Financial Daily from THE HINDU group of publications Wednesday, Nov 24, 2004 |
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Industry & Economy
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Employment `Visa reform measure will protect US jobs' Sridhar Krishnaswami
Washington, Nov. 23 EVEN while raising the skilled worker cap by 20,000 but confining the increase to only Masters and Ph.D graduates of American educational institutions, law makers have sought to ensure that there are not only protections built in for American workers but also tighten and "reform" the H-1B and L visa programmes. The Visa Reform measure came as a part of an omnibus spending bill that cleared the House and Senate last Saturday. "This is a balanced bill that provides for the needs of US businesses and protects the interests of US workers. Importantly, this legislation will increase our competitiveness and promote job growth for America's future," Senator Mr Saxby Chambliss, Republican from Georgia and one of the co-sponsors of the bill, remarked in a statement. The legislative reforms exempt up to 20,000 graduates of American educational institutions who have a Masters or a Doctoral degree from the annual 65,000 H-1B cap for these workers are seen as "best of the best" of the highly skilled professionals that are critical to US companies. "This bill ensures we build our competitive strength and keep jobs here in the US," Mr Chambliss said. He also made the point that the H-1B visa "is important to US companies which must compete against global businesses". There is an increase in fee to $ 1500 for each application for education and training programmes for American workers; and there is a $ 500 anti-fraud fee for every H-1B and L visa categories with a view to protecting against abuse. Congress has further stipulated that local companies must certify that the H-1B visa worker is not displacing an American worker; and the prevalent wage for foreign workers must be equivalent to that of their American counterparts. The Labour Department's authority to conduct investigations and enforcement against inappropriate uses of the H-1B visas has been expanded. Senator Mr Chambliss that his provisions safeguard the abuse of the L-1 visa as some kind of international "job shops" for bringing in foreign workers and essentially outsourcing them to third parties that results in the loss of jobs for American workers. "While the legislation does not harm the legitimate use of the L visa by most US companies, the bill will stop firms from circumventing the original intent of the visa", he said. "My bill targets the problem, plus the loopholes and protects US jobs." According to the latest requirements on the L-1 visa, an applicant with specialised knowledge petitioning for this visa will be controlled and supervised by the petitioning company and provided in connection with an exchange of product or service.
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