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April 27, 2005 11:38 AM PDT

Gates wants to scrap H-1B visa restrictions

WASHINGTON--Microsoft Chairman Bill Gates slammed the federal government's strict limits on temporary visas for technology workers, saying that if he had his way, the system would be scrapped entirely.

"The theory behind the H-1B (visa)--that too many smart people are coming--that's what's questionable," Gates said Wednesday during a panel discussion at the Library of Congress. "It's very dangerous. You can get this idea that the world is very scary; let's cut back on travel...let's cut back on visas." Gates, panelists

Federal quotas on H-1B visas, capped at 65,000 last year, have long been a sore spot for Microsoft and other technology companies. But, Gates said, the increased caliber of research institutions in China and India means that curbs on immigration and guest-workers will pose a greater threat to America's competitiveness than ever before.

Gates' comments verged on sarcastic. He said that "it's almost an issue of a centrally-controlled economy versus" and then trailed off. "I'd certainly get rid of the H-1B visa caps," he added when asked what he would do if he could write U.S. laws. "That's one of the easiest decisions."

Princeton University's president, Shirley Tilghman, also warned of increased competition from abroad--and took aim at the federal government's aggressive denials of visas to foreign students after the Sept. 11, 2001 attacks on the World Trade Center and the Pentagon. Students are "not coming in the numbers they used to," Tilghman said.

The number of foreign students dropped in 2003 for the first time in more than 30 years, the Institute of International Education estimated last fall. It attributed the decline to increased competition from foreign universities and far stricter visa rules.

"I think there was a post-9/11 effort to cut down on visas," added Patrick Leahy, a Vermont Democrat. "I think this was a mistake."

Rep. David Dreier, a California Republican, was left defending stricter immigration rules. "We can't be so naive as to think there is not a very serious problem" with terrorists entering the country, he said.

Microsoft Research head Rick Rashid gave the example of a Microsoft employee in China who was barred by the U.S. government from attending a meeting in the United States after she got married. Gates said even Canadian employees have received similarly poor treatment: "It doesn't make any sense. We'll have Canadians sitting on the border until some bureaucratic thing happens."

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Add a Comment (Log in or register) 102 comments (Showing first 20 comments)
Misleading Title
by zarathustra911 April 27, 2005 11:49 AM PDT
Gates wants no cap on H1Bs, meaning no limit, rather than
"scrap H1Bs". A major difference.
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Either the author didn't understand or he's trying to manipulate the facts
by April 27, 2005 12:43 PM PDT
Bill G isn't a popular guy for a lot of reasons but this is either shoddy or yellow journalism.
Reply to this comment
H-1B
by System Tyrant April 27, 2005 12:57 PM PDT
I have to admit I don't know much about H-1B visas, but why not try educating Americans so we don't need to hire outside the country?
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Headline changed
by declan00 April 27, 2005 2:36 PM PDT
Yep, the original wasn't perfect. We've changed it. Thanks for the feedback.
Reply to this comment
The US doesn't...
by Filip Remplakowski April 27, 2005 2:57 PM PDT
seem to realize that there is a lot of talent from foreign students
that they are going to miss out on if they are going to cap the
amount of students coming in to the country. I welcome US
students and tourists to the UK with open arms and a friendly
attitude, they help the UK economy and I work with a couple of
people from the US and they're really great at keeping you
motivated and staying positive. I think the US should be more
liberal in allowing people into the country, without being
careless, and for once I would agree with something Bill Gates is
trying to do, which helps both foreign students and their
respective countries + the US. Hopefully there will be a good
compromise on this issue.
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...and the borders should be left wide open.
by David Arbogast April 27, 2005 3:11 PM PDT
I actually disagree with Gates here. More H1Bs and open borders are good for business. But after witnessing firsthand the effect of H1B visa floods incited by Bill Clinton, I have no interest as an American IT worker in seeing more visa workers around. Cheap labor is the reason the borders are still wide open. (and political vote harboring) As capitalistic as I am, I want the borders secured and fewer H1B applicants being approved. Offshoring is an option, and so is establishing a base of business in another country. If you want cheap labor, take the work to the cheap countries. Security and jobs are still important, and the availability of offshore opportunities nullifies the "global economy" argument for H1Bs.

