Date: Wed, 5 Jul 2006 00:14:55 -0700
From: Norm Matloff <matloff@cs.ucdavis.edu>
To: Norm Matloff <matloff@cs.ucdavis.edu>
Subject: LA Times article fails to delve

To: H-1B/L-1/offshoring e-newsletter

Readers of this e-newsletter can be broken down into "techies" (engineers and
programmers) and "newsies" (journalists, university and government
researchers, political staffers, etc.).  I constantly hear from the techies
that the press is highly biased in favor of the industry on the H-1B issue.
My standard reply is that the vast majority of journalists are impartial,
though far too many of them are too formulaic ("he said, she said, that's
all") in their reporting.

I am always very reluctant to attribute bias, but at the very least one can
say that the enclosed article is unbalanced, whether deliberately or not.  I
actually decided to quantify it, by counting lines of text.  Turns out that
there are 93 lines which quote advocates of increasing the H-1B cap and
liberalizing the green card process, but only 24 lines quoting the critics of
these programs.

It's not just a question of line counts.  I'm more worried about omission of
centrally relevant information.  Consider this excerpt, for instance:

#  But  critics of the H-1B program argue that there are enough Americans
#  qualified  for  the  jobs. Companies just prefer to hire younger, less
#  expensive  workers  from  other  countries,  such  as India and China,
#  instead of more experienced American workers at higher salaries.

#  "The  bottom  line  is  cheap  labor,"  said UC Davis computer-science
#  professor Norman Matloff, who has studied the H-1B program.
  
#  The  six-year  visas  are  available  to  foreigners  with  at least a
#  bachelor's degree. Firms must pay foreign workers the prevailing wage.

Well, so much for this guy Matloff, eh? :-)  Firms must pay prevailing
wage, end of story, Matloff is wrong (and by extension so are the 
other critics of the H-1B program). 

When the reporter interviewed me, I explained to her that the prevailing
wage requirement is useless, due to gaping loopholes, and that a number
of university and government studies have confirmed that the H-1Bs are
indeed on average paid less than Americans.  Yet the reader sees none of
this.  It could be that the material was edited out, thus not the
reporter's fault, but in any case it's disappointing.

Also, one of the themes of the article (including the headline, though
again it's put in by the editor rather than the reporter) is that
employers supposedly hire H-1Bs because not enough Americans have
graduate degrees.  The employers hire new foreign graduates of U.S.
schools.  I had made sure to point the reporter to the wage data,
showing that starting salaries for new graduates with Master's degrees
in computer science and electrical engineering have been FLAT since
1999, thereby showing we have no shortage at the graduate degree level.
Yet again, nothing about that here.

One interesting aspect of the article is the quotes in which H-1Bs
(Gareth Lloyd and Swadha Sharma) present themselves as being such
wonderful assets to the U.S.  I was a bit startled to see such a display
of immodesty, especially since these workers don't seem to be of
outstanding talent, judging by the descriptions in the article.

As many readers of this e-newsletter will recall, I strongly support the
notion of rolling out the immigration red carpet for "the best and the
brightest."  I have personally championed the hiring and green card
sponsorship of many foreign nationals, mainly Chinese and Indian, of
outstanding levels of talent.  But the vast majority of H-1Bs are
ordinary people doing ordinary work, apparently including those profiled
here.  

Norm

http://www.latimes.com/news/printedition/california/la-me-skilledvisa3jul03,1,6524150.story?coll=la-headlines-pe-california&ctrack=1&cset=true

Access to Job Market in U.S. a Matter of Degrees

Foreign  workers  with high-tech skills are in demand, but visa quotas
snarl the hiring process.

By Anna Gorman, Times Staff Writer

July 3, 2006

This spring, a U.S. high-tech company recruited British citizen Gareth
Lloyd for a possible engineering job.

But  before  the Irvine office made its hiring decision, the number of
available  visas for skilled workers ran out, in a record time of less
than two months.

Lloyd,   who  has  degrees  in  applied  physics  and  electrical  and
electronics engineering, found another job in Germany.

