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Newsjock

(11,733 posts)
Tue Oct 28, 2014, 03:45 PM Oct 2014

Silicon Valley's 'Body Shop' Secret:Highly Educated Foreign Workers Treated Like Indentured Servants

Source: NBC Bay Area

A year-long investigation by NBC Bay Area’s Investigative Unit and The Center for Investigative Reporting (CIR) raises questions about a well-known visa program setup to recruit foreign workers to the US: Is it indentured servitude in the high tech age? Or is it a necessary business model to compete in a quickly changing high tech economy?

NBC Bay Area and CIR’s team discovered an organized system that supplies cheap labor made up of highly-educated and highly-skilled foreign workers who come to the US via H-1B visas. Consulting firms recruit and then subcontract out skilled foreigners to major tech firms throughout the country and many in Silicon Valley.

... While many of the consulting companies that use H-1B visas appear to play by the rules, NBC Bay Area and CIR found numerous examples of other companies taking advantage of foreign workers and breaking federal law in the process. “’Indentured servants’ is a pretty accurate term because in many cases that’s exactly what’s going on,” said Phillip Griego of San Jose’s Phillip J. Griego and Associates. Over the years, Griego and his law partner, Robert Nuddleman have represented several H-1B workers in lawsuits against body shops.

... A guesthouse is a small apartment or home where as many as eight to ten workers stay at once. A dozen different interviews confirmed that the guesthouses are commonly used by body shops. One worker from India described how the body shops explained the guesthouse when he arrived: “We are placing you in the guesthouse. Until you get the job you have to stay in the guesthouse, you should not go out, even for a walk,” the worker said.

Read more: http://www.nbcbayarea.com/news/local/Silicon-Valleys-Body-Shop-Secret-280567322.html



Job brokers steal wages and entrap Indian tech workers in US
Source: The Guardian

Labor brokers providing Indian high-tech workers to American companies have hijacked a professional visa program, creating an underground system of financial bondage by stealing wages and benefits, even suing workers who quit.

About 840,000 people from around the world work in the United States on temporary visas, intended to help companies seek uniquely talented employees for specific jobs. In the tech realm, labor brokers often sponsor the visas, then contract out the workers to technology companies or government agencies to build databases, test software and complete other technical projects.

For decades, critics have sounded alarms about immigrant tech workers being treated as indentured servants by the worst of these staffing firms, known as “body shops.” In a yearlong investigation, The Center for Investigative Reporting has documented why this exploitation persists – through humiliation, intimidation and legal threats. Judgments against Indian workers sued for quitting their US jobs can exceed $50,000.

One worker called it an “ecosystem of fear”.

