WashTech News: IT Industry News
July 26, 2006
WashTech News

Why is Barclays Abusing the H-1B Program?

Offshoring/Inshoring: That's Free-Trade, Folks!
Commentary by Roberta L. Wilson




Take Action!
Click above to Contact Barclays to Stop the H-1B Abuse!
And if you work for Barclays, please call the Whistleblower Hotline to let them know what you think of their practice of preferring non-U.S. residents for their work. The number is 866-407-3391.



Feeling displaced and disposable? The IT sector, once the canary in the mineshaft in terms of outsourcing, offshoring, and inshoring, has been joined by other service sector jobs, including financial analysis positions at Barclays Global Investors and elsewhere. Meanwhile, the economic globalization of jobs, from entry-level manufacturing jobs to high-end research jobs, continues unabated by corporations and supported by free-trade policies, most recently efforts by the new Democrats, as well as Republicans.

Congress is currently rewriting the Senate's immigration bill, which includes raising and, in effect, eliminating the caps on H1-B visa approvals, now set at 65,000. H1-B visas and L1 visas were purportedly created to allow corporations to bring in foreign workers for technical and professional jobs in which there is a shortage of domestic workers. Some Democrats are taking leadership roles to ensure that the proposed H1-B increases are maintained in whatever immigration bill Congress passes. See letter sent to Majority Speaker Denis Hastert and Minority Leader Nancy Pelosi.

A few of those representatives signing the letter to raise the H-1B visa limits are also trying to repair the damage by asking for Trade Adjustment Act (TAA) funds to cover all service sector workers who lose their jobs to free-trade offshoring. Despite the effort by worker-friendly Democrats like Richard Gephardt. (now retired), who warned of the painful consequences of passing free-trade agreements, many others are playing both sides by giving away jobs, but calling for training funds for those left behind. These include Rep. Adam Smith (D-WA) and Sen. Maria Cantwell (D-WA), and others.

These are among a group of Democrats called New Democrats, who claim that workers of all political stripes like free trade, an important conclusion to come to if you are in the party that pushed through NAFTA (Clinton 1993). The only problem with it, according to the study linked below, is that we shouldn't leave American workers behind. Yes, well, you can't have both because the point of these free-trade agreements is to find the cheapest labor. The proposed economic benefit of getting cheaper goods made by workers who have been starved off their land and are now in slave-like labor conditions can confuse domestic workers who have not yet lost their jobs. Does it matter that you could buy cheap clothes if you have no job? See Democratic Message on Trade and the Global Economy (pdf) (June 2004) at: www.newdem.org/#RestoringAmericasPromise

Marcus Courtney, President of Washtech/CWA Local 37083, "You have to wonder what our government is for if it's not for protecting U.S. workers and their economic well being."

Meanwhile Barclays is diligently asking for applications for jobs that range in salary from $57,000 to $200,000. (See current requests to the Department of Labor, which were posted on the company bulletin board. Request 1, Requests 2) The current H1-B rules dictate that corporations must first seek to find candidates within the domestic labor force. Apparently, Barclays is having trouble finding domestic MBAs who want to work for $200,000-if they even tried. Barclays' labor practices are an example of a company that can use the lack of real regulation in the H-1B visa law to bypass the U.S. labor market.

Likewise, the Newspaper Guild recently reported the continuing loss of jobs to offshoring, everything from news, to advertising, to circulation. Copyediting jobs are the most recent jobs to go offshore to India. See http://www.newsguild.org/gr/gr_display.php?storyID=2800

The Guild Reporter also put the seemingly better economy in perspective in its May 19, 2006 issue:

"The release of two government reports April 28 provided grist for both the "half full" and "half empty" camps on the U.S. economy. The nation's gross domestic product rose at an annual rate of 4.8% in the first three months of the year, the fastest growth rate since the third quarter of 2003. But worker compensation rose only 2.4%, the slowest growth rate in seven years and well below inflation. Wage growth has been decelerating since 2000 and has leveled off in recent months at around 2.5%, well below the historical average."

Between an economy that is failing for workers in general and a deteriorating social safety net for many displaced service sector workers, the future looks grim without a major rehaul of our national priorities. WashTech/CWA Local 37083 calls for the following policy changes:

1. Pass the "Defend American Dream Act," H.R. 4378, which would reform the H-1B visa program so it no longer allows the tech industry to directly replace U.S. workers and unfairly treat guest workers. This bill would reduce the cap to its former levels of 65,000 and build real worker protections and labor standards into the program. Sponsored by Rep. Pascrell (D-NJ)

2. Pass Trade Adjustment Act (TAA) reform so that service sector workers who lose their job due to foreign trade would receive TAA benefits, as do manufacturing workers.. The bill is H.R. 4156 in the House and S.1309 in the Senate. Sponsored by Rep. Smith (D-WA) and Sen. Cantwell (D-WA).

3. Tax dollars should be spent on creating jobs at home, not outsourcing jobs abroad. For example 48 out of 50 states have their welfare call centers located in foreign countries. The Call Center Consumer Right to Know Act would give consumers the option of choosing to be connected to a call center employee based in the U.S. It would also require call center employees to disclose the city, state and country where they are operating. The Bill numbers are H.R. 4932 and S. 2553, sponsored by Rep. Strickland (D-OH) and Sen. Kerry (D-MA).

4. Create international trade agreements that support job creation in the U.S. instead of the current agreements that favor multinational corporations' bottom line, regardless of the effect on workers, their families, and their communities, and even national economic, environmental, and technical interests.

Roberta L. Wilson is Communciations Chair for WashTech/CWA Local 37083



 
Talkback on Article
 
Sep 26, 2006, 12:05 pm
Anil, there is a double-standard, but it isn't one that workers have created. Workers are against the globalization you speak of AND the exploitation of workers - no matter what country they are in. Those who are making these decisions (unaccountable governments and corporations) are where we should all focus our anger - not each other.

     Todd, Seattle, USA
 
Sep 26, 2006, 5:46 am
It is strange that US insist for Globalization and open all business sector of all countries. Here SW people of US is against it, afraid of job loss. The same kind of job loss in other business and agriculture, leads other nations to delay opening of other business/agriculture. This is simple case of "Double Standard" of US, as earlier India pointed out that Pakistatn is epic centre of Terrorism, nobody care of it. Sept 11, show it correctly

     Anil, India
 
Jul 28, 2006, 1:11 pm
In the very near future please publish the names of all of the so called New Democrats who have signed the letter requesting a increase in the H1-B visa program. I want to do everything I can to target these faux Democrats for defeat this primary season. Did they not learn a thing from the out of nowhere defeat of former ITAA president Harris Miller.

     Carl V. LaMantia, Indianapolis Indiana
 
 
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