It is currently 21 Oct 2017, 05:59

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

H-1B Visas: 'Buy American' Comes to TARP

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Current Student
avatar
Joined: 26 May 2005
Posts: 555

Kudos [?]: 239 [0], given: 13

H-1B Visas: 'Buy American' Comes to TARP [#permalink]

Show Tags

New post 06 Feb 2009, 21:17
Hi guys !!!

What do u think abt these restrictions. Would it affect Intl students @ B schools in their placements especially Banks?
Here goes the link

http://www.businessweek.com/blogs/money ... s_buy.html
http://www.alleyinsider.com/2009/2/bill ... ring-h-1bs

Posted by: Dan Beucke on February 06

By Moira Herbst

It’s another attempt at requiring companies to “Buy American” – but in this case, not American iron or steel, but American workers.

The U.S. Senate voted on Feb. 6 to put stricter limits on banks and other recipients of taxpayer money through the Troubled Assets Relief Program, or TARP, that want to hire high-skilled workers from overseas under the H-1B visa program. The Senate approved the measure – introduced by Senators Charles Grassley (R-Iowa) and Bernie Sanders (Independent-Vermont) – by voice vote as an amendment the economic stimulus package President Barack Obama is urging the Senate to pass.

The vote came the same day that the government announced that that 598,000 U.S. jobs were lost in January, the biggest one-month drop in 34 years. The unemployment rate reached a 16-year high of 7.6%.


The amendment that passed isn’t as tough as the one Grassley proposed on Feb. 5, which would have prohibited firms from hiring H-1Bs altogether. The modified amendment instead makes TARP recipients jump through extra hoops before they can hire those foreign workers. Specifically, it subjects recipients of TARP funds to the same rules so-called H-1B dependent employers must follow. (An H-1B dependent employer is one whose workers brought in with that visa comprise 15% or more of the employer's total workforce.) These rules include:

1. The employer can’t displace any similarly employed U.S. worker with an H-1B hire within 90 days before or after applying for H-1B status or an extension of status.

2. The employer can’t place any H-1B worker at the worksite of another employer – meaning it can’t outsource a worker for a client – unless that employer first makes a “bona fide” inquiry as to whether the other employer has displaced or will displace a U.S. worker within 90 days before or after the placement of the H-1B worker.

3. The employer has to take good-faith steps to recruit U.S. workers for the job opening, at wages at least equal to those offered to the H-1B worker. The employer must offer the job to any U.S. worker who applies and is equally or better qualified than the H-1B worker.

“These are hardly onerous expectations,” notes Ron Hira, professor of public policy at the Rochester Institute of Technology and an expert on H-1B visas. Hira says the provision would affect about 1,000 jobs.

The amendment falls short of preventing large banks from using H-1Bs brought into the U.S. by outsourcing firms like India-based Infosys (INFY), Wipro (WIT), and Tata, which are among the top recipients of petitions for the H-1B visa program. “Most of the H-1B use, and abuse, happens through relationships banks have with outsourcing firms,” says Hira. “I don’t think [the amendment] restricts them from working w those firms.” In other words, a bank could still legally force a laid-off American employee to train a replacement worker who is on an H-1B visa.

A related provision was passed in the U.S. House on Jan. 21 as an amendment to a bill that passed to reform TARP.

That measure, introduced by U.S. Representative Sue Myrick (R-N. Carolina), prohibits TARP recipients from outsourcing call-center work to foreign companies. The bill has not yet been taken up by the Senate.

Rising unemployment is leading to more scrutiny of the H-1B visa program and its effects. On Feb. 1 an Associated Press story said that the dozen banks now receiving the biggest TARP rescue packages, totaling more than $150 billion, requested visas for more than 21,800 foreign workers over the past six years for positions such as senior vice presidents, corporate lawyers, junior investment analysts and human resources specialists. And in my story earlier this week, I wrote about the controversy surrounding Microsoft’s efforts to lift caps on the number of H-1B worker visas while it eliminates 5,000 jobs.

