Is Microsoft Replacing Americans

Date: Sunday, January 25, 2009 6:27 PM

<<<<< JOB DESTRUCTION NEWSLETTER No. 1964 -- 1/24/2009 >>>>>

In view of the 5,000 job positions that Microsoft is eliminating, questions
arise about what the mix is between H-1Bs vs. US citizens. This is a poignant
question especially considering that Bill Gates personally went to Washington
DC last year in order to lobby for unlimited H-1B visas. On March 12, 2008
Bill Gates testified in front of Congress to make his case for more H-1B
visas:

BILL GATES, MICROSOFT CHAIRMAN: The importance of being able to
retain and hire these top engineers, world top engineers is
super important.

U.S. companies face a severe short fall of scientists and
engineers with expertise to develop the next generation
of breakthroughs.

Sen. Chuck Grassley just sent a letter to Microsoft to formally ask them for
details of their mass layoff. His questions are going to be tough ones for
Steve Ballmer because Grassley leaves him very room to fudge answers with
question like this one: "Are any of these jobs being cut held by H-1B or other
work visa program employees? If so, how many?" Grassley follows it up with an
even tougher question: "How many of the jobs being eliminated are filled by
Americans? Of those positions, is Microsoft retaining similar ones filled by
foreign guest workers? If so, how many?"

Microsoft PR guys are going to have a tough time spinning those questions.
Perhaps Microsoft HR will be ordered to fire more H-1Bs, and if that happens
we win!

It's going to be very interesting to see if MS ignores Grassley or they try
answer with hazy statistics and smoke and mirrors. Hopefully Grassley won't
let them off the hook if they try to BS their way out of the inquiry.

Microsoft is under no legal obligation to answer Grassley so if they
stonewall, what will be Grassley's next step? This story will be fun to watch.

Lou Dobbs did an excellent report. See the video here or read the transcript
below:
http://loudobbs.tv.cnn.com/2009/01/23/is-microsoft-replacing-americans/

Be sure to read this commentary by Norm Matloff:

http://blog.vdare.com/archives/2009/01/24/dr-norm-matloff-on-senator-grassley-microsoft-and-h-1b/
Dr. Norm Matloff on Senator Grassley, Microsoft and H-1B

+++++++++++++++++++++++++++++++++++++++++++++++++++

http://grassley.senate.gov/news/Article.cfm?customel_dataPageID_1502=18922

For Immediate Release
January 23, 2009

Grassley Works to Ensure American Workers are Priority

WASHINGTON -- Senator Chuck Grassley today said that in a time of

economic downturn, American workers must be a top priority for American
companies. Grassley reiterated those words after he sent a letter to
Microsoft urging the company to make efforts to retain qualified American
workers during the recently announced lay-offs.

Microsoft employs thousands of people through the H-1B visa program. This
temporary work visa program allows American companies and universities to
employ temporary foreign guest workers who have the equivalent of a U.S.
bachelor s degree in a job category that is considered by the U.S.
Citizenship & Immigration Services to be a "specialty occupation." The
purpose of the h-1b program is to help companies hire foreign guest workers on
a temporary basis when there is not a sufficient qualified American workforce
to meet those needs. However, the program is not intended to replace
qualified American workers.

In October 2008, U.S. Citizenship and Immigration Services released an
internal report that found the H-1B program has more than a 20 percent
violation rate. The fraud identified in the report included jobs not located
where employers claimed, H-1B visa holders not being paid the prevailing wage,
forged documents, fraudulent degrees, and shell businesses. In one instance
the H-1B position described by the employer was "business development
analyst." However, it turned out that the H-1B visa holder would be working
at a laundromat doing laundry and maintaining washing machines.

Grassley has been a leader in the effort to improve the H-1B visa program.
In the 110th Congress, he introduced a comprehensive H-1B and L visa reform
bill with Senator Dick Durbin that would give priority to American workers and
crack down on unscrupulous employers who deprive qualified Americans of high-
skill jobs. He has also asked questions of both American and foreign based
companies about their use of the H-1B visa program.

Here is a copy of the text of Grassley s letter

January 22, 2009

Mr. Steve Ballmer

Microsoft Corporation

One Microsoft Way

Redmond , WA 98052-6399

Dear Mr. Ballmer:

I am writing to inquire about press reports that Microsoft will be cutting
approximately 5,000 jobs over the next 18 months. I understand that the
layoffs will affect workers in research and development, marketing, sales,
finance, legal and corporate affairs, human resources, and information
technology.

I am concerned that Microsoft will be retaining foreign guest workers rather
than similarly qualified American employees when it implements its layoff
plan. As you know, I want to make sure employers recruit qualified American
workers first before hiring foreign guest workers. For example, I cosponsored
legislation to overhaul the H-1B and L-1 visa programs to give priority to
American workers and to crack down on unscrupulous employers who deprive
qualified Americans of high-skilled jobs. Fraud and abuse is rampant in these
programs, and we need more transparency to protect the integrity of our
immigration system. I also support legislation that would strengthen
educational opportunities for American students and workers so that Americans
can compete successfully in this global economy.

Last year, Microsoft was here on Capitol Hill advocating for more H-1B visas.
The purpose of the H-1B visa program is to assist companies in their
employment needs where there is not a sufficient American workforce to meet
their technology expertise requirements. However, H-1B and other work visa
programs were never intended to replace qualified American workers.
Certainly, these work visa programs were never intended to allow a company to
retain foreign guest workers rather than similarly qualified American workers,
when that company cuts jobs during an economic downturn.

