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H1-B Fallout

by coldwarrior ( 43 Comments › )
Filed under Economy, immigration, Open thread, Politics, unemployment at September 8th, 2015 - 7:00 am

Read the article below and tell me how it is a ‘conservative’ position to want more H1-B visas.


The proposed new bill, “I-Squared”, introduced by Senators Sen. Marco Rubio (R-FL)
80%, Sen. Jeff Flake (R-AZ) 38%, Sen. Orrin Hatch (R-UT)52%, will triple the number of foreign H1-B guest workers increasing this problem threefold.

Point 1:

On a sunny Monday morning in late October of 2014 I drove down the interstate toward the huge 40 square mile Disney Orlando, Florida property to my office. Ten days earlier Bob Iger, CEO of Disney, had just announced that the company’s earnings were up well over 20 percent for the quarter and this was just one among a long series of record breaking financial results for the company. About six months earlier, a new CIO, Tilak Mandadi, was appointed for the Parks and Resorts Division of Disney, which would result in huge changes to our lives. Little did I know what was about to happen that very same day to me and hundreds of other fellow Disney Information Technology Cast Members.

Point 2:

As I watched the grim faced Disney Executive, it was obvious that bad news was going to be delivered. The dead silence was broken when the Disney Executive made a harsh announcement. All of you in this room will be losing your jobs in the next 90 days. Your last day of employment for this company will be January 30, 2015. Your jobs have been given over to a foreign workforce. In the meantime you will be training your replacements until your jobs are 100 percent transferred over to them and if you don’t cooperate you will not receive any severance pay. Also, if we don’t feel confident that we have captured everything that you do we can, at our discretion, keep you longer than the 90 days until we have captured everything that you do with this job. Don’t discuss this meeting with anybody else in the company. Everybody in the room was appalled at the message. I was completely silent thinking how this was going to affect my coworkers and how I was going to break the news to my wife and children back at home as I was the only person in my home with a steady job. How would I pay for all the expenses that go along with a home, a wife, and children?

Point 3:

The first 30 days was focused on capturing all that I did with my job. We started getting mandatory meeting invitations for “KT” or “Knowledge Transfer” sessions showing on our calendars. The daily sessions involved us training our foreign replacements for several hours. We all felt humiliated when the foreign workers sat next to us and watched everything that we did.

Presumably at the direction of the Disney Executives, the foreign workers insisted that they record all the audio as well as everything that we did on our computer screens with recorded video during the training meetings. We were then astonished as everything that we did on our job was documented and read right back to us for further critiquing. By then, it was a slow and methodical process that went on day in and day out. In hopes of landing a new Disney job we watched the Disney internal job postings and noticed a number of the vague job descriptions. Our frustration started to grow as we applied for the jobs yet none of us were contacted in any fashion. Those of us losing our jobs started to wonder if these new job postings really even existed.

The next 30 days had us working side by side with our replacement workers doing part of our job while the “KT” sessions continued. The daily disgrace continued when the foreign workers started assuming our responsibilities. They referred constantly back to all the audio, video and documentation that they had previously captured from us and asked that we explain the same questions repeatedly. They were obviously much younger, less skilled and less experienced.

The last 30 days were the most disgraceful and demoralizing of this entire period as I had to watch a foreign worker completely take over my job. I had no work to do during the last 30 days other than watch a foreign worker completely take over everything that I did in my job. One ironic twist was that I actually received a significant pay raise during my last 30 days with the company because I had received the highest possible job rating in performance reviews. The new Disney job postings only resulted in three coworkers getting new positions from the over three hundred IT workers. I was not one of them. The last day we turned in our mobile phones, laptops, ID badges along with our dignity and we were ushered out the door as temporary foreign workers took over our jobs.

Since leaving Disney we have also been informed by several large IT recruiting firms that Disney has a policy in place that states all displaced Disney IT Cast Members will not even be considered as contractor workers for 12 months. Thus we have been essentially shut out and black listed by the largest employer in this very small Orlando job market.

READ the rest here.

