As Tech Giant Calls for More Foreign Workers, Senate Hears of Displaced Americans

Byron York, Washington Examiner, March 19, 2015

Eric Schmidt, CEO of Google, believes passionately that the United States needs more skilled foreign workers. He has long advocated increasing the number of so-called H-1B visas, which allow those workers to come to the U.S. for several years and, in many cases, work for lower wages than current employees. Schmidt is frustrated that Congress hasn’t done as he and other tech moguls want.

“In the long list of stupid policies of the U.S. government, I think our attitude toward immigration has got to be near the top,” Schmidt said during an appearance this week at the American Enterprise Institute in Washington. “Everyone actually agrees that there should be more H-1B visas in order to create more tech, more science, more analytical jobs. Everyone agrees, in both parties.”

The Eric Schmidt pleading for more foreign workers is the same Eric Schmidt who boasts of turning away thousands upon thousands of job seekers who apply for a few prized positions at Google. For example, at an appearance in Cleveland last October to promote his book, How Google Works, Schmidt explained that his company receives at least 1,000 applications for every job opening. “The good news is that we have computers to do the initial vetting,” Schmidt explained, according to an account in the Cleveland Plain Dealer.

Other tech leaders join Schmidt in calling for more foreign workers. Some companies are actually lobbying for more H-1Bs and laying off American staff at the same time. For example, last year Microsoft announced the layoff of 18,000 people at the very moment it was pushing Congress for more guest worker visas.

Given all that, there’s not quite the unanimous agreement on the need for more foreign workers that Schmidt claims. At a hearing this week before the Senate Judiciary Committee, a number of experts testified that the H-1B program, so sought-after by CEOs, is being abused to harm American workers.

Ron Hira, a Howard University professor and author of the book Outsourcing America, told the story of Southern California Edison, which recently got rid of 500 IT employees and replaced them with a smaller force of lower-paid workers brought in from overseas through the H-1B program. The original employees were making an average of about $110,000 a year, Hira testified; the replacements were brought to Southern California Edison by outsourcing firms that pay an average of between $65,000 and $75,000.

{snip}

The hearing also featured Jay Palmer, a former Infosys project manager who blew the whistle on a case in which the big outsourcing firm paid $34 million in fines for worker visa violations. “I watched this on a daily basis,” Palmer told the Judiciary Committee. “I sat in the offices in meetings with companies that displaced American workers only because the Americans who had been there 15 or 20 years were being paid too much money.”

{snip}

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  • phillyguy

    they can tell CEO Eric Schmidt to move his Google headquarters to South Africa, there he can find all the diversity he needs plus he can import cheap labor from India very easily.

  • Chip Carver

    One wonders what else is going behind the scenes besides the obvious greed. But some of that is explained by looking at the owners / majority shareholders of various corporations and like. The motive are obviously not all tied to profit.

  • superlloyd

    Eric Schmidt cares not one whit about his country only his bottom line. I suggest he takes the whole Google enterprise to India and see how it fares.

  • Magician

    My respect for Google and Microsoft just went down dramatically…….

    There wasn’t a lot of respect from me for MS to begin with, if any

    MS should spend about 80% of its budget on advertising, 15% on H1B visa workers, and 5% on its developers

    • TruthBeTold

      The clapping could be from plants. I’m sure they pay people to seed the audience with clapping supporters to get everyone to jump on the bandwagon.

    • Sick of it

      Just like audiences applauding Obama, they only invited people who support them.

      • John Smith

        Eric Schmidt was a major supporter of Barry.

      • HE2

        They pack the audience with “ringers.”
        Only those dupes willing to stand and clap for fifteen minutes following one lie after the other from the sociopath-in-chief’s mouth need apply.

    • InAFreeCountry

      They’re clapping even though the emperor has no clothes.

    • HE2

      My respect for Google and Microsoft just went down dramatically.

      Good. Yours is the appropriate response.
      Keep it in the sewer of regard until they come around to supporting our domestic technical workers currently working at McDuck’s and BK for minimum wage.

  • Follow the bouncing ball. There is a PR campaign on by the mainstream tech firms to latch onto the H-1B issue but to make you think that the Indian bodyshops are the devils while the mainstream tech firms are the angels. So they’re going to try to channel our anger into a “solution” which will mean more H-1B visas for mainstream tech firms.

  • MekongDelta69

    Schmidt and Brin are two of the biggest dot com traitors going.

    They tell NoBama what to do. Those two punks should be hung for treason.

    • I’d like them hung for nothing in particular.

      • HE2

        MCS, people listen to you. PLEASE insist we all use the proper term for death by the rope. A criminal is hanged, not “hung.” “Hung” is a whole other thing.

        • ShermanTMcCoy

          Potayto, Potahto,

          Let’s just STRING ‘EM UP!!!!