Read more: http://www.theguardian.com/us-news/2014/oct/28/-sp-jobs-brokers-entrap-indian-tech-workers
36 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Silicon Valley's 'Body Shop' Secret:Highly Educated Foreign Workers Treated Like Indentured Servants (Original Post) Newsjock Oct 2014 OP
K&R Solly Mack Oct 2014 #1
I'm pretty sure there were some of those in my old apartment complex in north San Jose KamaAina Oct 2014 #2
When I first moved back to Minneapolis and started taking the bus Lydia Leftcoast Oct 2014 #29
It was alleged that a group of Silicon Valley employers colluded as a cartel closeupready Oct 2014 #3
Pando has continuing coverage of it, starting here: Blue_Tires Oct 2014 #10
Thanks - so instead of raising wages, they import servants closeupready Oct 2014 #14
Which is funny when you consider how many TOP executives in these tech companies hughee99 Oct 2014 #23
St. Job of Apple GeorgeGist Oct 2014 #31
It's Human Trafficking Yavin4 Oct 2014 #4
+1 BrotherIvan Oct 2014 #8
+1 You nailed it. Enthusiast Oct 2014 #17
Exactly.k&r nt myrna minx Oct 2014 #18
+1000. nt adirondacker Oct 2014 #30
High tech human trafficking grahamhgreen Oct 2014 #32
Yes, because there's such a severe shortage of qualified tech workers who are US citizens pnwmom Oct 2014 #5
So said companies can stash 100s of Billions in overseas accounts as to not pay US Taxes PeoViejo Oct 2014 #6
As a worker who's been there, Phlem Oct 2014 #7
Is this what you are talking about? JDPriestly Oct 2014 #12
I never worked in California, but I work in Washington State in the Phlem Oct 2014 #22
I've worked as a contractor for over 15 years, ... aggiesal Oct 2014 #25
Boy do I hear ya! Phlem Oct 2014 #26
How about those great STEM jobs, eh? Brigid Oct 2014 #9
"STEM shortage! STEM shortage! awwwwk" (it's the new English degree!) MisterP Oct 2014 #15
Actually, DU may have prevented me from making a mistake. Brigid Oct 2014 #21
the central problem is everyone has to guesstimate a market 5-10 years down the road MisterP Oct 2014 #28
Yep.... the bastards want to drive down the wages of engineers by any means available groundloop Oct 2014 #24
+1. candelista Oct 2014 #35
American tech workers have been pointing this out for over a decade Man from Pickens Oct 2014 #11
Amen Brother. Phlem Oct 2014 #27
+1 for exposure beerandjesus Oct 2014 #13
The ironic thing from my perspective Algernon Moncrieff Oct 2014 #16
Another problem---a visa worker will not become a whistleblower. McCamy Taylor Oct 2014 #19
Even if they were successful in whistleblowing, the fines are a pittance. sybylla Oct 2014 #20
Cheap-labor conservatism... Orsino Oct 2014 #33
Well if Hillary wins, she'll likely double or triple H1-B's, as requested. closeupready Oct 2014 #34
She has been on both sides of this issue. candelista Oct 2014 #36
 

KamaAina

(78,249 posts)
2. I'm pretty sure there were some of those in my old apartment complex in north San Jose
Tue Oct 28, 2014, 03:51 PM
Oct 2014

A LOT of young Indian men would get off the light rail at our stop and make a beeline for the complex. And in the morning, most of them got off at Cisco (which has its own stop!)

So management is apparently cool with that but sent me packing for having an Autistic meltdown while doing laundry.

Lydia Leftcoast

(48,217 posts)
29. When I first moved back to Minneapolis and started taking the bus
Tue Oct 28, 2014, 10:46 PM
Oct 2014

to the Y, I noticed that if I caught the bus at a certain time, it would be full of Indians.

One afternoon, I drove on the street that the bus takes south of my place, and I saw a dozen or so Indians get off at a certain apartment building.

I no longer take that bus, having switched to another class at the Y, but that early experience sure looked as if someone was exploiting H-1Bs from India.

 

closeupready

(29,503 posts)
3. It was alleged that a group of Silicon Valley employers colluded as a cartel
Tue Oct 28, 2014, 03:57 PM
Oct 2014

by unwritten agreement to suppress wages amongst their tech staff, stopping the practice of what is known pejoratively amongst management as "poaching", and known amongst staff as taking a better opportunity to improve their lives and the lives of their families; rather than face a trial, they settled with prosecutors.

So evidence of this age-old human rights abuse in the New Economy shouldn't come as a surprise to anyone who considers themselves an astute observer.

 

closeupready

(29,503 posts)
14. Thanks - so instead of raising wages, they import servants
Tue Oct 28, 2014, 05:40 PM
Oct 2014

on the cheap, i.e., H1-B's. Just outrageous, really.

hughee99

(16,113 posts)
23. Which is funny when you consider how many TOP executives in these tech companies
Tue Oct 28, 2014, 07:37 PM
Oct 2014

came from other tech companies. Apparently, "poaching" is just wrong when you're dealing with the "little people".

pnwmom

(108,977 posts)
5. Yes, because there's such a severe shortage of qualified tech workers who are US citizens
Tue Oct 28, 2014, 04:17 PM
Oct 2014

who are willing to work as indentured servants.

