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Economy and Job Market in Silicon Valley (CNN transcript)
by Kevin Hattori (Reporter)
NEXT@CNN
CNN
14 September 2002

The following is a transcript of a 14 September interview on NEXT@CNN, which prominently displayed LeEarl Bryant's July engineering unemployment letter to Congress on IEEE-USA letterhead.

 

KEVIN HATTORI: Welcome back to NEXT@CNN from San Francisco's Golden Gate Park.

It's no secret the economy has really hurt the job market in Silicon Valley. And it's raising new scrutiny for highly skilled foreign workers. The federal H1-B visa program grants them special immigration status. But critics say the program is taking jobs away from American workers.

(BEGIN VIDEOTAPE)

HATTORI (voice-over): These days, computer programmer Pete Bennett is building boats for his kids instead of software.

PETE BENNETT, COMPUTER PROGRAMMER: Well, I was a cabinetmaker for 15 years.

HATTORI: But after more than a decade in high tech, this year Bennett has worked on just one software project so far, a victim of the economic slowdown and, he says, an immigration program that's making the job market even worst.

BENNETT: The American citizens are getting hurt. The H1-B workers are getting hurt. And something needs to be done to straighten this thing out -- and quick.

HATTORI: Bennett believes the federal H1-B visa program, which allows nearly 200,000 skilled workers a year into the U.S., is unnecessary and being abused.

HATTORI (on camera): Bottom line, are H1-B visa holders taking jobs that American citizens could be filling?

BENNETT: That's the general consensus among my peers, and myself.

HATTORI: He's not alone. An organization representing nearly 250,000 high-tech professionals has written to Congress. [This is where IEEE-USA letterhead was displayed]. They want to know why Americans are getting laid off while workers from abroad continue to work. The H1-B program was supposed to give skilled overseas workers jobs when qualified Americans cannot be found. The visas were initially capped at 65,000 in 1998, but Congress upped it to 195,000 last year. HATTORI: In fact, perhaps because of the U.S. economic slump, H1-B applications are down dramatically, 48 percent fewer so far this year compared to last. But critics say the decline is not keeping pace with layoffs here in the U.S.

Norm Matloff is a professor at the University of California at Davis, who has studied hiring practices at high-tech companies.

NORM MATLOFF, UNIV. OF CALIFORNIA-DAVIS: What Congress ought to do is just cancel the whole H1-B program. And in its place put a very small program with very strong protections, and without the loopholes they have now.

HATTORI: Loopholes that, critics say, for example, let companies hire H1-B visa workers at lesser paying positions than the jobs they actually perform.

MATLOFF: There is tailoring the job requirements, so that only the foreign national -- you know, that's the only person on the whole planet that would qualify because you've deliberately set it up that way.

HATTORI: Mahesh Nagaranjaiah, who heads up a Silicon Valley organization that counsels many H1-B visa holders says they're missing the bigger picture -- U.S. jobs are being exported anyway.

MAHESH MAGARAJAIAH, H1-B VISA ADVOCATE: I don't think American companies need to find loopholes in the H1-B programs, but they are sending work back to other countries like India, Russia, Israel, China, and other places, where the work can be done at a lot cheaper cost.

HATTORI: The industry also cites a dwindling pool of qualified graduates in U.S. schools.

HARRIS MILLER, INFORMATION TECH. ASSN. OF AMERICA: Half of all graduate students in the math and science programs are foreign students. When a company is looking for the best and brightest, particularly people with advanced degrees, master degrees and Ph.D.s, frequently, many of those candidates are born abroad.

BENNETT: You got any friends at Technical that have been laid off...

HATTORI: Still, that hasn't stopped Pete Bennett who takes his anti-H1-B campaign anywhere people will listen in hopes of saving any jobs he can.

BENNETT: These people are deserving American citizens, and they deserve the opportunity to be employed. And it's a tragedy the way the jobs have been manipulated.

(END VIDEOTAPE)

 


Last Update: 02 May 2005

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