UCSF workers claim bias in IT job outsourcing

Foreign workers are scheduled to replace about 80 tech employees, who say they’re being laid off as too old and more costly

OAKLAND — A group of fired UC San Francisco employees who are losing their jobs to foreign workers have filed discrimination claims against the university, seeking to save their positions and stem foreign outsourcing from spreading to other state schools.

Ten UCSF information technology workers lodged discrimination claims this week with the California Department of Fair Employment and Housing, alleging they were laid off because they are too old and from the U.S. The workers are being replaced by young, male technicians from India, according to the UCSF employees.

Experts say the offshoring of IT jobs is striking because they come at a public institution. While outsourcing has become

“This layoff is illegal. We would like very much for UC to reverse this policy.” — Gary Gwilliam, attorney for the employees

common in Silicon Valley, public institutions such as universities have been immune.

In July, about 80 UCSF tech workers received layoff notices. The cuts included 49 career employees and 30 contractors. Another 18 open positions will not be filled.

“This layoff is illegal,” said Gary Gwilliam, attorney for the employees. “We would like very much for UC to reverse this policy.”

The university said in a statement Wednesday that the layoffs were legal and in accordance with UC policies. It maintains that the outsourcing, along with the use of other vendors, will save money, strengthen security and improve quality.

The career and contract employees are scheduled to depart in February. Many have been training their replacements in India through video conferencing and emails, two workers said Wednesday.

“It’s humiliating,” said Audrey Hatten-Milholin, a senior systems architect who has been at UCSF for 17 years. “You’re kind of forced to do it because your severance is pretty much relying on it.”

Gwilliam said the discrimination claims set the stage for a lawsuit, although none has been filed.

Bay Area congressional representatives have asked the university to reverse its decision. Rep. Zoe Lofgren, D-San Jose, wrote UC President Janet Napolitano last month that the contract appears to be a misuse of H-1B visas and could imperil confidential patient information and research.

The cuts amount to almost 20 percent of the IT staff. The university expects to save $30 million over the five-year contract with Indian employment firm HCL. The contract allows the 10 schools in the UC system to use HCL for outsourcing. A spokeswoman for Napolitano said last month that no other universities are planning similar outsourcing.

Kurt Ho, a senior systems administrator, received his layoff notice and recently trained his replacement. The replacement technician returned to India, Ho said, but has been emailing and calling with further questions. Ho said he has cooperated but expects service and security to suffer.

Some operations, such as running the network for fetal heart monitors, are best done on-site, he said. Other network management involving patient data and independent research will be at increased risk from hackers because operations will be done overseas, he said.

“Patients should be aware,” Ho said.

The nonunion workers have reached out to unions and organized protests to bring attention to the potential pitfalls of the outsourcing. Employees are scheduled to address the UC Board of Regents at its Thursday meeting. Employees recently found job listings posted in the lunchroom — including what appeared to be their own positions.

Hatten-Milholin said she spotted her job — “system architect IV” — advertised by HCL in advance of potentially hiring an H-1B worker. A job must be posted locally before it can be filled with a foreign visa holder.

“It was just devastating,” she said. “I’m a system architect. Why do they need an H1B person to do that?”

The university said neither it nor HCL will be replacing the tech workers with H-1B visa workers “for this services agreement.” The university added that it recently held a job fair for the laid-off workers.