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January 2002, Week 5

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From:
Gibson Nichols <[log in to unmask]>
Reply To:
Gibson Nichols <[log in to unmask]>
Date:
Thu, 31 Jan 2002 08:46:59 -0600
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Just a little note on that Ford article.  Ford recognizes that keeping a
knowledgebase
of core competencies is needed.  A project is now in place to locate and
hire the
key people who keep the place running.  After ten years as a contractor
working
at a Ford site I was hired in directly to work for Ford in December.

"Jerry Leslie" <[log in to unmask]> wrote in message
news:a3ats7$s1t$1@joe.rice.edu...
> Mark Wilkinson ([log in to unmask]) wrote:
> : To me, the outlook is bleak for the IT world. Opinions on a postcard
> : please...
> :
>
> The same in the US, where 7.8% of computer programmers were unemployed
> as of November, 2001:
>
>    http://www.informationweek.com/story/IWK20011213S0024
>    InformationWeek > IT Jobless Rate > IT Jobless Rate Hits 5.5% In
November
>    December 13, 2001
>
>    "...Computer programmers experienced the biggest increase in
joblessness,
>    with their unemployment rate soaring to 7.8% last month, from 1.7% a
>    year earlier. Computer systems analysts' joblessness rose to 4.5%,
>    from 1.8% in November 2000..."
>
> The US is offshore outsourcing a lot of IT work to India, China, Russia,
> and are starting to offshore outsource other jobs; e.g.:
>
>     o accounts payable
>     o helpdesk support
>     o insurance claim processing
>     o credit-card processing
>     o CAD/CAM
>     o medical transcription
>     o e-mail processing
>
> Here's some articles on offshore outsourcing:
>
>    http://news.cnet.com/news/0-1006-200-8324464.html
>    India becoming world's back office -  Tech News -  CNET.com
>
>    http://www.computerworld.com/storyba/0,4125,NAV47_STO58739,00.html
>    Ford opens IT hub in India to save millions | Computerworld News &
>    Feature Stories
>
>    http://www.siliconvalley.com/docs/news/svtop/global010601.htm
>    Eager workforce, lower costs shift tech help overseas (1/05/2002)
>
> In addition to offshore outsourcing, the US has its H-1B visa program,
> where hundred of thousands of immigrant IT workers are imported to fill
> a mythical labor shortage.
>
> Similar programs exist in the UK and Australia:
>
>    http://www.shout99.com/contractors/showarticle.pl?n=&id=11483
>    Government justifies Fast-Track foreign IT with 1999 information
>
>    http://www.contractoruk.co.uk/news070102.html
>    Are IT skills shortage schemes being abused?
>
> In the H-1B program's laws are not being enforced. Even some H-1Bs are
> complaining about lack of enforcement:
>
>    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 lack of enforcement has been known since 1998...
>
>    http://www.zdnet.com/zdnn/stories/news/0,4586,2166105,00.html
>    H1-B safety net fails IT workers
>    By Stephanie Neil
>    eWEEK
>    November 18, 1998 6:10 AM PT
>
>    [ snip ]
>
>    And, although the new law says the salary of the H1-B holder is
>    supposed to be posted in the department in which the person is
>    working, so that all workers know a competitive salary is being
>    offered, this has not been done. The law also requires that each time
>    the H1-B holder is transferred to a new job site, the sponsoring
>    company must apply for a new visa for that person. That was not done,
>    she said.
>
>    This is common and uncontrollable, even under the new H1-B law, DOL
>    officials admit.
>
>    "Are there companies that are able to get away with it? Of course,"
>    said the DOL's Fraser.
>
>    "And if the question is, Why? The answer is that the law, until this
>    new bill was enacted, didn't make that illegal," he said.
>
>    The DOL will never be able to catch many of the offending parties, he
>    admitted.
>
>    "It is not due to a lack of concern or commitment to see that the
>    right thing is happening. It is due to a weakness in the law. We've
>    worked very hard in this new bill to make a little progress toward
>    closing some of those loopholes ... but we don't have the power to
>    track all the companies," he said.
>
>    The DOL does not perform spot checks on companies that they suspect
>    may be breaking the H1-B law, Fraser said. Rather, they rely upon
>    complaints. In the last fiscal year, through September, there were
>    only 63 complaints filed..."
>
> Those 63 complaints is NOT any indicator that the employers of H-1Bs
> are following the law.
>
>
>    http://www.fairus.org/html/11-9-00.htm
>    FAIR - GAO Condemns H-1B Foreign Worker Program
>
>   "A new report from Congresss investigative arm, the General Accounting
>    Office (GAO), has found that the H-1B system for bringing in foreign
>    workers is so badly set up and administered that very little is done
>    to prevent fraud and abuse of the system.
>
>    The report (H-1B Foreign Workers: Better Controls Needed to Help
>    Employers and Protect Workers, GAO/HEHS-00-157, September 2000) found
>    the following:
>
>      * The Department of Labor has almost no authority to enforce the
>        provisions that are supposed to ensure that foreign workers are
>        used only where necessary and not to undercut the wages of native
>        workers.
>
>      * The Immigration and Naturalization Service (INS) doesnt have the
>        information it needs to assess whether an employers application
>        for a foreign worker is valid.
>
>      * INS reviewers are evaluated on how many H-1B applications they
>        process not how well they review them, which means they have
>        incentive to rubberstamp as many applications as they receive.
>
>      * Once the INS approves foreign workers, it doesnt know whether or
>        when they arrive or leave.
>
>      * Even when the Department of Labor knows there is fraud or abuse,
>        they can do little about it..."
>
>    Source: H-1B Foreign Workers: Better Controls Needed to Help Employers
>    and Protect Workers,
>    GAO/HEHS-00-157, September 2000."
>
>
> The cited GAO report is available at:
>
>     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.
>
> The INS only has 40 staffers to deal with fraud in the H-1B and all
> other visa applications:
>
>     http://www.siliconvalley.com/news/special/visa/
>     SiliconValley.com - Special Reports
>
>     "...H-1B visa fraud is not uncommon, ranging from academic degrees
>     faked overseas to phony job offers in the United States. The
>     Immigration and Naturalization Service has only 40 staffers at its
>     service centers nationwide to investigate fraud in H-1B and all
>     other visa applications..."
>
> So there's little risk in paying the H-1B worker less than the prevailing
> wage.
>
> Many of the US IT workers are unaware of offshore outsourcing and the H-1B
> program, allowing Congress to pass laws such as the H-1B laws to earn
> their contributions from high-tech companies. If they ever become
outraged,
> they can contact their elected representatives, whose voting records and
> postal & email addresses are available at:
>
>   http://www.vote-smart.org/index.phtml
>   Project Vote Smart - A Voter's Self Defense System
>
> The answer they'll get will probably be like Senator Hatch's:
>
>   http://www.zazona.com/ShameH1B/Library/Politicians/Hatch.htm
>
>
> --Jerry Leslie     (my opinions are strictly my own)

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