Skip ads and navigation
Advertising
Our network sites seattlepi.comHelp
Print thisE-mail this
Transcript: Bill Gates, U.S. Rep. spar over H-1B visas

In Washington, D.C., today, Bill Gates testified before the U.S. House Committee on Science and Technology, calling again for Congress to reform the H-1B visa program that Microsoft and other companies use to bring foreign workers to the U.S.

Here's an excerpt from the text of his prepared remarks (PDF, 20 pages).

Congress's failure to pass high-skilled immigration reform has exacerbated an already grave situation. For example, the current base cap of 65,000 H-1B visas is arbitrarily set and bears no relation to the U.S. economy's demand for skilled professionals. ...

As a result, many U.S. firms, including Microsoft, have been forced to locate staff in countries that welcome skilled foreign workers to do work that could otherwise have been done in the United States, if it were not for our counterproductive immigration policies. Last year, for example, Microsoft was unable to obtain H-1B visas for one-third of the highly qualified foreign-born job candidates that we wanted to hire.

If we increase the number of H-1B visas that are available to U.S. companies, employment of U.S. nationals would likely grow as well. For instance, Microsoft has found that for every H-1B hire we make, we add on average four additional employees to support them in various capacities. Our experience is not unique. A recent study of technology companies in the S&P 500 found that, for every H-1B visa requested, these leading U.S. technology companies increased their overall employment by five workers.

The Microsoft chairman's assertions didn't go unchallenged. The question-and-answer period included a lively exchange on the topic between Gates and U.S. Rep. Dana Rohrabacher, a California Republican.

A transcript, gleaned from the webcast (accessible here):

Rohrabacher: If we bring in more people from the outside, realizing that we're bringing the most talented people from other countries, will it not hurt those countries? And will it also not depress the wages in our own country that people like yourself would have to pay your employees in order to get quality people or in order to train people within our own society?

Gates: No, no. These top people are going to be hired. It's just a question of what country they do their work in.

Rohrabacher: I'm really not talking about top people here. You know ... there's a lot of other people in society rather than just the top people. It's the B and C students that fight for our country and kept it free so that people like yourself would have the opportunity that you've had. Those people, whether or not they get displaced by the top people from another country is not our goal. Our goal isn't to replace the job of the B students with A students from India, because those B students deserve to have good jobs and high-paying jobs.

Gates: That's right, and what I've said here is that when we bring in these world-class engineers, we create jobs around them. ... The B and C students are the ones who get those jobs around these top engineers. And if these top engineers are forced to work, say, in India, we will hire the B and C students from India to work around them.

Rohrabacher: But according to BusinessWeek, almost 150,000 computer programmers have lost their job in this country since the year 2000. Now, my reading of all of this is that there are plenty of people out there to hire but people want to have the top quality people from India and China and elsewhere, and they're willing to have these 150,000 American computer programmers just go unemployed.

Gates: Actually, BusinessWeek doesn't do surveys. I think you're referring to a quote in BusinessWeek from an Urban Institute study ...

Rohrabacher: That's what I said, according to BusinessWeek, yeah.

Gates: It's not according to BusinessWeek. There was a study that a group at Urban Institute did that was deeply flawed in terms of how it defined what an engineer is. When we say that these jobs are going begging, we're in business every day. We're not kidding about it. These jobs are going begging, and the result is that in a competitive economy ...

Rohrabacher: You'd have to raise wages.

Gates: No, wages are --

Rohrabacher: If a job's going begging, you raise wages, now in a --

Gates: No, it's not an issue of raising wages. These jobs are very, very, very high-paying jobs. And we are hiring as many of these people as we can.

Rohrabacher: Well, let me give you one example --

At that point, committee chairman Bart Gordon interrupted to say that Rohrabacher's time was up, and Rohrabacher suggested that he and Gates continue the discussion at a reception during the evening.

"I'm sure he's excited to know you'll be there," Gordon said.

Posted by at March 12, 2008 3:44 p.m.
Categories: ,
Comments
#107522

Posted by unregistered user at 3/12/08 5:23 p.m.

Dana Rohrabacher doesn't quite get it, either. What's been happening is that A and B student US citizens have been replaced by C students from off-shore.

