Amendmet S306 in Stimulus Bill Restricts H-1B hiring in banks
Amendmet S306 in Stimulus Bill Restricts H-1B hiring in banks
Date: Friday, February 06, 2009 9:49 PM
<<<<< JOB DESTRUCTION NEWSLETTER No. 1976 -- 2/06/2009 >>>>>
Today the Stimulus bill (H.R. 1) was amended in the Senate with legislation
that would prevent some banks from hiring H-1Bs. Amendment 306 by Senators
Bernie Sanders (I-VT) and Charles Grassley (R-IO). would prevent banks who are
getting TARP bailout money from hiring H-1Bs for a year (see note below).
This amendment is mostly symbolic because most banks aren't going to get TARP
money, and those that do will not have much of a problem with a one year
restriction. Remember the yearly cap is usually reached within days of the
deadline for visa applications, so at worst the banks will miss one cycle of
hiring. The amendment doesn't seem to do anything to stop banks from using
bodyshops such as Tata or Infosys that use H-1Bs. Furthermore, although banks
do hire significant numbers of H-1Bs, the percentage of banks affected by S306
compared to all other H-1B employers is low. The amendment might actually do
companies like Microsoft a favor because they will have less competition for
obtaining visas before the yearly cap is reached.
Amendment 306 may be mostly symbolic, but as we know politics is mostly
symbolism. That's why 306, if it remains intact is a very important milestone.
Let's all keep in mind that the amendment could be removed when the House and
Senate go into conference so it would be far better if someone in the House
sponsored the same thing.
The amendment is an implicit admission by Congress that H-1B is used to
replace Americans and that the visa is harmful to American workers. It might
seem like S306 is a minor accomplishment but it can be used by us as a
stepping stone to the future to argue for abolishing H-1B. After all, how can
somebody argue that jobs in a bank should be saved when jobs in the
computer/IT industry are being given away to H-1Bs?
Sanders' webpage has a quote that could be applied to Microsoft, Pfizer, or
any of the other companies that are laying off Americans while hiring H-1Bs,
and that's why this amendment sets an important precedent. This, from Sanders'
video and website:
"The very least we can do is to make sure that banks receiving a
taxpayer bailout are not allowed to import cheaper labor from
overseas while they are laying off American workers," Sanders said.
I decided to go to the headquarters of AILA and CompeteAmerica to see what's
going on. Here is what I saw on top of both buildings:
http://www.youtube.com/watch?v=VjBWwQtGJtM
Today at AILA and CompeteAmerica headquarters
I start with the best news first -- the AILA press release. You know they are
worried when they start using words like "protectionism", "jingoistic
divisiveness", and "fear". Have a good cheer this weekend and let's have a
toast to Grassley and Sanders.
NOTE: Today reports came out that the no-hire period is two years, but the
bill online still says one year. It's possible that today the bill was made
tougher. Two years would be far more significant because the banks would miss
at least two H-1B visa auctions. Banks might even be forced to hire Americans!
REFERENCES:
http://www.sanders.senate.gov/news/record.cfm?id=307813
Video: Bankers and Bailouts - Floor Statement
http://www.emediawire.com/releases/Economy/Stimulus/prweb1971974.htm
Congress Takes a Wrong Turn on Way to Stimulus
http://www.computerworld.com/action/article.do?command=viewArticleBasic&taxonomyName=knowledge_center&articleId=9127552&taxonomyId=1&intsrc=kc
_top
Senate approves 'strict' rules on hiring H-1B workers
http://www.google.com/hostednews/ap/article/ALeqM5i5iT1_sH1aHBXWZhjXjZIXzQfN1QD9652J200
Bill seeks limits on hiring foreign bank workers
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.emediawire.com/releases/Economy/Stimulus/prweb1971974.htm
Congress Takes a Wrong Turn on Way to Stimulus The American Immigration
Lawyers Association (AILA) believes Congress took a disturbing step backwards
today - to an era of employment protectionism.
Washington, DC (Vocus) February 6, 2009 -- The American Immigration Lawyers
Association (www.aila.org) (AILA) believes Congress took a disturbing step
backwards today - to an era of employment protectionism. Adopting by voice
vote an amendment by Senators Sanders (I-VT) and Grassley (R-IA) - who like to
frame issues through an "us versus them" lens - the Senate caved to an old
reactionary instinct: when times get tough, turn inward, put on the blinders,
and hunker down. Unfortunately, we know empirically that this instinct is
deeply counterproductive to economic growth and creates a climate of
jingoistic divisiveness.
The Sanders-Grassley amendment that was originally filed made no pretense
about the objective: it barred TARP fund recipients from hiring foreign
workers under the H-1B program for one year. In part, we suspect, because of
the ugly optics surrounding such a blatantly protectionist message, the
amendment was subsequently dressed up with some qualifiers and legal niceties.
