> "In late November, this former employee received his annual performance review, which he provided to The New York Times. His supervisor, who was not aware the man was scheduled for layoff, wrote that because of his superior skills and “outstanding” work, he had saved the company thousands of dollars. The supervisor added that he was looking forward to another highly productive year of having the employee on the team. The employee got a raise. His severance pay had to be recalculated to include it."
That's absolutely horrible. Not only is it a case of left hand not talking to right hand, it almost seems cruel to review someone in the position of being laid off so highly that it warrants a raise. Nobody stopped to consider "maybe we should keep this employee around?" It's disheartening.
It was probably horrible at the time, but I'm sure that person will be able to look back on it and laugh at the pure incompetence of Disney's management.
As someone else commented, outsourcing is often the last-ditch effort by terrible IT managers, and that incident seems to confirm it.
These aren't 20-something coders living in the valley with an endless list of job opportunities and 30+ remaining working years. These are employees who are very close to retirement who live in an area where Disney is the giant in terms of tech job offerings. They have families and financial obligations that are dependent on the salary they were receiving. As the article stated, many were forced to retire early and many others have not been able to find work.
They likely don't enough time left in their careers to be able to 'look back on it and laugh'.
It's called out sourcing, So it is 100% not dependent of the employee performance it is based on the ability to out source to save money 100% of the time.
This is why Labor Unions are good :) BUT most people these days look at them negatively sadly.
Outsourcing rarely saves money. And while we can argue in how many percent of cases outsourcing ends up being cheaper than retaining your current experienced engineers, I am certain that number would never equal 100%.
I am certainly NOT a fan of out sourcing. My School District did that with Substitute Teachers due to low pool. Guess what it failed at its reasoning 100%.
I'm not sure that outsourcing is the appropriate term, at least not in the usual sense, when your replacement is brought in to sit in your exact chair.
If they are really on the ball, they would ask middle management to rank their grunts.
More commonly though, a director or vp will make the choices in bulk based on other factors like salary. Of course this means high performers, who were given raises commensurately, are first to go in that model.
> “It was so humiliating to train somebody else to take over your job. I still can’t grasp it.”
Indeed, that sounds terrible. I haven't been in that (exceptionally difficult) situation, but I wonder why the laid off employees consented to this? I wouldn't be in any rush to help the company lay me off and transition to a cheaper replacement. Was their severance package dependent on this?
Yeah, if you read the letter informing workers of the layoff, it's clear that their severance depends on continued good performance until a separation date. Good performance includes training the replacement.
The severance is only one month's pay, though, and they had to train their replacements for 3 months to get it. Not to mention that at the end of those 3 months the market will be flooded with all your ex-coworkers. Doesn't seem worth it to me.
The one time something vaguely like this happened to me, granted my boss made it very personal although in truth he'd lost his ability to sell, I would have been much, much better off telling him to FO and leaving on the spot, instead it triggered anxiety that eventually disabled me, which I later learned I had a genetic predisposition towards.
For your transgression, I hereby sentence you to five minutes of reading YouTube comments, which the Supreme Court has determined is the maximum permissible before it violates the Constitution's guarantee against cruel and unusual punishment.
You're assuming their options are to stay or to be unemployed for 3 months. I'm saying it would be easier to find a job immediately (when there are fewer people on the market) than wait until everyone is laid off and you have more competition for jobs.
More likely, if they'd left immediately, many of them could have gotten the equivalent of 4 months wages at their new job, since hopping is often the best way to get a raise.
Good point. What is the bare minimum to qualify for "good performance?" What training information is classified as critical and necessary? Some specifics could be easily omitted, I expect. There could be a tinge of satisfaction in crippling your replacement.
I feel like in such a highly technical field it would be fairly easy to deliberately omit plenty of critical details without anyone noticing. It seems it would also be possible to make small additions to the system such that you would be the only person who really knows how things work.
As long as you answer all of their questions you would certainly be meeting the good performance stipulation. There would be no way for them to know whether you are providing the whole story. Why offer up information that is not specifically requested? After all, the hardest part of engineering is knowing which questions to ask in the first place.
Using the previous employer as reference when searching for future jobs could become difficult if you play asshole during the transitioning period.
Although in this case i think most future employers would be understanding of the situation. But even so, during an interview you only have that much time to show a good image of yourself, there's not always time to explain everything and any minor hickup, suspicion or oddity could cost you the job, you don't want to leave the interviewer only remembering lots of "but" and "except that time".
When you are currently employed, it is understood that you cannot ask your current boss for a recommendation. So long as the new employer does not know that you are under the ax, you will not have to give this reference. In jobs after that, you may or may not have the option of using the Disney boss as reference, but that's a long way off and uncertain ...
Well it's more about preying on vulnerable people in general. Not playing along may make you lose your severance, and may also ruin your rep with that company for the purposes of re-hire.
Obviously you shouldn't work for the Disneys of the world if you can work somewhere else. If you're really confident that you can find good work wherever and whenever you want it then you can afford to tell a bad employer like Disney to fuck off. For various reasons, a lot of people can't do that.
>Extortion: the practice of obtaining something, especially money, through force or threats.
I guess I can see how threatening to not give them something is a threat, but if that is how expansive our definition is, how is regular employment not extortion?
Or they're paying a 10% bonus of yearly salary as payment if they're willing to train their replacement.
If someone offered me $10K extra on top of my salary to take the trash out and clean the company kitchen for 2 weeks, I would gladly do it without blinking, even if it's a little humbling. I don't know about you. Calling it extortion is a bit much.
> If someone offered me $10K to take the trash out and clean the company kitchen for 2 weeks, I would gladly do it without blinking, even if it's a little humbling. I don't know about you.
You mean 90 days, because that's the requirement in their agreement. And its not "taking out the trash", its directly training your lower-wage foreign replacement.
It's more than that with big employers like Disney in towns with limited options. You end up getting blackballed from future employment with contract providers if you say or do anything perceived negative.
10% is around a months wages. I'd tell them to get lost if that's all they offered to train my replacement (plus regular salary), I could find a new job in less than a month. I'd need a few months severance to go through that level of embarrassment, and not contingent on me finding a new job.
Because you've taken people who are at a very vulnerable spot in their lives, and who are probably going through a lot of self doubt as to whether they'll be able to find another job in that time.
Not really. they were still entitled to severance, but their severance would be 10% higher if they trained their replacement. Also, they would have a job for 3 months while looking for another job.
Severance packages can be equally about financial extortion, liability mitigation and goodwill. You need to sign something to get the severance package and it probably says that you aren't going to the press to complain about being fired. You aren't going to a competitor. You aren't going to sue because you were wrongly fired (disability, protected class)...
I was in the same position when I worked at H-P. They outsourced our team to Costa Rica and we spent our last few months training our replacements remotely. The last few weeks we just sat around, watched them work, and answered their questions.
It was a weird position to be for several reasons, but the weirdest part was getting to know lovely people who were excited about their new job in Costa Rica and feeling the perverse incentive to train them poorly so my job might last a couple more months. It's not something I ever hope to relive.
The H1B program disallows hiring foreign workers and paying them less than the equivalent rate for US workers. While there may be some debate about whether tech companies find ways to skirt the law, "we are laying off US workers to save money and replacing them with H1B workers" seems to flagrantly violate the law. No?
I think the issue is that the new employees were not employees of Disney, but rather they were employees of a consulting company that Disney contracted out to. Presumably those employees had been hired by the consulting companies as H1B workers ahead of time, thus you can't tie their hiring directly to the later layoffs at a different company.
Basically, it's a loophole that should probably be closed.
Yes. And why not? That's the whole point of countries. Americans are discriminated against by India, so we discriminate against Indians. Same with the English, Canadians, Chinese, Finns, Malaysians, name a country. Is it a lovely, wonderful system? Absolutely not. But I'm sick of being told I have to love the H1-B program or I'm somehow racist.
Here's what I would support: if another country wants its citizens to be able to work in the US, they can offer to let Americans work there. Every American who goes to work there means one person from there can come work here, free and clear, but the numbers have to stay in lock-step, the net delta can't be greater than one for a given year.
Because unfair discrimination makes it worse for everyone involved: workers (cannot get jobs), employers (cannot hire qualified people), consumers (higher prices).
> That's the whole point of countries.
Of course not.
Countries have their own legal system which could be good (competition between various legal systems), but there is no good reason to discriminate on the government level against foreigners.
Even if other countries discriminate against Americans, the US would still benefit by NOT discriminating against citizens of these countries.
> Even if other countries discriminate against Americans, the US would still benefit by NOT discriminating against citizens of these countries.
Some Americans would benefit. Others would suffer because competition would be tougher. And of course no one wants a social safety net because that would reward laziness or some other awful protestant work ethic bullshit.
If unlimited immigration came along with a robust social safety net (at least single-payer healthcare and a basic income guarantee) I would be right there with you.
If the parent commenter was actually supporting discrimination against foreigners (hint: said commenter wasn't), you wouldn't have needed to phrase that as a question.
If he does not support discrimination against foreigners, then why does he suggest to use government resource to limit foreigners' ability to do work for US corporations?
