my experience) a way of finding cheap labor, it's
: a way of bringing in talent that's unavailable locally.
:

From Page 11 of

   http://www.gao.gov/new.items/he00157.pdf
  "H-1B Foreign Workers: Better Controls Needed to Help Employers
   and Protect Workers", GAO/HEHS-00-157, September 2000.

  "Although employers are not required to prove a shortage of U.S. workers
   exists in order to recruit H-1B workers, there has been a longstanding
   debate about whether, in fact, sufficient numbers of U.S. workers with
   the requisite skills to fill current IT vacancies are available. These
   debates have lead to numerous studies, but definitional and methodological
   problems in these studies do not permit a conclusion as to the extent
   of any IT skill shortage.


: See  http://www.grasmick.com/stanton.htm for a summary of H-1B visa
: requirements.
:

The folowing URL is obsolete, but you can find the article via
www.google.com...

   http://www.latimes.com/business/la-112101visa.story
   U.S. Tech Firms Abusing Visa Program, Critics Say

   By JUBE SHIVER Jr. , Times Staff Writer

   [snip]

  "Amid the tight job market, there are concerns about abuses of the H-1B
   visa holders themselves. A few immigrants have begun campaigning for
   reform of the program, citing instances of employers paying low wages
   and threatening to seek the deportation of foreign workers who
   complain.

   The GAO--which found that foreigners were offered a median starting
   salary of $45,000 last year--said there is little policing of the H-1B
   program by the INS.

   Devarakonda, of the Immigrants Support Network, agreed with the GAO's
   assessment. "The current system is certainly flawed," he said. "The
   government doesn't have the resources to police" H-1B."


The INS only has 40 people on staff to deal with all visa fraud, including
the H-1B program.  A U.S. citizen can report fraud:

   http://www.zazona.com/ShameH1B/H1BFAQs.htm#WhereCanIReportH1BFraud?
   Where Can I Report H-1B Fraud ?

  "If you are a U.S. Citizen that has been denied employment or you have
   been replaced by and H-1B..."

With the current record unemployment rate, there's little reason for
the H-1B program, but that doesn't mean that the ITAA isn't working
on increasing the H-1B cap:

   http://www.informationweek.com/story/IWK20020503S0025
   InformationWeek > IT Jobs > Hear The One About A Lack Of IT Workers? >

  "Frustrated with unsuccessful job searches, unemployed IT workers
   likely will be surprised--maybe even incredulous--about a workforce
   report from the industry group Information Technology Association of
   America.

   Though unemployment is up and the workforce is down by a half-million
   since last year--from 10.4 million to 9.9 million workers--the ITAA
   says a shortage of qualified IT workers remains and projects 1.2
   million new jobs this year, with nearly half of them--578,000--going
   unfilled."

The H-1B laws are not enforced due to lack of funding and motivation
of INS management. This allows Congress to tell voters about all of
the protections built into the law, while companies can ignore the law.

--Jerry Leslie    (my opinions are strictly my own)
  Note: [log in to unmask] is invalid for email

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