 

PeoViejo

(2,178 posts)
6. So said companies can stash 100s of Billions in overseas accounts as to not pay US Taxes
Tue Oct 28, 2014, 04:20 PM
Oct 2014

It's competition to see who can die with the most loot.

Phlem

(6,323 posts)
7. As a worker who's been there,
Tue Oct 28, 2014, 04:26 PM
Oct 2014

Last edited Tue Oct 28, 2014, 05:03 PM - Edit history (1)

“ecosystem of fear”, is spot on. It's white collar slavery which is why I'm a contractor now instead of an employee. Salaried work is bullshit. It's based on a 40 hr. work week but you always work more than that, and at this point, the whole "you can have an equal amount of time off that you've worked over 40" is completely gone. It's not mentioned anymore. Heaven forbid you can't stay up till 12 one evening, else start looking over your shoulder for a new job.

JDPriestly

(57,936 posts)
12. Is this what you are talking about?
Tue Oct 28, 2014, 05:31 PM
Oct 2014

This wage order implements changes in the law as a result of the Legislature's enactment of the "Eight-Hour-Day Restoration and Workplace Flexibility Act," Stats. 1999, ch. 134 (commonly referred to as AB 60).

(A) Any industry or occupation not previously covered by, and all employees not specifically exempted in, the Commission's wage orders in effect in 1997, or otherwise exempted by law, are covered by this order.

(B) Except as provided in subsection (C), an employee in the computer software field who is paid on an hourly basis shall be exempt from the daily overtime pay provisions of California Labor Code Section 510, if all of the following apply:

(1) The employee is primarily engaged in work that is intellectual or creative and requires the exercise of discretion and independent judgment, and the employee is primarily engaged in duties that consist of one or more of the following:

(a) The application of systems analysis techniques and procedures, including consulting with users, to determine hardware, software, or system functional specifications.

(b) The design, development, documentation, analysis, creation, testing, or modification of computer systems or programs, including prototypes, based on and related to user or system design specifications.

(c) The documentation, testing, creation, or modification of computer programs related to the design of software or hardware for computer operating systems.

(2) The employee is highly skilled and is proficient in the theoretical and practical application of highly specialized information to computer systems analysis, programming, and software engineering. A job title shall not be determinative of the applicability of this exemption.

(3) The employee's hourly rate of pay is not less than forty-two dollars and sixty four cents ($42.64). The Division of Labor Statistics and Research shall adjust this pay rate on October 1 of each year to be effective on January 1 of the following year by an amount equal to the percentage increase in the California Consumer Price Index for Urban Wage Earners and Clerical Workers.

(C) The exemption provided in subsection (B) does not apply to an employee if any of the following apply:

(1) The employee is a trainee or employee in an entry-level position who is learning to become proficient in the theoretical and practical application of highly specialized information to computer systems analysis, programming, and software engineering.

(2) The employee is in a computer-related occupation but has not attained the level of skill and expertise necessary to work independently and without close supervision.

(3) The employee is engaged in the operation of computers or in the manufacture, repair, or maintenance of computer hardware and related equipment.

(4) The employee is an engineer, drafter, machinist, or other professional whose work is highly dependent upon or facilitated by the use of computers and computer software programs and who is skilled in computer-aided design software, including CAD/CAM, but who is not in a computer systems analysis or programming occupation.

(5) The employee is a writer engaged in writing material, including box labels, product descriptions, documentation, promotional material, setup and installation instructions, and other similar written information, either for print or for on screen media or who writes or provides content material intended to be read by customers, subscribers, or visitors to computer-related media such as the World Wide Web or CD-ROMs.

(6) The employee is engaged in any of the activities set forth in subsection (B) for the purpose of creating imagery for effects used in the motion picture, television, or theatrical industry.

