Category Archives: Outsourcing

Biden’s Labor Market: 1.9M Fewer Americans Working, 2M Foreign Workers Funneled into U.S. Jobs

At the end of 2022, 1.9 million fewer Americans were working than in 2019 before the Chinese coronavirus pandemic while President Joe Biden’s administration has funneled two million additional foreign workers into United States jobs.

A new analysis from the Center for Immigration Studies (CIS) shows that in the fourth quarter of 2022, close to two million fewer native-born Americans were working in jobs compared to the same time in 2019 while two million foreign-born workers have been added to the workforce compared to the same time period.

For more than two decades, the number of native-born, working-age Americans in the workforce has declined, CIS notes:

There has been a decades-long decline in the labor force participation rate of the U.S.-born of working-age (16 to 64), from 77.3 percent in 2000 to 73.5 percent in the fourth quarter of 2022. [Emphasis added]

If the labor force participation rate for the working-age U.S.-born in the fourth quarter of 2022 was what it had been in the fourth quarter of 2000, then 6.4 million more people would be in the labor force. [Emphasis added]

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Biden Grows Workforce with Foreign Workers, Americans Left on Sidelines

President Joe Biden’s administration is growing the United States labor market by adding millions of foreign workers for employers to hire, leaving jobless Americans on the sidelines.

Data published in the New York Times shows that the Biden administration is aiding employers by adding millions of foreign workers to the labor force — ensuring wages stay stagnant — even as native-born Americans struggle to get back into jobs since the Chinese coronavirus pandemic.

“The foreign-born workforce grew much more quickly than the U.S.-born workforce, Labor Department figures show,” the Times reports:

“When the unemployment rate goes down, you would normally expect wage inflation to go up, but that’s not what’s happening,” said Torsten Slok, chief economist at Apollo Global Management. “So there must be something else moving in the labor force, and there is a very likely explanation here that immigrants are coming in and taking jobs.” [Emphasis added]

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Laid-Off Americans, Replaced with Foreign H-1B Visa Workers, Score $4.65M Settlement Against Indian Outsourcing Firm

Laid-off American professionals, who say they were replaced with foreign H-1B visa workers imported from India, scored a $4.65 million settlement against their former employer last week, Indian outsourcing firm Larsen & Toubro Infotech (LTI).

LTI announced the multi-million-dollar settlement with Americans who had filed a lawsuit against the firm after they said they were fired and replaced with foreign H-1B visa workers from India.

According to the initial lawsuit filed by Markus Meyenhoffer and Andrew Ragland, joined by hundreds of other laid-off Americans, LTI executives allegedly deployed a “four-pronged policy and practice of discrimination” specifically designed to favor foreign H-1B visa workers from India with little-to-no experience over qualified Americans.

The lawsuit detailed the alleged policy:

First, LTI allegedly maintains an “inventory” of “visa ready” workers from India to fill positions at the company by petitioning the federal government’s lottery program to obtain a large amount of H-1b visas, and preferences hiring from this pool of applicants over U.S. citizens and visa-ready individuals not from South Asia (in particular, India). [Emphasis added]

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Jeep plant fires 1,350 American workers — will move factory to Mexico, citing high cost of electric vehicle production

Sen. Tom Carper (D-Del.) joined other Democrats in celebrating the push, stating, “Today’s announcement from the Biden administration is good for our planet, good for our health, and good for our nation’s autoworkers.”

An Illinois Jeep manufacturer has announced it will fire thousands of American workers and move its operations to Mexico.

A significant factor behind the move and layoffs is the apparent cost of realizing the Biden administration’s national goal of ensuring that 50% of all new passenger cars and light trucks sold in 2030 are so-called zero-emission vehicles.

How it started

Just over a year ago, President Joe Biden signed an executive order pushing to ensure that half of all new vehicles made in America are electric.

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DOJ files suit against company for allegedly not hiring Americans (Video)

A Civil Rights Division official told Fox News that since the initiative’s launch, the division has opened 29 investigations of “potential discrimination against U.S. workers based on a hiring preference for foreign visa workers.”

The Department of Justice announced Thursday it has filed a lawsuit against a Colorado corporation for allegedly discriminating against U.S. workers.

The complaint alleges that in 2016, Crop Production discriminated against at least three United States citizens by refusing to employ them as seasonal technicians in El Campo, Texas, because Crop Production preferred to hire temporary foreign workers under the H-2A visa program.

“In the spirit of President Trump’s Executive Order on Buy American and Hire American, the Department of Justice will not tolerate employers who discriminate against U.S. workers because of a desire to hire temporary foreign visa holders,” Attorney General Jeff Sessions said in a statement. “… Where there is a job available, U.S. workers should have a chance at it before we bring in workers from abroad.”

This is the first complaint filed stemming from the “Protecting U.S. Workers Initiative,” which was launched on March 1.

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IBM Now Has More Employees in India Than in the U.S.

IBM has shifted its center of gravity halfway around the world to India, making it a high-tech example of the globalization trends that the Trump administration has railed against.

IBM dominated the early decades of computing with inventions like the mainframe and the floppy disk. Its offices and factories, stretching from upstate New York to Silicon Valley, were hubs of American innovation long before Microsoft or Google came along.

