Posts Tagged ‘wage suppression’

Why have US wages and salaries remained stagnate or even in decline during this economic boom? For one thing, there is the massive exporting of US white collar jobs to poverty wage nations. Then, of course, there is the outsourcing of US white collar jobs. Then again, there is the H1-B Visa program, among other issues. All of the above redistribute income and wealth from the 99 to the 1 percent of US citizens.

According to Bloomberg News, the United States Department of Labor’s Office of Federal Contract Compliance Programs determined tech giant Cisco Systems secured visas for foreign workers instead of hiring U.S. citizens for certain jobs and paid the visa holders at a lower rate than their American counterparts. Indian corporations are the conduit whereby cheaper Indian workers use the H1-B visa to displace higher paid US workers. Indian corporations provide Cisco with the low wage contract workers who replace higher paid US workers.

The probe is one of several ongoing investigations into possible discrimination by federal contractors against visa holders. It is stunning there is a federal probe going on about how the billionaires who control US corporations routinely displace US workers with lower-paid Indian workers since this has been a common practice for over three decades, and is a primary conduit for redistributing income from the 99 to the 1 percent.

This is because the difference between the old higher US salaries and compensation and the new lower with no other H1-B visa compensation goes straight into the pockets of the rich via higher corporate share prices and profits that would otherwise not be so high.

“The usual punishment is a fine and disbarment from the H-1B program for a while,” said John Miano, an immigration lawyer and a former computer programmer, who is now working at the Immigration Reform Law Institute. “Want a bet that Cisco does not get barred from the H-1B program?” he added.

The leak comes as voters recognize that salaries for college-grads remain flat, despite the high-pressure economy, amid large-scale white-collar outsourcing and immigration. In contrast, blue-collar wages are rising slowly.

The anti-American discrimination at Cisco is also a political problem for GOP Rep. Kevin Yoder.

On July 25, Yoder used his political clout to get initial approval in the United States House of Representatives for legislation that would put roughly 300,000 Indian visa-workers on a fast-track to green-cards and citizenship.

Yoder’s H.R. 392 legislation is a gamble for him because it puts visa-worker Indians in his Kansas district ahead of the many young Americans who are losing jobs to the huge population of foreign visa-workers in the United States. Many polls show that Americans strongly oppose legislation which helps foreign companies displace Americans.

The population of foreign college-graduate visa-workers adds up to roughly 1.5 million — each of whom is holding a job that would otherwise have gone to the roughly 800,000 young men and women who graduate each year with skilled college-degrees in business, healthcare, science, software, math or design.

Yoder’s legislation will also allow Americans and Indian companies to annually award up to 140,000 fast-track green cards to Indian workers if they take Americans’ jobs at low wages by using H-1B or L-1 visas.

GOP leaders — including President Donald Trump — will decide in the next few months of Yoder’s pro-outsourcing measure becomes law.

Like many other Internet companies, Cisco employs many cheap-labor visa-workers. In 2017, for example, the company asked for 713 three-year visas to hire foreign college graduates from overseas. Roughly one-third of those applications were approved via a lottery.

The company also asked for 249 L-1 visas to transfer foreign employees to jobs in the United States. The approval rate for L-1s is unknown, but that large number suggests that the company may have imported more workers via L-1 visas than H-1B visas.

Nearly all of Cisco’s H-1Bs are from India.

Tech Giant Cisco Discriminated Against US Citizens Using H1-B Visa Workers — Bloomberg News

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