(D) The provisions of this order shall not apply to any individual participating in a national service program, such as AmeriCorps, carried out using assistance provided under Section 12571 of Title 42 of the United States Code. (See Stats. 2000, ch. 365, amending Labor Code Section 1171.)

https://www.dir.ca.gov/t8/11170.html

Phlem

(6,323 posts)
22. I never worked in California, but I work in Washington State in the
Tue Oct 28, 2014, 06:43 PM
Oct 2014

tech country around Microsoft. In the game industry. I'm having difficulty deciphering the act but in it's essence does it say hourly paid employee's are not offered overtime pay? Further all exemptions in section B does not apply to the specifics in section C?

Just from it's initial reading it sure doesn't sound like an "Eight-Hour-Day Restoration and Workplace Flexibility Act". Sounds more like "This is how you rip off your Employee's Act".

I've been in the computer industry entertainment area working on games and video's for over 15 years and they purport flexibility in the workplace and you salary is based off a 40 hour week, but there's this thing called a "crunch period" where everyone puts in extra hours until a perceived deadline is met. Perceived because the deadline seems to miraculously continue to push out.

Before there was a standard "take 2 weeks off because of the crunch" but the crunch can sometimes run 75% of the length of the project. 2 weeks is nothing compared to what you put in and definitely no overtime pay. Your treated with parties and some dinners with the company.

But mostly, if you complained or said anything negative about the situation you were canned.

Now, they just lay you off at the end of a project, much like the film industry. But you don't get paid like the film industry.

It's one of the places that definitely, definitely needs a union. But that will never happen. The age discrimination is blatant also. Go into any game studio and you'll see nothing but kids. Anyone with any grey is in management or owns the company.

Sorry, I'll get off my soap box now. Thanks for the time.

aggiesal

(8,914 posts)
25. I've worked as a contractor for over 15 years, ...
Tue Oct 28, 2014, 08:42 PM
Oct 2014

jumping from company to company.

I could finish a contract and put my resume out, and find another contract within a week,
and get paid really well.

Now, I can't get a contract anywhere, because the rates are so low. By low, the lowest offer
I got was a contract for $10/Hr. I told the recruiter to go to the universities and get student
interns for that rate.

When I was use to $60 to $80 per hour, to hear positions for only $10 per hour made my blood boil,
and I knew the reason why H1B visas.

When I started right out of college in 1984, my supervisor told me that salaries historically double
every 15 years. So hiring wage for someone out of college in 1999 was approximately double of what
I got 15 years earlier. Now, it looks like current wages are similar to what I was getting paid in the
early 1990's.

And the high tech companies don't give a damn.

I also blame, our Senator Boxer and Princess DiFi, because silicon valley is in their back yard and
they're turning a blind eye to this problem.

Phlem

(6,323 posts)
26. Boy do I hear ya!
Tue Oct 28, 2014, 08:56 PM
Oct 2014

I'm at the point right now (fortunately I hope) where it's like I'm having to create work. I've joined up with a few guys and we're working on an indie project, and I think if I needed to, I could create a website with training for a fee. Outside of that I'm staring @ a completely different line of work. Last place I worked at made it known that they're lean and mean for producers because they've outsourced as much of the talent to keep prices low.

"And the high tech companies don't give a damn." Preaching to the choir! It's the bottom line always, I've been in management.

Brigid

(17,621 posts)
21. Actually, DU may have prevented me from making a mistake.
Tue Oct 28, 2014, 06:33 PM
Oct 2014

I may have considered trying to get a STEM degree of some sort, simply because I thought that was where the jobs were; here on DU I found out the truth.

MisterP

(23,730 posts)
28. the central problem is everyone has to guesstimate a market 5-10 years down the road
Tue Oct 28, 2014, 09:40 PM
Oct 2014

so some stay in longer because they have to, and others hold out but the labor market tanks

groundloop

(11,518 posts)
24. Yep.... the bastards want to drive down the wages of engineers by any means available
Tue Oct 28, 2014, 08:31 PM
Oct 2014

Pay workers (in this case engineers) less and send more money to the unproductive 1%.
 

candelista

(1,986 posts)
35. +1.
Wed Oct 29, 2014, 11:41 AM
Oct 2014

Reducing labor costs. This is what it is all about, whether it's high tech or emptying bedpans.