So, tell me how this is conservative? How is this even capitalism? How is it capitalism when you make 20% profit and then get rid of the very people who make your product superior for a one time reduction in labor costs?


**Bumr50 wants you to look at this chart**



H-1b: US workers being fired AND forced to train foreign replacements

by 1389AD ( 47 Comments › )
Filed under Economy, unemployment at April 12th, 2015 - 9:00 pm

1389 Blog has been following this story since 2007.

Are you an American citizen in the STEM (Science, Technology, Engineering, and Mathematics) fields? Do you ask why nothing happens when you reply to a job advertisement? Check this out:

PERM: Fake Job Ads defraud Americans to secure H-1b green cards for foreigners

Uploaded on Jun 16, 2007 by programmersguild
Immigration attorneys from Cohen & Grigsby explains how they assist employers in running classified ads with the goal of NOT finding any qualified applicants, and the steps they go through to disqualify even the most qualified Americans in order to secure green cards for H-1b workers. See what Bush and Congress really mean by a “shortage of skilled U.S. workers.” Microsoft, Oracle, Hewlett-Packard, and thousands of other companies are running fake ads in Sunday newspapers across the country each week.

Fox: Senators seek probe of claims US workers fired, forced to train foreign replacements

(h/t: Weasel Zippers)

A popular visa program allegedly is being misused by U.S. companies to lay off thousands of American workers and replace them with foreign labor.

And, adding insult to injury, many of the laid-off workers allegedly have been forced to train their replacements, in what one anonymous whistleblower called a “humiliating” experience.

The allegations have caught the attention of a bipartisan group of senators — including immigration hawk Sen. Jeff Sessions, R-Ala., and the No. 2 Senate Democrat, Illinois’ Dick Durbin — who are calling for a federal probe. A letter sent by 10 senators urging an investigation specifically cited reports of the firing and hiring practices at Southern California Edison, California’s second-largest utility. The incidents are concentrated in the IT field, and involve American workers being replaced by H-1B visa holders.

“A number of U.S. employers, including some large, well-known, publicly-traded corporations, have reportedly laid off thousands of American workers and replaced them with H-1B visa holders,” the senators wrote.

In the letter to Attorney General Eric Holder, Homeland Security Secretary Jeh Johnson, and Labor Secretary Thomas Perez, the senators urged the departments to “investigate the unacceptable replacement of American workers” to see whether laws were broken.

The H-1B program is supposed to be used to bring in, on a temporary basis, skilled workers with highly specialized skills not readily available in the U.S. They are often used in the technology sector to bring in engineers and computer programmers.

Further, U.S. employers can hire foreign workers for up to six years and must pay them the same rate they would pay other workers with similar qualifications, or the prevailing wage for that job and location, whichever is higher. This is done to prevent foreign workers from depressing U.S. wages and from being exploited.

But reports have surfaced that the replacements are happening at an alarming rate. And former Southern California Edison workers have complained to lawmakers that they were replaced by less-skilled workers at lower costs.

Anonymous workers who were displaced by the visa holders also submitted written testimonials to lawmakers detailing their firings. Several claimed they were forced to train their replacements, and threatened with losing their severance if they did not.

“We had no choice in this,” one anonymous worker who claimed to have been one of those let go from Southern California Edison, said in a letter. The worker described how when the two vendors were picked – Infosys and TCS, both major Indian companies – SCE employees were told to “sit with, video chat or do whatever was needed to teach them our systems.”

If they did not cooperate, according to the testimonial, “we would be fired and not receive a severance package.”

Another worker described this process as “humiliating.”

“DHS will respond directly to members of Congress,” an agency spokesperson told FoxNews.com on Saturday. “Still, it is important to note that U.S. businesses use the H-1B program to employ foreign workers in occupations that require highly specialized knowledge in fields such as science, engineering and computer programming.”

In a statement, Southern California Edison said it abides by the law and will cooperate with any investigation that concerns the issues mentioned in the senators’ letter.

The company explained that it’s reducing its information technology department from 1,400 to 860. Of those left, 97 percent are permanent California residents and 3 percent are on H-1B visas.

