After the passage of the Immigration Act of 1990 that created the H-1B/L-1 visa program, stories of US workers training their foreign replacements before layoffs immediately started popping up.
Here’s a @DanRather segment from 95’ covering the displacements of US workers at AIG:
“How do you come to work everyday Sir & train someone for your job that you’ve been doing for 7 years?”
AIG used a 3rd-party IT firm (Syntel) that brought the H-1B visa workers from India under Level 1 (entry-level) wages & *leased* them to AIG who then fired the US workers.
Business lobbyists, CEOs, & DC-Libertarians like to claim that the “H-1Bs are being paid the *prevailing wages* so it’s not cheap labor”.
The prevailing wage rates, especially for Level 1 & 2 wage tiers in the Labor Condition Application are set too low! epi.org/publication/h-…
Essentially what employers sponsoring H-1B visas are doing is selecting the lowest prevailing wage rate on the Labor Condition Application (Level 1 & 2) when it’s not reflective of the skill level of the foreign worker or the true market rate. WAGE ARBITRAGE.
Here’s the CEO of Syntel claiming that the H-1Bs brought in were “paid the prevailing wage”. Same deceptive gimmicks used by CATO, NFAP, FWDus, & Chamber of Commerce.
If it isn’t about money but a “shortage of skills”, why are US workers then training their foreign replacements?
Secretary of Labor at the time of the AIG scandal was @RBReich. Reich acknowledged the exploitation of the H-1B program but seemed fearful of issuing any reforms to the program because of legal backlash by the “powerful” Business groups.
Reich left in 97’, & President Clinton...
...would then go on to sign the American Competitiveness of the 21st Century Act (AC21) in 2000 that would among other things allow H-1B visa holders to indefinitely renew their H-1B visas past the 6 years limit if they have a pending Green Card petition; cap exemptions for...
universities & “research” institutions that need H-1Bs; & temporarily double the H-1B cap to 195,000 visas until 2004!
AC21 had disastrous consequences:
It led to more layoffs of US workers as @Troup1998 interviewed in this news segment explains (2003):
AC21 also led to employment-based Green Card backlogs for one country’s nationals in particular—India.
Due to the oversubscription of the H-1B visa program by Indian nationals who corporations & hiring managers solely had a preference for, Green Card backlogs occurred.
A displaced US worker at AIG warned in 1995 that it’s not just Programming jobs that would be harmed by guest worker visa programs. He was right.
Teachers, nannies, accountants, healthcare, university professors, & etc. have been negatively impacted by our visa programs.
30 years later, Congress has taken no action in reforming guest worker visa programs. More US jobs continue to be off-shored, & more companies continue to lay-off US workers & replace them with visa workers.
The Business lobby & Big Tech continue to push for more visas.
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Big Tech: “We can’t find qualified Americans to fill these positions.”
Also Big Tech: “We need to place these PERM job ads where no Americans will see them.”
Facebook “couldn’t find qualified Americans” — so they hid jobs from their careers site, refused to consider U.S. workers, and made applicants mail resumes by postal mail, DOJ says.
Apple “couldn’t find qualified Americans” — so they hid jobs from their careers site, refused to consider U.S. workers, and made applicants mail resumes by postal mail. Paid a fine and settled with the DOJ.
Trump admin is defending an Obama-era policy that grants work authorization to the spouses of H-1B workers from India in the Green Card queue — even though Congress never approved it — and is urging SCOTUS to toss out a case brought by former U.S. tech workers.
In 2015, Obama’s DHS unilaterally gave certain H-4 visa holders — spouses of H-1B guest workers — the right to work in the U.S., even though Congress never approved it.
This has opened the door for hundreds of thousands of additional foreign workers to compete directly with Americans for jobs, despite the original H-4 visa having no work privileges.
While H-1B workers are bound to their employers and must file a labor condition application to ensure they are paid a prevailing wage and that their presence won’t harm American workers (though it’s obviously a rigged process), H-4 EAD holders face none of those requirements — they can work ANY job at ANY wage level.
If you want to understand how the law lets employers legally pay H‑1B workers less than market wages and how that harms American workers, our latest Substack explains it.
🧵 THREAD:
At the heart of this is the Labor Condition Application (LCA), a brief form employers submit to @USDOL before hiring H‑1B workers.
It’s meant to protect local wage standards and keep Americans from being undercut. In practice, it’s a rubber‑stamp process with no real scrutiny.
The system relies on employers to truthfully select wage levels based on an H‑1B worker’s skills and experience. But because the DOL can’t verify that information, employers exploit this asymmetry, labeling skilled roles as entry‑level to pay lower wages:
1/ While American engineering graduates struggle with stagnant wages and limited job opportunities, they face an additional challenge that receives insufficient attention: intense competition from foreign guest workers who are systematically imported to fill engineering positions.
The scope of this competition is staggering. In 2023, while America graduated 137,237 citizen engineers with bachelor's or master's degrees, the federal government simultaneously approved at least 33,836 foreign guest workers with engineering backgrounds through just three major guest worker programs.
NYT: “… tariffs reduce trade by making goods more expensive; they don’t affect services or offshoring, the practice of hiring workers overseas… Indian workers are doing the kind of jobs that Americans workers envy — for American companies.”
Major American tech companies, along with leading American banks, proudly highlight their large offices in India and remain unconcerned about Trump’s tariffs. They believe his focus is mainly on the $46 billion trade deficit, rather than on the offshoring of professional jobs.
Why are American companies offshoring to India? It’s for cheap labor of course, which corporate admits saves costs. But that doesn’t stop reporter @travelli from pushing the debunked “labor shortage” propaganda. Imagine claiming this amid mass tech layoffs in the U.S. right now.