Chrysler tech center workers may have lost jobs to H-1B contractors, union claims
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A United Auto Workers local thinks that H-1B visa holders are doing work previously done by union members at Chrysler's technical center, although the auto maker denies that is the case.
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The Story: Silicon Valley businesses have long argued that changes in the immigration laws are needed to ensure a continuing supply of highly skilled workers. The current limit of 65,000 under the standard H1-B visas is not enough, they say. (The quota was filled in less than a month in 2007.)[ Slideshow: 2007's top underreported tech stories ]                                                    But that number obscures an important fact: The real total of visas issued to highly skilled workers is closer to 400,000 annually, according to the federal Citizenship and Immigration Services (CIS) agency. And that, say some critics, may mean that the law is being abused.There are two reasons the number is so large.First, the H1-B visa cap has a built-in exemption that allows an additional 20,000 workers who have graduated from U.S. universities with an advanced degree (master?s or higher) to enter every year.Second ? and the biggest reason ? is the use of L-1 visas, which are granted to executives and workers with specialized skills employed by multinational companies. Because there is no cap on L-1 visas issued each year, the numbers have soared. In the last three years, an average of 315,000 L-1 visas have been issued each year.Unlike the H-1B visas, the L-1 visas are not intended to be a springboard to possible permanent residency and a coveted green card. In essence, the L-1s are intended to allow multinational companies to rotate staff across national borders, so they can transfer foreign managers and specialists within the company to U.S. offices for a limited period of time.But the vast number of workers admitted with L-1 visas has critics suspecting that companies ? Indian outsourcing firms in particular ?are using them as a back door to bring in lower-paid workers to do jobs that could be performed by Americans, rather than for the intended purposes of staff rotation."It's clear that foreign outsourcing firms are abusing the system, and we can't let that continue," Sen. Richard Durbin (D-Ill.) said earlier this year as Congress debated immigration reform. Here?s what upset him: According to immigration records, 14 of 20 companies whose employees were granted the most L-1 visas were offshore outsourcing firms, including Tata Consultancy, Satyam Computer Services, Wipro, and Infosys Technologies.Tata Consultancy obtained 4,887 L-1s in fiscal 2006 ? the most of any company ? and 3,601 in fiscal 2007, second only to Cognizant (4,869), a U.S.-based outsourcer with a major presence in India. "I find it hard to believe that any one company has that many individuals ? legitimately being transferred within a single year," Durbin said in Congress. (Tata declined to comment to InfoWorld, but a spokesman told BusinessWeek, "We're complying with the law and with the regulations. We want to work with Congress to address any issues they may have.")Infosys, Wipro, Satyam, Tata, and Cognizant also appear on the CIS?s top 10 list of companies obtaining H-1B visas for employees in fiscal 2007, along with Microsoft, Cisco, IBM, Motorola, and Intel. Those facts further raise critics? suspicions.Bob Meltzer, who heads the VisaNow firm that helps applicants obtain visas, says there?s a growing belief that the L-1s are being abused today, though he can?t tell if that belief is justified. He does note that the L-1s had been abused in the early 1990s in the manner that critics suspect is happening today.The Bottom Line: Immigration is a tough issue. And it?s even tougher when we don?t have all the facts, as is the case on employers? claims of labor shortages requiring more foreign hires and employees? claims of being replaced by foreign workers by companies looking to save a buck. When you?ve figured out the right balance, let the pols know what you think.Complete list of 2007's underreported stories: 1.? Java is becoming the new Cobol 2.? Sun Microsystems is back in the game 3.? Hackers take aim at Mac OS X 4.? There are some threats you can worry less about 5.? Companies may have found a way around H-1B visa limits 6.? Open source?s new commercial strategy 7.? End-to-end Ethernet finally arrives 8.? Blade servers arrive for the masses 9.? BI is dead; long live BI 10. Balance of power shifts to software buyers
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(InfoWorld) - Alumni of a major Indian university want the U.S. Congress to take separate action to passÂ H-1B visaÂ legislation that went down with the immigration reform bill thatÂ failed in CongressÂ last week. Members of the Indian Institute of Technology (IIT) alumni association, meeting for a three-day conference in Santa Clara, California, said Friday that they are hoping to get a separate vote on an immigration bill provision that would increase the number of visas granted to highly skilled engineers coming from abroad to work at U.S. technology companies. "Almost as soon as the bill died, there was talk of piecemeal moves to get parts of that bill passed," said Umang Gupta, chairman and CEO of Keynote Systems, a company that measures the technical performance of Web sites. He's also chairman of the board of PAN IIT, the alumni group hosting the conference, which has drawn close to 4,000 people. The legislation would increase the