Southern California Edison said it’s contracting with IT vendors to fulfill certain contracts and that most of those workers are permanent U.S. residents and aren’t working under H-1B visas.

“By transitioning some IT operations to external vendors, along with SCE eliminating some customized functions it will no longer provide, the company will focus on making significant, strategic changes that can benefit our customers,” Southern California Edison’s emailed statement read.

But the senators, in their letter, raised several questions about how the replacements were being done. They said it appears the workers are often not employees of the U.S. company laying off workers – but are contractors working for foreign-owned IT consultants.

The H-1B program stipulates that applicants must have a valid “employer-employee relationship” – and the senators questioned whether that was the case here.

They also asked whether the companies “engaged in prohibited citizenship status discrimination” (against American citizens); and whether the visa petitions showed “any evidence of misrepresentation or fraud.”

Continue reading…

One of the few good things – albeit far more than a day late and a dollar short – that Dick Durbin has done thus far was to sign on to this investigation. May that good deed account to the salvation of his immortal soul.

I was forced out of IT work when the market dried up in 2008 on account of the economic collapse precipitated by the Democrat takeover of Congress, compounded by outsourcing, offshoring, and the H-1b visa. I retrained myself in newer IT skills, but as a female over 50 years of age without current business experience using those skills, I was unable to find employment in the IT field. I have taken an entirely different career path since then, and would be uninterested in returning to IT even if H-1b were to be repealed tomorrow.

If the Lie is BIG Enough…

by coldwarrior ( 9 Comments › )
Filed under Academia, Economy, Special Report, unemployment at January 26th, 2015 - 7:42 pm

I knew that this paper was in the works, it was just a matter of time before it hit.

Study: 2014’s Employment Boom Almost Entirely Due to the Expiration of Unemployment Benefits Obama Wanted to Renew

Those who’ve listened to President Obama’s speeches over the past couple months have heard him boast that 2014 has seen impressive improvements in the labor market — the best year in job creation since 1999, he points out, and he’s right. But there’s no obvious explanation for why 2014 has been, by a good margin, the best year of a weak jobs recovery. The president has naturally credited his policies (without any justification). But what if 2014’s jobs boom is mostly thanks to the expiration of a program that the Obama administration and Democrats fervently pushed to renew?

That’s the finding of a new NBER working paper from three economists — Marcus Hagedorn, Kurt Mitman, and Iourii Manovskii — who contend that the ending of federally extended unemployment benefits across the country at the end of 2013 explains much of the labor-market boom in 2014.

About 60 percent of the job creation in 2014, 1.8 million jobs, they find, can be attributed to the end of the extended-benefits program. That’s a huge amount, and suggests that long-term unemployment benefits, while there’s a good charitable case for them, could have played a big role in the ongoing lassitude of our labor market. (Indeed, an earlier working paper from a few of the same authors argued that extended benefits raised the unemployment rate during the Great Recession by three percentage points; see a summary of that paper here.)

So what was the program Democrats wanted to renew? States run their own unemployment-insurance programs, which provide around 26 weeks of benefits to people who’ve lost jobs and are looking for new ones. But during the recent recession, as they have in other downturns, Congress repeatedly authorized federal extensions that allowed people to draw benefits for much longer. At the end of 2013, the Senate narrowly passed a renewal of the program, but the House never took it up and the extensions, already much longer than any previous recession had seen, expired.

This created something of a “natural experiment.” States had unemployment-insurance programs of widely varying length — they ranged from 40 weeks up to 73, roughly — but after the end of the federal extensions at the start of 2014, the duration of benefits in almost all states went back to around 26 weeks.

The paper uses that shift to examine how expiring benefits might have affected the labor market, and they find that the expiration of extended benefits produced a big boost to job creation, labor-force participation, and hiring. It’s a dramatically different result than what the White House and Democrats were predicting at the end of 2013: The Obama administration was predicting that the drop-off in stimulative spending from the expiration would cost 240,000 jobs, while the NBER paper finds that it created 1.8 million jobs.