Kudos [?]: 239 [0], given: 13

Director
Director
User avatar
Joined: 14 Sep 2007
Posts: 908

Kudos [?]: 95 [0], given: 15

Schools: Kellogg '10
Re: H-1B Visas: 'Buy American' Comes to TARP [#permalink]

Show Tags

New post 06 Feb 2009, 21:51
Any restrictions on the employment of highly skilled workers in the US is, in my opinion, irresponsible and contrary to one of the key factors that has made this country an epicenter for commerce and innovation.
_________________

http://www.fantasticcontraption.com

GMAT Club Premium Membership - big benefits and savings

Kudos [?]: 95 [0], given: 15

Manager
Manager
avatar
Joined: 21 Mar 2006
Posts: 131

Kudos [?]: 17 [0], given: 0

Re: H-1B Visas: 'Buy American' Comes to TARP [#permalink]

Show Tags

New post 06 Feb 2009, 23:17
I calculated my opportunity cost for US MBA and it came out to be 250-300 K . Top it with nose diving economy of US and US govt putting restriction really grim chances of post graduation employment. I am based of singapore and realize that brand value of top US Business schools (apart from top 5) is not as strong as well.
Is it really a worth doing MBA from US for an Asian?

Kudos [?]: 17 [0], given: 0

Current Student
avatar
Joined: 26 May 2005
Posts: 555

Kudos [?]: 239 [0], given: 13

Re: H-1B Visas: 'Buy American' Comes to TARP [#permalink]

Show Tags

New post 07 Feb 2009, 00:30
I am based out of India and an R2 applicant to H/S/W... there is no way I can imagine coming back to India post MBA and earn in Rupees to Pay loan in Dollars ,its umimagineable. I dont mind working in S'pore, HK, London where I believe the brand of HSW is very very good, work permit is relatively easy and the pay is same if not more than that of US. But this move by US government will deinitely every intl student think twice before joining an MBA no matter if its top 3 or top 5.

Kudos [?]: 239 [0], given: 13

Senior Manager
Senior Manager
User avatar
Joined: 29 Mar 2008
Posts: 348

Kudos [?]: 96 [0], given: 0

Re: H-1B Visas: 'Buy American' Comes to TARP [#permalink]

Show Tags

New post 07 Feb 2009, 00:42
IMO and from what I have see from the past, the government can bring as many rules as it wants, the companies will always find a loop-hole or circumvent the issue. I think that, there will be a minimal impact wrt to H1B Visa restrictions.
_________________

To find what you seek in the road of life, the best proverb of all is that which says:
"Leave no stone unturned."
-Edward Bulwer Lytton

Kudos [?]: 96 [0], given: 0

VP
VP
User avatar
Joined: 28 Feb 2008
Posts: 1323

Kudos [?]: 127 [0], given: 6

Schools: Tuck
Re: H-1B Visas: 'Buy American' Comes to TARP [#permalink]

Show Tags

New post 07 Feb 2009, 07:18
Honestly, those "new" restrictions are pretty much in line with the rules right now.

From what I've read, finance firms don't tend to sponsor a ton of H1-Bs anyways.

RF
_________________

GMAT Club Premium Membership - big benefits and savings

Kudos [?]: 127 [0], given: 6

Manager
Manager
avatar
Joined: 08 Feb 2006
Posts: 248

Kudos [?]: 10 [0], given: 0

Schools: Ross, Kellogg, Darden (i/v)
Re: H-1B Visas: 'Buy American' Comes to TARP [#permalink]

Show Tags

New post 07 Feb 2009, 07:39
refurb wrote:
Honestly, those "new" restrictions are pretty much in line with the rules right now.

From what I've read, finance firms don't tend to sponsor a ton of H1-Bs anyways.

RF


I agree to your first point. It is not very different from what is already in place.
In the good days, finance/IB along with consulting used to be the biggest H1B sponsor at business schools.

Kudos [?]: 10 [0], given: 0

VP
VP
User avatar
Joined: 28 Feb 2008
Posts: 1323

Kudos [?]: 127 [0], given: 6

Schools: Tuck
Re: H-1B Visas: 'Buy American' Comes to TARP [#permalink]

Show Tags

New post 07 Feb 2009, 08:26
mba07 wrote:
refurb wrote:
Honestly, those "new" restrictions are pretty much in line with the rules right now.

From what I've read, finance firms don't tend to sponsor a ton of H1-Bs anyways.

RF


I agree to your first point. It is not very different from what is already in place.
In the good days, finance/IB along with consulting used to be the biggest H1B sponsor at business schools.


Hmmm! Did not know that!