        • Sick of it

          How about we decapitate them to save us from any confusion?

  • Hilis Hatki

    Maybe Google should Google Detroit.

  • TruthBeTold

    “The good news is that we have computers to do the initial vetting,” Schmidt explained

    Google, the king of alogarithms, has an alograithm that screens resumes.

    Crack the alogarithm (born outside the US?) and you may at least get a foot in the door.

    • listenupbub

      I think you are having some issues with spelling…

      • TruthBeTold

        Yes. I made the corrections.

    • John Smith

      *Algorithm

      Yes, someone out there has it dicked and can beat the computers.

      • TruthBeTold

        Corrections made. Thanks.

  • listenupbub

    This story is getting so old. The obsession with “growth” is futile, as it is never ending.

  • “In the long list of stupid policies of the U.S. government, I think our attitude toward immigration has got to be near the top,” Schmidt said during an appearance this week at the American Enterprise Institute in Washington. “Everyone actually agrees that there should be more H-1B visas in order to create more tech, more science, more analytical jobs. Everyone agrees, in both parties.”

    Everyone agrees, in both parties? You know what? He probably is right there. Yep, poor Google. I mean, how are they going to get more tech workers? I mean, those damned Americans actually demand decent wages and some benefits. Gosh, the nerve! And worse, some members of Congress are actually listening to those peasants! What is this country coming to? Yep, that poor Google CEO. My heart goes out to him. (Do I have to say that I am being sarcastic? Didn’t think so.)

    And, on a final note. I will just say this, for the umpteenth time: Hey Mr. Google CEO, AN IMMIGRANT CANNOT POSSIBLY CREATE A JOB FOR AN AMERICAN. There, my Economics class is dismissed.

    • Magician

      In this context, “both parties” highly likely mean, “shareholders of the company” and “the upper management and ownership of the company”. It is not likely that the American workers who currently work at the company, or any American worker who is looking into working at the company, agrees “More H1B Visa workers should be brought to USA” is a good idea.

      • John Smith

        I view it as a statement of political approval.

      • He was saying that both Democratic and Republican members of Congress agree with him that more H-1B visas should be awarded. And sadly, I was commenting that he is probably right, because these people represent corporate interests and not those of us the people.

  • LHathaway

    IT workers can earn outrageous salaries. Let’s lower them, among ourselves, free from outside interference.

    • John Smith

      Many also put in a lot of time and it takes skill. I don’t see why anyone would put a lot of effort into working cheaply for what it took to get the skills necessary.

      • Usually Much Calmer

        I think I agree with you but I’m not sure I should. Your stated position is the sunk cost fallacy. Perhaps it is more complicated on the macro level. I’ll have to think about that. Thank you.

  • libertarian1234

    The greed of corporate geeks is shameless.

    I think any company who hires foreign workers should be taxed the same amount it pays in wages for every individual.

    I’m beginning to like capitalism less and less.

    Maybe social democracies are better. They tax the elites so greatly it disallows them the extra profits of greed they get from hiring cheap labor.

    • Sick of it

      Oh really? Explain the fortune of George Soros. He didn’t start out here.

      • John Smith

        What he got from helping the Nazis liquidate the assets of fellow Jews?

        • Sick of it

          He made money all over socialist Europe while the regular folks were being taxed to pieces. Socialism of any kind is a rigged system, as is controlled capitalism.

  • EuropeanIdentity33

    Is this a surprise to anybody? Modern immigration has always been a scam to lower native wages and create a large pool of people to pick from when a company wants fire somebody or as an incentive when corporations wants to cut their workers pay. The only motive that corporations have is to maximize profits, which makes them amoral by nature.

  • Wing-nut.

    Watch the systemic destruction of a once thriving, world leading industry.

  • At the university where I was employed the Mexiturd president favors browns of all types over whites and blacks. The browns not only get paid more than the whites who built the school from nothing, anywhere from 50 percent to 100 percent more, but the Hindus are special favorites. They’ve never heard of academic freedom, shared governance, and other Western traditions. They never question anything, such as the incompetence of Mexiturds.

    One Hindu once told me that “When things need to get done, you white people get it done.” My former university is down to 30 percent white students from 80 percent a couple of decades ago. White profs are encouraged to retire via false accusations and disciplinary actions.

    Interestingly, one Hindu prof who objected to illegal hiring practices involving Ricardo Romo’s (the president) hires and raised a big stink about it was found dead in his office, his brains splattered everywhere after they accused him of some false sexual harassment or rape thing. Immediately, the word went out: SUICIDE. Yeah, right.

    Diversity. The hidden costs are enormous. The coverups run nonstop. But the message that one Hindu said to me about whites is true: The whites make it all happen, no matter how much they hate us and no matter how many of they replace.

