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July 9, 2008    DOL Home > News Release Archives > OSEC/OPA 1995   

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Archived News Release--Caution: information may be out of date.

U.S. DEPARTMENT OF LABOR

OFFICE OF PUBLIC AFFAIRS

LABOR SECRETARY ROBERT B. REICH TELLS SENATE COMMITTEE H-1B IMMIGRATION PROGRAM NEEDS REFORM TO PROTECT HIGH WAGE WORKERS

Thurs., Sept. 28, 1995

For more information call: 202-219-8211.

U.S. Labor Secretary Robert B. Reich told a U.S. Senate committee today that important high-tech jobs are at risk without major reform of one of the nation's temporary work-related immigration programs.

He said some U.S. firms are using a little-known immigration program to replace U.S. workers with cheap, foreign labor. Reich recommended that the program, known as H-1B, be overhauled to put in place new restrictions to protect high-tech U.S. jobs. Reich said loopholes in the current law have created a cottage industry of employers known as "body shops" who import foreign workers willing to work at significantly lower wages. These businesses have sprouted particularly in high-tech and health care fields.

"The program we have today has been turned into a sham by some employers," Reich told the Senate Judiciary Committee. "Too many employers are using the program as a back door to avoid their responsibility to train U.S. workers for these important high-tech jobs. We must bring some sanity to this process that will raise protection of U.S. workers as the issue of paramount importance in our work-related immigration laws."

Reich related examples of U.S. firms his department has cited for violating the law. Reich testified today before the Senate Judiciary Committee.

Reich said, "Our experience with the actual operation of the program has raised serious concerns that what was conceived as a means to meet temporary business needs for unique, highly-skilled professionals from abroad is, in fact, being used by some employers to bring in relatively large numbers of foreign workers who may be displacing U.S. workers and eroding employers' commitment to the domestic workforce."

Three changes to the law would provide the needed protection for U.S. workers, he said. The secretary renewed his request for amendments to require that employers seeking access to temporary foreign professional workers attest that:

  • They have not laid off or otherwise displaced U.S. workers in the occupations for which they seek nonimmigrant workers in the periods preceding and following their seeking such workers;
  • in certain circumstances, they have taken timely and significant steps to recruit and retain U.S. workers in these occupations.

Reich also requested that the period of stay allowed workers admitted under the H-1B program be reduced from six to three years. The six-year period contradicts the temporary nature that was intended for the program, he said.

Making these changes to the program are especially critical now, he said, because abuses of the program are increasing. He pointed to a trend of growth of companies which are predominantly or entirely dependent on nonimmigrant workers and are thus able to compete unfairly with companies that employ primarily U.S. workers. He also noted that the H-1A program for foreign nurses, a program which contained needed safeguards, has expired. Some foreign nurses will now be able to seek immigration status under the H-1B program which lacks adequate U.S. worker protections.

"I think all would agree that in nearly all situations it is entirely unreasonable that an employer in this country -- as a matter of public policy -- actually is able to lay off U.S. workers and replace them with temporary foreign workers in their own employ or through contract," he said. "This is exactly what is happening now. In fact, our public policy tolerates it, perhaps encourages it. This must change."

Reich also said proposals in the legal immigration legislation being considered in the House might actually weaken protections for U.S. workers. Although he praised some elements of the House bill, Reich said worker protection would be inadequate without a requirement that companies make significant efforts to recruit and retain U.S. workers in high-skill jobs.

Although the U.S. business community has already raised considerable objections to reforming the program, Reich said the interests of U.S. workers would not be served by less ambitious reform of the program.


Archived News Release--Caution: information may be out of date.




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