I don't think they are as dependent as you think. They can hire the foreign worker at a fraction of the price of an American. Case in point my sister. She worked in IT for Columbia HCA for 15 years in Nashville. Very brilliant woman. She was replaced by an Indian that she had to train in order to receive her severance package. Happened throughout the company. This happens throughout the high tech sector.
You are not wrong and David is not wrong either. You raise an important point, and David did as well. What you described happening to your sister is not rare, but it is also not as commonplace as some people think it is. If Columbia terminated your sister and directly hired a replacement for half of her salary under the H1B program, they should be fined a significant amount of money and lose access to the H1B program. She should have sued them if that is what took place. However, I suspect Columbia did what other firms have done in similar situations. Before terminating your sister, it is extremely likely they planned to contract her department/job out to an external firm. Basically, they "outsourced" a particular department or a set of jobs to a contracting firm that had obtained massive numbers of H1Bs under the H1B program. Because Columbia did not hire a direct replacement, the outsourcing firm can actually modify the job description and slightly change the job duties and push the worker into a lower bucket on the prevailing wage scale and pay them much less. This is a huge problem with the H1B program, and I'm so sorry such a nasty and ridiculous thing happened to your sister. Absolutely wrong and pisses me off, and is something that should NOT be happening at all.
Columbia applied for (LCAs) 13 H1Bs in 2011, 18 in 2012, 16 in 2013, 33 in 2014, 42 in 2015, and 45 in 2016. I don't want to violate your sister's privacy, so I'm only going to ask a couple of general questions. From what you wrote, it sounds like Columbia made some really big changes that likely involved at least a hundred jobs. Please correct me if I am reading too much into your comments. I ask because depending upon when they did this horrible thing to your sister, it is pretty clear the company itself only had a dozen or two H1Bs until they really ramped up in 2015. In aggregate since 2011 they've had enough to replace a lot of employees, but I also believe Columbia HCA has added jobs during that time period, so I'd be very surprised if a lot of those H1Bs didn't go to new positions. They are not dumb people, and I would be shocked if they did something so transparent and illegal as directly hiring lower-wage H1Bs to replace terminated workers. Additionally, the average pay for the H1Bs they hired was between 85k-100k with most being 95k or higher. Anyway, if you can clarify that would be helpful.
http://www.myvisajobs.com/Visa-Sponsor/Hca/1079742.htm http://www.myvisajobs.com/Visa-Sponsor/Hca-Management-Services/239167.htm
If Columbia did this directly your sister should sue them if she hasn't already. If they did this by using the "external contracting" trick, it is just as shameful, but it is not illegal. Durbin and Grassley have been trying since 2007 to close the outsourcing loophole and fix the H1b impact on wages, but they have been caught between 2 or 3 different extreme positions in the H1B debate. You have some members of Congress since 2007 (Cruz, Sessions, etc) that wanted to all but eliminate H1Bs by cutting the number allowed significantly, requiring extreme American first prioritization, setting wage floors, placing a moratorium on the program, and requiring layoff/re-structuring lookbacks that would prevent companies that made job cuts or consolidations from being able to access the H1B program for at least two years. The layoff/job lookback provision would essentially eliminate H1Bs for almost every single company because there's not a company out there that doesn't involuntarily terminate employees from time to time a a result of re-alignment, department closures, product launches, new technology priorities, etc.
The other extreme was legislation that essentially expanded H1B caps without much reform by increasing caps while requiring H1B applications to pay a fee to fund STEM training here in the USA for American workers. The Grassley and Durbin bill actually was a middle-ground position that recognized that H1Bs are NEEDED by a lot of companies, but the current system is broken and abused. But, because of the influence of CIS, Numbers USA, and Breitbart (groups that want to basically stop any further immigration into the US and/or disallow any additional foreign workers), such middle-ground compromises have been undercut and politicized as expanding H1Bs and taking American jobs.
It is no surprise, then, that Silicon Valley and American employers have lobbied and funded legislators and legislation that just expanded H1B and have avoided doing too much in the area of reform because of the extremists that seek to end the program entirely. Believe it or not, but Apple, Facebook, Google, Microsoft, and most of your larger tech companies, as well as your smaller rapidly growing tech companies actually desperately want H1B reform to fix the current loophole that allows the outsourcing companies to gobble up almost all of the H1B visas. They actually *DO* have labor shortages and a difficulty finding qualified workers because the outsourcing companies get the VAST MAJORITY of H1B visas. Microsoft, Apple, Facebook, and Google pay their H1B workers very similar salaries (if not higher) than their domestic employees because of the labor shortage. So, David is absolutely correct in asserting there is a shortage. But you are also correct in that abuse of the program is significantly harming wages and costing American workers their jobs.
Here is a great evidence of exactly what I am talking about. Facebook was actually number 33 on the list, so they are not on the image I made, but their average H1B salary was 140,578, but they were only able to get 1,012 H1Bs because of the outsourcing firms like Infosys, Tata Consultancy, Wipro, Accenture, Tech Mahindra, Igate Technologies, Cognizant Technology, and Larsen & Toubro Infotech. Look at the massive wage differential. Tata Consultancy pays an average of $69,648 while Microsoft & Google pay over 120k, Apple over 130k, Facebook over 140k, and Deloitte Consulting pays nearly 120k. I will conclude by saying what I've frequently said on immigration issues. Our country needs to take a clear-eyed and rational approach to immigration. Our system desperately needs reform. But the extremism of Trump, Cruz, Sessions and others is PART OF THE PROBLEM instead of being part of the solution. Apple, Google, Facebook and Microsoft will continue to spend hundreds of millions of dollars (or even billions) to oppose radical immigration cuts and bans because they CANNOT continue to grow and conduct business if the immigration system is shutdown. The bill that Tom Cotton introduced will absolutely be opposed by these companies because it prevents some of their most highly skilled and best workers from bringing their families here and living the American Dream. The solution is not the radical and impractical immigration bans, cuts, and shutdowns that Cotton, Cruz, Sessions, Trump and others propose. Open Borders and expanding low skill jobs and hurting wages is ALSO not the solution. There is a middle ground. Each side is going to have to give and take. And I will save this for another time, but the US economy is also extremely dependent upon immigration for its continued growth. Baby Boomer deaths are only going to continue to accelerate. Very few of the Greatest Generation are still around. Millennials and Generation X are reproducing at a fertility rate below replacement. In fact, the US fertility rate went below replacement after the 2007/2008 economic crisis and has not yet recovered. Those that fear population increases and anti-immigration groups like Numbers USA, CIS, etc are completely ignoring the economic harm that Western Europe is experiencing due to this, but even more telling is what has transpired in Russia and Japan. The latter two countries are facing an absolute crisis in population, and the drag on the economy is absolutely huge. Were it not for natural resources, Russia would be in economic hell right now, and Putin's invasion of Crimea and Ukraine (with an eye on Belarus and other countries with a significant Russian population) is heavily driven by a need to bring more people into Russia to save the economy.
If anyone doubts the information and facts that I provided in this post, I am happy to provide multiple links for each fact/argument. I did not do so because this post is already long enough, and I believe I've at least earned a reputation that should give me the benefit of the doubt. Sure, some of what I've said it based around political arguments, but the bulk of it is indisputable fact that can easily be proven with dozens of neutral sources.
