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May 27, 2007
Immigration bill
There is an interesting dynamic being played out in the immigration bill vis-a-via competitiveness and offshoring.
There is this from the New York Times a week ago -- Many Employers See Flaws as Immigration Bill Evolves:
Employers, a major force in the national debate over immigration, say their discontent with the bill shaping up in the Senate has deepened over the last week because of changes that could make it more difficult for them to hire foreign workers.
High-tech companies, like Microsoft and Oracle, and employers of lesser skilled workers, like restaurants and construction contractors, already had qualms about the original version of the legislation, forged in three months of talks between the White House and a dozen senators.
But from the point of view of many employers, the bill has become worse in the last week.
And this today -- Washington Wire - WSJ.com : High-Tech Companies Seek Change in Immigration Bill
Under the bill being debated this week, businesses would lose the ability to petition to keep a specific worker; instead, a merit-based system would to determine which workers would be able to come to the U.S., with workers getting points for special skills, expertise in science and math and the support of their employer.
The amendment will “preserve the ability of U.S. employers to determine the critical skill sets needed for global competitiveness and innovation,” the Information Technology Industry Council, which represents such firms as Dell Inc. and eBay Inc., wrote in a letter today to Senate leaders. It was signed by dozens of other groups that represent companies in need of high-skilled workers.
Yet, there is this from the Washington Post about how the bill changes the preferences toward business needs --
Immigration Bill's Point System Worries Some Groups:
For weeks, U.S. senators wrestled among themselves and with White House officials over the question of what mix of skills, background and experience prospective immigrants should bring to their new country.
The answer they came up with, embodied in the immigration bill now on the Senate floor, would represent a radical shift in the philosophy of the U.S. immigration system. Rather than focus on reunifying families, the system would emphasize bringing in better-educated, higher-skilled immigrants who would help the United States compete in the world economy.
Then there is this -- Immigration Fight: Tech vs. Tech:
Oracle, Intel, Cisco, and Motorola (MOT) appear to be taking a similar approach, based on a review of government documents and interviews with some of the companies. Oracle is largely hiring software specialists for work at its Redwood City (Calif.) headquarters, and many are paid more than $100,000 a year. Oracle's Hoffman says that 90% of its H-1B workers are green card applicants. Intel often uses the visas to recruit engineers with advanced degrees from U.S. schools. "Our philosophy is that these people are the golden eggs; they're the innovators and future job creators," says Jenny Verdery, Intel's director of workforce policy.
The outsourcing companies have a different approach. They frequently will bring in workers from their overseas operations to help service a client in the U.S., and then the worker will return home. While Wipro declined to comment for this story, Laxman Badiga, the company's chief information officer, said in February that the company brings to the U.S. roughly 1,000 new temporary workers each year and rotates the same number back to India. He said the on-site training allows Wipro to serve clients better.
Lots of different tensions swirling around in this one. And this is just the first step. If the bill survives the Senate, it still has to go to the House (where it may be killed by technicality) and then conference between the two bodies (with the White House weighing in).
So, stay tuned to this one. I'm not sure what to make of all this or where it is headed. But where ever come out of the process will be an important change in the rules of the I-Cubed Economy.
Posted by Ken Jarboe at May 27, 2007 11:40 AM
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