The authors don’t think this happened the way you think it might: It’s not so much that the cut-off drove individuals on benefits back to work, but more that less-generous benefits actually spurred job creation on a macro level, getting employers to hire and drawing into the labor force people who hadn’t been looking for a job. They don’t lay out how that worked, but in their October 2013 paper, argue that extended unemployment benefits artificially boosts wages — when they expire, employers then boost job openings and start hiring people.

Of course, the usual caveats apply: This is not a perfect experiment at all, and the paper, while very rigorous, can’t get past the fact that it’s just crunching numbers about macro trends. And there are some concerns with the authors’ county-level data, though they try to make up for that.

The simplest form of the analysis was just looking at states that had long benefit terms versus short ones. In 2013, job creation was worse in more generous states than the national average; in 2014, after those states dropped their much more generous programs, it was much better than the national average:

There’s a lot more analysis they did, which I won’t get into — but to untangle related effects, they look at neighboring counties in states with different unemployment regimes, etc.

Now, this is just one paper and it involves some fancy econometrics, but it answers an unresolved question — why 2014 saw the labor market perk up (there’s also a possible end-of-austerity explanation, but it’s the labor market, not the economy overall, that’s really improved noticeably).

It should prompt passionate supporters of the extended unemployment-insurance program to consider whether it made as much sense as they thought. Even conservative economists, such as Michael Strain, pushed for the extension of long-term benefits. The length and scale of benefits during the Great Recession was unprecedented, but advocates for the program argued that this was necessary so long as unemployment, and especially long-term unemployment, remained historically elevated. Besides the moral case for supporting the unemployed, the market-friendly case for extending benefits is that one has to be searching for a job to get them. Cut the benefits, and you’ll see the long-term unemployed drop out of the labor force for good, the argument went. (It’s extremely hard to tell what did happen with these people when benefits expired, and the NBER paper here doesn’t comment on that.)

Advocates for extended benefits also argued that it was just an effective form of stimulus for the economy, because recipients spend their benefits immediately. That was always a pretty lame case, since the program’s value to the economy in spending terms — in the Obama White House’s generous estimation, 240,000 jobs in 2014 – would probably be outweighed if either side’s arguments about the labor-market effects proved mostly true. Indeed, if the new NBER paper is right, letting benefits expire produced 7.5 times as many jobs as the White House said it would cost.

The general economic consensus has always been that unemployment insurance slightly boosts the unemployment rate. Even liberal economists accept this, although they lampoon the idea that people might prefer benefits to working (that isn’t the point, Paul — people act at the margin). But we still have unemployment insurance, of course, because we want a safety net for people in the event of job loss. That just has to be balanced against the costs that the program imposes on the labor market. The new NBER paper doesn’t find that those costs in general are much higher than economists generally assume; rather, it suggests that the benefits of reining in long-term programs can be quite substantial.

There was always good reason to think this is the case: One of the many differences between American and European labor markets is that most of the latter have unemployment benefits systems of effectively unlimited duration — and much higher levels of structural unemployment.

All of that is very nice, except they don’t take this into consideration:


As you can see from the graph linked in the above paragraph, Real Unemployment is at almost 24%. Those who no longer have benefits no longer count for the NBER or the White House. Once your benefits are exhausted, you cease to be counted. That is why the real number of unemployed goes up in reality while for the government it goes down. There is a 20% spread between reality and what the government claims to be.

The Myths Of Minimum Wage

by Bunk X ( 42 Comments › )
Filed under Communism, Economy, Fascism, Liberal Fascism, Politics, Progressives, Socialism, unemployment at September 7th, 2014 - 12:29 am

Minimum Wage graph Poverty Level BS

My eyes glazed over when I saw that graphic, because there are no numbers or statistics to back up that arbitrary wiggly line and its specious claim. It’s pure socialist propaganda. Ready for some unadulterated reality?

According to the U.S. Bureau of Labor and Statistics, 1979-2012 minimum wage jobs comprise an average of about 60% of all hourly jobs for any given year, but guess what percentage of workers over the age of 16 make minimum wage or less?

