October 2014 – Disney CEO Bob Iger is one of eight co-chairs of the Partnership for a New American Economy, a leading group advocating for an increase in the H-1B visa cap. Last Friday, this partnership was a sponsor of an H-1B briefing at the U.S. Capitol for congressional staffers. The briefing was closed to the press.
One of the briefing documents handed out at the congressional forum made this claim: “H-1B workers complement – instead of displace – U.S. Workers.” It explains that as employers use foreign workers to fill “more technical and low-level jobs, firms are able to expand” and allow U.S. workers “to assume managerial and leadership positions.”
The document was obtained by Norman Matloff, a computer science professor at the University of California at Davis and a longtime critic of the H-1B program. He posted it on his blog.
From the perspective of five laid-off Disney IT workers, all of whom agreed to speak on the condition of anonymity, Disney cut well-paid and longtime staff members, some who had been previously singled out for excellence, as it shifted work to contractors. These contractors used foreign labor, mostly from India. The laid-off workers believe the primary motivation behind Disney’s action was cost-cutting.
“Some of these folks were literally flown in the day before to take over the exact same job I was doing,” said one of the IT workers who lost his job. He trained his replacement and is angry over the fact he had to train someone from India “on site, in our country.”
Disney officials promised new job opportunities as a result of the restructuring, and employees marked for termination were encouraged to apply for those positions. But the workers interviewed said they knew of few co-workers who had landed one of the new jobs.
Employees said the original number of workers laid off back in October was more than several hundred. But the Disney source put that number lower, saying approximately 135 IT workers lost their jobs.
It gets worse.
Pink Slips at Disney. But First, Training Foreign Replacement
Disney executives said that the layoffs were part of a reorganization, and that the company opened more positions than it eliminated.
But the layoffs at Disney and at other companies, including the Southern California Edison power utility, are raising new questions about how businesses and outsourcing companies are using the temporary visas, known as H-1B, to place immigrants in technology jobs in the United States. These visas are at the center of a fierce debate in Congress over whether they complement American workers or displace them.
According to federal guidelines, the visas are intended for foreigners with advanced science or computer skills to fill discrete positions when American workers with those skills cannot be found. Their use, the guidelines say, should not “adversely affect the wages and working conditions” of Americans. Because of legal loopholes, however, in practice, companies do not have to recruit American workers first or guarantee that Americans will not be displaced.
Too often, critics say, the visas are being used to bring in immigrants to do the work of Americans for less money, with laid-off American workers having to train their replacements.
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