But over the last decade, IBM has shifted its center of gravity halfway around the world to India, making it a high-tech example of the globalization trends that the Trump administration has railed against.

Today, the company employs 130,000 people in India — about one-third of its total work force, and more than in any other country. Their work spans the entire gamut of IBM’s businesses, from managing the computing needs of global giants like AT&T and Shell to performing cutting-edge research in fields like visual search, artificial intelligence and computer vision for self-driving cars. One team is even working with the producers of Sesame Street to teach vocabulary to kindergartners in Atlanta.

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H-1B Visa Displaced American Workers, New Report Finds

The H-1B visa has led to American jobs being outsourced to India and displacement of U.S. workers, a new study confirms.

The study by the Center for Global Development details how the widespread use of the H-1B visa has led to outsourcing and displacement of Americans while strengthening the pocketbooks of big business executives through “firm productivity” and “consumer welfare.”

Every year, more than 100,000 foreign workers are brought to the U.S. on the H-1B visa and are allowed to stay for up to six years. That number has ballooned to potentially hundreds of thousands each year, as universities and nonprofits are exempt from the cap. With more entering the U.S. through the visa, Americans are often forced to train their replacements.

The H-1B visa, according to researchers, is partly responsible for the outsourcing of American information technology (IT) jobs, as it led to a tech boom in India.

“Indian students enrolled in engineering schools to gain employment in the rapidly growing US IT industry via the H-1B visa program,” the study states. “Those who could not join the US workforce, due to the H-1B cap, remained in India, and along with return-migrants, enabled the growth of an Indian IT sector, which led to the outsourcing of some production to India.”

Researchers also admit that American workers, because of the importation of foreign workers through the H-1B visa, have been displaced and forced to take jobs in non-computer science careers.

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Outsourcing firm guilty of massive H-1B visa fraud

Every year, Americans lose jobs in the tech., medical and fashion industries to the more than 100,000 foreign guest workers who come to the United States on the H-1B visa.

The owner of a California-based outsourcing firm called Strataserv was busted for bringing foreign guest workers into the country via the H-1B visa by falsely claiming that they had jobs waiting for them at Cisco, an IT and networking company in San Jose.

On July 19, Indian-American businesswoman Sridevi Aiyaswamy, the owner of San Jose-based Strataserv Inc., pled guilty in federal court to three counts of visa fraud, said U.S. Attorney Brian J. Stretch in a Department of Justice (DOJ) press release.

Aiyaswamy, 50, of San Jose, admitted in federal court that between April 2010 and June 2013, she made numerous false statements and submitted more than 25 fraudulent documents to the United States Citizenship and Immigration Services (USCIS) for the purpose of obtaining H-1B non-immigrant classifications for skilled foreign workers.

“Acting as a petitioner on behalf of foreign worker beneficiaries, Aiyaswamy falsely represented in I-129 petitions that the foreign worker beneficiaries would be working at Cisco, an information technology and networking company in San Jose, Calif.,” according to the report.

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White ex-employee at Infosys in Plano files suit, claims company favored workers from India

“Infosys maintains roughly 200,000 employees working in the United States,” Green’s suit said. While less than 5 percent of the U. S. population is of the South Asian race and national origin, roughly 93 percent to 94 percent of Infosys’s United States workforce “is of the South Asian national origin, (primarily Indian).”

Infosys, the India-based information technology consulting firm with an office in Plano, is facing yet another reverse discrimination lawsuit asserting that it creates a hostile work environment for workers who are not from India or South Asia.

Erin Green, a former supervisor at Infosys, filed suit this week in the Eastern District of Texas in Sherman, alleging that he and black and white staffers on his team were denied raises and promotions, and that other “non-South Asian” workers were berated by South Asian company officials.

Green, of Frisco, is white and rose to the rank of “head of global immigration” while working in the company’s Plano office. He was terminated in June of 2016, ostensibly for violating Infosys’ “code of conduct by using his work computer for personal use a number of years earlier.”

The race-based discrimination lawsuit by a former American employee comes just weeks after Infosys — India’s second-largest technology services company — announced plans to hire 10,000 American workers at a time when President Donald Trump has been pushing an “America First” policy.

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Iowa IT Firm Caught Posting ‘No Americans’ Job Listing

Company apologizes after placing ‘H-1B only’ ad on recruiting site, blames third-party vendor.

An Iowa information technology staffing company last week posted an ad that essentially told American citizens they need not apply.

The ad by American Technology Consulting, posted to the recruiting website ZipRecruiter, sought a java developer to work in San Diego. Initially, it stated “H1B Only,” a reference to the H-1B guest worker visa program for high-skilled workers. The company changed the ad and deleted reference to the H-1B visas, but critics said it likely violates the Civil Right Act, which prohibits discrimination on the basis of citizenship and national origin.

“It’s explicitly against the law,” said Mark Krikorian, executive director of the Center for Immigration Studies. “This isn’t some gray area. But it does tell you what this company is about.”

Krikorian, who retweeted a screen shot of the original ad on Friday, said it should attract the attention of the Department of Justice to see if the company is complying with employment laws.

“It doesn’t matter that the ad doesn’t say that anymore,” he said.

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