Indian IT Cos Imposing Restrictions On Employees: U.S. Report

Indian IT Cos Imposing Restrictions On Employees: U.S. Report

By SiliconIndia   |   Thursday, 30 October 2014, 11:15 Hrs   |    1 Comments
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BANGALORE: Though, Indian IT companies are the largest, when it comes to sending their employees to work in foreign countries, especially the U.S., the Center for Investigative Reporting (CIR) has alleged that several Indian IT companies, including large ones, are indulging in restrictive employment contracts on employees they send to the United States, reports Shilpa Phadnis of TNN.

CIR which is on a yearlong extensive investigation into this matter found that Indian IT-companies used tools of intimidation that included restrictive employment contracts signed by workers unaware of their rights, as well as exploitation of legal loopholes. The CIR report also reveled around 200 H-1B labour violation investigations, that were conducted by the U.S. Labor Department in the 2013 fiscal and said “about seven companies were cited for imposing or attempting to impose illegal penalties on workers who quit.”

According to a report by MyVisajobs it was said that Indian IT companies were the largest users of H-1B visas. Infosys, for instance, filed 32,379 Labor Condition Applications in the 2013 fiscal, followed by Tata Consultancy Services at 8,785 and Wipro at 6,733.

The CIR report also disclosed that, one of the Indian IT firms "required a year's commitment in some cases and threatened to sue workers who left before the end of their assignments for up to $30,000, as well as withhold pensions and other benefits." In another instance, the report said that this company violated supplier codes of conduct.
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Reader's comments(1)
1: There are recent disturbing reports about how the H-1b is actually used.

For example, we don't know how many H-1b workers actually bought the opportunity to get to head of the line in the H-1b process and for hiring consideration. Or paid off their recruiters with a huge loan and bondage agreements, essentially how many H-1b workers are actually victims of Human Trafficking, and are ILLEGALLY indebted to their recruiters or Offshore Outsourcing company?

It appears that U.S. head-hunters working in India are particularly corrupt, and it could well be the case that by increasing the number of H-1b visas we will simply be feeding organized crime in India.

The administration is making move to destroy LCA records, a move that will interfere with any ability to get a handle on this. And I am worried that this is part of a bigger cover-up to hide the discriminatory and illegal hiring practices of Indian companies that have also contracted with our Federal Government.

We do know that H-1b is mostly used by Indian Offshore Outsourcing companies, and that any increase in the number of H-1b visas will simply feed the process of removing jobs from the United States. Offshore Outsourcing companies stuffing the H-1b request box each year, is the reason why we run out of H-1b visas.

We need to fix that first, so that our legitamite tech companies can begin to hire qualified candidates, from where ever they actually are, not just from companies that monopolize the H-1b system by taking every slot, and then essentially bringing in benched workers.

The Offshore Outsourcing companies do not even try to hire U.S. citizens. In recent court documents an InfoSys senior manager tells a U.S. recruiter that "Americans don't know (expletive)". When that recruiter attempted to present the resumes of several qualified U.S. citizens, that the recruiter had already reviewed. The recruiter was then directed to only consider resumes of people from India, for jobs on U.S. soil.

How can we allow companies with such openly discriminatory and racist hiring practices contract with our Federal Government and use our H-1b visa system to discriminate against workers in the United States, for jobs on U.S. soil?????

And if Offshore Outsourcing companies were barred from using our Visa systems (a move that is entirely reasonable given the nature of their business - to destroy jobs and opportunity in the United States, and also that their racist hiring practices have been exposed in court), we would never have seen a year, since inception, where we ran out of H-1b visas.

The only thing holding back the U.S. tech economy is that we allow companies that use bribes and corruption to grab most of the H-1b visas we issue each year. Companies that sell their positions to the highest bidder, without regard to finding the best candidates for a job are the kind of companies that bring tech companies down. Further how can we, in good conscience, allow such a system to facilitate human trafficking from India?

The H-1b system is a National Disgrace.
Posted by:Jake Leone - 02 Nov, 2014