Bailed Out Banks Lay Off American Workers But Keep H-1B Guest Workers
According to a February report by the Associated Press, “the dozen banks now receiving the biggest rescue packages, totaling more than $150 billion, requested visas for more than 21,800 foreign workers over the past six years.”
Lest anyone think that countless billions of dollars in toxic loans, collapsing stock values, and wholesale layoffs altered the banking industry’s desire for foreign guest workers, think again. These same banks, during the last three months of 2008, cut approximately 100,000 jobs from their payrolls. But during that same period they continued to petition for more H-1B workers. Stating the obvious, AP noted, “Foreigners are attractive hires because companies have found ways to pay them less than American workers.”
Banks were not alone in the practice of giving jobs to foreign guest workers while handing out pink slips to their American workers. Microsoft, whose chairman, Bill Gates, appeared before Congress about a year ago to call for an increase in the H-1B quota, announced major layoffs in January. In a letter to the company, Sen. Charles Grassley (R-Iowa), reminded that “the purpose of the H-1B visa program is to assist companies in their employment needs where there is not a sufficient American workforce,” and strongly urged Microsoft not to retain H-1B workers while laying off Americans.
Sen. Grassley’s efforts went beyond merely writing letters to H-1B employers. Together with Sen. Bernie Sanders (I-Vt.), they included an amendment to the Senate economic stimulus bill requiring banks that benefit from government bailout money be limited in their ability to hire new H-1B workers. The amendment was included in the final language of the massive stimulus package signed by President Obama on Feb. 17. While employers still will have some flexibility to hire foreign workers, this is the first time legislation has been adopted that recognizes that this visa program limits job opportunities for Americans.
FAIR has long fought against the widespread practice of using foreign guest workers instead of U.S. workers. Even before the current economic crisis, companies frequently sought foreign guest workers while failing to reach out to available U.S. workers and, in many cases, while laying off their American workers.
The continued demand by companies for foreign guest workers during a period when jobs are being lost at a rate of about half a million a month provides further evidence that requests for guest workers have little or nothing to do with the availability of labor in this country. Rather, it demonstrates clearly that demand for foreign guest workers is primarily driven by the desire of many companies to cut their labor costs.
March 2009