But the net effect of the amendment that ultimately passed is the
same: the financial institutions who receive funding under the program will be
hard pressed to hire any foreign nationals (or extend the visas of currently
employed foreign workers) for a 2-year period.
A March 2008 National Foundation for American Policy report (NFAP report
(http://www.nfap.com/pdf/080311h1b.pdf)) has shown that for every H-1B
position requested by an S&P 500 U.S. technology company, overall employment
at the company increased by five workers. The report also found that among
companies in the study sample experiencing layoffs, for every H-1B position
requested, total employment was estimated to be two workers more than it
otherwise would have been.
Instead of seeing the current economic calamity as a global problem and
immigrants as part of the collective solution, the Senate unwisely chose to
restrict the financial industry's access to top-flight global talent who can
help create jobs for U.S. workers. In these difficult economic times, we
cannot afford knee-jerk, fear driven policies that will stymie growth.
Our nation's capacity to funnel the world's diverse talent pool into a highly
productive economic engine is a central reason that we are the wealthiest
nation in history.
AILA calls on Congress to adopt forward-looking policies that embrace our
status as the preeminent landing spot for the world's best and brightest.
It is time to turn our back on short-sighted, insular policies, not on the
world's highest achievers who can help lift us from our economic malaise.
The American Immigration Lawyers Association is the national association of
immigration lawyers established to promote justice, advocate for fair and
reasonable immigration law and policy, advance the quality of immigration and
nationality law and practice, and enhance the professional development of its
members.
Contact
George Tzamaras
202-507-7649
gtzamaras @ aila.org
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.govtrack.us/congress/amendment.xpd?session=111&amdt=s306
S.Amdt. 306: To require recipients of TARP funding to meet strict H-1B
worker...
To require recipients of TARP funding to meet strict H-1B worker hiring
standard to ensure non-displacement of U.S. workers.
An amendment to H.R. 1: American Recovery and Reinvestment Act of 2009.
Offered: Feb 4, 2009
Sponsor: Sen. Bernard Sanders [I-VT]
Actions: Feb 5, 2009: Amendment SA 306 proposed by Senator Sanders to
Amendment SA 98.
Feb 6, 2009: Considered by Senate.
For more information, see the the official record on THOMAS for S.Amdt.
306.
Text of amendment
SA 306. Mr. SANDERS (for himself and Mr. GRASSLEY) submitted an amendment
intended to be proposed by him to the bill H.R. 1, making supplemental
appropriations for job preservation and creation, infrastructure investment,
energy efficiency and science, assistance to the unemployed, and State and
local fiscal stabilization, for fiscal year ending September 30, 2009, and for
other purposes; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
SEC. __. HIRING AMERICAN WORKERS IN COMPANIES RECEIVING TARP FUNDING.
(a) Short Title.--This section may be cited as the ``Employ American Workers
Act''.
(b) Prohibition.--
(1) IN GENERAL.--Notwithstanding any other provision of law, it shall be
unlawful for any recipient of funding under title I of the Emergency Economic
Stabilization Act of 2008 (Public Law 110-343) or section 13 of the Federal
Reserve Act (12 U.S.C. 342 et seq.) to hire any nonimmigrant described in
section 101(a)(15)(h)(i)(b) of the Immigration and Nationality Act (8 U.S.C.
1101(a)(15)(h)(i)(b)).
(2) DEFINED TERM.--In this subsection, the term ``hire'' means to permit a new
employee to commence a period of employment.
(c) Sunset Provision.--This section shall be effective during the 1-year
period beginning on the date of the enactment of this Act.
(As printed in the Congressional Record for the Senate on Feb 4, 2009.)
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.sanders.senate.gov/news/record.cfm?id=307862
Article Printed from Senator Sanders Website - Sanders.Senate.Gov
Senate Approves Sanders-Grassley Amendment -- 02/06/2009
As unemployment rose and the worst recession since the Great Depression
worsened, the Senate today voted to prohibit banks that take taxpayer bailout
funds from replacing laid off workers with foreign guest workers.
"Wall Street caused the crisis, millions of people lost jobs, including
100,000 in financial institutions. Now they want to bring in foreign workers,"
Senator Bernie Sanders said. "Talk about adding insult to injury." An
investigation by The Associated Press found that a dozen banks now receiving
more than $150 billion in bailouts requested visas for more than 21,800
foreign workers over the past six years to replace laid-off American
employees.
Legislation by Senators Sanders (I-Vt.) and Charles Grassley (R-Iowa) would
require bailed-out banks where there have been layoffs to hire only Americans
for two years. On a voice vote, the Senate added the
Sanders-Grassley Amendment to an economic recovery bill.
"The very least we can do is to make sure that banks receiving a taxpayer
bailout are not allowed to import cheaper labor from overseas while they are
laying off American workers," Sanders said.
Layoffs at banks are part of a dramatically shrinking American workforce.
