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 Areas 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 CIRs 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 thats exactly whats going on, said Phillip Griego of San Joses 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
Solly Mack
(90,764 posts)KamaAina
(78,249 posts)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)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)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.
Blue_Tires
(55,445 posts)closeupready
(29,503 posts)on the cheap, i.e., H1-B's. Just outrageous, really.
hughee99
(16,113 posts)came from other tech companies. Apparently, "poaching" is just wrong when you're dealing with the "little people".
GeorgeGist
(25,320 posts)was a principal in it.
Yavin4
(35,438 posts)Call it for what it is.
Exactly my thought. This should be a criminal case, not a fine.
Enthusiast
(50,983 posts)myrna minx
(22,772 posts)adirondacker
(2,921 posts)grahamhgreen
(15,741 posts)pnwmom
(108,977 posts)who are willing to work as indentured servants.
PeoViejo
(2,178 posts)It's competition to see who can die with the most loot.
Phlem
(6,323 posts)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)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)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)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)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)MisterP
(23,730 posts)Brigid
(17,621 posts)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)so some stay in longer because they have to, and others hold out but the labor market tanks
groundloop
(11,518 posts)Pay workers (in this case engineers) less and send more money to the unproductive 1%.
candelista
(1,986 posts)Reducing labor costs. This is what it is all about, whether it's high tech or emptying bedpans.
Man from Pickens
(1,713 posts)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.
Phlem
(6,323 posts)beerandjesus
(1,301 posts)Algernon Moncrieff
(5,790 posts)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)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)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)...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)Remember that bit about "the outsourcing (to India) will continue."
candelista
(1,986 posts)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.