Discrimination against foreigners is the law. In the US, and just about every other nation, this is the case. Many believe that a good government should consistently enforce its good laws and change its bad ones. So either the government should enforce the visa laws, to the benefit of some US citizens and at the expense of some foreign workers and their employers, or change the law to allow foreigners different rights with respect to the US labor market.
H1Bs are a way to discriminate against all workers, foreign and domestic. The domestic workers are competing in a larger hiring pool, lowering their wages. The foreign workers are operating with heavy restrictions on their employment and stay in the country, lowering their wages.
The better thing to do is to lower barriers to immigration, both temporary and permanent, not play one labor pool against another to the benefit of capital.
Discrimination is created by the laws that prohibit foreigners to work in the US by default.
Then H1b and other immigration "holes" soften that discrimination.
TulliusCicero wants to remove "holes" that allow foreigners to do work for the US companies.
Such removal of "holes" would in effect make discrimination against foreigners more severe.
That to an extent... furthermore, by definition, the H1B candidate has skills that are found lacking in the market. But now they end up needing training.
It's the "prevailing" wage. So it's likely beneficial for the company to let go of the senior staff who are above prevailing, and keep the junior staff who are below.
This is not true. You pay supply/demand. Someone with less expenses, or visa constraints, or other geographic constraints, but equally talented, will accept a lower wage.
"Equally talented" is where your academic theory falls flat.
Any engineer who accepts lower wages than their predecessor is either of lower talent and experience, or is by some situation forced to accept less. "Forced" being a key term.
Talent cannot be measured with the same formula used for guns and butter.
I know someone who has consulted for Disney IT a few years ago. Specifically in engineering management. They did not have a very high opinion of the culture and the overall productivity of the organization was abysmal; he considered it a "Dilbert-land" place to work. So in that vein they seem to be doing something completely predictable.
If someone comes to me to outsource me, I would totally help them do it because they will end up with exactly what they deserve. Outsourcing software engineering is the last refuge of incompetent management.
Exactly what I was thinking after reading this in the article:
"In late November, this former employee received his annual performance review, which he provided to The New York Times. His supervisor, who was not aware the man was scheduled for layoff, wrote that because of his superior skills and “outstanding” work, he had saved the company thousands of dollars. The supervisor added that he was looking forward to another highly productive year of having the employee on the team."
Seems like they should be looking to lay off some managers as well.
I would like to see H1-B visas awarded to individuals rather than the company/position. It really distorts the job market to have people tied to a particular position at a particular company. If H1-B visa holders could look for other employment after say 6 months then the market could set the fair wage implicitly rather than trying to get the government to do explicitly which they are pretty poor at doing in my experience.
The American immigration system has a lot of issues with it but I think this could be a relatively easy fix. I've worked with a lot of H1-B employees and in general I think the United States is really lucky to have such talented people willing to relocate and live in the US.
This would absolutely solve the problem of H1B and wage distortion. The individuals would be able to move from company to company and negotiate their rate - finally companies could hire as many H1Bs as they qualify. OH WAIT they don't want that at all, they just want cheap labor.
Would the applicant then cover his own relocation expenses? Landlords usually want to see a paycheck stub or a letter of intent stating that a paycheck is coming.
Also, existence of an offer from a legitimate company determines candidate's eligibility. How would Department of Labor filter eligible candidates from the ones who've just padded their resumes?
For my above hack of the current system an applicant would still be sponsored for an existing position at an existing company. The only difference would be that after some period of time, say 6-12 months the applicant could take the visa and use it for employment at other companies. If employers are paying competitive wages it shouldn't be any problem to retain H1-B visa workers like regular workers.
My feeling is that the current system of tying applicants to positions is supposed to protect US workers but actually distorts the market and incentivizes companies hire H1-B visa holders as they can't leave easily but can still be fired anytime.
> The only difference would be that after some period of time, say 6-12 months the applicant could take the visa and use it for employment at other companies.
Legally one could start the interviewing process the day after they arrive in the US on H1. Contractually they might have signed agreements to compensate their employer for relocation and legal costs if they work for less than a year.
In principle you can change jobs but it is really just new H-1B petition which is expensive and time consuming for new employer. To quote from the site you link:
This is the sort of thing that makes me very sympathetic to unions. Imagine if the entire disney IT workforce stood up at once and said "ok, we all leave, now." What would happen to Disney's IT systems?
This is almost a perfect example of divide-and-conquer, where a united and powerful single actor (a corporation) picks off workers one by one.
I'm pretty sure, at this point, that IT workers will never unionize. I'd say that people who see the value in a union will probably just go into other fields (like nursing, where unions have actually successfully threatened strikes over exactly this issue).
I don't know how things work at disney, but my guess is that at most companies with even mildly complex IT systems governing operations, things would collapse in an extremely damaging way long before an outsourcing company would be able take over operations.
I think that within about 15 minutes of a general IT strike, the electric fence would go out, the velociraptors would escape, and the jedi knights would start to wish those were real light sabers.
> I think that within about 15 minutes of a general IT strike, the electric fence would go out, the velociraptors would escape, and the jedi knights would start to wish those were real light sabers.
I got a good laugh at this, seeing it as a reference with the velociraptors but only realizing that all of those things are in their park as I finished the sentence.
I have wide experience with a very broad variety of companies' disaster recovery infrastructures, for over a decade. To date, without exception, not a single one of those DR infrastructures and plans include a provision for, "...and we lose X% of IT staff in a random distribution all at once during the DR incident, where X>30". This has implications.
1. The probability of 30+% of the IT staff suddenly not working the next day is considered vanishingly low, even in DR contexts where they routinely deal with low probability events.
2. Even if (1) was to come about, IT management pretty universally agrees with each other that IT staff are generally replaceable on short notice without irreversible consequences to the organization.
The case for organizational data disappearing and causing irreparable harm to the organization is pretty well established and accepted by IT management. It is not at all clear to me that even if an IT union entrenched itself in a major company, that a mass walkout would be taken that seriously, because I haven't yet seen the case made and accepted that IT organizational staff disappearing causes the same or greater harm.
The corollary implication is that IT organizations commit more process capital to retention of the bits sitting on spinning rust than to staff retention. Staffing spend remains an overwhelming percentage of the annual budget of most IT organizations, and if it isn't well-accepted that this staff disappearing all at once causes catastrophic damage, then I can't be surprised when there is so much assiduous effort at reducing that spend.
I don't agree with this mainstream IT management outlook on the matter, but most IT management is constrained to what they can demonstrate in financials and budget spreadsheets to senior management. Slowly degrading capabilities don't show up in those sheets until very late in the game.
I think if it becomes clear that nurses and other unionized jobs are indeed safe after IT gets hurt badly, there may be some backlash. There has been a very careful and successful demonization of unions in the US.
Given the crime associated with unions, the featherbedding, the simple observation of how union dominated companies and whole industries abjectly failed in the post-post-WWII era, well, let's just say they did all the demonization needed to themselves.
Keep in mind, unions were just performing a public service. They were acting badly so that people could see just how low a bar you could set for people to still prefer unions over corporations.
Honestly, though, unions missed the mark in this case, they vastly overestimated how high the input would have to be to get to get a "true" from public boolean is_more_ethical_than_corporation(int union_ethics).
EDIT: hga - I can't reply, which is probably a good thing. I got a little overly sarcastic there. It doesn't help discussion, my apologies.
Wow, when I started coming of political age in the very late '60s and read about the murder of Joseph Yablonski, his wife and daughter, (https://en.wikipedia.org/wiki/Joseph_Yablonski), I had no idea the game was so deep....
Are we overlooking the crime associated with corporate management, the featherbedding, and how non-union company employees abjectly failed to thrive in the -- what's a "post-post-WWII era" anyway?
How many murders can you cite ordered by the management or even committed by the rank and file of Fortune 20 or so companies (equivalent to the United Mine Workers or Teamsters I mention in two incidents in another reply in this sub-thread)? Any comments from Jimmy Hoffa?
Post-WWII is a strong period for unionized employees and companies, with much of the competition suppressed by war time damage, and the playing field less tilted toward unions by the Taft-Hartley Labor Act of 1947. Post-post is after that, when many if not most unionized US industries declined, e.g. steel and auto.
This is why I say that the floor for H1-B should be 5X the minimum wage, or 10x the poverty level and a 20% employer tax on top of that. Then there would be a lot less abuse.
If you really cannot find someone domestically to fill a role, there's no reason you should be paying less for such rare skills.
Yes, taking the financial advantage out of the equation would do much to discourage h1-b abuse.
Instead of trying to pin it to some standard of living metrics, I think its probably better to make it a multiple of the prevailing wage instead of the prevailing wage. If H1-B's are truly filling positions that companies cannot fill domestically then those workers should be worth far more than domestic counterparts. Companies should also be required to provide justification for rejection of each domestic worker that applied for the position.
These two things would probably fix the majority of the H1-B abuse, whether it results in more outsourcing is another question. But, large companies have data centers that need skilled labor to diagnose problems on site, be it SFP replacement or simply tracing cables. So i'm not sure how much of that kind of work can actually be outsourced.
