TRUMP TO LIMIT CONTRACTORS’ USE OF FOREIGN WORKERS IN US
Order will increase scrutiny of federal contractors’ use of H-1B visas to hire highly skilled workers
WASHINGTON: Citing job losses caused by the Covid-19 pandemic, President Donald Trump on Monday signed an executive order that bars federal government agencies from displacing American nationals and citizens with foreign workers. It also calls for prohibiting US employers from using H-1B workers to displace Americans in outsourcing contracts, a move that may hit Indians.
The measures in the order will also apply to H-4 visas given to spouses of H-1B holders and the L visas used by companies to transfer foreign workers to the US. But the freeze does not apply to immigrants already in the US or to permanent residents seeking to become naturalised citizens.
Monday’s move is a follow-up of Trump’s ‘Buy American, Hire American’ executive order of April 2017, which launched an unprecedented scrutiny of the H-1B visa programme.
Indians hired by US companies US subsidiaries of Indian IT firms are the largest beneficiaries of the H-1B visa programme, accounting for more than 70% of the 85,000 that are issued every year.
US EMPLOYERS ARE NOW PROHIBITED FROM USING H-1B WORKERS TO DISPLACE AMERICAN WORKERS IN OUTSOURCING CONTRACTS, A MOVE THAT MAY HIT INDIANS
WASHINGTON: Citing job losses caused by the Covid-19 pandemic, President Donald Trump on Monday signed an executive order that bars federal government agencies from displacing American nationals and citizens with foreign workers. It also calls for prohibiting US employers from using H-1B workers to displace Americans in outsourcing contracts, a move that may hit Indians.
The measures in the order will also apply to H-4 visas given to spouses of H-1B holders and the L visas used by companies to transfer foreign workers to the US. But the freeze does not apply to immigrants already in the US or to permanent residents seeking to become naturalised citizens.
The White House said the order will “create a policy where federal agencies will focus on US labour in lucrative federal contracts” . All federal agencies will conduct an internal audit to ensure only US citizens and nationals are appointed to the competitive service, it said.
“President Trump’s actions will help combat employers’ misuse of H-1B visas, which were never intended to replace qualified American workers with lowcost foreign labour.”
Monday’s move is a follow-up of Trump’s ‘Buy American, Hire American’ executive order of April 2017, which launched an unprecedented scrutiny of the H-1B visa programme.
Indians hired by US companies such as Facebook, Google, Microsoft and Amazon and US subsidiaries of Indian IT forms like Infosys, TCS and Wipro are the largest beneficiaries of the H-1B visa programme, accounting for more than 70% of the 85,000 that are issued every year.
The immediate provocation for Monday’s order is the decision in May by the Tennessee Valley Authority (TVA), the largest federally owned power provider, to outsource 20% of its highly skilled tech workers to Accenture, Capgemini and CGI, that are based in Ireland, France and Canada respectively.
The White House said TVA’S action could lead to the firing of 200 highly-skilled Americans, who will be replaced by “lowwage, foreign workers hired on temporary work visas” and cost the local economy tens of millions of dollars in the next five years.
“So let this serve as a warning to any federally appointed board,” Trump said, adding he was pushing for the firing of TVA CEO Jeff Lyash. “If you betray American workers, then you will hear two simple words: ‘You’re fired. You’re fired’.”