It is difficult for foreign workers to negotiate for improved working conditions or higher salaries because their legal status is related to their employment under the H-1B program. This makes it difficult for foreign workers to bargain for better working conditions.
Silicon Valley tech behemoths including Google, Meta, Amazon, Microsoft, and Salesforce are urging President Joe Biden’s administration to raise the number of temporary foreign employees permitted to enter the United States on H-1B visas. These visas are now capped at 65,000 per year.
According to a letter released by Compete America, a trade organization that represents Silicon Valley interests, the current yearly allotment of 85,000 H-1B visas is thought to be insufficient to meet the needs of large technical enterprises. Compete America distributed the letter. Lee Fang, a freelance writer, mentioned a letter in which Silicon Valley purportedly urged that the Department of Homeland Security accelerate and streamline the visa application process.
The fact that these same companies have laid off tens of thousands of American workers, on the other hand, has raised concerns about the possibility of H-1B visa holders displacing local labor. According to some accounts, the companies have already started the process of replacing sacked employees with people who already have H-1B visas.
As a result of the H-1B program, employers can pay foreign workers a wage that is lower than the local median wage. This has raised concerns about the program’s ability to cause wage inflation in the technology industry.
Furthermore, the report generated by Lee Fang and submitted claims to have cited As a consequence of their examination, the Economic Policy Institute uncovered a pervasive pattern of improper use of the system. Corporations have engaged in this pattern of exploitation by hiring H-1B workers rather than eligible individuals already residing in the country.
As a result of the H-1B program, it is difficult for foreign workers to get better working conditions or greater pay. This is owing to the fact that these people’s jobs are inextricably related to their legal status. As a result of these difficulties, there have been calls for reform to prevent companies from abusing the scheme and decreasing workers’ pay in the United States.
Microsoft just fired almost 10,000 employees. Google laid off approximately 12,000 employees at the start of this year. Both Meta and Amazon have implemented significant organizational measures, including layoffs. Facebook’s parent business has laid off 21,000 workers as part of their ‘Year of Efficiency’ initiative. Amazon, the world’s largest online retailer, has laid off 27,000 workers. Furthermore, Salesforce has stated that it will reduce the size of its workforce by 10%, resulting in the layoff of 8,000 employees.