The U.S. economy lost 598,000 jobs in January, as the jobless rate rose to
7.6 percent, bringing total job losses since the recession started in
December 2007 to 3.6 million, the Department of Labor reported today.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.computerworld.com/action/article.do?command=viewArticleBasic&taxonomyName=knowledge_center&articleId=9127552&taxonomyId=1&intsrc=kc
_top
Senate approves 'strict' rules on hiring H-1B workers Bill sought to bar firms
receiving bailout money from hiring foreign workers but set restrictions
instead Patrick Thibodeau February 6, 2009 (Computerworld) The U.S. Senate
agreed on Friday to set restrictions on the hiring of H-1B workers by
financial services firms that receive federal bailout funds, but it didn't bar
the hiring of foreign workers as proponents had sought.
U.S. Sens. Bernie Sanders (I-Vt.) and Chuck Grassley (R-Iowa) had proposed
legislation this week to prohibit any firm that received money under the
Troubled Assets Relief Program (TARP) from hiring foreign workers.
The amendment passed today, part of the stimulus plan being debated in the
Senate, didn't include a blanket restriction on H-1B use and instead set a
series of strict standards on H-1B hiring.
The Senate's amendment would require companies receiving TARP funds, mostly
financial services firms with a lot of bad mortgages, to comply with hiring
rules set for "H-1B dependent" firms -- those with more than 15% of their
workers on H-1B visas.
Any firm receiving TARP funds will be automatically considered H-1B dependent,
regardless of the percentage of H-1B workers on the payroll.
The H-1B dependent designation subjects employers to a number of provisions,
including a good faith effort to hire U.S. workers first.
Sen. Grassley said in a statement late Friday that the modified bill means
companies receiving TARP funds would still be able to hire H-1B visa holders,
but would have to comply with the "H-1B dependent"-employer rules "which
include attesting to actively recruiting American workers; not displacing
American workers with H-1B visa holders; and not replacing laid off American
workers with foreign workers."
"Hiring American workers for limited available jobs should be a top priority
for businesses taking taxpayer money through the TARP bailout program," Sen.
Grassley said.
"With the unemployment rate at 7.6 percent, there is no need for companies to
hire foreign guest workers through the H1-B program when there are plenty of
qualified Americans looking for jobs," Sen. Grassley said.
Sen. Grassley and Sen. Sanders both argue that U.S. firms have a moral
obligation to protect U.S. workers' jobs.
"[H-1B dependent companies] have to make very, very strict non-displacement
attestations for 90 days before you employ an H-1B and for 90 days afterward
as well," said John Nahajzer, a corporate immigration attorney and managing
partner at Maggio & Kattar PC in Washington D.C. He added that if the employer
finds any workers within this 90-day window before and after the H-1B worker
is hired, then they are required to terminate the H-1B worker.
Today's amendment may be tougher than the existing law. There are now
exceptions to the H-1B dependency rule for foreign workers who are paid at
least $60,000 in base wages or who have advanced degrees -- but those
exceptions don't appear in the amendment. Nahajzer said he believes companies
affected by this proposed law would be unlikely to hire H-1B workers.
Nahajzer said the amendment is essentially a ban on hiring H-1B workers by
TARP receiving firms, "because it's virtually impossible for [the] non-
displacement provisions to be met by any company, much less the banks, which
have been laying people off left and right."
The fate of this H-1B amendment rests on the fate of the stimulus bill before
the Senate today, and if that's approved it will head to a conference where
other changes are possible.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.google.com/hostednews/ap/article/ALeqM5i5iT1_sH1aHBXWZhjXjZIXzQfN1QD9652J200
Bill seeks limits on hiring foreign bank workers By RITA BEAMISH and FRANK
BASS 1 day ago
Two senators on Wednesday proposed requiring bailed-out banks to hire only
Americans for one year, after an investigation by The Associated Press showed
that banks receiving the most federal aid had requested visas for thousands of
foreign workers even as they laid off employees amid the economic collapse.
The legislation by Sens. Bernie Sanders, I-Vt., and Charles Grassley, R-Iowa,
would apply to more than 200 banks that have accepted the government's aid.
They would be barred from hiring foreigners who hold special visas that are
reserved for certain skilled and advanced-degree jobs. Both senators are
longtime critics of abuses they see in the visa program.
"It is obscene and vulgar for these huge banks getting taxpayer bailouts to
use the bailouts to throw American workers on the street and bring in foreign
workers," Sanders said.
The proposal was certain to inflame all sides of an already contentious issue
that has attracted new passion amid soaring U.S. unemployment rates.
An immigration lawyers group earlier this week warned of renewed criticism of
the H1-B visa program due to the country's lousy economic conditions and
rallied its members in an e-mail to be prepared to "set the record straight!"
The president of the American Immigration Lawyers Association, Charles Kuck,
whose members represent employers and foreign nationals, said the Senate
proposal would hinder any economic recovery.
"You're telling banks, we want you to be successful, we'll loan you money
Back to archives