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IEEE Agrees with SIA on H-1B Visas for Foreign Engineers, Scientists

Sam Davis

November 9, 2007

The IEEE-US and SIA have joined forces to urge Congress to pass the Comprehensive Immigration Reform Act of 2007, which includes the H-1B visa program. In October, the SIA and IEEE sent a joint letter to the Senate and House leaders urging them to adopt measures that make it easier for companies to retain highly skilled immigrant workers. Previously, the SIA advocated an increase in the number of visas, whereas the IEEE was opposed to a visa increase. The letter sent to Congress was signed by SIA president George Scalise and IEEE-USA president John Meredith. It pointed out that “Both the IEEE-USA and SIA see retention of highly educated immigrants as part of a broader competitiveness and innovation initiative.”

Tucked away in a section of the Comprehensive Immigration Act of 2007 is a H-1B Visa program that allows U.S. companies and universities to bring in scientists and engineers from other countries. This is one of the lesser known sections of the immigration reform bill that covers 12-15 illegal immigrants, a guest worker program, workplace enforcement, and border security. However   you want to look at it, the bill is in limbo in the U.S. Congress because it didn’t garner enough votes for passage. Presently, the bills would raise H-1B foreign skilled worker visa cap from 65,000 to 115,000, and raise the limit on employment-based visas from 140,000 to 290,000 per year.

U.S. high-tech companies have continually requested an increase in the number of allotted visas. For example, in April 2007, the U.S. Citizenship and Immigration Services (USCIS) received enough H-1B petitions for fiscal 2008 in just one day to cover the 65,000 cap mandated by the U.S. Congress. For fiscal 2007 it took less than two months to reach the cap.

According to Immigration Reform bill as presently written: “Aliens who will perform labor in shortage applications designated by the Secretary of Labor for blanket certification as lacking sufficient United States workers able, willing, qualified, and available will not affect the terms and conditions of similarly employed United States workers.”

This visa is initially granted for three years, with the possible extension for up to another three years. Also, a person who qualifies may eventually qualify for permanent U.S. residency. Plus, the employer must certify that prevailing wages will be paid and that other U.S. workers will not be adversely affected. I can’t see how the government can tell if the prevailing wage is accurate and if U.S. workers aren’t affected.

A headline in the October 2005 article in Infoworld said, “The H-1B Swindle, A new study shows that companies hire foreign workers for cheap labor, not skill.” It is likely that in 2007 the same situation may still be the case. As an example, the article pointed out that relative to computer occupations “non-U.S. citizens in the United States on an H-1B visa are paid significantly less than their American counterparts. On average, H-1B workers in computer occupations were for wages $13,000 less than Americans in the same occupation and state.”

Another question that should be answered is whether the H-1B visa holder will return to their native country with the knowledge and experience gained in the U.S. If that occurs, U.S. industry may lose technology to another country that competes in the same area.

On the other side of the coin, the H-1B visa holder may help a U.S. company to achieve a scientific breakthrough that aids the U.S. economy. Perhaps this breakthrough may not have been possible with American scientists.

Microsoft’s Bill Gates advocates dropping the H-1B requirements altogether, telling the Washington Post that “Even though it may not be realistic, I don’t think there should even be any limit.” In response, columnist John Dvorak posted a blog titled, “Microsoft to American Coders: If you are Out of Work, then You Obviously Suck!” Dvorak sees an open door for foreign workers as a closed door for Americans hoping to earn a living wage at technology factories.

I understand that the Microsoft campus near Seattle has a building with hundreds of employees who do nothing but process visas for potential foreign programmers and engineers. Obviously, this must be paying off for Microsoft.

The H-1B visa program allows American companies and universities to hire foreign scientists, engineers and programmers. Unfortunately, H-1B law lacks adequate safeguards to protect US workers from being displaced and is abused to provide cheap labor. Although requirements say employers must pay the "prevailing wage," numerous loopholes mean there is little real-world wage protection for either U.S. citizens or the H-1B guest workers. Moreover, employers rarely have to certify that no qualified U.S. workers are available before hiring an H-1B. Let’s face it—certification is nearly an automatic rubber stamp.

The H-1B visa program helps major corporations, but what about their employees? There may be some help on the way because an amendment to the Immigration bill would triple the fees for H-1B visas. Therefore, the total cost for obtaining the visa could reach about $20,000.

On the other hand, tech companies criticize this amendment, saying it would only provide companies with more incentive to outsource their business offshore and undermine U.S. economic growth. However, it is unlikely that moderate to small size tech companies have the resources to bring in foreign engineers and scientists under the H-1B visa program. Also, these companies would not be able to outsource designs offshore. 

If I can use an engineering analogy, troubleshooting is the way to find a system problem and come up with a solution. In the H-1B immigration case it is obvious that schools in the U.S. are not educating and graduating the engineers and scientists required by industry. Education systems must improve to keep U.S. citizens in the workforce. However, you could ask why more American students are not going into engineering and science careers? Could it be that as more foreign engineers and scientists are brought in with H-1B visas there are fewer openings for their American counterparts and potential students opt for other careers? If that is the case then the H-1B visa program is counterproductive.