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High-Tech Visas Back On Political Agenda
(08/09/99, 12:01 p.m. ET)
By Terry Costlow and George Leopold, EE Times
As GOP leaders positioning themselves as friends of technology again raise
the divisive issue of high-tech visas for foreignworkers, opponents in the
engineering community are girding for a replay of the H-1B temporary-visa
battle that raged last year.
"It's too soon to be raising H-1B visa caps again," said Paul Kostek,
president of the Institute of Electrical and Electronics Engineers-USA.
IEEE-USA wants Congress to hold off on considering new legislation until it
asesses the results of a congressionally mandated survey by the National
Research Council to determine whether a shortage of U.S. engineers actually
exists. That survey is among a number of unfinished studies on the subject,
Kostek said.
Sen. Phil Gramm (R-Texas), co-sponsor of the Senate bill with Majority
Leader Trent Lott (R-Miss.), argued this week that H-1B visa holders create
jobs rather than take them from U.S. workers. Engineers dispute that claim.
"Lobbyists claim that bringing in foreign nationals will create jobs, yet
we've seen that the help-wanted index has gone down for the past 15 months,"
said Gene Nelson, an unemployed Ph.D. who testified, along with Kostek,
before the house immigration panel this week. "I see an inverse relation;
H-1B is more of a sink than a source."
The new legislation, introduced late last month, would raise the annual cap
on H-1B visas to 200,000 workers starting next year. Over three years, the
proposal would nearly double the number of H-1B visas.
The legislation would also exempt foreign workers from the visa limit if
they have obtained a master's degree or higher, or if they earn at least
$60,000 a year.
Controversial legislation approved last year raised the cap on visas to
115,000 annually. According to the U.S. Immigration and Naturalization
Service, the limit for fiscal 1999 was reached on June 15.
Engineering groups backed by the Clinton administration want to shift the
focus of the H-1B debate to retraining workers.
"This is not a short-term problem," Kostek said. "We need to keep updating
people's skills [as technology evolves]."
Chip industry executives who favor another rise in the visa cap said they
can't wait that long.
"[Retraining] is kind of a long-term approach," said Anne Craib, director of
international trade and government affairs for the Semiconductor Industry
Association (SIA).
The new legislation, the New Workers for Economic Growth Act, is a key plank
in the Republican high-tech agenda heading into the 2000 elections. GOP
lawmakers are backing a series of initiatives designed to bring the nation's
high-tech industry into the Republican fold. The campaign agenda also
includes a 10-year extension of the R&D tax credit, which expired June 30.
The proposed extension is part of a massive Republican-sponsored tax cut
plan that appears certain to be vetoed by President Clinton.
Sponsors say the temporary-visa legislation is designed to fill the
immediate need for high-tech workers (there are over 300,000 jobs) and hire
foreign workers with very specialized skills.
Engineering groups, meanwhile, argue that the program is taking jobs from
qualified U.S. engineers and that U.S. industry is seeking low-wage workers.
Yet some engineers concede that chip makers' skill requirements tend to be
higher than those in the IT industry, which also stands to benefit from a
visa increase.
Craib pointed to an SIA survey showing that 48 percent of the engineering
Ph.D.s at U.S. universities go to foreign-born students, while foreign
students account for 42 percent of master's degrees.
"The demand for [graduate engineering degrees] is not slacking at all,"
Craib said.
Industry should be able to take advantage of foreign engineers educated at
taxpayer-supported U.S. universities, she said.
"Why should we send them to work for [Taiwan Semiconductor Manufacturing]?"
Others said the graduate-degree provision would be easy to skirt.
"In practice, an unlimited quota for people with graduate degrees means
unlimited numbers of H-1B hires," said Norm Matloff, a computer science
professor at the University of California at Davis. "A potential H-1B
[holder] will go out and get a quickie master's degree, so there will be no
limit on the number of people coming in."
One argument for raising the visa cap is that with thousands of job openings
being advertised, there must be a shortage of high-tech workers. However,
one analyst said job openings are always part of the engineering world.
"Vacancies do not mean shortages," said Bob Rivers, publisher of the
Engineering Manpower Newsletter. "Job vacancies occur all the time as
turnover takes place. There are 2.1 million engineers, and the average
turnover rate is every seven years, which means 300,000 engineers change
jobs every year. If you add in the 2.5 percent of the labor force that
retires in a typical year, you've got 352,000 vacancies without any
expansion at all. Many of those jobs will be open for six months, so we can
expect to see a vacancy rate of over 150,000 almost all the time."
IT groups appear less involved in the current debate than they were last
year, when they helped lead the fight to increase the visa cap. Harris
Miller, president of the Information Technology Association of America,
Arlington, Va., said the group will likely jump into the fray.
"A couple of things have happened recently, and it's become a campaign
issue," Harris said. "We still support an increase, and we'll be involved
this time around, but we have to take the temperature of our member
companies before we decide how much we'll get involved."
Nevertheless, observers said there is little time left this year to approve
legislation raising the visa cap. They predicted the issue is likely to
carry over into next year's presidential and congressional races.