I've always heard that it's pretty difficult to get H1B sponsorship for most positions coming out of an MBA program, so I just assumed that was across the board.

RF
_________________

GMAT Club Premium Membership - big benefits and savings

Kudos [?]: 127 [0], given: 6

Senior Manager
Senior Manager
User avatar
Joined: 04 Aug 2008
Posts: 372

Kudos [?]: 37 [0], given: 1

Re: H-1B Visas: 'Buy American' Comes to TARP [#permalink]

Show Tags

New post 07 Feb 2009, 08:34
Things are definitely not good for H1B. Microsoft, who was a bigest proposal and supporter of H1B visa expansion (prolly because of cheaper labor...) is now laying off more then 5000 ppl. They wont be able to make a case anymore alltogether with financial companies.

Decreasing h1B will decrease global competitiveness of these companies but everyone is now looking for a scapegoat to blame for high unemployment among the US workforce

I think Bush placed a big cap on number of H1B visas that can be issued annualy, so this is a reflection of those kind of policies
_________________

The one who flies is worthy. The one who is worthy flies. The one who doesn't fly isn't worthy

Kudos [?]: 37 [0], given: 1

Manager
Manager
avatar
Joined: 21 Mar 2006
Posts: 131

Kudos [?]: 17 [0], given: 0

Re: H-1B Visas: 'Buy American' Comes to TARP [#permalink]

Show Tags

New post 07 Feb 2009, 09:12
I just cannot put the numbers to justify an MBA in US in current situation ... I have drop the idea of applying any US MBA and will stick to europe and Singapore.

thnks

Kudos [?]: 17 [0], given: 0

VP
VP
avatar
Joined: 11 Dec 2006
Posts: 1430

Kudos [?]: 223 [0], given: 6

Location: New York, NY
Schools: NYU Stern 2009
Re: H-1B Visas: 'Buy American' Comes to TARP [#permalink]

Show Tags

New post 07 Feb 2009, 10:04
There is a pool of H1B for MBA grads, it doesn't get fully subscribed until about 1 month of being available (compare to immediate for non-grad study).

Banks will still sponsor for H1B. I know that from direct experience, as do a bunch of my friends graduating this year. I don't know where these rumours start - I know consultants are going through the same process. The only thing that seems to be open to debate is the situation of being in H1B when you start, so not having the full time period.

The conditions seem fine - why not employ equally qualified domestic candidates at the same price? It also effectively says "employ overseas candidates where they are better".

For the person upthread, I strongly recommend you look into European visas. The UK definitely tightened the policy last year. Singapore still remains by far and away the easier option.
_________________

GMAT Club Premium Membership - big benefits and savings

Kudos [?]: 223 [0], given: 6

GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 10 Apr 2007
Posts: 4318

Kudos [?]: 762 [0], given: 5

Location: Back in Chicago, IL
Schools: Kellogg Alum: Class of 2010
Re: H-1B Visas: 'Buy American' Comes to TARP [#permalink]

Show Tags

New post 07 Feb 2009, 13:57
I am far from a protectionist, and definitely support bringing the best and the brightest to the US to keep our position in the global economy. Personally, if you are going to come here for an advance degree and get paid the same thing as another grad no matter what your country of origin then thats fine.

However, many companies use the H1B to bring in people when they claim they can't find people who are qualified. As someone who is an engineer, is married to an engineer, and has tons of friends who are engineers this is not really a very accurate picture of what companies do. They say OK we need an electrical engineer and we will pay 50k...oh we can't find anyone to take the position. Surprising? I think not when you are paying far below market value. Well we can easily find some one overseas who fits this job requirement and they will be willing to work for 35% below what an American with a few years experience and still holding 50k worth of student loans will want. I am don't hold it against people from overseas taking the jobs, but most companies can't honestly say they can't find people to fill those positions with qualified people from here.

Personally, I think we should be more in-line with the UK system which awards points based on things like salary, where you got your degree, what degree it is. Make it simple to bring in people who are either going to be better than the talent that is available or fill a job function we cant fill from within the US easily. I think people who come here for degrees should have an added advantage. Yes Insead is a great school but someone who spent 2 years and 150k getting a degree from a top 10 school in the US should have priorities. I feel bad for some of my classmates who want the same career path as I do but there are far fewer doors open for them. Its silly in my opinion to bring them here, teach them at the best schools, and then show them the door and let them bring all that talent someplace else.

