• On The Insider: Tina Fey Scores Again in Debates Parody
March 14, 2008 12:12 PM PDT

House politicians propose 'emergency' H-1B hike

Microsoft Chairman Bill Gates clearly got through to some politicians with his plea for more H-1B visas on Capitol Hill earlier this week.

Late Thursday, a U.S. House of Representatives Democrat on the Science and Technology Committee, which Gates addressed, introduced a bill that would double the number of H-1B visas and remove other restrictions from 2008 onward. Then, on Friday, a key House Republican followed with his own proposal for "emergency" relief. His plan: tripling the visa cap.

H-1Bs allow foreigners with at least a bachelor's degree in their area of specialty to be employed in the United States for up to six years. Right now, the cap stands at 65,000, with another 20,000 for foreigners with advanced degrees from U.S. schools.

The first bill, sponsored by Rep. Gabrielle Giffords (D-Ariz.), would bump the cap to 130,000 beginning in 2008--and increase it to as much as 180,000 if the limit is reached in the preceding year. At the same time, it would potentially allow in many more foreigners, as the bill would exempt from that cap anyone who has received a master's or doctorate from a U.S. university in math, science, engineering, and other technology fields. Up to 20,000 extra visas would also be allotted to people who had obtained such degrees from institutions outside the United States.

The second bill, called the Strengthening United States Technology And Innovation Now (or Sustain) Act, is even more aggressive. Proposed by House Judiciary Committee ranking member Lamar Smith (R-Texas), it would raise the visa cap to 195,000 in 2008 and 2009--the highest level since its peak between 2001 and 2003.

Both bills are meant to address what technology companies say is a visa shortage crisis. They're also more aggressive than other recent attempts to increase the H-1B cap, which set a 115,000-visa target.

Gates and other technology company executives have long said they need the ability to hire more foreigners--both on temporary visas and permanent green cards--to fill gaps for which they can't find qualified Americans. Gates maintained that H-1B visa holders at his company receive high wages, prevent jobs from being moved offshore, and even lead to creation of more jobs for Americans around those senior engineers.

Last year, the run on H-1B visas ended one day after it began, and the year before, the supply was exhausted after about two months.

Criticism from programmers
The setup of the H-1B program, however, has landed a fair share of criticism from American programmers, who argue that the visas depress their wages and displace qualified American workers. There are also allegations that the offshore firms--particularly Indian ones--have been snapping up H-1B visas, recruiting foreign workers, and then outsourcing them to foreign companies.

Ron Hira, a public policy professor at the Rochester Institute of Technology and author of the book Outsourcing America, told CNET News.com after Gates' talk that it's wrong to suggest most H-1Bs are going to the brightest foreigners with advanced degrees and earning them big bucks. According to latest report to Congress from U.S. Citizenship and Immigration Services (PDF), the typical H-1B holder has a bachelor's degree and is making a median salary of $50,000, Hira said. The latest National Science Foundation report on the subject says only 1 percent of H-1B holders in computer fields held doctoral degrees (44 percent had master's degrees).

Other pending bills in the House and the Senate would place new obligations on U.S. employers before making H-1B hires, including requiring them recruit Americans first.

The application window for next year's crop of H-1B visas is set to open on April 1, and it's unclear whether either bill will see action before then. Both chambers of Congress are scheduled to begin a two-week recess on Friday and aren't expected to return until March 31.

Recent posts from News Blog
Supreme Court ignores EchoStar appeal against TiVo suit
EA Mobile, Eidos Interactive sign agreement
Sprint first to offer HTC Touch Pro
Flipping out: RIM BlackBerry Pearl Flip 8220 debuts
Sprint HTC Touch Diamond outed early
Add a Comment (Log in or register) 150 comments (Showing first 20 comments)
NO. Less is needed.
by cnetnewskat March 14, 2008 12:58 PM PDT
Talk about fueling the fire of the U.S. economy slow down.
Using outsourced labor In-House instead of using the existing qualified U.S. workforce already in need of jobs.
Reply to this comment View all 2 replies
US companies deserve the best
by tppcnet March 14, 2008 2:03 PM PDT
I always find it pretty amusing anytime there's any discussion about the H1-B program how the discussion goes to "yea, but American jobs belong to Americans!".