You could also make it so an H1-B worker has several months after quitting or getting fired to find a new job in the states. This would mean the employe isn't afraid of loosing their job as much. So they could demand a higher salary.
There's no reason that you cannot do both.. I'm only suggesting that any salary should be at LEAST n times the minimum wage or poverty level for where the job is located. As a baseline, it would be just that... something that is no lower.
For the most part, H1-Bs shouldn't be for positions under 100k/year although they consistently are, and that's a fixed number, I simply feel that n times minimum wage for a location would be a better starting point.
That doesn't make sense. The marginal rate for an H1-B employee should be approximately the same as the marginal rate for a local employee -- If talent is truly scarce, then your existing employees wages are bid up to the max already.
I know foreign workers are a controversial topic in the software/tech industry...but intrinsically does it matter the replacement worker was foreign? In other words, would there be less controversy if the worker was replaced with a lower paid American, or what if the foreign worker was paid more (it appears opponents of foreign workers might take greater issue if the foreign worker was paid more than the American-counterpart).
I understand the general claim/controversy is that American workers are laid-off and replaced with foreign workers who are paid less...lowering the wages for American workers across the board. But there does not seem to be evidence of that in this instance, just a "they took our jobs" attitude that the foreign worker. Obviously there is a separate issue, in that it appears the employer seems to have expressly stated that the worker's position was being eliminated, but does not appear to be accurate, I am just curious why focus on the foreign aspect.
Here's a hypothesis, although I don't have the data to back it up:
When you bring foreign workers in, you have to train them, teach them skills, work culture, etc, that local workers already have.
I would assume this leads to a situation where the job market simply becomes more saturated. Even if H1B regulations require giving above the prevailing wage, over the long term, job market saturation will suppress wage growth through more contention for limited positions, and they may in fact be saving themselves money by paying the higher wages to essentially "Water down the soup"
A rational reason to focus on the foreign aspect is that we have immigration controls that disadvantage foreigners. These controls distort the market at the expense of laborers more generally.
Immigration controls worsen the bargaining positions of foreign workers relative to Americans; this is an opportunity for employers. Employers then exploit their advantage by preferring to hire foreigners; this extends the disadvantage of foreigners to Americans.
> does it matter the replacement worker was foreign? In other words, would there be less controversy if the worker was replaced with a lower paid American, or what if the foreign worker was paid more
Foreigners on HB-1 will almost always make less. This is why companies do this. You won't find an American willing to earn less, because they know what they are worth and can demand it. If the foreign worker were to be paid the same as an American in the same position, the incentive to replace the worker vanishes completely.
So yes, we'd be happy with your conditions. Because either of those conditions being fulfilled would stop H1-B in its tracks, except for the extremely rare occurrence where a company finds value in importing a foreigner for their talent/skills/experience, as opposed to padding the bottom line.
Well, "foreign" indicates that the operation was likely illegal. You might think that law unfairly discriminatory, but even so, if it is lowering wages, it is a net-loss overall, as more money its pocketed by wealthy owners instead of wage-earning employees.
The truth is that the demand for technologists across all industries is so high right now that an increase in H1B visa quota brought very little impact to the overall supply demand in the current job market. Look around, is it any easier to high developers now?
What's sad about it though, is that, given the reputation of these out-sourcing companies such as Infosys, I am not too confident in the qualification of the tech people they imported. Worse, these companies are so good taking advantage of the loopholes in the H1B application process that they actually hurt the chance of people with really qualifications.
Speaking of the application process, are H1Bs ever denied by the government? Does the current process put the burden of proof on the government to show that yes, there are in fact US workers who could do this job?
> Does the current process put the burden of proof on the government to show that yes, there are in fact US workers who could do this job?
No, it puts the burden of proof on the employer. My employer had to submit about 600 pages of paperwork to show that yes, they did look around a lot before hiring me (including records of applications by candidates). I have no idea how the outsourcing firms get away with that.
> I have no idea how the outsourcing firms get away with that.
They make job descriptions that only the immigrant worker could possibly fill, e.g. they demand that they have all the niche skills a candidate has that could possibly apply to the role, they demand that candidates are willing to work for the same pay in the same location and they do their best to advertise the position in places people won't look, like physical newspapers.
I also find that the prevailing wage information for software engineers is very low, at least when I've seen it on my own LCA forms it's been a lot lower than what I'm getting paid and I can easily see how other companies could abuse the process.
> Does the current process put the burden of proof on the government to show that yes, there are in fact US workers who could do this job?
The burden is on the company. They must advertise the position externally and internally. Note that in this case it wouldn't be Disney advertising the position and filing the application - it would be the outsourcing company.
This statement is irrelevant, though, as the story is about a company that already had competent people doing the job. It's not a situation where they couldn't find people to work. It's a situation where some MBA asshole wanted to bump up his bonus by a few thousand.
To me, this doesn't look as horrible as the article makes it out to be.
I get a ~90 day notice that my job is ending, during which time I continue to work the same hours and have time to apply to other positions inside and outside of Disney.
After that, if I don't have a job w/in Disney and separation occurs I get 10% of my annual salary. That's 5.2 weeks severance.
Am I missing something in the numbers?
There is certainly an emotional aspect to "training your replacements", but it does seem like Disney is trying to do right by employees and shareholders at the same time. Better balancing act than I've seen at most places.
> To me, this doesn't look as horrible as the article makes it out to be.
> Am I missing something in the numbers?
Whether it's horrible or not, the point of the article is that Disney (via it's subcontractor) is violating the H1B program by using it to directly replace workers at a lower wage.
The law says nothing about lower or higher wages, the law is specific about "prevailing" wages. If someone gets paid a $100,000 salary, but the prevailing wage is $75,000, paying $70,000 puts company within the realm of prevailing.
The formula does not incorporate experience, education or cost of living.
That's referencing the H1Bs that Disney employs directly. This article involves hiring a company to import replacement workers on Disney's behalf. They don't need to be prominent in Visa lobbying since they can just hire companies who are, and possibly skirt legal responsibility for their misuse of the H1B program in the process. It's a win for the corporation and a loss for their American workers.
Interesting, I hadn't caught that when I read through it the first time:
"Many American companies use H-1B visas to bring in small numbers of foreigners for openings demanding specialized skills, according to official reports. But for years most top recipients of the visas have been outsourcing or consulting firms based in India, or their American subsidiaries, which import workers for large contracts to take over entire in-house technology units — and to cut costs. The immigrants are employees of the outsourcing companies."
They don't really say how many H1B workers are employed through Disney's contractors, but it's definitely implied
The take away I got from the article is that these people are being replaced by workers here on H1-B visas. Which are suppose to be used only for positions that you can not find any American workers for.
So Disney instead hires a contractor service that employees H1-B people to replace the people being laid off at a lower rate.
While the originals were still employed at Disney, they weren't available to be hired at Disney. So Disney was forced to hire H1Bs, as there were no Americans to be found for those seats; they were already in those seats.
Longer than 0%. If I were in these folks shoes, I'd probably take the deal. It's not like refusing is going to keep your replacement from being changed.
That said, this seems a clear violation of the spirit of H1B, if not the letter of the law. We need better enforcement of this.
You're only looking at this from the single instance of a single individual's point of view with a single company. If more companies get away with this, the result will be that there will BE no "other positions" to apply to, because every company will be abusing this method. The fear is that eventually the ~90 day notice may become notice of the end of your chosen career.
If someone else is coming in to do your same job, then "to do right" means that you get to keep your job. Disney was profitable when these 250 workers worked there. Firing them to save a few bucks by replacing them with low-paid foreign workers is wrong. There's no "do right" in that equation.
There is no way in hell you could possibly say they are trying to do right by employees. No way in hell. If they were, they wouldn't be laying them all off simply to save a buck.
As an Indian and an H1B myself who is compensated decently (1.8 times prevailing wage) -- I hate these companies since they lead to us being stigmatised as a group. I'm sure my coworkers are going to read this article today and point at me and say "Ugh, there's my H1B replacement.", even though I'm like one of two H1Bs at x00 employee company.
Ultimately, this leads back to the fact that the US has a large number of laws which are not enforced in reality. If these companies are breaking the law so badly (and they probably are, the top 7 or so companies using H1B are Infosys and other outsourcing firms) -- why don't employees go ahead and sue them? They are (presumably) incorporated in the US after all, it's not like they are untouchable.
This is also an excellent case for H1B reform. If a green card was a necessary condition of employing an H1B, these tech companies would have a much harder time retaining their lower paid employees, and the cost of "outsourcing in the US" as it were, would be prohibitive.
>> If these companies are breaking the law so badly (and they probably are, the top 7 or so companies using H1B are Infosys and other outsourcing firms) -- why don't employees go ahead and sue them?
Lawsuits are extremely expensive and when you are butting heads with some of the largest corporations in the world, your odds of prevailing are pretty much nil. The only hope of overcoming those kinds of odds is for the government to get involved.
Ugh. I can't deny this may happen, and it shouldn't. But at this point, I think a lot of people are aware that there are alternate universes of the H1B system.
