U.S. tech companies love the H-1B visa program. The temporary visa is meant to allow them to bring high-skill foreign workers to fill jobs for which there aren’t enough skilled American workers.
But the program isn’t working. Originally intended to bring the best global talent to fill U.S. labor shortages, it has become a pipeline for a few big companies to hire cheap labor.
Giants like Amazon, Apple, Google, Intel, and Microsoft were all among the top 20 H-1B employers in 2014, according to Ron Hira, professor of political science at Howard University who has testified before Congress on high-skill immigration. The other fifteen—which include IBM but also consulting firms such as Tata Consultancy, Wipro, and Infosys—used the visa program mainly for outsourcing jobs.
Typically, U.S. companies like Disney, FedEx, and Cisco will contract with consulting firms. American workers end up training their foreign counterparts, only to have the U.S. firm replace the American trainers with the H-1B visa holding trainees—who’ll work for below-market wages.
Problems with this setup abound. First, talk of a tech labor shortage in the U.S. might be overblown. Then there’s the issue of quality: More than half of the H-1Bs at a vast majority of the top H-1B employers have bachelors degrees, but not advanced degrees. Hira argues that in many cases such as Disney and Northeast Utilities, the jettisoned American workers were obviously more skilled and knowledgeable than the people who filled those positions, considering the fact that they trained their H-1B replacements.
Plus, the H-1B is a guest-worker program where the employer holds the visa and isn’t required to sponsor the workers for legal permanent residency in the United States. So if the worker loses the job, he or she is legally bound to return to their country of origin. This gives the employer tremendous leverage, and can lead to abuse.
“It’s a lose-lose right now for the country and H-1B workers,” says Vivek Wadhwa, distinguished fellow and professor at Carnegie Mellon University Engineering at Silicon Valley.