"U.S. engineers... [are] more creative, excelled in problem solving, risk taking, networking and [have] strong analytical skills..."
http://www.kermitrose.com/econ200707.html#20070702

"Dozens of employers asked to compare American engineers to their much-vaunted colleagues from India and [Red China] agreed that 'in education, training, quality of work, you name it, in every which way, Americans are better'. Even the best schools in those countries 'don't hold a candle to our best schools.', he continues. Newly hired American university graduates 'become productive within 30 days or so. If you hire a graduate of an Indian university, it takes between 3 and 6 months for them to become productive.'"
http://www.kermitrose.com/econ200801.html#20080104

"Dynamic" vs. "transactional" engineers.
http://www.kermitrose.com/econ200512.html#20051213
http://www.kermitrose.com/econ200512.html#20051227
http://www.kermitrose.com/econ200601.html#20060110

The base limit on H-1B visas is a vastly excessive 65K, the total limit is over 85K, broken down as follows, according to USCIS:
1,400 nationals of Chile;
5,400 nationals of Singapore;
20,000 with master's and doctor's degrees from US colleges and universities;
58,200 with "bachelor's degrees or equivalent experience" from any hole-in-the-wall in the world;
unlimited visas for those employed by non-profit research outfits;
unlimited visas for those employed for local, state and federal research;
unlimited visas for those employed by US colleges & universities.

Those numbers constitute the current open-ended "cap". The numbers actually approved and the numbers of visas issued have been quite a bit above those numbers according to USCIS and State Department data.

H-1B visas approved (USCIS):
year Initial renewed+extended total
1999 134,411 na na
2000 136,787 120,853 257,640
2001 201,079 130,127 331,206
2002 103,584 93,953 197,537
2003 105,314 112,026 217,340
2004 130,497 156,921 287,418
2005 116,927 150,204 267,131

H-1B visas issued (DoS):
1996 58,327
1997 80,547
1998 91,360
1999 116,513
2000 133,290
2001 161,643
2002 118,352
2003 107,196
2004 138,977
2005 124,374
2006 135,861

If they were for the "highly skilled" "best and brightest" a more reasonable cap would be a hard 2K visas in use at any one time.

Yes, the E-3, F, H-1B, J, and L visa programs need to be reformed. First, cut the numbers of visas so that more of the bright, well-educated US citizens can be brought back from cat-sitting to something resembling full employment of their skills. It's a terrible waste to subsidize the educations of foreign students, make it more difficult for US students to succeed, and then destroy the careers of US students who had succeeded, while transferring knowledge and research techniques and capital equipment outside of the USA.

There is no requirement that H-1B visa applicants be "highly skilled". Indeed, the US Labor Department data show that 56% of applications filed are for H-1B workers with the lowest skill level (level 1 of 4).
http://www.cis.org/articles/2007/back407.html

USCIS reports show that hundreds are issued each year to those lacking the equivalent of a US high school education, while hundreds more lack the equivalent of a bachelor's degree. With a few welcome exceptions, these are not "best and brightest" individuals, but ordinary people doing ordinary jobs for which the USA has been producing an excess of US citizen talent for decades.

These elevated numbers of E-3, F, H-1B, J, and L-1 visas have been being used to drive down compensation, to facilitate off-shoring, and to facilitate age discrimination.
http://www.prospect.org/cs/articles?article=how_guestworkers_promote_outsourcing

If a foreign student cannot obtain US employment within 2 months after graduation from a US university, then their skills and knowledge must not be in demand. Rather than increasing the time they can legally remain in the USA after graduation from 1 year to 2 years, it should be reduced.

#107621

Posted by unregistered user at 3/12/08 10:18 p.m.

Politians have always been more stupid than an average donkey ! "Rohrabacher" ... this dumbhead worthless woman needs vote for herself and thats all she is looking for !

#107627

Posted by unregistered user at 3/12/08 10:59 p.m.

May be in Future, India will have Microsoft Headquarters if we follow the advise of Politicians like Rohrabacher. Already 3000 jobs were lost to Canada in 2007 because of the H1B cap been reached. may be americans need to go to any near by University and look at the Roster in Master's and PHD programs to really see how many Americans are really 'Very creative and skillfull'. 90% Masters and PhDs are foreign immigrants or on Student Visa. Stupid Politicians.

#107659

Posted by unregistered user at 3/13/08 7:25 a.m.

I figured Microsoft was having trouble finding enough skilled workers. When I loaded Vista, it was pretty apparent :)

#107772

Posted by unregistered user at 3/13/08 1:26 p.m.

Just in the grammatic quality of the responses here, you can tell who was educated in the U.S. and who was not. Fact is, Gates is part of the problem, he funded lobbiest in the mid to late 90's to halt the rise in salaries of technology workers, the way they accomplished this was to open the flood gates and let all the foreign technology workers into this country.

The vast majority of the H1B's go to the enterprise body shops who make a fortune on cheap technology labor, even though this is technically against the law to have equal pay for equal work, the reality is very different. Write your congressperson and tell them that Gates has pulled this scam before, just research your newspaper articles on technology salaries from the late 90's.

There are more than enough qualified tech workers here to fullfill the jobs he mentions, the problem is that they can't afford to relocated to Seattle and the Bay Area becasue of outragious housing costs, so they hire the imports who pile up in apartments to save money.

Dana Rohrabacher has it right, Bill Gates is just trying to do the 'end around' one more time before he retires to fulfill his obligations to the elite in the tech industry on the west coast.