One side of it doesn't (deliberately) treat an H1B worker any differently than anyone else. In truth, even in top companies, the limited mobility of the worker may influence things in ways that aren't noticed - if it's harder to leave, it's harder to negotiate, even if you're a top dev at google. But ultimately, these companies more or less hire and treat H1B workers the same as their core workforce.
Then you have this completely alternate universe. A lot of people were pretty shocked (including people who strongly support skilled immigration) to discover that most of the largest users of this program are outsourcing companies. Part of the outrage even came from the pro H1B camp, since people who are offering very high salaries for top talent discover that visas are "all run out", because they have to apply for the same lottery as a company that is paying vastly less (and replacing a US citizen in the process).
So many things wrong about this move by Disney. Terrible to see Julian Castro pushing for H1B increase. I hope the technology sector worker takes heed. Silicon Valley, Wall Street, and all corporations are out to keep wages low using whatever legal means possible, even illegal as the Steve Jobs/Eric Schmidt agreements show. $100K+ salaries is too much for the 1% and their investors to sustain so they'll bring in the foreign workers through these visas to replace 40+ year-old tech workers (age discrimination?). The federal government doesn't care. It is too busy trying to work out the TPP which no doubt, is another win for these corporations. The tech sector workers need to unite to maintain the gains they have made. The last time Americans had access to this quality of life was working for manufacturing plants. Unions helped maintain that lifestyle until over time, the 1% removed those protections and unions started dying off. Once again, we have an opportunity to maintain a high quality of life but we need to unionize. If you hate the word union, then use community. We need to form a community of tech sector workers to protect our gains. We cannot let these corporations get away with this without us making a move. Show or not, Gawker writers know that bloggers are easily replaceable what with all the English majors American universities are churning out each year. To protect their jobs, it makes sense to unionize. There's no reason why a 30-something year-old writer should live with the fear that any day, a fresh out of college individual can easily take over.
I for one won't be taking the family to Disney after reading this article, brutal. How do you measure how happy people are in your theme parks if they're on the street? Voice your concerns with your wallets and with local politicians. This is wrong on so many levels.
I would have given two weeks notice as soon as they tried to pull this off. If they escorted me out the door as soon as I gave notice, so be it. In America, the land of "employment at will", the only way to stack the deck in your favor is to have "fuck you" money in the bank. This counters the effects of employment at will and turns it to your advantage.
I saw an article on Reddit yesterday claiming that 47% of Americans would have to sell something or seek a loan to pay $400 in unexpected expenses. (I didn't actually read it, of course, so I'm not sure if "loan" is a credit card.)
You have just described the weakness of the American populace. They deliberately don't teach people in public schools to work towards financial independence, that would be bad for the oligarchy.
Strike funds are one of the few good in theory concepts about unions.
(Flip side is that they can be used to ease the pain of strikes called for e.g. internal political struggle reasons, like a not too long ago UPS strike, and they can be raided like any other union piggy bank.)
I would love to know Paul Graham's reaction to this story. H1Bs are a f-ing scam. There is no shortage of tech talent, there is a shortage of companies willing to pay for said talent.
And stop talking about H1B holders as "immigrants". They are not. H1B is a non-immigrant visa.
H1Bs can be useful when there is a (single) person you would like to hire because of individual skills or talents, and plan to pay them the same as any other employee.
I've had this happen to me a handful of times in my career, and the H1B program was genuinely helpful there. Unfortunately, it is more often used to save money in situations like this article, making the program less useful for more legitimate situations.
You should read the article. H1Bs are not immigrants but they are allowed to try to become immigrants while in the US. The process to get permanent residency is not any different between someone who has an H1B and someone who is oversea (ie finding someone to file a petition, either a spouse or a company). The only difference is that the H1B can live and work in the US during the process.
All you're saying is for the right amount you can pretty much get anyone to do anything. Most people would agree with that. Water shortage in CA? Well not for the rich dude who is going to pay thousands of dollars to get a tanker to water their lawn. That does not mean there is no water shortage.
The writer could have done a better job concealing their sources — the people who spoke on the condition of anonymity could still be easily identified by the information (age, skills) listed in the article.
They weren't identified by name, and potential employers won't know their age until they're hired on and have to provide it for benefits.
Disney's legal department would probably prevent anyone from revealing names based on the information presented, to prevent expensive lawsuits (which, if they were to occur, might wipe out any savings they're realizing from their unethical behavior).
I went through a round of this (elsewhere). Not to focus specifically on India, but in my case I was asked to train two Indians. Over the course of a couple of months, they proved unable to effectively do the job. But, budget and power relationships often win out over effectively doing the job. Especially in a larger company, where any blame for resulting declines in productivity or outright failure, gets spread around to the point where those responsible for the decision are not adversely affected.
I also saw the latter with some of my domestic colleagues. For a while, I would step into the gap and ensure that things were corrected.
With the benefit of experience and hindsight, I would do things differently. Learn to pro-actively walk away from such circunstances, as soon as you can. The longer you stay, the more you contribute to the success of those making such policy and the more you risk trapping yourself in the results.
Isn't this at will employment? Companies can ask any employee to take the trash out or even clean up the kitchen(barring physical disabilities and strength). If you refuse they can fire you, same as you can quit anytime for any reason or no reason.
"According to federal guidelines, the visas are intended for foreigners with advanced science or computer skills to fill discrete positions when American workers with those skills cannot be found."
skills are not found in a vacuum but a market which has a price point. when someone says Americans lacking skills they usually mean at prevailing market prices. which always operate in the direction of reducing cost. so yes providing services at a certain price point is a skill. businesses do it by increasing efficiency, people do it by cutting discretionary income.
Nope. The visa does not count cost as being a factor. If the only person in America that you can find costs $1MM a year, then you are supposed to hire that person, instead of seeking H1-Bs. If you can't afford them, then you clearly did not need them that badly in the first place.
That doesn't really hold up. Once we are well clear of the minimum wage, there is room to have an inversion where there are 1000 positions to fill and 500 qualified candidates who could auction-price themselves above the profit they generate.
If the cost of employing someone is above the profit they generate, then you don't hire them. US corporations don't have a legal right to purchase labor at a price that makes their businesses viable. If they can't make money employing people in the business they're in, then they need to rethink the structure of that business or their investors need to put their capital elsewhere.
I don't really think H1B workers can be considered at will workers. The company usually retains the right to fire the worker at will, but H1B workers have limited rights to remain in the US should they leave their jobs without a new sponsor lined up.
US citizens and permanent residents can change jobs freely, drop out of the work force, go back to school, transition to a new career, and so forth, all without jeopardizing their right to live and work in the US. While H1B workers do have some rights to change jobs, their mobility is considerably more limited.
You don't have to be especially cynical to believe that the very one-sided nature of the "at-will" relationship here, along with the high stakes for the employee (if you can't get a new job with a new sponsor, you will have to leave the country), is huge part of the appeal of these visas.
H1B employees are "at-will", and even in a more precarious situation with a sword of Damocles hanging by a thread over their heads. If they quit, they get sent back to their home country unless they arranged in advance for a different employer to sponsor them. If they are terminated, or laid off, they get sent back to their home country. It's fucked.
Yes, I did understand that, but I think that if you're replacing "at will" employees with non at-will workers, in a very one-sided relationship, that is a relevant consideration in any use of the phrase "at will".
They weren't fired for failure to carry out their duties, they were fired because they were more expensive than their H1B replacements, which clearly violates the purpose of the H1B program.
So, was it legal for Disney to fire them? Probably. Was it legal for Disney (or rather, its contractor) to replace them with H1Bs? Probably not.
What Disney did is perfectly legal. They fired people, and hired a third-party contractor to fill the positions for cheaper. That third party contractor was "unable" find Americans to fill the positions of "contracted IT worker" so used H1-B workers to fill roles at the contracting agency, not disney. They were then contracted out by the agency (who they officially work for) to do work at Disney.
It is incredibly shitty and absolutely against the spirit of the visas, but it's not against the letter of the law.
Sure it was easy enough to fire the employees to make room for their replacements due to at will employment, but did that wasn't really the focus of the article (and not to be snarky at all but I find it fascinating that that was your take away after reading it)
Yea, if they wanted to get paid/severance, they had to do what they were asked to do. Seems reasonable? It sucks that someone else got their job but they were under no obligation to stick around unless they wanted to get paid.
The point of the article isn't that someone else got their job, it's that someone else was imported to take their job under the guise of a program that is intended to fill labor shortages at the prevailing wage, not as a means of achieving a cheaper workforce.
A major problem I see with H1-B workers is that they are basically held captive by their employment. If they are let go they'll either have to find another H1-B role at a different company or they will be sent back to their home country. This control companies have over them basically will cause a foreigner to work harder, accept less pay, and also refrain from making complaints against their employers. It's no wonder that US companies like Disney and others abuse the H1-B system.
I think this is now common. I did the same thing to our replacement after I was laid off. My last 2 weeks with the company was in India doing a face to face training/handover.
But that's different than having your replacement come here, to US soil, to sit in your exact chair as your replacement on an H1B. Whether you find this offensive or not, it's a clear violation of the intent of the H1B program as the sole purpose here is to drive down labor costs.