Now the MS conspiracy theorists will claim that I've been fired from my "paid" position as a MS supporter. LoL... ain't free thought great?
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Typical Microsoft.
by dargon19888 April 27, 2005 3:23 PM PDT
Microsoft want tons of cheap labor without the deep technical skills to create efficient solutions.

He wants an army of people who can point and click to create easy to create but hard to maintain bloat ware applications.

Why? To sell more of his products and to drive down his development costs.

All I can say is GO LINUX!
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It is NOT about money
by JoeF2 April 27, 2005 5:10 PM PDT
Reading the majority of the posts here, I can only assume that the posters don't know anything about the H1B program.
Foreigners hired under the H1B program have to get paid the same wage as Americans. There is no undercutting. If a company violates the rules, anybody can complain to DoL, and they fine the company that violates the rules (and yes, this has happened.)

Furthermore, it is very shortsighted to believe that only Americans are smart. If qualified people are denied H1B visas, they will just compete against us from their home countries. So it is in fact in the interest of America to have these people here.
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If only I were rich like Bill
by Robert Wiseman April 27, 2005 5:33 PM PDT
If only I were rich like Bill --- I could agree more with him. The country is full of cheap Chinese imports; at the low end we have plenty of cheap labor from Mexico, at the higher ends we have plenty of H1Bs. We are continuously send our manafacturing and IT jobs overseas --- meanwhile we have Indian casinos everywhere to keep us busy---- God has to have pity on the average Joe Six-pack in this country.....
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Americans lose jobs to cheap labor
by April 27, 2005 6:15 PM PDT
Bill Gates is just another example of the rich CEO looking to make a few more bucks. Many Americans have lost their jobs in the Hi-Tech industry due to cheap H-1B labor. The influx of Indians has reduced software engineering rates by %50 and more. I know many experienced software engineers that can't find work. I have 20 years experience and can't get a job at Microsoft.
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I got replaced by less skilled workers
by April 27, 2005 6:26 PM PDT
I was working on a project and got replaced by less skilled Indians when the hard parts were completed by me. I know lots of people who have been replaced in the US by cheap foriegn labor. Ask an Indian what he's being paid, it's 1/3 to 1/2 what the same job used to pay a couple years ago.
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I don't think it's about the money..
by jhong123 April 27, 2005 6:42 PM PDT
I think the point is that many companies, including microsoft, want to hire the best of the best.. and increasingly, the best are not just in the US as they often were in the past. The educational system, and more importantly, access to cheap pc's, have led to a ton more programmers in the world.. and some of them are going to be very, very good.

there are countless articles showing data the point to this trend.. like this one: http://news.com.com/2100-1022_3-5659116.html

it is painful, as an american myself, to admit that the problem here is that we are no longer the single source of the absolute best and brightest.. but it would be a form of denial to simply blame this entirely on varying engineer personnel costs.
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Welcome to the globalization
by sancat April 27, 2005 11:44 PM PDT
In the good old years, my country used to sell to the US a couple of tons of iron, for so much money, and get in return a car, for a 5 times multiplier. Things evolved, and because of free market the US is able now to ask for a 1000 times multiplier on a Seagate hard disk. So, my people have to pay a lot for this blessed device. And where that money goes? Yes to Seagate?s shareholder pockets, but also to Uncle Sam?s taxes, to build roads, and subsidize home loans. Your blessed living standards.

Reality is the world has shrunk; it is not possible to compete in a geographically isolated cluster. When a country decides to close its doors to imports, through several channels the US asks kindly for the country to open to imports. Remember the pressures on Japan? It is not only impossible, but also undesirable; Japan stagnation is rooted in its seclusion.

So, the US nation has to decide whether an impossible coalition of left wing unionized workers and right wing isolationists we-love-fox-news is going to undermine its competitiveness. I would suggest to stop winning and get real. If you don?t swim faster, Bangalore will outpace Silicon Valley. Who knows, maybe your kids will be denied a working visa for India or Brazil in 50 years?

Once I finish my masters at the best technical university here in US, I have to decide if I am going to sell my skills here or abroad. And quite frankly, if things get a little too complicated, not only finding job, but also fighting some of the prejudices expressed on this list, I will leave. The funny thing, I studied for free? So, are you going to use me or should I benefit another country?
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Industrialist Never Met A Law They Liked
by Stating April 28, 2005 12:09 AM PDT
Of course Gates doesn't like H-1B. Like all good industrialists, he wants no government regulations at all. Do you think he likes government lawsuits regarding Microsoft's anticompetitive, monopoly practices?