 

Man from Pickens

(1,713 posts)
11. American tech workers have been pointing this out for over a decade
Tue Oct 28, 2014, 05:28 PM
Oct 2014

A unified GOP government (2003-2006) just made the problem much worse.

Later, a unified Democratic government (2009-2010) made the problem worse too.

In between, and since, split governments in both directions (Dem Congress + GOP Pres, GOP Congress + Dem Pres) made the problem... worse and worse.

However, the corporations have gotten everything they wanted out of the situation - virtual slave labor and devastating downward pressure on wage scales.

Funny how that works.

Algernon Moncrieff

(5,790 posts)
16. The ironic thing from my perspective
Tue Oct 28, 2014, 05:47 PM
Oct 2014

Many years ago (back in the 80's), books like "Big Sugar" were published that discussed the use of H2 Visas for Jamaican cane cutters in the areas on the south side of Okeechobee. It discussed things like US Sugar having been indicted for conspiracy to commit slavery, and the various issues that the Fanjul Bros, Talisman Sugar, and others had. Completely different industries; eerily parallel issues and practices.

ETA: This is an article on that subject: http://articles.sun-sentinel.com/1992-06-21/business/9202150672_1_sugar-cane-okeelanta-corp-h-2a-program

Alec Wilkinson's "Big Sugar" is likely hard to find these days.

McCamy Taylor

(19,240 posts)
19. Another problem---a visa worker will not become a whistleblower.
Tue Oct 28, 2014, 06:26 PM
Oct 2014

Meaning an industry that is breaking the law or putting the public at risk for profit has every incentive to hire a Visa worker, knowing that he or she will turn a blind eye to criminal or unsafe practices for fear of being deported. I expect we will soon see nurses and doctors being imported from India, made to live in dorms, told that if they do not do whatever will make their employer---hospital, insurance company etc.---the most money, they will be sent back home. How would you like to have your surgeon make the decision that is best for the hospital that owns his soul rather than for you? How would like to see your new pharmaceuticals tested by researchers who dare not reveal side effects or bad results for fear of being deported? How would you like to drive a car engineered by a serf? Fly in a plane designed by a serf? Send your son or daughter into war in a tank built by a serf?

sybylla

(8,509 posts)
20. Even if they were successful in whistleblowing, the fines are a pittance.
Tue Oct 28, 2014, 06:33 PM
Oct 2014

It's ridiculous that employers can engage in this kind of wage theft and near-slavery helping them glean record profits, only to have to fork out fines in the low thousands per violation. There's zero disincentive in this except the bad publicity.

Orsino

(37,428 posts)
33. Cheap-labor conservatism...
Wed Oct 29, 2014, 10:54 AM
Oct 2014

...invests in the already-wealthy rather than in workers.

How many more unregulated H1-Bs is our president trying to hand out, again?

 

closeupready

(29,503 posts)
34. Well if Hillary wins, she'll likely double or triple H1-B's, as requested.
Wed Oct 29, 2014, 11:05 AM
Oct 2014

Remember that bit about "the outsourcing (to India) will continue."

 

candelista

(1,986 posts)
36. She has been on both sides of this issue.
Wed Oct 29, 2014, 11:44 AM
Oct 2014
When Sen. Hillary Rodham Clinton flew to New Delhi to meet with Indian business leaders in 2005, she offered a blunt assessment of the loss of American jobs across the Pacific. "There is no way to legislate against reality," she declared. "Outsourcing will continue. . . . We are not against all outsourcing; we are not in favor of putting up fences."

Two years later, as a Democratic presidential hopeful, Clinton struck a different tone when she told students in New Hampshire that she hated "seeing U.S. telemarketing jobs done in remote locations far, far from our shores."


http://www.washingtonpost.com/wp-dyn/content/article/2007/09/07/AR2007090702780.html

Go figure.
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