If you want to attract and keep the best and the brightest, just create a point system that ensures you are awarding a visa to the electrical engineering Phd from MIT here instead of giving it to just some recent bachelor grad from whatever unknown school in whatever country. No offense but how many MIT phd's in EE are there compared to how many of the other people? Find the best schools overseas and award them high points too; MBA's from Insead, engineers from IIT...but still say priorty should go to the MBA from Wharton and the Cal Tech engineer.
_________________

Kellogg Class of 2010...still active and willing to help. However, I do not do profile reviews, don't offer predictions on chances and am far to busy to review essays, so save the energy of writing me a PM seeking help for these. If I don't respond to a PM that is not one of the previously mentioned trash can destined messages, please don't take it personally I get so many messages I have a hard to responding to most. The more interesting, compelling, or humorous you message the more likely I am to respond.
GMAT Club Premium Membership - big benefits and savings

Kudos [?]: 762 [0], given: 5

Senior Manager
Senior Manager
User avatar
Joined: 04 Aug 2008
Posts: 372

Kudos [?]: 37 [0], given: 1

Re: H-1B Visas: 'Buy American' Comes to TARP [#permalink]

Show Tags

New post 07 Feb 2009, 14:20
riverripper,

That is an interesting idea but a lot of talented students cannot afford to go to the top schools and a lot of talent would be lost. Also, the pressure on high ranked schools would be enourmous and thats not fair towards 90% of other schools either.

When you say that 50k is below the market value - It is in the US. But in today's global economy companies are competing world-wide. They develope strategies and programs and compete with each other for 6 billion ppl marketshare. If US companies cannot access cheaper labor that would increase their costs and they will lose some of their competiveness, especially in a long run.

Labor is just another cost as is material. Should manufacturers be forced to pay a certain price of raw materials such as wood, steel or whatever?

It is understandable that some forces want to protect US labor but shouldnt the market value supposed to be observed globally, so if there is such a big source of engineers ready to work for 50k then why not? Why pay double that amount?

That is exactly what happened with US based car makers, they were spoiled for years, protected, and over time become uncompetitive on the global market.

Protective measures are good in the short run but they cripple the economy in the long run.

H1B workers are forced to pay social security but they never get to use it and dont get their money back. The company also have to do a lot of paperwork and to prove there are no Americans available at the moment, ofcourse there are many loop-holes to this but... its not as easy to hire one.

US Companies should be set free to have easy access to cheapest material and labor available or they will be outperformed by the competition.

After all, if company cannot decrease labor costs within the US, they will completely outsource their factories and everything overseas, perhaps register it under different name or whatever so thats even bigger lost
_________________

The one who flies is worthy. The one who is worthy flies. The one who doesn't fly isn't worthy

Kudos [?]: 37 [0], given: 1

VP
VP
User avatar
Joined: 28 Feb 2008
Posts: 1323

Kudos [?]: 127 [0], given: 6

Schools: Tuck
Re: H-1B Visas: 'Buy American' Comes to TARP [#permalink]

Show Tags

New post 07 Feb 2009, 15:10
riverripper wrote:
They say OK we need an electrical engineer and we will pay 50k...oh we can't find anyone to take the position. Surprising? I think not when you are paying far below market value.


The H1B visa requires that the sponsor completes a labor condition application (LCA) and pays at least the prevailing wage (which is determine by the Department of Labor).

Every H1B that I've seen at our company is paid the exact same any a US employee and it is far above the "prevailing wage".

However, the system is open for abuse. If a company wants to hire someone on an H1B, they will often create a position with a very specific role description that only the foreign worker can fill. There may be US citizens who could do the job, but because they don't fit the job description perfectly, they are passed over.