Thomas John
972-5569610
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"It's too soon to be raising H-1B visa caps again," said Paul Kostek, = president of the Institute of Electrical and Electronics Engineers-USA.=20
IEEE-USA wants Congress to hold off on considering new legislation = until it=20 asesses the results of a congressionally mandated survey by the National = Research Council to determine whether a shortage of U.S. engineers = actually=20 exists. That survey is among a number of unfinished studies on the = subject,=20 Kostek said.=20
Sen. Phil Gramm (R-Texas), co-sponsor of the Senate bill with = Majority Leader=20 Trent Lott (R-Miss.), argued this week that H-1B visa holders create = jobs rather=20 than take them from U.S. workers. Engineers dispute that claim.=20
"Lobbyists claim that bringing in foreign nationals will create jobs, = yet=20 we've seen that the help-wanted index has gone down for the past 15 = months,"=20 said Gene Nelson, an unemployed Ph.D. who testified, along with Kostek, = before=20 the house immigration panel this week. "I see an inverse relation; H-1B = is more=20 of a sink than a source."=20
The new legislation, introduced late last month, would raise the = annual cap=20 on H-1B visas to 200,000 workers starting next year. Over three years, = the=20 proposal would nearly double the number of H-1B visas.=20
The legislation would also exempt foreign workers from the visa limit = if they=20 have obtained a master's degree or higher, or if they earn at least = $60,000 a=20 year.=20
Controversial legislation approved last year raised the cap on visas = to=20 115,000 annually. According to the U.S. Immigration and Naturalization = Service,=20 the limit for fiscal 1999 was reached on June 15.=20
Engineering groups backed by the Clinton administration want to shift = the=20 focus of the H-1B debate to retraining workers.=20
"This is not a short-term problem," Kostek said. "We need to keep = updating=20 people's skills [as technology evolves]."=20
Chip industry executives who favor another rise in the visa cap said = they=20 can't wait that long.=20
"[Retraining] is kind of a long-term approach," said Anne Craib, = director of=20 international trade and government affairs for the Semiconductor = Industry=20 Association (SIA).=20
The new legislation, the New Workers for Economic Growth Act, is a = key plank=20 in the Republican high-tech agenda heading into the 2000 elections. GOP=20 lawmakers are backing a series of initiatives designed to bring the = nation's=20 high-tech industry into the Republican fold. The campaign agenda also = includes a=20 10-year extension of the R&D tax credit, which expired June 30. The = proposed=20 extension is part of a massive Republican-sponsored tax cut plan that = appears=20 certain to be vetoed by President Clinton.=20
Sponsors say the temporary-visa legislation is designed to fill the = immediate=20 need for high-tech workers (there are over 300,000 jobs) and hire = foreign=20 workers with very specialized skills.=20
Engineering groups, meanwhile, argue that the program is taking jobs = from=20 qualified U.S. engineers and that U.S. industry is seeking low-wage = workers. Yet=20 some engineers concede that chip makers' skill requirements tend to be = higher=20 than those in the IT industry, which also stands to benefit from a visa=20 increase.=20
Craib pointed to an SIA survey showing that 48 percent of the = engineering=20 Ph.D.s at U.S. universities go to foreign-born students, while foreign = students=20 account for 42 percent of master's degrees.=20
"The demand for [graduate engineering degrees] is not slacking at = all," Craib=20 said.=20
Industry should be able to take advantage of foreign engineers = educated at=20 taxpayer-supported U.S. universities, she said.=20
"Why should we send them to work for [Taiwan Semiconductor = Manufacturing]?"=20
Others said the graduate-degree provision would be easy to skirt.=20
"In practice, an unlimited quota for people with graduate degrees = means=20 unlimited numbers of H-1B hires," said Norm Matloff, a computer science=20 professor at the University of California at Davis. "A potential H-1B = [holder]=20 will go out and get a quickie master's degree, so there will be no limit = on the=20 number of people coming in."=20
One argument for raising the visa cap is that with thousands of job = openings=20 being advertised, there must be a shortage of high-tech workers. = However, one=20 analyst said job openings are always part of the engineering world.=20
"Vacancies do not mean shortages," said Bob Rivers, publisher of the=20 Engineering Manpower Newsletter. "Job vacancies occur all the = time as=20 turnover takes place. There are 2.1 million engineers, and the average = turnover=20 rate is every seven years, which means 300,000 engineers change jobs = every year.=20 If you add in the 2.5 percent of the labor force that retires in a = typical year,=20 you've got 352,000 vacancies without any expansion at all. Many of those = jobs=20 will be open for six months, so we can expect to see a vacancy rate of = over=20 150,000 almost all the time."=20
IT groups appear less involved in the current debate than they were = last=20 year, when they helped lead the fight to increase the visa cap. Harris = Miller,=20 president of the Information Technology Association of America, = Arlington, Va.,=20 said the group will likely jump into the fray.=20
"A couple of things have happened recently, and it's become a = campaign=20 issue," Harris said. "We still support an increase, and we'll be = involved this=20 time around, but we have to take the temperature of our member companies = before=20 we decide how much we'll get involved."=20
Nevertheless, observers said there is little time left this year to = approve=20 legislation raising the visa cap. They predicted the issue is likely to = carry=20 over into next year's presidential and congressional races.=20
Thomas John