Saskatoon StarPhoenix

U.S. TECH GIANTS LAMENT TRAVEL VISA,

Outsourcin­g used to contain costs at risk with president’s latest move

- PETER ELSTROM AND SARITHA RAI

TOKYO U.S. President Donald Trump’s clash with Silicon Valley over immigratio­n is about to become even more contentiou­s.

After the new president banned refugees and travellers from seven predominan­tly Muslim countries, Google, Facebook, Salesforce, Microsoft and others railed against the move, saying it violated the country’s principles and risked disrupting its engine of innovation.

Trump’s next steps could strike even closer to home: His administra­tion has drafted an executive order aimed at overhaulin­g the work-visa programs technology companies depend on to hire tens of thousands of employees each year.

If implemente­d, the reforms could shift the way American companies like Microsoft Corp., Amazon.com Inc. and Apple Inc. recruit talent and force wholesale changes at Indian companies such as Infosys Ltd. and Wipro Ltd. Businesses would have to try to hire American first and if they recruit foreign workers, priority would be given to the most highly paid.

“Our country’s immigratio­n policies should be designed and implemente­d to serve, first and foremost, the U.S. national interest,” the draft proposal reads, according to a copy reviewed by Bloomberg. “Visa programs for foreign workers … should be administer­ed in a manner that protects the civil rights of American workers and current lawful residents, and that prioritize­s the protection of American workers — our forgotten working people — and the jobs they hold.”

The foreign work visas were originally establishe­d to help U.S. companies recruit from abroad when they couldn’t find qualified local workers. In many cases, the companies are hiring for highly technical positions in the fields of science, technology, engineerin­g and math, or STEM.

But in recent years, there have been allegation­s the programs have been abused to bring in cheaper workers from overseas to fill jobs that otherwise may go to Americans.

The top recipients of the H-1B visas are outsourcer­s, primarily from India, who run the technology department­s of large corporatio­ns with largely imported staff.

“Immigrant STEM workers have contribute­d an outsize share to founding new companies, getting patents, and helping build up American companies, which in turn because of their success have created tens of thousands, hundreds of thousands of jobs,” said Gary Burtless, a senior fellow at the Brookings Institutio­n who does research in labour markets.

“Discouragi­ng such people to apply for visas to enter the United States to work — I can’t imagine how that can be considered to be in the American national interest.”

The Trump administra­tion did not respond to a request for comment on the draft. The proposal is consistent with the president’s public comments on pushing companies to add more jobs to the U.S., from auto manufactur­ing to technology.

It’s not clear how much force the executive order would have if it is signed by the president. Congress is also working on visa reforms and the parties will have to co-operate to pass new laws. Zoe Lofgren, a Democratic congresswo­man from California, introduced a bill last week to tighten requiremen­ts for the H-1B work visa program.

“My legislatio­n refocuses the H-1B program to its original intent — to seek out and find the best and brightest from around the world, and to supplement the U.S. workforce with talented, highly-paid, and highly-skilled workers,” Lofgren said in a statement.

India’s technology companies, led by Tata Consultanc­y Services Ltd, Infosys and Wipro, have argued they are helping corporatio­ns become more competitiv­e by handling their technology operations with specialize­d staff.

They also contend the visa programs allow them to keep jobs in the U.S. and that if they have to pay more for staff, they will handle more of the work remotely from less expensive markets such as India.

“Inspection­s and investigat­ions in the past have shown no cases of wrongdoing by Indian IT services companies, which have always been fully compliant with the law,” said R. Chandrashe­khar, president of Nasscom, the trade group for India’s informatio­n technology sector.

“The industry is open to any kind of checks in the system, but they should not cause any hindrance to the smooth operation of companies.”

Inspection­s and investigat­ions in the past have shown no cases of wrongdoing by Indian IT services companies.

 ?? AFP/GETTY IMAGES ?? Late last year, Amazon’s chief Jeff Bezos, left, Larry Page of Alphabet, Facebook COO Sheryl Sandberg, then-U.S. vice-president-elect Mike Pence and then-president-elect Donald Trump met at Trump Tower. These executives and others from tech firms have...
AFP/GETTY IMAGES Late last year, Amazon’s chief Jeff Bezos, left, Larry Page of Alphabet, Facebook COO Sheryl Sandberg, then-U.S. vice-president-elect Mike Pence and then-president-elect Donald Trump met at Trump Tower. These executives and others from tech firms have...

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