Like a lot of American corporations that made
mind-boggling profits over the last few decades, the Microsoft, IBM and
Cisco technology companies have abandoned their own citizen workforce
to exploit foreign workers. But this isn’t happening in some far off
sweat shop, this outsourcing is happening right on American soil.
In
this case, corporate power, channeled through high-paid lobbyists and
fat campaign contributions, strong-armed elected officials into passing
laws that surreptitiously squash the labor rights of both US citizens
and foreign workers alike.
How these IT
companies got away with this begins with a US visa named the H-1b. The
visa was created in the early 1990s so US companies could hire foreign
nationals with college degrees for up to six years of service.
Foreigners began to apply en masse, and now, nearly two decades later,
600,000 are working in the country via the H-1b.
According to Gene A. Nelson, who wrote An American Scam: How Special Interests Undermine National Security with Endless ‘Techie’ Gluts,
it was Microsoft founder Bill Gates who pushed and paid Washington the
greatest to pass the H-1b visa law. Gates accomplished this by
perpetuating a myth that America was facing a looming shortage of IT
pros, scientists and engineers. Gates' myth, states Nelson, earned
Microsoft an extra $73 billion in profits between 1991 to 2005. Nearly
all Microsoft H-1bs are paid a salary that's far below the prevailing
wage for their position and skill. Some critics estimate that out of
the 600,000 H-1bs in the US, a third are being used by IT companies for
cheap labor.
"The H-1b benefits many of the
economic elite at the expense of the middle class," wrote Nelson. "The
resultant labor gluts (caused by the H-1b) depresses wages and
benefits, enhancing employer profitability."
Essentially,
the H-1b visa is another corporate-government neoliberal creation to
undermine the wages and rights of the working class, both citizen and
non-citizen alike. In the end, it's not an issue of foreign workers
taking Americans' jobs, but of corporations being allowed to undercut
the workforce by pressuring the government into applying policies that
hurt workers for the benefit of the corporate elite.
According
to the National Science Foundation, over 600,000 science and
engineering degrees are granted annually by American universities. Yet
the US produces only 120,000 science and engineering jobs per year, and
much less of late. Now add those numbers to the annual influx of 85,000
H-1bs (the annual allowed cap) and the NSF believes half a million
Americans are losing their jobs to cheap foreign technical labor, while
another half million Americans waste their science and engineering
degrees.
At the same time, H-1b workers
are suffering slave-like conditions. One such worker complained in a
letter to a Maryland Circuit Court judge that, "since I was treated
like a bonded slave, I didn't have any alternative to leaving the
company," which was suing him for breach of contract. Indeed, the H-1b
visa law allows the holder to apply for US citizenship along as his
corporate employer is the sponsor. H-1b recruiters boast this
indentured servitude made for "remarkable loyalty" to the corporation.
No one wins in this situation where labor rights are squashed so behemoths like Microsoft can make yet more billions.
Rennie
Sawade, a spokesperson for WashTech, says Seattle and other communities
are still feeling the reverberations of H-1b visa bomb that Bill Gates
and Washington dropped in the early 1990s. Seattle, says Sawade, is
just one city where the H-1b visa has not only soured the careers of
local tech and science professionals, but the community itself. "It has
affected thousands in the Seattle region," he says. "This is certainly
not helping the local economy and is contributing to many of the
closings of the local shops and stores."
Seattle's
regional unemployment number is pushing 7 percent, and the number for
the city itself might be 11.5 percent, as recently high-lighted by
Business Week in its ranking of "America’s Unhappiest Cities." Seattle
also this year watched one of its daily newspapers -- publishing since
the Civil War -- bid adieu.
Foreign
nationals, says Sawade, who are offered an H-1b job "are getting
screwed too." He says they're sold "a bill of goods," such as high
American wages and the allure of the country itself, by H-1b "Body
Shops" or recruiters. When they finally get here, that’s when reality
strikes. In the Seattle region, he says it’s common to know an H-1b
visa holder who lives in poverty-level housing, with many roommates, in
a hard-scrabble neighborhood.
One
question that Sawade asks is, how did both the American and foreign IT
worker become undermined by a US visa? Sawade and other critics of the
H-1b visa says heed the advice "Deep Throat" of President Nixon's
demise offered -- follow the money.
In
2008, Microsoft paid nearly a dozen lobbying firms
hundreds-of-thousands of dollars to produce 45 reports on immigration
and submitted them to Congress for review, according to Open Secrets,
a website that tracks the influence of lobbyists and campaign
contributions on US politics. Many of the reports had a simple subject
heading: "H-1b Visa Program, Workforce Issues." The 45 reports ranked
Microsoft number one for 2008 when it came to immigration studies for
Congress. The second-highest number given to Congress was 11 -- by the
National Immigration Forum, which is an organization that actually
deals with the issue of immigration.
Gates,
currently the world’s richest man, also has tremendous influence over
some of the most powerful institutions on the planet. In March of 2007,
he was allowed to speak to a US Senate committee for two hours. During
this time, he called for an "infinite" number of H-1bs to be allowed
into the US.
Obama’s stance may be
surprising to some for a president who promised hope, change and
putting Americans back to work. Opens Secrets reveals that Microsoft
gave President Obama just over $700,000 in 2008, while Sen. John McCain
(R-AZ) was given $73,000. In fact, since 1990, Microsoft has
contributed close to $20 million to federal office holders, according
to Open Secrets, which calls the software company "one of the biggest
contributors in Washington."
Thanks
to the initiative of companies like Microsoft, workers are displaced
from their home countries to work for poor wages abroad, undercutting
US labor while clearly concentrating the wealth into the hands of fewer
individuals.
Toward Freedom