In the country that's been the champion of free markets, free trade and globalization in the world, you'd think that jobs belong to whoever is most qualified never mind where they come from. You can't have it both ways.

Innovation is what drives the software industry forward. In order to make that happen, you absolutely need the best people you can possibly get. It doesn't matter if they're from US or Outer Mongolia.
Reply to this comment View all 4 replies
We don't need more H1-B workers
by Crunchy Doodle March 14, 2008 2:11 PM PDT
Bringing in more H1-B workers is a nice ploy to depress wages for Americans and make more profit for those companies who employ these legal aliens. It's all about profit at any cost. I'm glad I work in the defense industry where US citizenship is required. When all Americans have jobs, then we can bring in H1-B workers.
Reply to this comment View all 6 replies
$43 / hour
by tppcnet March 14, 2008 2:14 PM PDT
Obviously that company is going to get a crappy programmer, guaranteed. If that's a contracting job (no benefits), that's less than someone straight from school makes (in a real job).

Maybe they're dangling a whole lot of awesome web2.0 stock options in front of the candidates :)

I remember last time I was on the job market, I was in serious talks with about 4 different companies. The compensation ranged from a totally ridiculous $35 / hr (w/ benefits) to $150 / hr (w/out benefits) to a six figure salaried position. All positions were for a sr. sw engineer type of role.

The most ridiculous thing about the $35 / hr job was that it was a BIG multi-national company, and the job they were hiring for was definitely a position you'd need someone with real experience in application architectures and sw design. It took great effort from my part not to laugh in their faces. I have no clue what they were thinking.
Reply to this comment
You're wrong
by tppcnet March 14, 2008 2:19 PM PDT
You're simply flat out wrong about this.

Tell me. How many people have you recruited in the last 6 months? How many candidates have you interviewed for the positions? What percentage of those candidates were qualified?

If you answer the last question with anything more than single digits, you're lying.

The qualified candidates are so sought after that they typically have several job offers lined up, so you end up in a bidding war. Thankfully my company IS in a position to bid high.

PS. why you posting the same reply on multiple threads? I read you once just fine, no need to spam the boards.
Reply to this comment View all 2 replies
"God Bless America (BlackWaterUSA)" !
by Commander_Spock March 14, 2008 2:58 PM PDT
"From Sea To Shining Sea"!

Economic (Housing Markets) "SEALS" Teams next. ;-) !

Beam Us Up Scotty!
Reply to this comment
Solution is simple. . .
by elfnmajic March 14, 2008 3:06 PM PDT
If the business truly needs this offshore technical help then they should be allowed to get as many as they want, make the visa's unlimited.

But the visa cost should be $7500 per month payable to the U.S. Treasury. Then pay their salary. We are displacing a U.S. Citizen, We should be paid for the privlege of allowing non-citizens the opportunity to work here.

You want them, YOU PAY FOR THEM.
Reply to this comment View reply
More than half the country...
by lgarcia1978 March 14, 2008 3:42 PM PDT
As an American I will be the first to admit, that more than half of the citizens of this country don't even know what H1-B Visa is. Ask them who is winning American Idol or who got ousted on The Apprentice and they know it all. Come on America wake up, life is not only about Idols and Trumps.

How about this, a person on H1-B Visa contributes to the economy, pays his/her taxes under the same earning bracket as an American, adds to the Social Security Fund BUT is not allowed to collect Social Security until he/she is a naturalized citizen. It is one thing that he/she wants to stay here forever, because the visa is only granted for 5-6 years. And by the way, to become a naturalized citizen it takes a long long long time.

Sad but true, is the situation of this country; the Microsoft's, the Apple's, the Google's of this country CANNOT FIND local talent that is cutthroat and to world standards. We as a country had that, no anymore.