"I  was  a  little  bit  incredulous,"  Lloyd,  34,  said  in  a phone
interview. "It seems arbitrary to put some kind of quota on this."

Much   of   the   national  debate  on  immigration  has  centered  on
undocumented  workers  who  fill agriculture, construction and service
jobs.  But  highly  skilled foreign scientists, engineers and computer
programmers recruited by U.S. companies to work here legally also have
a  lot  at stake in the outcome. "The major focus for all the laws and
all  the  bills  has  mainly  been for illegal immigrants," said Swati
Srivastava, an Indian software engineer who lives in Playa del Rey and
is  waiting  for  her  green  card.  "We  kind  of  get  pushed to the
sidelines."

The  Senate's  sweeping  immigration bill that passed in May calls for
increasing   the  number  of  H-1B  visas,  which  are  available  for
professional   foreign  workers,  from  65,000  to  115,000  annually.
Foreigners with certain advanced degrees would be exempt from the cap.
Despite  President Bush's urging to increase such quotas, however, the
House  bill that passed late last year does not include any provisions
for  skilled-worker  visas.  And  a  conference committee, which would
negotiate  a  compromise,  has  yet  to  be  selected.  U.S. companies
complain that they are losing prospective employees to other countries
because  of a shortage of highly skilled and educated foreign workers.
As  a result, companies are either outsourcing science and engineering
jobs or making do with fewer employees.

"There  aren't  enough U.S. citizens pursuing those types of degrees,"
said  Jennifer  Greeson,  spokeswoman  for Intel Corp. in Santa Clara,
Calif.,  where  about  5% of the company's U.S.-based employees are on
H-1B  visas.  "U.S.  companies being able to have access to talent, no
matter where it originates, is key to our continued competitiveness."
But  critics of the H-1B program argue that there are enough Americans
qualified  for  the  jobs. Companies just prefer to hire younger, less
expensive  workers  from  other  countries,  such  as India and China,
instead of more experienced American workers at higher salaries.

"The  bottom  line  is  cheap  labor,"  said UC Davis computer-science
professor Norman Matloff, who has studied the H-1B program.

The  six-year  visas  are  available  to  foreigners  with  at least a
bachelor's degree. Firms must pay foreign workers the prevailing wage.

The  U.S. Citizenship and Immigration Services agency begins accepting
H-1B  visa  applications  on  April  1  each year. The agency received
enough  visas to hit the congressionally mandated cap of 65,000 at the
end  of  May  this  year,  compared with August in 2005 and October in
2004.  Those who receive the visas can begin work Oct. 1, the start of
the fiscal year.

There  are  also 20,000 additional visas available for foreign workers
who  earned  a  master's  or  higher-level  degree  in  the  U.S.  The
Citizenship  and  Immigration Services is still accepting applications
for those visas.

Because the H-1B cap is reached more quickly each year, many companies
prepare  their  paperwork ahead of time so they can be at the front of
the  line.  But they say it's often difficult to make hiring decisions
six months before the start date.

Orange County immigration attorney Mitchell Wexler has a courier ready
on  the  first  day  to  take  his  clients' completed applications to
Citizenship and Immigration Services.

"The  whole  white-collar  business  community is kind of crossing our
fingers"  that  the  number  of  visas  is raised, Wexler said. Highly
skilled  foreign  workers,  he  said, are "the best and brightest" and
should be invited into the economy.

"If  we can't get them," Wexler added, "they will go to a country that
will  accept  them,  and  they  will get jobs in Canada, Australia and
England and will compete against us."

One  of  Wexler's  clients,  Massachusetts-based  Skyworks  Solutions,
develops  and  manufactures integrated circuits for cellphones. Connie
Williams,  senior  human  resources specialist at the company's Irvine
office,  said  her  firm  was effectively cut off from a foreign labor
pool  that  included  Lloyd  of  Britain  when  the government stopped
accepting H-1B applications.

Williams  said  she  worries  that  if  Congress  fails to pass reform
legislation,  the  door  will  slam  shut  even earlier next year. The
company  has just over 2,000 U.S.-based employees, roughly 100 of whom
have H-1B visas.