No, there is a very big ethical difference. The company that outsources to India isn't telling any lies about what it's doing. The company that replaces domestic workers with H1B immigrants - using a law whose stated purpose was to supply workers when nobody with the appropriate skills could be found domestically - is basing its actions on lies and corruption from the ground up.
The article isn't clear, but it sounds like what is happening is that Disney is outsourcing their IT jobs to a 3rd party contractor. That contractor has H1Bs on staff.
Otherwise, hiring an H1B to replace an employee is illegal, but this is sort of a loophole.
I find mainstream hostility towards skilled workers really interesting because if you had replaced this group of people with any other group of people like women or other ethnic minorities, you can really start to see how outright hostile people are.
If you actually take the maxim of fairness and equality seriously, skilled foreign workers are by far the most unfairly discriminated group of people. Much more than blacks and women who are supposedly discriminated against in tech. Unlike women and blacks, skilled foreign workers actually have the government with arbitrary set of standards to determine who can work and who can't.
Another part of the immigration story that's fascinating is illegal immigrant stories are almost always come with some sob story to make readers feel empathic towards them. Such stories are almost never told with skilled immigrants.
I don't think anyone is hostile towards the workers themselves. It seems more like they are hostile towards disney and the in-sourcing firm which pulled this off. The entire point of H-1B visas is to fill positions when Americans can't be found to do the work. How they can pull off laying off an entire department and replacing them with H-1Bs is very confusing to me. I'd love to hear an explanation for it. What loophole are they using?
I imagine it is the classic loophole of "ask forgiveness rather than permission", which when talking about corporations becomes "take calculated risks based on the likelihood of having a suit brought against you, the probability you would lose such a suit, and the cost if you do". For a big company like Disney, mistreating a department of IT workers is very unlikely to be costly.
On the other hand, it does seem like there should be a regulatory body taking action on this sort of abuse, and I'm curious if anyone knows more about that.
"skilled foreign workers are by far the most unfairly discriminated group of people"
I'm sorry, but I have to call bullshit on this. The State has an economic interest in maintaining high(er) levels of employment among citizens, because employed citizens stimulate the economy, while providing financing for public programs, and while not claiming benefits like unemployment. There's a net economic benefit (not to mention a foundational argument for the role of government) in protecting the employment of a country's own citizenry, so it's not like this is done capriciously.
(Also, fun time to point out: Many other countries have the same exact qualifications that protect jobs from citizens being outsourced to other countries. Including India, fittingly.)
Now, contrast that with the idea that a certain segment of the population is systemically disadvantaged based on race, income bracket, or gender. And for the minority of those disadvantaged who actually achieve qualifications that make them a great fit for a job, they still face discrimination in the form of hiring discrimination and wage discrimination. This is all done not based on merit, or as a matter of economic policy by a government, but rather: whether someone happened to be born a certain color or sex.
Really? There's really even a second of argument to be made about which of these scenarios is more insidious and unfair?
EDIT: Also, SERIOUS dog-whistle warning on use of the word "supposedly" to refer to discrimination against women and other minorities.
Your whole argument hinges on an assumption that national borders are somehow relevant in determining which workers are entitled to jobs. You could recast the same argument in terms of races, and it holds up equally well -- reserving jobs for whites protects the employments of a country's own citizenry, black people don't deserve the rights of citizens, women should stay home and not interfere in business, yadda yadda.
You're being ridiculous. People are upset about the treatment of the existing workers, and angry at the management. Nobody's blaming the new incoming workers.
As far as comparing it to replacing people with women or other ethnic minorities; people did complain loudly about Mexicans "taking our jobs" but that has died down in recent years because people have realized how stupid it is to blame the workers.
Let's not muddy the issue with unwarranted claims of bigotry. The problem in this story is the management at Disney mistreating their existing (now former) employees.
The reality is that often times these foreign workers aren't actually "skilled". They're fresh IIT grads who may be intelligent but haven't enough professional experience to avoid costly problems and delays. The suits only care about next quarter's numbers though.
This isn't just classic bigotry recast. The maxim of fairness doesn't extend across political boundaries where cheap foreign labor can siphon money across different economic spheres leaving domestic workers wanting for a job. Actually the whole reason why people object is that isn't fair to have to compete against someone in Bangalore. Displaced workers can't just choose to move to a cheaper country for work.
> Such stories are almost never told with skilled immigrants.
Because the H1B gravy train means they don't have to sneak into the country.
Per Wikipedia, "As of 2008, the alumni of IIT number more than 170,000." I couldn't find any numbers for total class sizes, but I don't think there are hardly enough compared to the outstanding H1-B visas in the US (and then there's e.g. L1 visas).
And as I understand it, more IIT graduates go into programming from degrees in e.g. mechanical and civil? engineering than those who get CS degrees, because that's where the money is.
I think we would all rather see them get green cards instead of visas.
If they had green cards, than they would be free to find better paying jobs or switch jobs. Instead, the H1-B is essentially shackles that ensures an H1-B stays put while they apply for a Green Card. Otherwise they go back to India, that is a BIG disincentive to leave the employer voluntarily ESPECIALLY since they are here by exploiting a loophole as it is.
> I find mainstream hostility towards skilled workers really interesting because if you had replaced this group of people with any other group of people like women or other ethnic minorities, you can really start to see how outright hostile people are.
It's not just that, if the same practices were used in other industries that are traditionally protected (doctors, nurses, teachers, lawyers, accountants, etc) or unionized, all hell would break loose. But nobody seems too bothered that this happens to tech workers.
Minorities and women are a protected class under US law- their lower wages are due to previous conditions in the US that the citizens of that country have decided to remedy.
Discrimination against skilled foreign workers is not illegal- in fact laws like H1-B require a certain amount of discrimination.
To compare the situation of H1-Bs to women or blacks or even illegal immigration is at best being willfully ignorant of US history and custom. Get back to me when H1-Bs are forced to pick cotton for a couple generations.
I think so. The fact that skilled immigrants actually are skilled probably helps the notion that skilled immigrants don't need help and doesn't deserve any sympathy.
On the other hand, skilled immigrants often seem completely oblivious to the fact that they are completely being discriminated against. Just like blacks who thinks they are being mistreated simply because of their skin color at birth, and women to their gender at birth, skilled immigrants can perfectly adopt their narrative of mistreatment due to birth location. And yet, they don't. They simply take the world for what it is, and try to win it based on merits. Maybe it's because skilled workers go beyond race and gender, they themselves have a hard time identifying themselves with each others.
This is bullshit. I've heard my international student and immigrant friends play this card very frequently. This is especially obvious when they're talking in a self deprecating way. And you know what? They might not be wrong, and that's okay.
The irony of what you're saying should also not be lost on you. You're claiming that you're discriminated against due to your status as a skilled-immigrant worker, but that nobody in your situation would claim this.
Also it seems like you think that women and African-Americans don't face discrimination in tech? I really have a hard time imagining people making this claim, especially with statistics like:
Men are employed in STEM occupations at about twice the rate of women with the same qualifications. [1]
The number of women graduating with computer science degrees has halved in the last 30 years. [2]
Women are treated as if they don't belong in the field, through sexism or dismissal. [3]
How many women do you see stuck in UI Dev? Have you talked to them? Guess what -- a lot of them hate UI but get stuck in the 'girly' part of CS, especially at the entry level. My fiancee, who graduated with me from a top 10 university with an emphasis in Algorithms and Modeling is now doing web UI... Well payed web UI, but still, definitely not the right fit for her skill set.
My African American friends in tech faced the same sort of discrimination -- the cultural barrier to entry we have in the tech field is pretty bonkers.
I'm not sure I buy the argument that foreign tech workers are at any more of a disadvantage. Skilled foreign workers can eventually move back to India and stretch their dollar way further than it would go in the US. Does the average American tech worker have this option?
> Another part of the immigration story that's fascinating is illegal immigrant stories are almost always come with some sob story to make readers feel empathic towards them.
Not sure I would characterize mine, and millions of others' stories as "sob stories". Economical and safety reasons for moving away from place of origin are realities, not short stories for your soul.
It's because skilled immigrants are being brought over specifically to make large companies richer. That's it. There is no other reason. In 95% of cases, there are plenty of people here that can do the job.
I think this would be less of a story if the replacements were not Indian.
Employees get fired all the time for being too senior, too wise to their rights and too expensive (even if that is not the stated reason), and in large companies entire divisions are often laid off and replaced by managed service providers and consultants that'll do the job for less.
This is just the horrible reality of employment in the US - the H-1B system has many faults, but that's not the cause here, the cause is the company itself.
You can see this in every field - employer loyalty is at a low, full time workers get hired on a part time basis, workers get rotated regularly, people get fired so they don't qualify for seniority, hours get shifted to comply with the bare minimum of labor law, etc.
Disclaimer: I'm on an H-1B.
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edit: Clarification: My first sentence should have been "if the replacements were American". Prevailing opinion seems to be that Americans losing jobs to foreigners is unfair, but no one bats an eyelid at Americans losing jobs to Americans - it's just capitalism.
I wasn't really going for the blatant racism angle, even though there is quite a bit of that too at the lower levels of the discourse pile.