In 2012 a whopping 4.7 per cent of the working population above the age of 16 earned at or below minimum wage nation-wide. In California, only 1.4 per cent.

[Source: www.bls.gov/opub/ted/2013/ted 20130325]

Why such a small percentage? Because the majority of those workers are in transition to better jobs, better pay, and the minimum wage jobs have an unsurprisingly high turnover rate. Who wants to scrub pots at Denny’s for the rest of their life, let alone for more than a year?

Which industries employ the majority of minimum wage earners?

Minimum Wage Bar Chart by Industry

[Source: www.bls.gov/opub/ted/2013/ted_20130325 ]

Agriculture is relatively insignificant, especially once you combine the Service/Retail percentages, and note that the Federal Government employs very few minimum wage earners.

Now let’s look at the make up of the minimum wage workforce, the nebulous 4.7 percent.

2013 Census Table 7

[Source http://www.bls.gov/cps/minwage2012tbls.htm#7]

Now let’s examine the age makeup of the 4.7 percent who make minimum wage or less.

Minimum Wage graph 1 ALL

Note that many workers in restaurants and hotels (waiters, waitresses, busboys, bellhops, etc.) often receive less than minimum wage, as they’re expected to make up the rest in tips. Tips account for a large percentage of income and workers typically earn more than minimum wage, sometimes a lot more in upscale venues. Since tips are un-monitored cash transactions, much of that income goes unreported. Let’s break it down a tad further.

The prevailing federal minimum wage in 1979 was $2.90, $3.10 in 1980, and $3.35 in 1981-89. The minimum wage rose to $3.80 on April 1, 1990, to $4.25 on April 1, 1991, to $4.75 on October 1, 1996, to $5.15 on September 1, 1997, to $5.85 on July 24, 2007, to $6.55 on July 24, 2008, and to $7.25 on July 24, 2009. When I checked Minimum Wage Job Numbers and correlated them with Minimum Wage Increases I found none, which suggests that employers covered the increased overhead with higher prices for goods and services in order to stay in business, and the costs were passed down to the consumer. The low income population takes another hit.

Minimum Wage graph 3 PCT Men and Women

Blue is for boys, pink is for girls. Statistics are not sexist.

I’m not an economist, and I’m also not a CPA, but I suspect the IRS gets something out of this scenario because the basic illogic of raising the minimum wage, especially in a sluggish economy, escapes me.

Who else benefits? Union leaders, long-march socialists and politicians whoring for votes.

Aside from the fact that the majority of the poor do not remain poor indefinitely (any more than the majority of the wealthy stay wealthy) raising the minimum wage gives people an incentive not to advance. If a worker finds that minimum wage meets or surpasses his/her current expenses, why not ride with it a few more years? The problem with that scenario is that the worker is not improving his/her resumé for those valuable “few years,” and by the time they realize it, they are years behind those who abandon minimum wage jobs, pick up new valuable skills, and naturally earn more. Those who choose to remain in low-skilled positions deny recent graduates the opportunity to find work, and the ladder to prosperity becomes stagnant.

Another scenario is of a family who needs a secondary income to give them a financial cushion during the expensive child-rearing years; or perhaps an elderly couple may not have saved enough for their retirement because their investments tanked; or simply because they choose not to retire.

Wage and price control is a socialist/fascist concept that has never worked because it creates more problems than it solves, and the problems it attempts to solve are non-existent in the free market. Pay a worker for the value of his/her work, and if there aren’t enough workers for the job, then you’re paying too little. Nobody wants to be a buck an hour pot scrubber for the rest of their life, but we’re still talking about only 4.7 percent of the working population, and most of those workers are moving up the ladder uninhibited.

There is also a macro-scenario that has to do with illegal immigrants and the Cloward-Piven Strategy that aims to overwhelm a stable government with free services provided and paid for by successful corporations, entrepreneurs and the common man, fomenting economic collapse and allowing Socialism/Communism/Fascism to prevail.

This road has always led to mass murder, without exception.

May God help our children and grandchildren if the progressives succeed.