We as a country (I hope we are not) giving out H1-B visa for strippers, because we have abundant local talent to satisfy that.

We as a nation have completely misunderstood the teachings of our forefathers. I'm sure they are turning in their graves that what has GREED done to our nation.

America, a population of 300 million which happens to be only 4-5% of the entire world, is the largest goods consuming nation - while the rest of the world is the producer of those goods.

I am sure someone, somewhere has done this economic analysis and seen this horror story we as a nation have created for ourselves.
Reply to this comment
Check out the NFAP report
by nitute March 14, 2008 6:19 PM PDT
http://www.nfap.com/pdf/080311h1b.pdf
Reply to this comment View reply
the marketplace will decide
by CPCcurmudgeon March 14, 2008 6:49 PM PDT
The emergency is that the US is in financial distress, and our so-called "tech leaders" don't know what to do, so they seek "qualified individuals" from outside the US, while other people who were actually getting the job done (despite the mismanagement of our "tech leaders") lose their jobs.

Whatever.

Let the marketplace decide. If this bill passes, MSFT, etc. better make it work. If not, they will face a far harsher judge than the posters here. The investors will not countenance the continued slipshod "management" that is currently begging for "talent".

You've been served notice.
Reply to this comment View reply
Hiring the best - or hiring the more desperate?
by amusedspectator March 14, 2008 8:29 PM PDT
I find it amusing when people come out with simplistic analyses like "we need the best" and "you should be ready to compete with someone in uganda".

I completely accept that you need the best. American companies should be allowed to source the very best in their fields - and there is no doubt that a star in that field will generate more jobs for American workers.

In practice though, H1Bs are hardly the "best". What you have in practice is a Microsoft saying "hmm.. it costs me $60 per hour to hire this american programmer - why not just go with a $50 H1-B. After all the technology is not that hard, and the H1-B will be much more desperate and will work 70 hours a week". Managers in most US companies love H1Bs - it is really invaluable to have those H1Bs who are willing to work long hours and cover up management errors in basic stuff like planning and estimating.

"Hiring the more desperate" would be closer to the truth.
Reply to this comment View all 2 replies
assuming she can contribute
by amusedspectator March 14, 2008 8:41 PM PDT
It would seem that your wife should be allowed to work here.. and I think the H1B program should be refashioned to favor those who have graduated from American universities. This does not equate to "increasing the cap" - I just think more of the cap should be allocated for the highly qualified people.
Reply to this comment
American ?
by lordmexican March 15, 2008 12:16 AM PDT
Im American too!!... i was born in Mexico =) hehehe... i laugh everytime you speak with those terms like if you would -own- the whole continent...
Well.. but you have reason in all the rest! Im glad to hear it... There should be Equality in hiring anyone who has the Best Skills, no matter where is that person from... that-s discrimination, and that-s not fair.
Reply to this comment View reply
H-1B and L1 should be reduced
by prousa March 15, 2008 5:31 AM PDT
How can anyone truly believe there is a labor shortage and US companies have no choice but to recruit and hire H-1Bs or L1s? Consider the many articles, testimonies, comments, and videos which are all saying H-1B is really all about cheap indentured labor from low wage countries. I think most of us have now heard of Cohen and Grigsby. Consider also the very high percentage of H-1B and L1 candidates which coincidentally happen to come from the poorest low wage countries on earth. Even if H-1B proponents win a few more battles I think they're destined to lose the war concerning immigration. The American public is becoming more and more upset at being undercut by low wage foreign labor in our own country. You truly are risking a major backlash by continuing on this course.
Reply to this comment View all 2 replies
They can't ever have enough $$$
by craigbla March 15, 2008 5:32 AM PDT
It's always an emergency when rich people need more cheap labor. They will eventually move off-shore anyway - screw them!
Reply to this comment
RIDICULOUS Proposals
by mofner March 15, 2008 6:17 AM PDT
They should pass something like S.1035 "H-1B and L-1 Visa Fraud and Abuse Prevention Act of 2007" before even considering proposals as one-sided as these turkeys. Congress should entertain enforcement-only bills first before considering raising the cap (which BTW doesn't need to be raised - despite Bill Gates? protestations, the U.S. industry is competing just fine).