You know, I disagree with that. I think the reason this is a big story is that the H1B was sold to congress, and the American people, as a solution to a severe crisis in the supply of software developers and other tech workers.
For instance, Netflix fires people all the time. They also hire H1B workers, at (you can see the data) a very high rate. Now, there are still arguments to be made about worker freedom and mobility, suppressing salaries at the high end, an excessive tolerance of false negatives in hiring… but ultimately, using H1B workers for $250K+ jobs isn't going to get your average American riled up.
Using these visas to specifically fire and replace US Citizens, and withholding a small severance unless the US citizens train their replacements, goes deeply against the way this visa was sold, which is a way to bring in more high level talent that is essentially unavailable in the US (ie., purely additive with synergies with existing workforce, not at all a replacement).
You hit the nail on the head. Would there be these many complaints if the replacements were Canadians? Nope. Would there be many complaints if the replacements were English? Nope. Would there be many complaints if the replacements were Aussies. Nope.
Would there be many complaints if the replacements were Mexicans? Yes.
What's common between Mexico and India? What ever could it be?
Your question is obviously trying to bait people into being racist. However, there is another thread. People from Canada, England, and Australia probably wouldn't be willing to accept far less in terms of salary. The standard of living in those countries is fairly high. So one wouldn't really be able to make the argument that an employer brought in a bunch of Canadians to drive down the wages of Americans.
For your first part, immigrants displacing jobs is a news story pretty much anytime it's not western European. These stories are common place with Hispanics, eastern Euros, Middle Easterners, Africans, etc. The difference here is the perverse corporate (read: institutionalized) incentives to benefit from displacing those jobs.
Your second parts about the reality of employment in the US is dead on. There are some companies (or at least some organizations) that benefit from grooming employees and keeping them engaged, but most pretenses of commitment are embarrassing lies. Reid Hoffman's spiel about "tours of duty" strikes me as the most suitable framework for the current corporate job market.
Am I the only one, who feels like there is something odd about this article?
250 Disney employees were told [...] that they would be laid off.
Is it really big news that 250 were laid off?
Over the next three months, some Disney employees were required to train their replacements to do the jobs they had lost.
What does it mean to train your replacement for a software engineer? Did they teach them how to write code? 3 Month is not enough time for that. Did they explain how their existing code works? That would be quite a normal thing, but 3 month is really long for that.
"because of his superior skills and “outstanding” work, he had saved the company thousands of dollars"
The average software engineer should be able to save a company hundreds of thousands of dollars, not thousands, provided they are given the right resources. If he only saved the company thousands of dollars and did not generate new revenue, that explains why he was laid off.
His résumé lists a top-level skill certification and command of seven operating systems, 15 program languages [...] “I was forced into early retirement,”
If he was really so skilled, why did he not find another position at Disney or elsewhere?
This is exactly what happened in my situation. I'm 54. I was laid off in November 2015 after 25+ years of service at on company. Even though I send out several responses to job posts, I get no responses. Fortunately, I'm financially independent due to saving and investing religiously.
Lesson for all you younger professionals: Save and become financially independent. You will never know exactly when they come for you during a round of layoffs. If you are older than 40, watch out. You are likely on their list.
> If he only saved the company thousands of dollars and did not generate new revenue, that explains why he was laid off.
It is not the job of the software engineer to generate revenue. A software engineer is a part of the process it's not his sole responsibility to generate hundreds of thousands of dollars. The point is to not get bogged down by the semantics of the performance review, the employee being laid off performed exceptionally well according to his supervisor despite which he is being laid off which the supervisor is not aware of.
> If he was really so skilled, why did he not find another position at Disney or elsewhere?
One reason could be the age old old-age problem in the tech industry. The article mentions he is 57 years old(which should be irrelevant when hiring).
This article leans on that 250 number pretty hard. The executive quoted in the article states that 120 of that 250 found other work within Disney by January 30. The end result being little more than an internal transfer of roles. 40 retired, and 90 "did not find new Disney jobs"
This article says nothing of the underlying restructuring that occurred where the focus of the department was shifted from sustainment to development.
It mentions nothing of the laid off employees out of that 90 that found jobs with the consulting companies that would be handling the sustainment work and ultimately sitting at same desk, doing the same work, for more money.
Also, the 40 that retired weren't simply offered 3 months salary and let go. They had the choice to look for other work within the company, look for other work elsewhere, or use the many years of experience they had vested with the company and take a retirement package.
There are also those that lost their jobs as part of that "90" (not 250) on January 30, that were able to rehired at the company in subsequent months in other roles.
Source: I actually work for Disney, in IT, in the building pictured in the article.
This has been going on since the dot com bust. My friend had to train his offshore replacement at his company. He did things like train them saying one thing in the morning, and then say the exact opposite thing in the afternoon. The replacement workers would mention the conflict that but he would insist they were wrong. This went on for a month or so until the training period was over.
I think that's hilarious. People get so caught up in "acting professional". A company can be as shady and immoral as they want to be. They can lie and cheat people their employees out of money, and the common advice to employees is "act professional", "don't burn bridges".
If your company is sticking it to you, sticking it back to them is a perfectly valid choice (although not one I'd take, I'm more the ride off into the sunset type).
The real problem is that workers negotiate salaries as part of their H1B.
A better system would allocate H1Bs to the most talented foreign workers and let them choose their own employer here in the US, negotiating a market rate salary if they so choose.
How about that the companies applying for H1Bs list the salaries they will be paying, and the highest paying 85,000 (or however many per year) are the ones that are awarded.
The article fails to mention that for the H1-B application a Labor Condition Application(LCA) has to be filed, which explicitly states that the employer will
"Pay the nonimmigrant workers at least the local prevailing wage or the employer's actual wage, whichever is higher; pay for non-productive time in certain circumstances; and offer benefits on the same basis as for U.S. workers;"[1]
Full disclosure: I'm on a H1-B and paid way more than the local prevailing wage for my position.
I've been through the visa process a few times at different companies, and it's pretty clear that even employers who are not "taking jobs away from US workers" are sticking to the letter of the law and not the spirit, since the goal is to get that candidate a visa. Microsoft would tell all of the green card applicants not to worry about PERM certification since MS needed so many people that if they found an equally qualified candidate, they would hire that candidate too, but when you see how things get crafted it's clear that company lawyers will do all they can to reduce the likelihood of there being any qualified applicants.
I kind of have the attitude (and have exercised this in the past) that if my employer oversteps the bounds in such a ridiculous way, the contract becomes meaningless at that point.
It is, at the end of the day, paper with words on it.
The idea that this could affect future prospects is true, but only in a sort of vague way that doesn't really matter.
Imagine that a company works you to death and eventually you just can't turn up any more. Does it make sense to worry about references then? Do you ever want to work for such a company again, or even for someone who respects them? I wouldn't.
The H1B program is very clearly NOT meant to be a mechanism for importing workers to swap directly into existing jobs at lower pay. This is the crucial point of the article and of Disney's wrongdoing.
From where I'm sitting, having worked with someone here on an H1-B visa in 2001 at Lucent who was more qualified for the job than I who was paid $45K to my $80K, as someone who has acquaintances at e.g. HP who were laid off along with a bunch of other older employees, who then found HP advertising for an H1-B replacement for his job, I'd say it's very clear that this is exactly one of the things the mechanism is intended for, given the number of visas issued each year and the constant proposals to drastically increase them. It's telling that Ted Cruz, the best for reducing immigration Republican candidate for President in the 2016 election, wants to increase H1-Bs to 300K a year (everyone else in both parties wants to open the floodgates to all).
> I'd say it's very clear that this is exactly one of the things the mechanism is intended for
Actually, no. The fundamental requirement of the H1B program is that workers be paid the prevailing wage. The only way that's possible is for replacement workers to be paid the same as those they replaced, which isn't what happens.
"A limited number of the visas, 85,000, are granted each year, and they are in hot demand. Technology giants like Microsoft, Facebook and Google repeatedly press for increases in the annual quotas, saying there are not enough Americans with the skills they need."
If Microsoft, Facebook, and Google are speaking the truth then wouldn't they be keen to pick up the talent being dismissed by Disney and Edison? Understand that someone monitoring ticketing tech at Disney World is different from a mobile software engineer but there must be some overlap.
The standard answer is that there are not enough Americans with the skills they need willing to work for the wages they'd like to pay. Ideally (for employees) the inability to hire people at salary X would be a market signal that employers need to offer more money. The H1-B program is designed not to interfere with that signal, but it's widely believed that companies give lip service to the law and hire cheaper workers anyways.
How strong would a candidate with "some overlap" come out of the interview cycle? How well would his resume compare to peers that have strong skills in that specific area?
Besides, it's not like US has monopoly on office space for tech companies. Microsoft, Facebook or Google would apply for a visa, but then just hire the candidate for their UK/Ireland/Canada office if they don't get it approved.
10% severance of annual pay seems to be very low for an employee of 10 years. Is this normal in America? In Europe, in my experience, your severance gets larger the longer you have worked there. So for 10 years, something like 5-6months+ of pay would be what I'd expect.
