In my last post, I explained why the president’s new order banning issuance of H-1B and other non-immigrant visas is a big win for the tech industry. The ban exempts foreign students, which is the main source the “Intels” use to hire H-1B engineers, whereas the “Infosyses” import workers directly from abroad. This will free up visas that would have been taken by the Infosyses, a windfall for the Intels since each year there are more applications for H-1B visas than the 85,000 cap.
I did go out on a limb a bit in pointing out that most of the pushback on the order had come from sources like the American Immigration Lawyers Association, rather than from Silicon Valley firms. At I wrote that, there was only a tweet from Google’s CEO, Sundar Pichai.
Since then, a number of major tech firms have chimed in. But it’s just posturing; they know the impact of the Trump order on the Infosyses, and the benefit that will bring to the Intels. In fact, they have argued to Congress precisely along those lines, saying in effect, “The Infosyses abuse the system. Give the visas to us instead of them.”
I’ve been told by the insiders that the Trump people are still considering prioritizing the issuance of H-1B visas by offered salary. Of course, again a windfall for the Intels, who pay more than the Infosyses. (Not because the Intel’s don’t underpay their H-1Bs, which they do, but because they hire a higher quality of worker than do the Infosyses.) This would replace the current system, which awards the visa by a lottery.
One aspect I now realize I overlooked, though, is the L-1 visa, specifically L-1B, Intracompany Transfers. In the past, this was used by the Infosyses to circumvent restrictions Congress placed on them in using H-1B. But in recent years, it has also become popular with the big Silicon Valley firms; if the firm failed to win the H-1B lottery, it would “park” the person in one of the firm’s foreign offices, then bring them back to the US after a year under an L-1 visa, which has no caps. Now they won’t be able to do that, at least not without applying for an exemption.
“Can’t tell the players without a scorecard.”