RF
_________________

GMAT Club Premium Membership - big benefits and savings

Kudos [?]: 127 [0], given: 6

Director
Director
User avatar
Joined: 26 Mar 2008
Posts: 652

Kudos [?]: 128 [0], given: 16

Schools: Duke 2012
Re: H-1B Visas: 'Buy American' Comes to TARP [#permalink]

Show Tags

New post 07 Feb 2009, 16:22
Whether or not you feel it's fair or smart, protectionism in the US is only going to get worse in the coming months. Geithner's accusing China of currency manipulation last month is only going to start the dam flowing. That combined with all the job loss, we are going to be hearing tons about how there's an uneven playing field. The government is going to be stuck in a tough spot, because people are going to be very angry once unemployment checks stop paying out and they will demand this kind of thing.
_________________

"Egotism is the anesthetic that dulls the pain of stupidity." - Frank Leahy

GMAT Club Premium Membership - big benefits and savings

Kudos [?]: 128 [0], given: 16

Senior Manager
Senior Manager
avatar
Joined: 30 Aug 2008
Posts: 251

Kudos [?]: 6 [0], given: 0

Re: H-1B Visas: 'Buy American' Comes to TARP [#permalink]

Show Tags

New post 07 Feb 2009, 20:34
I agree with some of the points mentioned above.There is certainly a lot of abuse of the H1B system,especially by outsourcing firms.Add to that the innumerable number of boutique(desi) consulting companies. There should be some sort of merit system.

On the topic of wages,I keep hearing that H1Bs are paid less,but that is not the case atleast from what I saw.The LCA specifies the minimum prevailing wage in that region and companies will pay that to abide by the DOL rules.

Kudos [?]: 6 [0], given: 0

Current Student
User avatar
Joined: 23 Jan 2009
Posts: 118

Kudos [?]: 40 [0], given: 0

Schools: Fuqua
Re: H-1B Visas: 'Buy American' Comes to TARP [#permalink]

Show Tags

New post 08 Feb 2009, 14:32
I think this is primarily a CYA move on the part of the Senate. When things start to get worse (before they get better), they want to show that they've tried to help out the American worker. Incidentally, the vast majority of the job losses over the last few months have been focused in manufacturing and low-end service-sector jobs (those highly publicized losses at Microsoft et. al. notwithstanding), not in the kinds of fields that MBA-holders generally end up in. Finance is an obvious exception to that.

I too support expanding the H-1B visa program, but in a more strategic way. For example, if we really wanted to screw the government of Iran, a smart thing to do would be to offer H1-B visas to any highly-skilled Iranian engineer who wanted to come over.

In other cases, I think we should remember that recruiting all of the "best and brightest" of the rest of the world to come work in the U.S. generally contributes to the brain drain phenomenon that deprives many developing nations of the human capital they need to build their own economies.

Kudos [?]: 40 [0], given: 0

Senior Manager
Senior Manager
User avatar
Joined: 13 Jun 2007
Posts: 410

Kudos [?]: 83 [0], given: 0

Schools: Wharton, Booth, Stern
Re: H-1B Visas: 'Buy American' Comes to TARP [#permalink]

Show Tags

New post 09 Feb 2009, 09:46
rca215 wrote:
Any restrictions on the employment of highly skilled workers in the US is, in my opinion, irresponsible and contrary to one of the key factors that has made this country an epicenter for commerce and innovation.


I second that opinion 200%.
_________________

Wharton admits, join the rugby team!! It'll be by far the best experience of your MBA life

Kudos [?]: 83 [0], given: 0

Current Student
User avatar
Joined: 21 Aug 2008
Posts: 348

Kudos [?]: 38 [0], given: 0

Schools: Fuqua '11
Re: H-1B Visas: 'Buy American' Comes to TARP [#permalink]

Show Tags

New post 11 Feb 2009, 12:52

Kudos [?]: 38 [0], given: 0

VP
VP
User avatar
Joined: 09 Dec 2008
Posts: 1221

Kudos [?]: 245 [0], given: 17

Schools: Kellogg Class of 2011
Re: H-1B Visas: 'Buy American' Comes to TARP [#permalink]

Show Tags

New post 11 Feb 2009, 13:18
It's not just us Yanks who are feeding the protectionist beast. Our neighbors to the north look to be getting in on it:

http://www.theglobeandmail.com/servlet/ ... m_mostview
_________________

GMAT Club Premium Membership - big benefits and savings

Kudos [?]: 245 [0], given: 17

Re: H-1B Visas: 'Buy American' Comes to TARP   [#permalink] 11 Feb 2009, 13:18

Go to page    1   2    Next  [ 22 posts ] 

Display posts from previous: Sort by

H-1B Visas: 'Buy American' Comes to TARP

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  

Moderators: OasisGC, aeropower, bb10



GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.