Much has been said about the newly enacted Border Security Bill in the US (HR 6080 – PDF). At its core, the purpose of the bill (now law) is to provide monies for funding existing and upcoming objectives of the DHS (including USCIS), DOJ, and the Judicial system pertaining to the southwestern border of the United States.
It sounds really simple in intention, except that it really isn’t. The bill’s sponsor, Senator Charles Schumer (Democrat NY) states that it is beneficial to the country because it ‘Would Hike Fees On Personnel Companies That Exploit U.S. Visa Laws’. Wait, what?
Before I state my reasons for supporting this bill, I would like the discuss the exploitation Schumer talks about. The H1-B/L1 visa categories are particularly controversial, in part because they are both what are known as ‘dual intent’ visas. This means that any H1-B/L1 visa holder is allowed under US immigration law to seek a path towards permanent residency in the country. Why this complicates the entire debate – they are both mandated to ‘temporarily employ foreign workers’ in specialty occupations. According to Schumer, ‘It will also avoid adding to the deficit by raising fees on a handful of foreign corporations that abuse U.S. visa programs to import workers from India.’ So, it is clear – the bill’s primary target is Indian IT companies, namely Infosys, Wipro, TCS, and Mahindra Satyam. All these companies are also responsible for the majority of American offshored work as well. So, where is the exploitation? It is clear that the companies bring foreign workers to the US temporarily for a specific work project and for a specific client. Of course, owing to the aforementioned dual intent provision, these temporary workers are free to obtain permanent residency in the US, too, but few do. I bet this mostly due to the contractual nature of such an engagement.
The exploitation Schumer refers to could be the fact that these Indian companies are what are called ‘H1-B dependent’ companies. Simply stated, these are companies with 15% or more employees on an H1-B. These companies pay extra for this ‘privilege’ come time to apply for an H1-B. They also have to provide an attestation that they made ‘good faith’ efforts to hire Americans and that no American jobs would be lost as a result. But wait, there’s a rider. If the company hires workers with a master’s degree or pays them above a threshold salary, they aren’t required to attest anything, not that it’s genuinely easy to find qualified software engineers in the US.
So, please don’t give these companies a bad name. They are not exploiting any visa laws. At best, they are exploiting America’s global push for open markets at open labor rates.
Now, onto why I support this controversial bill, irrespective of the absurdity surrounding penalizing legal immigrants to keep illegal immigration in check. These are my points:
1. This is a good reminder that there are great opportunities elsewhere. USA is the world’s biggest importer, but there are tremendous opportunities in other parts of the world. Infosys, please start bidding on Indian projects as well.
2. This bill is no doubt the harbinger of a greater push towards immigration reform during this presidential term. Schumer has long been a proponent of meaningful immigration leading to a speedy path towards permanent residency. This bill lays the groundwork for such reform. It’s time to tell the world that America would rather import talent permanently than send it back.
3. This is the biggest reason – the bill inherently kills the ‘desi consultant’ business inside the US. These are the real culprits. Basically, these are small time body shops that work at the third or even fourth tier of the consulting business, are almost always owned by first generation Indian permanent residents with another primary source of income, have no business plan, are really H1-B dependent, and have no code of ethics. There are various reasons why someone would join such a company. For most, it’s the easiest path to getting an H1-B (and subsequently legal residence) after completing education in the US. With this new law, such companies would have to shell out extra for every new H1-B petition. This eats into the already meager margins at which these shady companies do business. But, the topic of small consulting companies deserves another blog post of its own.
4. Speaking as someone who earned two graduate degrees from a top American university, I wholeheartedly support any measure that provides confidence to American students that engineering degrees are good and that there is going to a be a job available for them when they graduate. This leads to the much greater issue in my opinion, that of regulating US Inc. such that while global talent and liberal immigration is welcome, steps ought to be taken to ensure a level playing field for people born in the country. It’s not their fault that everything is cheaper abroad. Almost every developed country has such protective measures in place. America should, too. Too bad it would need political might to rein in capitalism.
America is lucky to have a very active immigration debate in this day and age when every other country is on its toes to recruit talent globally. People want to move to America for a better life, better future, and for freedom to take risks that they couldn’t back home. I can only hope that something good comes out of bills like HR 6080. In the interim, I am confident that these steps would lay a strong groundwork towards making comprehensive immigration reform a more welcome agenda in the minds of Americans and would-be immigrants alike.
Cheers!