Rep. Gabrielle Giffords floated this same proposal last year:
http://giffords.house.gov/press/press-releases/2007/07/High-TechVisaReformLegislation.shtml
If you read the article at the link, notice that she only talked to high-tech employERS and "executives": there's no mention of talking to any high-tech workers.
From the press release: ?More than 40 percent of H-1B visa workers possess graduate or doctorate degrees.? Even if this percentage is correct, then what about the other ~60%? Why would we need 78,000 (her proposed 130,000 x 60%) Bachelor?s degreed-only foreign workers flooding in to take low to mid-level computer programming and engineering jobs? These workers primarily just lower wages for the American workers doing the same thing... and now her cap on just these lower-level workers would exceed the previous 65,000 base cap!

Most of Rep. Lamar Smith's web site deals with his opposition to an ethics resolution!

Read the two papers at the following links to learn more about the H-1B visa program:

http://www.sharedprosperity.org/bp187/bp187.pdf
http://heather.cs.ucdavis.edu/PrevWage.pdf
Reply to this comment View reply
H-1B proposal
by liberterian46 March 15, 2008 7:53 AM PDT
I realize we have become a 3rd world nation and that our kids aren't smart enough to work in the tech industry (other than video games) but isn't hiring foreigners basically the same as out-sourcing to a foreign country?
Excuse me Bill, but shouldn't the Gates Foundation should be educating American Kids.
Reply to this comment
The Silent Invasion
by joshrynee March 15, 2008 8:44 AM PDT
The H1-B is a nightmare for the future of American education. American programmers see their jobs getting outsourced and that creates a lack in motivation for younger generations to pursue their careers in that line. A solution can be to put a annual cap on Indian outsourcing companies on the number of H1-B's so that you don't have too many jobs outsourced. However totally eradicating the H1-B program is not plausible because of the American companies have divulged too much information.
Reply to this comment
The Silent Invasion
by joshrynee March 15, 2008 8:44 AM PDT
The H1-B is a nightmare for the future of American education. American programmers see their jobs getting outsourced and that creates a lack in motivation for younger generations to pursue their careers in that line. A solution can be to put a annual cap on Indian outsourcing companies on the number of H1-B's so that you don't have too many jobs outsourced. However totally eradicating the H1-B program is not plausible because the American companies have divulged too much information.
Reply to this comment
its all
by mgilbo1 March 15, 2008 9:10 AM PDT
crap. Gates just wants cheap labor. Indians come here, learn and go home in 5 years to bring any new tech with them. I don't blame India, I blame our gov't for believing Gates and his sad story.
Reply to this comment
 See all 150 Comments >>
Powered by Jive Software
advertisement
Resource center from News.com sponsors
You Need The Speed of Norton 2009
Introducing Norton Internet Security™2009

Click Here!
With one-click, one-minute install, under 8MB of memory usage and fewer, shorter scans, it's the fastest security suite anywhere. Norton. Smart Security, Engineered for Speed. Get a FREE trial today!

Click Here!
The Fastest Security Suite Anywhere

Experience the revolutionary Norton Internet Security™ 2009. With Norton™ Insight, a new feature, you get precision security that targets only at risk files for fewer, faster, shorter scans

Win a Trip to Space!*

Enter the Blast Off with Norton Sweepstakes for your shot at a trip to space. You could experience being fast and weightless, just like the new Norton 2009. *No purchase necessary; click for full details.

FREE Trial!

Act now to get your FREE trial of Norton Internet Security 2009. Try it for the protection. Love it for the speed

Norton Safe Web NEW!

A community-based system that rates web site safety

Norton Labs NEW!

Users can download new security technologies and share input directly with developers. Help us shape our future products!

About News Blog

Recent posts on technology, trends, and more.

Add this feed to your online news reader

News Blog topics

Featured blogs

advertisement

Inside CNET News

Scroll Left Scroll Right