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A scheme to lower engineers’ wages

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Re: A scheme to lower engineers’ wages

#51
post #36

I wrote this to have a standard thing for these threads: http://journal.dedasys.com/2014/12/29/people-places-and-jobs... Short version: opening things up to people willing to work, and lifting the restrictions on H1B workers are the best options, morally and economically. Excluding people who happen to have been born in the wrong place, or the wrong color, or female or whatever, is a bad idea.

The H1B visa system needs to be abolished. I am not worried about foreigners or Americans competing for my job, if they have the skill set they are welcome to it. Being an American is not a technological achievement and should count for nothing when hiring a tech worker. All I am seeing in the original article is that dumb foreigners who cheat in school are willing to work for less money so let's keep them out. Maybe foreigners are willing to work for less because they don't have crippling student debt? or maybe their degree programs are more concerned about maximizing the profit for the University than creating industry-ready engineers? Maybe the system is geared so heavily towards stifling innovation that a country like Israel is the leader in venture-capital investment per person ($140 vs. $70 in the US. And it is no surprise that they spend 4.5% of GDP on R&D vs. the 2.2% of the US) Limiting the number of people who are coming here to work might be stupid, immoral and careless(no one cares about that) but the worst offence in this case is that it is ineffective. This policy has been around for a long time and it hasn't worked for us yet.

Re: A scheme to lower engineers’ wages

#52

We need a tech union to help prevent this sort of thing. It would be nice if it could also help prevent bad practices in the industry (like building backdoors into code for the nsa).

Traditional unions only work when they're negotiating with monopolistic industries, because the company then has to hire the majority of the available labor pool itself and has no substitute workers to replace them if the union makes significant demands.

Any kind of operation that only needs a dozen developers is never going to need union workers. As soon as the union makes some nontrivial demand the employer can just let them walk out and hire other people. This is why modern unions are disappearing.

Moreover, the issue in question is about politics. The idea that unions have any real political power is a joke; the only exception is public sector unions and that isn't because they're a union, it's because government employees are a large bloc of single-issue voters and public sector unions are their de facto lobby group. Which, because the public sector unions are providing votes in favor of spending other peoples' money, has led to corruption and pandering much more than it has to the union keeping the government honest.

Exercising political power in the same way can be achieved with a lobby group that isn't a union but which lobbies Congress with the support of members willing to vote the way of the group consensus. Tech workers could certainly use that.

Re: A scheme to lower engineers’ wages

#54

Earlier quoted context omitted.

IEEE has also supported legislation (that they've gotten to pass in my home state) to require licensing of software developers, that the sorts of companies that use H-1Bs would not be held to.

That sort of thing could help with the "market for lemons" in software developers, and also could raise our social status which would mean we have more support standing up to wrong decisions on the part of management and thus, fewer project failures.

Given that the testing requirements don't really cover anything about software development, I would say it's really more about preventing upstarts from getting a foothold and eventually growing to compete with the large consultoware corporations. You can't eventually build a competitor to Raytheon if you can't even get off the ground.

Re: A scheme to lower engineers’ wages

#55
I am torn on this issue.

To give my personal background, I came to the US in 2004 on H1B visa through Infosys.

Working in NY/NJ area, I have seen it first hand how H1B can indeed lower wages. Here's how. The H1B visa belongs to an Employer and not the Employee. This means that losing a job on H1B could have dire consequences if you can't line up a job right away. This leads to a situation where a person on H1B visa avoids jobs where there is a risk of getting laid off. This leads to tons of 'body shops' setup by Indian/Asian folks who will sponsor your visa and then you go do 'hourly consulting' for a multinational firm. (See this page: http://techjobs.sulekha.com/h1b-jobs-usa) The body shops will charge at least 20% for this benefit, 30% in average case and even 50% if the employee is not smart enough. The goal of these body shops is to bring in more folks from India where someone will happily take up job for 60k to come and work in NY/NJ. The guy in India is thinking: 60k USD = ~3,785,000 INR. This is a huge amount which they will not be able to get in India. (In Bangalore, you can expect to get paid around 700,000 on average). However, most of the time, they don't factor in the cost of living and it means that their actual savings are much closer to what they make it in India. By the time they figure all this out and want to make a move, they understand the visa restrictions and realize that they are stuck till they get green card.

To share my personal story, when I first came in 2004, I was making 60k in NJ. Kept making around the same amount for the next 3 years. Then I became friends with a person who worked as recruiter for COMSYS (now acquired by ManpowerGroup) (For those who don't know, it's one of the bigger staffing firms in NY). She gave me the inside detail on how much companies are paying, how much these staffing companies are keeping and how to keep more share of the money. She also told me that if I want to make real money, I should consult for Investment banks. Based on this, I started improving my technical knowledge, finance knowledge and interviewing skills. I started making more and more money. I got green card last year and I am now making over 200k. I have used this knowledge to help my friends but I have seen it first hand how folks are not able to get a better paying full time job due to visa restrictions. This ultimately leads to wage suppression.

Summary: If you think that H1B abuse is not rampant, you are living under the rock.

So, on one hand, I want H1B visa program so that folks like me can come to this great country and make good money. On the other hand, I am fully aware that businesses are strictly using as a way to lower wages. There are very few H1B jobs where the worker is doing a 'highly specialized job' that a local American can not do.