*Edit - According to the UK Government, the statutory redundancy (severance) pay in the UK for a worker of 10 years would be 15 weeks pay at a maximum of £464 which equates to about £7k $10k. Obviously this is only the statutory level.
American companies don't have to pay any severance pay. Some do to get you to sign a non-disparagement, and no solicitation (don't poach my employees after I've laid you off) contract to get a pitifully small severance package. American employment law is on par with 3rd world countries. Most first world countries have better employee protections (worker tribunals, statutory severance, statutory vacation, etc.)
> Disney executives said that the layoffs were part of a reorganization, and that the company opened more positions than it eliminated.
And do all those positions collectively get paid more than what they used to? To a certain extent, I imagine you can hire a greater number of cheap workers who collectively can muddle through the job, but still cost less.
There's something disturbing about the "job creation!" moral trump card, when the same act is destroying or at least hurting other lives and careers.
It sounds terrible, but what's much, much worse is living in India. Sanitation is dreadful, salaries are low, and a corrupt bureaucracy ensures things stay that way.
So the NYT is opposing a practice which makes very poor people much better off, and makes much wealthier people a little worse off - unlike their Indian counterparts, they do not need to jump through hoops to get a visa and work at some other job - all on the basis of where those people were born. Classy.
I'm a little unclear on this: by "makes much wealthier people a little worse off" do you mean the American tech workers, who were most likely middle class before their wages were pushed down by competition from India, or the much wealthier management of Disney, who in my opinion are actually being made much better off?
India isn't better or worse off, India is a country, it doesn't have well being. In addition, no those people cannot fix these problems: political change is extremely hard to achieve and it rarely happens. Empire collapses, revolutions, death of dictators, the rise of an enlightened ruler... short of something like that, you're stuck.
Start up/Product industry is growing in India. But its no where close to providing jobs for India's population scale. Beyond that the new breed of start ups are extremely elitist, and tend to hire only from the best of the colleges.
In short it makes sense to play the start up game in India, only if its your own start up.
It's not as simple as poor vs wealthy. The H1-B program is better than the alternative for many indians, but that's not an argument in it's favor.
To use an extreme example, the workers at Foxconn who work 12 hour shifts, share a bed, and have terrible health problems due to chemicals for making ipads more shiny are quite likely making a decision that's better than their nearest alternative. That doesn't make how Foxconn treats workers ok.
The H1-B program is flawed in that it not only hurts these wealthier americans (those who are being laid off), it hurts Indians too by hanging the threat of deportation over their head if they ever want to change jobs. As usual the wealthiest of americans are able to use the law to make themselves even wealthier.
In a similar vein, quite often I've seen manager asking people to train higher paid newcomers, while performing as fast as usual with no added bonuses.
If you can't beat 'em, join 'em. Quit your job and become the new high paid worker somewhere else. Unless of course there's nobody in the world who will pay you anything more than your current salary. If that's the case, congratulations you're at the best job possible for you.
If you can't find a job for more money somewhere else, then by definition you are getting paid at the market rate (or higher). Usually, people are hired at market rate but over time their salary usually doesn't keep up with the market. At that point, you usually need to switch jobs to get paid market rate again.
Wages are tied loosely to value generated. If you're very skilled at making widgets, you can make the company a lot of money. If widgets go out of style, your value to the company decreases. YOU as a person aren't worth any less, but you aren't worth as much to your current employer.
In the tech industry, you need to be responsible for increasing your ability to generate value and negotiating for to capture your share of the value you create.
Because one couldn't find a job which actually pays the amount one desires? What stops a person from looking for another job while continuing to work their current job? It's not fun, but it certainly is possible.
I feel like this article is a bit sensationalist and lacks the other side of the story. I work for Disney IT, in the actual building pictured in the article. The layoffs in question were the result of a restructuring where many departments were shuffled and changed with an emphasis on new development work. Many employee's were reassigned and transferred, along with those employee's whose roles were removed. My understanding was that the purpose of the restructuring was to put more new development in the hands of actual company employee's with ongoing sustainment work shifted to the hands of contracted employee's. Many of the roles that were shifted to contractors included responsibilities for 24/7 call support and working general trouble tickets.
I cant really speak to the visa status of the contracted employees (I know that seems to be a lot of the focus of the comments in this thread). I do know that many of the people that were impacted by this restructuring found roles in other parts of the organization (which was mentioned in the article), many doing active development work on other projects. These employees included a wide range of ages and experience levels, so I really don't buy that agism was part of this decision. I do not know what those employees ended up making in the new roles, but I do have years of experience with the HR policies of this company and would be very surprised if those employees weren't making at or near their previous levels. With that said I really don't feel there were significant financial gains to be had by shifting those 250 roles around. I recently saw some internal figures showing that the number of non-contractor Disney IT employees has actually gone up slightly in the past year. This could be creative accounting statistics or it could be that there truly is not some scheme to replace knowledgeable local employees with less knowledgeable out-sourced employees as the article suggests. My experience and gut says the latter is more likely than the former, but that is my own opinion. I wont speculate on the disposition of the employees that are truly displaced and out of a job as a result of this restructuring, but I do feel for them, and hope for the best for them.
I've been in my IT role with Disney for only a few years (I have many more years in non-IT roles), but for me, I like the emphasis on actual development, and less on ongoing sustainment. I personally don't feel like my role or those around me are at risk of being replaced by an out-sourced team. I also work closely with some of the "managed services" folks, and appreciate that they will be handling the monitoring and calls in the wee hours while I get to create cool stuff during the day.
Disclaimer: I by no means speak for Disney or it's IT department. This is all my personal observation and opinions.
Actually I would hope they did feel their roles might be at risk given they had 90 days notice for the actual layoff plus many prior notifications in the months leading up to those last 90 days about the change in direction the department was taking.
I really don't understand the tone in comments from this whole thread in general. Many companies, large and small, make decisions that result in a change of direction or focus. The results of those changes may mean that some of roles are no longer needed. Is it inherently negative for an IT group to say they want to focus on new development and not sustainment? Is it because out-sourcing is "bad"? Is it because Disney is a large corporation and "enterprise" has such a negative connotation?
I honestly want to understand this better, because I don't get why there is _so_ much negativity around this.
H1Bs are abused at the large companies as well. I work for eBay and the company regularly turns a blind eye to American candidates in favor of hiring an H1B. The company has had high attrition this past year. During one meeting where a consultant met with our team (80% H1Bs), I called out that many of the company culture problems people raise come up from the fact that managers know they can boss around H1Bs without consequence. Many of my co-workers finally chimed in and agreed. It was this unspoken reality that H1B employees will never tell a manager or director that this is a short-sighted technology decision. After the meeting a few came up to me and remarked they were bewildered I understood their predicament. They disagree with many of the things they are asked to do and want to do better for the company, but they are essentially wage slaves trying to stay in America until they can achieve citizenship. Moving to a new company within 5 years starts the whole citizenship cycle over again too, so they are a less mobile workforce.
Even on simple things like open floor plans, common working hours, scrum/agile methodologies, when an H1B employee is asked for feedback they will offer no real opinion. It has a large impact on the work culture.
Some of my co-workers are great friends. I would love for them to be citizens here, but I cannot help but resent the H1B program to the point where I will now scan companies for how many H1Bs are working there. I want to be a part of a work culture that does not treat its employees like hourly wage slaves. I would prefer they are granted full citizenship so that their lower bargaining rights do not affect mine. Not only do I have H1B friends who feel their d
Someone earlier mentioned that Indians get a bad wrap in Silicon Valley. I'll just throw in that even amongst my Indian friends it is a well-accepted fact that there is a pattern of strong in-group preferences among Indians in hiring practices, office politics, and inter-worker relations. Racial/cultural/religious groups that have strong in-group preferences in diverse settings such as large corporations will tend to get a bad rap.
Amongst Stanford, IVY, etc friends the common comeback to this conversation is that I should start my own company to avoid being an employee. All agree being an employee is a precarious position in America unless you are at one of the top 3 tech companies, but even for those companies, they only need to retain and keep happy their best workers during the high growth phases. The divide is that amongst my friends who have raised $10-30mm seed rounds, they all came from very wealthy backgrounds to begin with. Middle and lower class Americans friends are pursuing my path as well, building up savings and a personal safety net for first 5-10 years out of college because we see how greatly in debt our parents are. The wealthy love the H1B program because it is completely beneficial for them that America has a wage slave system, and they'll never have to be on the other end of the stick.
Outside of engineering, the other roles in companies like eBay that I see where cheap foreign replacement is less of a risk and native Americans are valued are product managers. An MBA is an unspoken prerequisite for that role, and again, I only know of wealthy friends obtaining MBAs. Even a friend who has Harvard MBA stated, "an MBA is worthless, it's basically an extended networking party for rich kids."
It's interesting, I'm on an E-3 visa, being young and full of myself, I never really worried about being fired since getting a new job seemed pretty easy, and while the visa process is a disaster, I have yet to be turned away. I've had to return to Australia once, and stayed in canada for a while due to visa issues and it's always been stress inducing, but I feel like I can deal with it if it comes to it.