    • John Smith

      You might’ve said too much dropping names here.

  • Who Me?

    “Everyone actually agrees that there should be more H-1B visas in order to create more tech, more science, more analytical jobs. Everyone agrees, in both parties.”
    ———————
    Hmm, nobody asked me or anybody I know of. Who is this “everybody” I keep hearing him talk about?

    • LHathaway

      That’s editorial board of the newspaper talk, “we think. . . “

      • JohnEngelman

        We need H1B Visas for editorial board writers. That would cause those people to change their tune.

        • Usually Much Calmer

          Just stop reading this crap. No jobs for editorial board writers!

  • JohnEngelman

    “Everyone actually agrees that there should be more H-1B visas in order to create more tech, more science, more analytical jobs. Everyone agrees, in both parties.”

    – Eric Schmidt, CEO of Google

    Everyone? What about the American citizens who are losing their jobs?

    • Magician

      Yes John, I am sure that those several thousands of workers at Microsoft who got laid off, do not quite agree that there should be more H1B visa workers coming to this borderline third world country.

      • JohnEngelman

        Immigration is one issue where the interests of employers and employees clearly diverge. The Republican Party advances the interests of employers.

        After the noise is over, watch Republican politicians accept amnesty. The perfect compromise for them will be amnesty for the illegal aliens, but no citizenship rights.

        • John Smith

          I’m sure they will, but let’s not forget the Left likes the idea at least as much and that it is those on the Right where you hear the most dissent toward immigration policy.

          • JohnEngelman

            Republican rhetoric is “full of sound and fury,Signifying nothing.”

          • John Smith

            So is the Left’s rhetoric claiming to “care” about the working classes when they support giving benefits and preference to minorities and illegals and undercutting their employment opportunities and wages. Some of their biggest insults are calling the white working class “rednecks,” “trailer trash” and “hillbillies.”

        • InAFreeCountry

          Cheap labor for the Republicans, free votes for the Democrats. What’s not to love? It looks like chocolate and peanut butter, but in reality it’s mud and feces.

    • John Smith

      Google and Microsoft are both companies that lean left, based on the stated positions of their top management and founders. Kinda puts the lie to the belief that conservatives are the only ones who do this sort of thing.

  • Lygeia

    How come they never outsource the Chief Executive Officer (“CEO”) or other C-suite jobs?

    I mean, they could.

    I think they should outsource this office of the modern-day Caeser and his bad lieutenants, and let the rest of us keep our jobs.

  • Sick of it

    “Everyone actually agrees that there should be more H-1B visas in order
    to create more tech, more science, more analytical jobs. Everyone
    agrees, in both parties.”

    80% of Americans disagree.

    • I “disagree” to the point of wanting beat those bastards to death with a hammer.

      • Sick of it

        Be traditional – Use a battleaxe! Although warhammers are pretty awesome.

  • Ella

    This says it all, “They are CROOKS!”

  • HE2

    last year Microsoft announced the layoff of 18,000 people at the very
    moment it was pushing Congress for more guest worker visas.

    This is criminal. Why does the Labor Dept. stand by and allow this? [Rhetorical question]. Marginalization of the most educated, productive segment of our society is a critical nail in the coffin of this country, already an empire in rapid decline.
    FTR, software x-husband and I hire ONLY White citizen, U.S. educated tech programmers, grad. students, scientific programmers or EE doctorate designers.
    We are currently sitting on a desirable patent already bid upon by several software mega-corporations, but await a reputable firm with our U.S. labor force supportive hiring practices to step up. Not as easy as one would think.
    Hiring temporary, un-benefited, questionable degree, low wage foreigners willing to live 10-20 to an apartment is immoral, and that is the current labor practice in the industry.
    In Silicon Valley we have highly trained, educated engineers on the verge of losing their homes working at minimum wage jobs. Disgusting.

  • Xerxes22

    The backgrounds of Eric Schmidt and Bill Gates are very similar. Both men come from isolated privileged upper middle class backgrounds. They had no contact with ordinary White working class Americans, so they have no ties or sympathy towards them. They also had no exposure to non-Whites, so they have no real knowledge of them. This helps to somewhat explain the actions of these greedy clueless billionaires.

  • TrueNorthFree

    The pushing of the “benefits of diversity and multiculturalism” are all about the international corporatist plutocrats turning our Western countries into third world cesspits so we can be made to slave and suffer for third world wages. The ONLY people who benefit are the multinational super-rich.

    I am so fing furious about this.

  • The bosses can treat the Currystanis like home-made dog-$#!& for all I care.

  • ShermanTMcCoy

    They fire mostly older white guys. It’s a WIN-WIN!!!!

  • corvinus

    The Asians cheat like crazy. It’s built into their culture. This is why they underperform when actually hired. They’re actually not as bright as Europeans.