It is imperative that in implementing its layoff plan, Microsoft ensures that
American workers have priority in keeping their jobs over foreign workers on
visa programs. To that effect, I would like you to respond to the following
questions:

* What is the breakdown in the jobs that are being eliminated? What kind of
jobs are they? How many employees in each area will be cut?

* Are any of these jobs being cut held by H-1B or other work visa program
employees? If so, how many?

* How many of the jobs being eliminated are filled by Americans? Of those
positions, is Microsoft retaining similar ones filled by foreign guest
workers? If so, how many?

* How many H-1B or other work visa program workers will Microsoft be
retaining when the planned layoff is completed?

My point is that during a layoff, companies should not be retaining H-1B or
other work visa program employees over qualified American workers. Our
immigration policy is not intended to harm the American workforce. I
encourage Microsoft to ensure that Americans are given priority in job
retention. Microsoft has a moral obligation to protect these American workers
by putting them first during these difficult economic times.

Sincerely,

Charles E. Grassley

United States Senator

+++++++++++++++++++++++++++++++++++++++++++++++++++

http://transcripts.cnn.com/TRANSCRIPTS/0901/22/ldt.01.html

LOU DOBBS TONIGHT

New Team; Kennedy Shock; Ethics Question; Your Bailout at Work; Replacing
Americans

Aired January 22, 2009

DOBBS: Well John Thain's resignation could save Bank of America and taxpayers
millions of dollars, perhaps more given Mr. Thain's expensive tastes. Get
ready, because you may have thought this era went out with, say, the early
2000's in the days of corporate corruption. Well, it turns out corporate
corruption has more than one look.

For example, John Thain spent more than $1.2 million last year to do what?
Why, of course, to decorate his office at Merrill Lynch. Thain hired high-
profile designer Michael Smith for the job. Among the items purchased for John
Thain's office, an $87,000 area rug, $68,000 for a 19th century credenza and
$35,000 for a commode on four legs.

Designer Smith, by the way, is off to the White House. He was selected by the
new first family to redesign the private family quarters. And of course, the
government's finances aren't in much better shape than were Merrill Lynch's.

New outrage tonight over Microsoft's hiring and firing policies and its bias
articulated so well by its founder Bill Gates in favor of foreign workers at
the expense of Americans -- Microsoft today announcing its cutting 5,000 jobs.
Just less than a year ago, Microsoft's Bill Gates told Congress there weren't
enough qualified American engineers. And that it needed even more cheap
foreign labor. Lisa Sylvester has our report.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): A fog hovered over the
Microsoft campus in Redmond, Washington, as anxious employees worried about
their fate. The company is giving 5,000 employees pink slips, 1,400 losing
their jobs immediately, many of them among the U.S. work force.

UNIDENTIFIED MALE: I'm thrilled to be here. I'm hoping I'll still be here at
the end of the day.

SYLVESTER: Job eliminations and R&D, marketing, sales, finance, legal, HR and
IT. In a letter obtained by CNN, CEO Steve Ballmer told Microsoft's employees
quote, "we believe these job eliminations are crucial to our ability to adjust
the company's cost structure, so that we have the resources to drive future
profitable growth"

Far cry from 10 months ago, Microsoft's Chairman Bill Gates told Congress
repeatedly that he couldn't find enough qualified American workers. Again and
again, Gates urged lawmakers to expand the number of foreign workers allowed
in through the country's H-1B visa program.

BILL GATES, MICROSOFT CHAIRMAN: U.S. companies face a severe shortfall of
scientists and engineers with expertise to develop the next generation of
breakthroughs. You know we're expanding our employment in the United States at
a very rapid rate. The only limit on that is this supply of engineers.
We've been increasing our employment in the United States. And a limiting
factor for us is how many of these great engineers that we can get here.
And yes, that does cause a problem.

SYLVESTER: Senator Charles Grassley worries U.S. corporations are using the H-
1B visa program to hire foreign and imported workers over Americans and paying
them lower salaries. A study by the Center for Immigration Studies which wants
stricter immigration policies found that 90 percent of the H1-B employers were
paying computer programmers below the median U.S. wage for the occupation.
Senator Grassley is now writing a letter to Gates demanding that as Microsoft
scales back its labor force, the pain is not borne entirely by American
workers.

SEN. CHARLES GRASSLEY (R), IOWA: In this case there's layoffs of what, 5,000
workers I believe. I want to know if they're laying off H-1B workers and
what's incongruous about saying 18 months ago you needed more H-1B's and now
you're laying off workers.

SYLVESTER: CNN contacted Microsoft to comment on the H-1B issue and Grassley's
concerns, but a spokesperson said the company has no comment.
For U.S. IT workers already facing global competition, the Microsoft
announcement is more bad news says Wash Tech, a union for high tech workers.

PRIYANKA JOSHI, WASH TECH: This is going to be a -- an extremely -- it's going
to be an excruciating time for an IT employee who has a family to support for
him to find another job, a job that pays well, a job that has benefits.

(END VIDEOTAPE)

SYLVESTER: Now this might be just the beginning of Microsoft's layoffs, not
the end. The biggest concern financial analysts had on a morning conference
call with Microsoft CEO Steve Ballmer was whether Microsoft was cutting enough
jobs. Lou?

DOBBS: Yeah and I should reiterate that I've invited both Bill Gates, Steve
Ballmer to join us on here on this broadcast to discuss this issue of hiring
foreign workers and talking about the alleged shortage of American computer
engineers and systems engineers and programmers. They have yet to respond or
to accept that invitation, which remains I assure you vigorously wide open.
Lisa, thank you very much. Lisa Sylvester.

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