Date: Tue, 20 May 2003 16:48:43 -0700 From: Norm Matloff To: Norm Matloff Subject: L-1 proposal To: age discrimination/H-1B/L-1 e-newsletter As many of you will recall, programmer Mike Emmons caused quite a stir a few months ago when he "went public" with the fact that Siemens was replacing him with a worker imported from India under the L-1 visa program. The local TV news coverage was outstanding, and the local congressperson, Rep. Mica, expressed a desire to introduce legislation to remedy the problem. He has now introduced a bill to reform the L-1 program. Enclosed below are his statement from his Web page, and his speech in the House, as recorded in the Congressional Record. I'm sorry to say that it consists of one hypocritical and misleading statement after another. A few months ago Mica's aide contacted me, asking if I might provide some advice for legislation on L-1. I said I would be happy to do so, but that reform of L-1 should be coupled with reform of H-1B. The aide made it clear that Mica was NOT going to touch H-1B, and he never contacted me again. So when Mica says below that he wishes to close "the back door to cheap labor," what he really means is that he wants to keep the FRONT door to cheap labor open. Mica's announcement says: The Mica bill attempts to correct this inequity by prohibiting the outsourcing of L-1 visa holders, similar to a provision contained in the H-1B visa program. The provision he mentions for the H-1B program is easily circumvented. If for example employer X makes use of the services of an H-1B "body shop" Y, the H-1B regulations prohibit Y from "renting" the worker to X--but Y is allowed to have that worker work on X's project, as long as X "subcontracts" the work to Y. Of course, this is nothing more than a semantic game. They would do the same thing with L-1 if Mica's proposal were enacted. Mica says correctly that the L-1s are brought here as cheap labor, by which Y in effect sells L-1 labor to X. But Mica would still allow X to bring L-1s here *directly*, as long as X had some presence in the worker's home country. Mica doesn't explain why THAT would not be for the purposes of cheap labor. Of course, it WOULD be for that purpose. By Mica's own admission, employers like X want that cheap labor; why would their desire for cheap labor suddenly evaporate if they brought in the workers themselves? Mica claims that there are "protections" against abuse of the H-1B program. Of course, those "protections" are phony; the studies, including in the congressionally-mandated NRC report, clearly show that H-1Bs are paid less than comparable Americans. Moreover, when real protections were proposed for the H-1B program, Mica voted against them. Most importantly, if Mica really were interested in adding protections to the L-1 program, he would have his proposal add a yearly cap to the number of L-1 visas granted. (There is no cap now.) Yet he didn't do so. Useless as this bill is, I predict that it will go nowhere, i.e. won't even get out of committee (or might pass committee but in even more emasculated form). I doubt that Congress wants to open Pandora's Box on this issue now. If they let this proposal get a public forum, the American people may make the same points I'm making here, i.e. that Mica's "reforms" mean almost nothing and that H-1B really needs addressing too. Norm http://www.house.gov/mica/pr03l1.htm Website of the Seventh Congressional District of Florida MICA INTRODUCES L-1 VISA LEGISLATION BILL CLOSES LOOPHOLE, PROTECTS AMERICAN JOBS WASHINGTON, DC U.S. Rep. John L. Mica (FL-7th) today introduced legislation aimed at closing a loophole in current immigration law and protecting American jobs. "Many Americans have found themselves in the unemployment line because some companies have abused our immigration laws," Mica said. "Unfortunately the L-1 visa program, while well-intentioned, has been used as a back door to cheap labor." Currently, companies can transfer employees from subsidiaries in foreign countries to the United States through the L-1 visa program, as long as the intracompany transferees have been employed with the company for at least six months. Once in the country, those employees can then be outsourced to other U.S. firms at a significantly lower wages and as replacements for American workers. In some instances, American workers have been forced to train their own L-1 replacements or suffer the loss of severance pay. The Mica bill attempts to correct this inequity by prohibiting the outsourcing of L-1 visa holders, similar to a provision contained in the H-1B visa program. Under this measure, American companies will still be permitted to employ L-1 visa holders. However, those employees can only be transferred from company subsidiaries, not from a third party. Mica continued, "While we want to help our businesses meet their workforce needs, this proposal will help ensure that Americans are no longer victimized through a legal loophole." There are currently over 325,000 L-1 visa holders in the United States, and hundreds of cases of the displacement of American workers. The Mica bill is expected to be referred to the Judiciary Subcommittee on Immigration and Claims. http://www.ilw.com/lawyers/immigdaily/congress_news/2003,0521-lvisa.shtm [Congressional Record: May 19, 2003 (Extensions)] [Page E996-E997] From the Congressional Record Online via GPO Access [wais.access.gpo.gov] [DOCID:cr19my03-36] L-1 VISA REFORM ______ HON. JOHN L. MICA of florida in the house of representatives Monday, May 19, 2003 Mr. MICA. Mr. Speaker, today I have introduced a bill which seeks to close a loophole in immigration law by prohibiting the outsourcing of L-1 intracompany transferee visa holders, similar to a provision contained in the H-1B visa program. The L-1 visa allows companies with subsidiaries abroad the ability to transfer employees [[Page E997]] from foreign countries to the United States as long as the intracompany transferees have been employed with the company for at least six months. Once in the country, those employees can then be outsourced to American firms at a significantly lower wage. As a result, many Americans have found themselves in the unemployment line. Simply put, this is a back door to cheap labor. In 1998, as the economy was soaring and demand for IT workers was rising faster than supply, Congress passed S. 2045, the American Competitiveness in the Twenty-first Century Act. This legislation temporarily increased the cap on H-1B visa holders allowed into the country. In doing so, we also protected American jobs by adding restrictions to the program. However, the L-1 visa remains unchecked, unrestricted and unfortunately, abused. Unfortunately, thousands of Americans are unfairly losing their jobs through the abuse of the L-1 temporary work visa program. There are currently over 325,000 L-1 visa holders in the United States. In my 7th Congressional District of Florida, there are hundreds of cases of the displacement of American workers. In many of these instances, American workers are forced to train their own L-1 replacements or suffer the loss of their severance pay. Examples of similar replacements of American workers by lower paid foreign workers arrive in my office daily. This situation is deplorable. Mr. Speaker, during this time of economic downturn we need to be creating jobs for Americans, not putting more of them at risk by allowing firms to replace American workers with foreign nationals who are not subject to the same wage restrictions as holders of the H-1B visa. Finally, I want to point out that American companies will still be permitted to employ L-1 visa holders. However, those employees will have to transfer from their own subsidiaries, not from a third party outsource. Mr. Speaker, I urge prompt consideration of this legislation.