BUT, I do agree with Mr. Gates that H-1B should be abolished to help Microsoft. Maybe if Microsoft was able to hire more foreign workers they could fix all the security holes in their products, charge less for their products, and ship them on time.
Reply to this comment
Bill G Speaks...
by b2bhandshake April 28, 2005 4:33 AM PDT
Bill G Speaks... and the world listens?

- Mohan
http://www.garamchai.com/mohan
Reply to this comment
Joe Feise is probably from India
by April 28, 2005 6:56 AM PDT
The dude is replying to every post about how unfair this is to Americans and then defending the right of Mr. billionaire Bill Gates and Michael Dell to give more of our IT jobs to H1-B visas. lol. Joe, cut it out man. We get your point, you don't have to try to refute every post that is against H1-B work visas.
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So what is an H-1B?
by vanox April 28, 2005 7:27 AM PDT
Is it a visa that allows a non-U.S. person to enter the country for the purpose of working?

Is it needed when ANY work is sent outside the U.S.?

I'm a bit confused. If it is my first question, then there is no complaint to be made. Companies can replace their workforce with whoever they'd like. If my second question is true, then there would be a legitimate complaint.

Maybe I am just way off target.
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I am an H1B worker
by April 28, 2005 12:13 PM PDT
Yes that's right, I hold an H1B visa and I have been here for about 2 years now. I use a fake name to post here for the sake of privacy.

Now to clarify some things with H1B. First and foremost only degree holders and above can apply for H1B, or sometimes exceptionally talented workers. I have to go through a series of interviews with both my present employer and the US consulate to get the visa. It's not just simply handing an H1B to anyone, I have to compete with other H1B applicants due to the quota set to my country. The next stage is for my employer to prove that my skill is exceptional and not available locally. It took 5 months, certification from a US university to validate my degree and experience, and a few thousands $ to finally get the approval.

Is it worth it? My employer seems to think so. I have met many H1B holders and we all have somewhat similar experience getting here. I guess what I'm trying to say is we are not just the average workers, we earned to be H1B holders because of our skill. This may not be all true, but I can guarantee you that most of us are.

For the record, my average working day is 12hrs.
(I'm sorry for any grammar/spelling mistakes.)
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I'm a programmer who has applied 3 times to MicroSoft, no response
by April 28, 2005 12:13 PM PDT
I have been employed as a programmer for about 10 years now. I have been fortunate in that I have not been laid off during that time period (my ratings have always been excellent or above average), but I have switched jobs once in that time frame.

At my previous company the pay-rate was about 25% less, I was a develepor but classified as technician. Why? because classifying me as a developer/programmer would mean that the company I was working for (a major multinational company) would have to admit that anyone who is dedicated can program even without a college degree.

Look, I am a successful programmer, without a college degree.

Admitting that (a person without a degree can program) would mean that my company which was hiring H1-b's (as anything techs, programmers, you name it) at 30% less than what I started making at my new job, would have to open up the job search to everyone.

And also, before my first permanent job, 10 years ago, I applied to Microsoft with no response. At the same time another temp I was working with landed a job at Microsoft, and came back to the office about a month later. Everyone asked him, how did you land a job at Microsoft? His first words were, "You see I have a friend at Microsoft who..."

Note: When I was looking to switch jobs I applied twice to Microsoft, again no response. That make 3 times.

Look Bill, friends hire friends. Your not able to find programmers because people who apply are being rejected until someone's friend needs a job.

For Microsoft this all makes sense because, the major benefit of having friends in the office is that you can sand-bag. Microsoft is a company of sand-baggers, and tsunami of open-source is coming (sorry for the tangential comment).

What Microsoft needs is to really open up the hiring process and stop this cronyism.

What Bill is saying is totally at odds with the facts of the "new" outsourced-economy and the realities of how people get hired at Microsoft.

Half the developers I know have been laid off in the last five years, most are still unemployed.
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Open Source development companies aren't looking for visa benefits
by April 28, 2005 1:49 PM PDT
I wonder why Bill needs to visa privileges when his most feared competition doesn't. Perhaps his model isn't working anymore.
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