limit of H-1B visas to be granted every year to 115,000 from 65,000 today. Backers say the extra visas are needed because there aren't enough qualified U.S. engineers to do the work U.S. companies need done. Opponents say the visas just make it possible for U.S. companies to hire foreigners at lower wages than they would have to pay U.S. hires. The legislation would also continue to allow 20,000 visas per year to applicants who have advanced degrees from U.S. colleges and universities. Today, about half of the graduates of U.S. engineering schools are non-Americans, many of whom have to return to their home countries to find work when they should be allowed to work here and contribute to U.S. economic growth, said Pradeep Khosla, dean of the Department of Electrical and Computer Engineering at Carnegie Mellon University in Pennsylvania. "The day this country limits the free flow of skilled immigrants coming into this country, that's the day we start going downhill," said Khosla. Another IIT alum, Yogen Dalal, managing director at Mayfield Fund, a venture capital firm, noted that in the early 1990s, some in Silicon Valley thought they would be overcome by the Japanese. But the success of valley companies like Google and Apple, which introduced its iPhone a week ago, shows it remains a center for innovation. "Wealth is being created by innovation right here in [Silicon Valley]. Economic value is being created here. The work force is just being redistributed," Dalal said. The H1-B discussion is happening against the backdrop of the loss of thousands of jobs in recent years, particularly in Silicon Valley, as companies outsourced work to lower-wage markets in countries like India. But as more work is done in India,Â wage inflationÂ has begun to narrow the pay gap between India and the U.S. And in some cases, Indian companies have begun moving jobs to the U.S., said Arjun Malhotra, chairman and CEO of Headstrong, an outsourcing consulting firm. "If you look at the issue today, it's not outsourcing, it's global sourcing. You go to wherever the best resources are available to do that job," said Malhotra. The Indian Institute of Technology was created in 1950, three years after India gained its independence from Great Britain. It has about 100,000 alumni, 25,000 of whom live and work in the U.S.
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Chrysler LLC is offering buyouts of up to $100,000 to an unidentified number of hourly workers at 12 of its Detroit-area facilities, a spokeswoman said on Monday.
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Ratification of the tentative labor  contract between the United Auto Workers union and Chrysler LLC  was thrown into jeopardy on Monday after workers at four of the  eight assembly plants that must vote on the deal rejected it.
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Chrysler LLC said on Monday it is offering buyouts of up to $100,000 each to an unidentified number of hourly workers at 12 of its Detroit-area facilities as part of its November plan to eliminate up to 10,000 unionized jobs.
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Chrysler Group Chief Executive Tom LaSorda has told employees of the struggling automaker that it might take months before questions about a possible sale of the unit of DaimlerChrysler AG  could be answered.
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The work may have been subcontracted to another firm.
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KOKOMO, Ind. - Members of the largest of three United Auto Workers locals in Kokomo, Ind., overwhelmingly rejected a tentative contract with Chrysler LLC last night.
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Chrysler offered buyouts of as much as $100,000 to most of its hourly workers in the Detroit area as part of its plan to cut as many as 10,000 more jobs.
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Last month's US Department of Transportation report dealt a setback to NAFTA proponents.
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Early voting on the contract between Chrysler and the U.A.W. has been mixed, raising concerns that it may not win approval from the union membership.
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Two Chrysler LLC plants in Indiana voted on Tuesday to reject a proposed contract for the No. 3 U.S. automaker, marking the latest and most serious setback to a tentative four-year deal negotiated by the United Auto Workers union.
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BANGALORE, INDIA - The U.S. government is considering a substantial increase in the number of H-1B visas available to Indian professionals, Robert Blake, deputy chief of mission at the U.S. Embassy in Delhi reportedly told a meeting hosted by the Delhi-based Associated Chambers of Commerce and Industry of India
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DETROIT -- With handshakes and smiles, negotiators from Chrysler Group and the United Auto Workers formally begin contract talks Friday that many consider to be crucial to the survival of Detroit's three automakers.
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Chrysler Group, the  struggling U.S. arm of DaimlerChrysler AG (DCXGn.DE), on  Wednesday said it would cut 13,000 jobs or 16 percent of its  work force in a bid to return to profitability by 2008.
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US Treasury Secretary John Snow said he believes Michigan â-hich has lost about 190,000 factory jobs during the past five years â -l continue to be a global manufacturing leader.