Fear Of The Foreigner

WASHINGTON

The anti-foreign workersentiment bubbling in the states has begun eruptingat the national level. Two bills aimed at squeezingthe L-1 visa and eliminating the H1-B programme wereintroduced in the US House of Representatives in animportant pointer of where things are headed. Thetwin-pincer movement is a preview of what analystswarn could be a major political battle betweenanti-immigration and pro-business forces. The twonew bills join another introduced in May whichrestricts the movement of L-1 visa holders. Thecountry hardest hit by these volleys will be Indiaif the bills become law since Indian professionalshave been the biggest users of the two visas.

"A multi-headed hydra might be in the making," warnsa source in the US Chamber of Commerce, as largemainstream businesses attempt to form a coalitionand fight back. But as boardroom directors weresorting strategy and collecting figures, RepublicanCongressman Tom Tancredo quietly introduced H.R.2688, a bill that seeks to eliminate the H1-B visaaltogether.

It is a visa under which tens ofthousands of Indian professionals have made theUnited States their home. Tancredo's officestudiously avoided flashing the news of his latestlegislative effort in what was seen as a curiousmove by analysts. He introduced the twelve-line billwhich, if it becomes law, could redefine immigration,movement of professionals, the service industry andAmerican competitiveness which has depended onforeign input.

But Tancredo says the H1-B visa has"outlived its usefulness" and there is no need tobring foreign professionals when there are scores ofqualified unemployed Americans.

A day after Tancredo's stealth arrow, nine Housemembers, most of them Democrats, led byCongresswoman Rosa DeLauro introduced the "L-1Non-Immigration Reform Act" aimed at tightening therequirements. DeLauro claimed the bill would closethe "loopholes in the law that allow largecorporations to bring in foreign workers, pay themless, and replace good paying American jobs held byAmerican citizens."

The repeated use of the term"American" is not a chance occurrence. The bill putsa cap of 35,000 on L-1 visas to be issued worldwide,an arbitrary figure randomly pulled and insertedwhere there was no limit. Additionally, the billbans blanket petitions to hire L-1 workers, deniesthe visa to any company that has laid off a "anAmerican worker" within the past six months or sixmonths after filing the application, demands thatL-1 holders be paid prevailing wages, and authorisesthe Labour Department to conduct surveys.

The latest bills add to Congressman John Mica's billintroduced May 19 which aims to curb the use of L-1,a visa he called "back door to cheap labour." Hisbill, while allowing companies to bring L-1 workers,will prevent them from being farmed out to othercompanies -- a phenomenon spotted and seized bycritics and labour unions over the past few years.

All three bills are being considered by theJudiciary Committee and public hearings are expectedin September, an aide in Mica's office says. Asource at the US Chamber of Commerce thinks thesefirst bills are a good barometer but are unlikely togo far in the process. Another maintains the "US industrywill come to a standstill" if they curb L-1 visas asdrastically as they are threatening.

But if theheavy weight Congressmen and senators get involved,the story could take a turn for the worse. "There isa very serious policy debate underway which is farfrom settled," warns Jeff Lande of the InformationTechnology Association of America,the premier IT industry lobbying organization. Buthe is confident that the "elimination of H1-B is not going tohappen."

The number of H1-B visas to be issued will, however,be down to the original limit of 65,000 from 195,000come October as per the law. The higher caps wereallowed by the US Congress in the 1990s to meet theneeds of the booming IT sector but this year the caphas not been utilized. Many multinationalcorporations realized it was easier and less onerousto get the L-1 visa for moving workers because offewer requirements.

In some ways, the L-1 visa wasbetter from the US point of view because it didn'tallow people to "jump ship" and apply for a greencard as one could with H1-B. But still a sustainedand well-conducted campaign by labour unions andlaid off computer professionals has made it anemotive issue for politicians.

The industry big wigs both in the US and in Indiahave been slow to recognize the politics of it all."If we don't get ahead of this now, it would betrouble," says a US source. He acknowledges that thebusiness has to get its arguments and factsright and monitor the events assiduously. In thepast, Indian IT groups have fumbled by stumblinginto the debate uninformed and got burnt. "It is nota public relations battle as some seem to think buta political issue," points out an American industryanalyst familiar with the battles. The debate aroundoutsourcing, H1-B, L-1, unemployment, call centresis too far advanced for jumping in unprepared assome Indian organizations did recently for a win-winoutcome.

As protectionist sentiment grows in the House,cloakroom talk is getting louder in the Senate too as all matters related to unemployment, immigrationand displacement of US workers are crucial. Sources told Outlookindia.com that several seniorDemocratic senators with considerable politicalweight such as Ted Kennedy of Massachusetts, DianneFeinstein of California and Chris Dodd ofConnecticut are considering introducing bills onthe use/abuse of visa regimes.

"There areaccusations out there that L-1 is being misused bycompanies bringing cheap talent and displacingAmerican workers," says Lande. Tata ConsultancyServices, by applying for 5,000 L-1 visas, attractedattention and "blew the lid" even though arguablythey did so after receiving good legal advice. Theblanket application was seen by some as "misuse"even though advocates on the other side equallyvehemently argue that it wasn't. "This is not asettled argument by any means," says one sourcefamiliar with the issue.

Nor will it settle anytime soon if unemploymentkeeps rising and the economy stays lifeless. TheDepartment of Labour reported unemployment at 6.4percent last month, triggering predictable reactionsamong politicians under siege from constituents andlabour unions.

A well-organized Internet and groundcampaign by the AFL-CIO, the largest labour unionhere, has targeted Democrats and vulnerableRepublicans to unleash demands that walls be erectedaround Fortress USA and doors slammed shut, at leasttemporarily.

With the presidential electionapproaching, unemployment will most likely be avolatile campaign issue. Since the Democrats arebereft of other ideas to distinguish themselves fromcentrist Republicans, a return to "old labour"issues is likely.