I really don't know what the answer is. One idea I do like is to do the auction of the H1B visas. That way employer who have the money and who really need highly specialized work done can hire the person from any part of the world. I think it's fair that in a capitalistic system, you let the money decide who should get the opportunity to immigrate. (The current lottery system means that a company may not be able to hire a candidate if they get unlucky.) The only dilemma is that if it worked this way from beginning, I would have never made it to the US.

Re: A scheme to lower engineers’ wages

#56
post #43

This article and some of the comments here make it seem like having a H1B is a terrible situation to be in. I have a H1B. I work for major tech company in the Bay Area. I have a salary in the six figures which is about twice what I would earn back home. I was excited to come to America and work for a company I admire in their Silicon Valley headquarters and the H1B lottery was the only way for me to do so. Without H1…

> H1B is not a problem for America or "engineer's wages". Abuse of the system is. I'm sympathetic. I really am. I have a lot of friends working on visas, both now and in the past. But I just don't see the economics of this. How can adding hundreds of thousands of people in any field not depress wages, at least in the short-to-medium term. Why do I care? I want young Americans to go into IT and engineering in general.…

These are not engineers being “added”. They are being allowed to cross borders.

What it does is equalize wages. They (outside the border) make more, and we (inside the border) make less.

Re: A scheme to lower engineers’ wages

#57
post #49
post #43

This article and some of the comments here make it seem like having a H1B is a terrible situation to be in. I have a H1B. I work for major tech company in the Bay Area. I have a salary in the six figures which is about twice what I would earn back home. I was excited to come to America and work for a company I admire in their Silicon Valley headquarters and the H1B lottery was the only way for me to do so. Without H1…

Great story! That's what I love about immigration - bringing people like you here. America needs people with your attitude.

But it's not immigration. H-1B visas are nonimmigrant guest worker visas, with dual intent. That just means H-1B guest workers are allowed to apply for permanent residency with an I-140 while working in the US.

It doesn't take a rocket senator to figure out that if people are entering on an H-1B and then applying for a green card at the earliest opportunity, it is because the US isn't issuing nearly enough immigrant visas.

Am I the only one that thinks America should be encouraging smart people with valuable skills to stay as long as they like, without sponsorship? I don't think I am.

I also think that the vast numbers of foreign students attending American universities is a great opportunity. Why not slide up to graduates of certain degree programs and say, "Hey, buddy, you like America? Since you have a degree in X, I could convert that student visa to an immigrant worker visa right now, if you want. Actually, how about I do it anyway, and if you really don't want it, just tell me to stop? Hey! Wait! Where are you going? Do you want to live under your parents' thumbs? If you get on that plane now, you will regret it! Our taxes are really very reasonable! Come baaaaaack!"

Re: A scheme to lower engineers’ wages

#58
I bet if someone did an economic impact study of H1B visas and looked beyond pure salary numbers, you would find a very positive economic impact.

America was built by immigrants. Lest you forget.

Borders are a remnant of the old world. Companies need to stay competitive and tapping the international workforce is part of that competitiveness.

Re: A scheme to lower engineers’ wages

#59
As professionals, software engineers should be more supportive of each other regardless of their backgrounds. America has profited from some of the best international talent. That talent deserves to receive their fair share of rewards. That is the American spirit. Not unfettered self-centered greed. On the other hand, increasing the number of H1bs from the current number is pure corporate greed.

My opinion is that they should just speed up the green card process instead of increasing H1b numbers. A lot of hard working and honest immigrants keep waiting in their current jobs for their green card to get approved. In some cases, it takes 6-10 years to get a green card.

If these folks get some job mobility without jeopardizing their green card status, there will suddenly be enough mobile engineers and wages will rise very fast.

Re: A scheme to lower engineers’ wages

#60
post #43

This article and some of the comments here make it seem like having a H1B is a terrible situation to be in. I have a H1B. I work for major tech company in the Bay Area. I have a salary in the six figures which is about twice what I would earn back home. I was excited to come to America and work for a company I admire in their Silicon Valley headquarters and the H1B lottery was the only way for me to do so. Without H1…

> H1B is not a problem for America or "engineer's wages". Abuse of the system is. I'm sympathetic. I really am. I have a lot of friends working on visas, both now and in the past. But I just don't see the economics of this. How can adding hundreds of thousands of people in any field not depress wages, at least in the short-to-medium term. Why do I care? I want young Americans to go into IT and engineering in general.…

> But I just don't see the economics of this

It goes beyond basic economics, so it's worth reading and learning about.

> adding hundreds of thousands of people

"Unfortunately", those people already exist and have skills, just in other places, where they happened to have been born. If you create bad enough policies, companies can and will go where the workers are.

Also, this is not a zero sum game. There are more people and workers than 100 years ago, and yet... wages haven't cratered.

> I feel my concerns should be for the future of the young people around me

What is the radius of 'around you'? Your city? State? Country? Why are those people more important than those that happen to be born elsewhere?

When did your ancestors come to the US? Why should people now not have the same rights they did?

I'll post my link again: http://journal.dedasys.com/2014/12/29/people-places-and-jobs...

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