"We  need  these  highly  skilled,  highly  educated, highly qualified
engineers," said Williams. "These people are a needle in a haystack."

Once  foreigners have H-1B visas, they face another hurdle -- becoming
permanent  legal  residents. Applicants are often forced to wait years
because  there are only 140,000 employment-based green cards available
annually.  A  backlog  at Citizenship and Immigration Services adds to
the delays.

Swati  and  Aradhana  Srivastava,  34,  both Indian software engineers
working  in  the U.S. on H-1B visas, began the green card process with
their  employer  in  November  2001. Since then, the sisters said they
have not been able to change jobs, positions or salaries.

They have taken film classes and are eager to pursue second careers in
filmmaking  but  cannot  do so until after they get their green cards.
They  also  are reluctant to buy property or start a business. If they
don't  get  their green cards by the time they finish film school, the
sisters may return home.

"It's  like  living  in  a  holding  pattern continuously," said Swati
Srivastava,  28,  a  member  of  Immigration  Voice, a new grass-roots
organization  of  skilled  foreign  workers  pushing  for  immigration
reform.  The  Internet-based group formed late last year and has about
5,000 members scattered around the country.

"We  work in [the] U.S. legally in high-skilled jobs, but we still get
penalized for playing by the rules," Immigration Voice co-founder Aman
Kapoor  said in an e-mail. "Since no one was working on our issues, we
decided to organize."

Sandy  Boyd,  vice  president  of the National Assn. of Manufacturers,
said  there is an urgency to fixing the problems facing highly skilled
foreign  workers, whether they're seeking temporary or permanent legal
status.  The  Senate's  proposed  immigration  bill would increase the
number of available employment-based green cards.

If  compromise  legislation  cannot  be reached on the broader issues,
Boyd said, Congress should pass a separate, more narrow reform bill.
"This  is  not  an  issue  that  can  be  put  off until comprehensive
immigration  reform is passed," Boyd said, "because once we lose these
jobs, it's very difficult for them to come back."

But industry lobbyists arguing against increases in H-1B visas say the
program  hurts  U.S.  citizens  by  lowering  wages and increasing job
competition.   They   cite   a   recent   report   by  the  Government
Accountability Office that says the program lacks sufficient oversight
from the Department of Labor.

"We  feel  for the most part there are not shortages of U.S. engineers
and  computer  scientists  that  have  the  skills these companies are
looking for," said Chris McManes, spokesman for the U.S. sector of the
Institute  of  Electrical  and  Electronics  Engineers. "If the cap is
increased,  that will further hamper the ability of a U.S. engineer to
find a job."

David  Huber, a network engineer in Chicago and U.S. citizen by birth,
said  he twice lost out on jobs to foreign workers. He was passed over
for  one  job  and  replaced at another, he said. Huber, who testified
before  the  House  in  March,  said he could not find work for nearly
three  years,  despite  his  education and experience. "Too many of us
cannot  find  jobs  because companies are turning to H-1B workers as a
first choice," Huber said in written testimony to the House.

Swadha Sharma, who lives in Arcadia, said she is not trying to replace
U.S. workers. Sharma earned an electronics engineering degree in India
but  has long dreamed of becoming a math teacher. So while her husband
worked here on an H-1B visa, she earned her teaching credential at Cal
Poly Pomona.

Sharma,  30,  started  applying for teaching jobs early this year, but
she said only one of three interested districts was willing to sponsor
her  for  an  H-1B  visa.  And  that offer, from a Los Angeles charter
school,  came after the visa cap had been reached. Sharma now plans to
pursue  a  master's  degree  but  said  the  U.S. is "missing out on a
catch."

"I am really qualified," she said. "Hopefully, I will be able to teach
soon."

As  for  Lloyd,  his  plans  to  come  to the United States are now on
indefinite  hold.  He started his job in Germany but still laments the
U.S.  immigration system for limiting workers like himself from coming
here.

"The  H-1B  scheme  seems  a little bit ridiculous," he said. "I would
certainly be an asset to the American economy."