On the flip side, my current work tried to convert me to a H1-B since they thought it would be easier to get me a green card from there, and that has been a complete clusterfuck with the lottery where we waited months and my petition wasn't even selected.
I don't agree with your following statement. Why do you have the following impression. Could you point us to any specific document that states this?
H1bs can be transferred easily between companies. Once you have your i-140 approved you can transfer that easily to the new company. You also retain your priority date. In simple terms, you don't lose your place in the GC queue. It takes around 9 - 15 months for your labor and i-140 to be approved.
"Moving to a new company within 5 years starts the whole citizenship cycle over again too, so they are a less mobile workforce"
But...but..there is currently some mythical god programmer stuck in india that could make investors billions if only we had a more open h1b visa program...
Nah these programs are never ever abused in any way shape or form by company management.
In Europe (particularly in Italy) such consulting firms bring workers with business travel visas, keep them working for 3 month and then substitute the whole team with fresh one. The story repeats after 3 month.
This article is framed as a scare-story about visas/immigrants, but what does it really have to do with visas or immigrants? Imagine the workers stayed in India, were trained using videoconferencing and worked remotely. It would be exactly the same situation for the US employees.
Mmh, did you read the article? It clearly has to do with visas, as the Disney workers would likely still be employed if those H1Bs hadn't been granted.
It's absolutely not the same as outsourcing - if Disney could have outsourced the jobs, it would have by now. But these positions likely require physical proximity to the Disney theme park.
This is the ugly side of H1Bs - while Facebook, Google, et al. are using them in a way that (plausibly) doesn't hurt American employment, and are legitimately in need of more slots, that's not the case for the main H1B players (Infosys, HCL, etc), who are just gaming the system to maximize revenues.
Yes, I read the article. My point is that cracking down on visas or immigration won't make any difference long term. The internet makes physical proximity not so important, and it will only get less and less important over time.
Based on your optimism, I suspect that you've never worked on or managed a project of significance using outsourced employees.
Just a few of the realities that you will face if and when you do so:
1) A 12+ hour time difference. I recall nightly conference calls that started at 10pm. If you are somebody who values your time, you will find this untenable. Just use Slack or Basecamp to touch base? See #2:
2) Complete inconsistency in skill and communication ability. It was almost the norm to wake up in the morning and check for the changes we expected to be in place while the outsourced team worked overnight only to be shocked at the lack of progress. One question about a particular detail of the assigned task would bring the work to a screeching halt and we wouldn't find out about it until the next day. We would answer the question (usually inconsequential) and the progress would resume (far behind schedule). In many other cases, work was just done incorrectly and we had to spend the day course-correcting.
3) Lack of talent. After all, the workers who qualify for H1-B's are a self-selecting group who are, by definition, identified as the most talented employees. There is no guarantee that their counterparts who stayed home are able to do the job properly. In my experience most employees were sub-par, as one would expect when they are willing to work for pennies on the dollar compared to a U.S. citizen or somebody on an H1-B.
>>> After all, the workers who qualify for H1-B's are a self-selecting group who are, by definition, identified as the most talented employees. There is no guarantee that their counterparts who stayed home are able to do the job properly
This is false. Many (at least 50% of H1B Indian workers) do not fall under this category.
To give you an example (in software): a company like Infosys would send you average or below average consultants who are good at communicating in English. And then Infosys would charge you higher than the premium developers located in the US, while paying the worker just about average (or even minimum pay by market standards). Over a longer period of time, there are quality issues, reworks, extensions and dependability created. Now, even if a client decided to leave Infosys and hire a premium developer - it is hard and costly. Who wants to take responsibility of a bad quality thing without being given time to improve quality.
The rest of the 50% who are talented, they get paid well, they contribute positively to the US economy and indirectly hurt the Indian economy.
While I don't work with outsourced employees, I do work in a completely remote team, and we use only email, IRC and video conferencing. In fact I had a meeting at 11pm just last night (not too bad for me, but for my colleagues in Israel and Australia who were also on the call it was some unearthly hour of the morning).
I think many of your points could be summarized as "we hired a bunch of idiots and they couldn't do their job very well". Timezones made some difference in that you weren't able to closely supervise them, but the fundamental problem was that your management shouldn't have outsourced the work to people not capable of doing the job.
Working with a remote team on a SaaS application != outsourcing enterprise-level work to overseas employees.
With a small remote team you have the luxury of carefully choosing remote candidates and interviewing them individually. Enterprise-level work (read, bringing on teams of 10-50 developers in a short time frame) does not afford you that opportunity.
I'm not sure how large your company is, but it's pretty apparent you haven't worked with outsourced employees on an enterprise-level (7-8 figure) project before.
It might be less likely to happen that way, though. Here are two possible reasons why.
First, there may be benefits to locating your workforce in the US. They may be closer to the location of core business activities, and the employer may enjoy some benefits of the US legal system and infrastructure. Opinions on this may differ, some people think location is unimportant, others think it is highly important. I'm just suggesting that it certainly may be a factor.
Second, a path to US citizenship or a green card remains very valuable. If an employer can sponsor a visa and green card application, they may get a higher caliber of applicant than they would overseas. There is also a lower possibility of turnover. While it is certainly possible to leave a job as an H1B holder for another, mobility does remain considerably more limited than it would be for a citizen who can freely participate in the labor market (including leaving the field entirely for better opportunities).
I don't really see this as a scare story, because it's pretty indisputable that these visas are sometimes abused. That doesn't mean they always are. How often and how much is another subject of considerable disagreement.
Overall, I will say one thing, they system is horrendously broken when a company that pays over 200k for H1B applicants is in the same lottery as outsourcing companies where people are training their replacements.
If you "imagine" the workers stayed in India, then the article wouldn't be about visas. But since the "reality" is that the workers are here on H1B, then the article mentions visa.
Disclaimer: I am an immigrant in the US on a L visa.
So the real story is something like Indians are prepared to work for less money whether they are in the US or in India. Abolishing H1B visas or cracking down on immigration won't make any difference to that.
The point is there are people all over the world who are willing to work for less money than Americans doing the same job.
If the goal of the H1B visa program was 'import enough migrants to bring down the standard US salary' it probably wouldn't be legal because no politician would get behind it publicly.
So this is really about calling a spade a spade...
Videoconferencing, especially with people you've never met from a foreign culture whom by the way you've just made unemployed, is just not the same. Those meetings would go on and on, and nothing would get accomplished.
I'm a consultant working remotely and all the work I do with clients is done remotely and I can tell you: it works for some companies and doesn't for others. It works for some groups and not for others. It doesn't matter the company size or structure. Smaller companies or bigger companies, top down or bottom up, it doesn't matter. It's the culture. Some companies do it better, some do it worse. I've seen companies of 300,000+ remote employees, and companies where remote working for their 50 employees is forbidden because it's a disaster.
One thing I've never seen work, however, is differing time zones working well together. There's always some kind of schedule conflict that could be resolved if everyone was taking lunch at the same time or getting off work at the same time.
I agree that US - India is quite harsh. I work from the UK with many coworkers from China, which is kind of similar. It is hard for them -- they mainly work evenings so they have some overlapping time with folks in the US and Europe.
If you don't feel that videoconferencing and email work better with people one knows, with whom one has a working relationship, and who don't actively dislike one for "stealing their jobs", then we simply have a different experience of videoconferencing and email. I concede that text chats are a pretty effective way to work, but I suspect that the challenges I mentioned would still impede progress.
That's hard, but again that has nothing to do with visas or immigration. Suppose Disney had sacked all their expensive workers and hired juniors (from the US) and asked the experienced workers to train them up. Same situation for those employees.
"...but what does it really have to do with visas or immigrants."
Everything, actually.
“The program has created a highly lucrative business model of bringing in cheaper H-1B workers to substitute for Americans...”
"Because of legal loopholes, however, in practice companies do not have to recruit American workers first or guarantee that Americans will not be displaced."
If such a loophole exists it puts American tech workers in a vulnerable position.
When they are brought on a visa, they cannot job hop like they can in India. They are usually stuck in their position for 5 years until they can get green cards.
I would be willing to bet if they gave these workers Green Cards instead of H1-B's, this practice wouldn't be as popular because the worker would be able to compete freely in the market.
I'm inclined to agree. I'm seeing fuzzy words like "several" and "many", but no actual numbers to quantify or estimate how many U.S. workers were replaced with immigrants. It also doesn't begin to discuss how many of the laid-off workers were immigrants, or how many new workers were citizens. This just sounds like a general off-loading of highly-salaried individuals, which I suspect would have been done independent of companies like Infosys.
Also, just a general off-topic thought. The article talks about how H1-B's tend to have lower salaries than U.S. tech workers. I'm under the impression that many of these H1-B candidates are individuals just finishing a degree and will later in their career move on to obtaining a green card after a few years. If this is the case, then of course their salaries are lower; they're earlier in their career. I'd love to see some data exploring this more.
That's absolutely horrible. Not only is it a case of left hand not talking to right hand, it almost seems cruel to review someone in the position of being laid off so highly that it warrants a raise. Nobody stopped to consider "maybe we should keep this employee around?" It's disheartening.