Prohibition on H-IB employees 'protectionist step'

Bangalore, May 30: The National Association of Software Services and Companies (NASSCOM) today dubbed as ''protectionist measure'' the clause relating to prohibiting companies from hiring H-IB employees in the United States, introduced in the Immigration Bill by Senators Durbin and Grassley.

Responding to a letter from the two Senators, dated May 14 to the nine Indian IT companies about reported fraud and abuse of H-IB visa programme and its impact on American workers, NASSCOM on behalf of these nine companies said ''the specific clause in the Immigration Bill prohibits companies from hiring H-1B employees if they employ more than 50 people and more than 50 per cent of their employees are H-1B visa holders". It would affect the Indian IT companies and was a ''protectionist measure''. ''It would reduce the number of H-IB visa holders going to the US and also reduce the competitiveness of IT industry in the US.'' Infosys, Wipro, TCS, i-flex solutions and Satyam computers were included in the list of nine.

NASSCOM said, in a release here, ''knowledge-based services trade has been a unique feature of India-US trade and NASSCOM and the industry were hopeful that the US would not specifically penalise non-US firms and continue to promote free and fair trade. So that this sector could continue to flourish as part of a broader US-India engagement.'' NASSCOM offered to meet and discuss the issue with the Senators at a convenient time.

Representing the viewpoint of the nine Indian companies and the industry, the letter assured the Senators the support and co-operation of NASSCOM and its member companies on the larger issue of visa fraud and it had also echoed the Senators' belief that any fraudulent activity should be dealt with strict actions.

NASSCOM highlighted that H-1B visas were beneficial to both, the US economy and the Indian companies. It also drew attention to the fact that many US industry leaders had repeatedly stressed the need to raise the H-1B visa cap, which was reduced from 195,000 to 65,000 two years ago. It also drew the attention of the US Senators to US Industry leaders who have in public statements commented about the current skill gap in the US and the need for H-1B visas to fulfill the demand for skilled workers. Reports had also indicated that total employment in the technology sector in the US had actually been growing over the last few years.

On the linkage between layoffs and the H-1B visa, NASSCOM noted that these two did not seem to go hand in hand as exhibited through the 2006 survey by Money Magazine. The magazine had said American professionals in 'Computer and Mathematical' occupations were at virtually full employment. While the US had a low annual unemployment rate of 2.4 per cent in 2006, salaries in computer and math occupations had increased by 2.4 per cent between May 2004 and May 2005.

NASSCOM reiterated that while the number of H-1B visas was currently very limited, the H-1B visa was not limited to the IT sector nor to Indians alone. In fact of the H-1B visas granted in the year 2006, nearly 14,000 (more than 20 per cent) visas were granted to American educational institutions, the letter said.

Among other significant areas of note, one at a broader level addressed the mistaken belief that US-India trade was flowing primarily in one direction. As had been recognised widely, India was a major buyer of a host of US goods and services, including aircraft, wheat, branded garments and accessories. An overwhelming majority of the computers and software used by India's IT industry, as also other sectors of the economy, were those produced by US companies like HP, Dell, Microsoft and Oracle. The largest outsourcing contracts from the Indian private sector, as also from the Indian government, had gone to US companies. The rapidly growing Indian economy was importing ever-larger quantities of these goods and services, it pointed out.

NASSCOM also said Indian students now formed the biggest group of foreign nationals studying in the US universities, spending an estimated US Dollars three billion a year. These indicators of a growing trade relationship complement the excellent political and people-to-people relationship that exists between the two countries.

The above instances indicate, very clearly that India and its industries were the strong proponents of building this further in a mutually beneficial way.

NASSCOM said there was a considerable body of evidence pointing to the contributions made by H-1B visa holders to innovation and entrepreneurship in the US which had resulted in job creation on a scale that was anecdotally well-known and widely-recognised, even though it has not been properly quantified.

These contributions had come from nationals of many countries, who had worked in the US under this visa programme. The Indian IT industry and NASSCOM were particularly happy to note the contribution made by Indians. H-1B visa holders pay taxes, pay social security and make significant contributions to the local and national economy. Additionally, in the past two years, to combat potential fraud in H-1B and L-1 visas, companies had paid more than 300 million dollars in government-imposed fees, the letter added.

UNI