#107899

Posted by unregistered user at 3/13/08 8:50 p.m.

First, they don't subsidize the fees for international students. Most of them have to pay at least three times the fees as American students because they're not eligible for financial aid or grants.
Secondly, most people educated in the US have poor grammar. Here, there is not emphasis on grammar in colleges so I've seen lots of international students who speak and write better [academically correct] english than their American counterparts. Microsoft does not hire only in Seattle or the Bay, and if they did, why can't they move to these areas? So they can save a few bucks by being unemployed? Also, I'd ask that you deal with the fact that you can't compete with these immigrants. What is wrong with a corporation looking where it can for the most talented employees?

#107980

Posted by unregistered user at 3/14/08 7:38 a.m.

I think international students should be encouraged to stay here and work and build careers.

You don't seem to get it, it's not about talent, this is part of the big lie, it's about money. You are willing to work for less money or benefits to have the opportunity to stay in this country, this is where the body shops and Microsofts of the world look to take advantage. Frankly 50% of the technology workers are now from India or the likes, and most of their language skills are horrible, only one in five have decent language skills, I know this because I've been working with them for years.

I don't dislike the people or think they should be denied an opportunity, but companies here now skip over Americans to get at the cheaper labor, this is a fact, I see it everyday, and it is illegal, but the companies skirt the law by using different job descriptions for the same work.

This problem is not new to America, big business has been trying to drive workers to subpar wages since the beginning, it's the nature of capitalism, but it's also the right of people to demand fair treatment, and equal pay for equal work, and this is what Dana Rohrabacher seems to be trying to do, whereas Mr. Gates is simply about himself and his big tech corp buddies.

And think about it, if the flood gates for foreign labor are opened wide, it will also hurt the H1B's that are already here, they will be driven to lower wages as well, which many of them already face from body shops trying to beat them down with threat of going back to India for a job.

Take off the rose colored glasses and smell the coffee, this is all about improving the big companies bottom lines at the expense of technology workers who have to constantly upgrade their skills through out their careers and deserve fair competitve compensation for knowledge which takes more continue effort than most professions.

If the big companies want a better bottom line then they should stop spending their money foolishly.

#108054

Posted by unregistered user at 3/14/08 11:43 a.m.

Yes, absolutely hiring submissive students from other cultures where having an "A" doesn't mean having any kind of opinion or critical reasoning skills at all.

CERTAINLY: pay more, get more applicants. If nothing else, it drives more US-born talent to study the field. The problem isn't what they're paying CTO's. The problem is what they're paying everyone who isn't an executive.

It's an easy fix. Cap the ratio of executive compensation as a function of compensation of lowest-paid employees. It won't hamstring the business unless you believe the crap that "There Is Only One Person In The World Who Can Lead Us Out of The Mess The Last Executive Shoved Us Into" and so executives have to be compensated according to their fame. But compensation for merit? There are plenty of executives.

#108094

Posted by unregistered user at 3/14/08 1:33 p.m.

Right on Rohrabacher!!! We finally have someone who will stand up to lecherous businessmen such as Bill Gates! What a novel concept providing well paying jobs for Americans, instead of for foreigners. It is time we start looking out for our own. Furthermore, if there are not enough qualified people for his jobs why can not Gates provide seed money to educate and train our own people. Perhaps, Mr. Bill should be now called "floodgates" for desiring to open our country to even more immigration.

#108123

Posted by linuxguru1968 at 3/14/08 2:45 p.m.

Anyone who has followed Gates and the H1B issue knows that because he is rich putting lot of lobby money on capital hill – Washington political pimp Jack Abramoff was his biggest client - Gates is allowed to commit perjury freely at Congressional hearings. Irregardless of Rohrabacher's view on global warming (BTW, SOME reputable scientists agree with him), he showed great courage to stand up to Gates as Gates lied about the effect of H1Bs. H1B is a cheap labor program that depresses wages and shortens the careers of native born American scientists and engineers: google Dr. Norman Matloff and Dr. Ron Hira.

Gates muddled and incoherent testimony that US universities are not producing enough STEM graduate was pure perjury: studies by Rand, AP Soan, Urban Institute has shown that there is a glut of STEMs and no shortage. Gates testimony that he pays most of his H1Bs over $100K/year is also a lie: according the LCA database 85% of H1Bs employed by MS are paid less than $50K/year and are not the "best and brightest" or even doing technical work. I applaud Rohrabacher for standing for use native born Americans who invented just about every modern technology. The computer industry that made Gates rich was invented by us native had born Americans NOT Gate's cheap, unimaginative, non-innovative $9/hour Chinese and Indian flunkies.

#112208

Posted by unregistered user at 3/27/08 6:03 p.m.

In my opinion when Gates and others like him speak of shortage what they are really mean is a shortage of NEW grad with NEW skills that can be exploited on the cheap for a few years then let go.

The white lie of tech careers is that it is not a career. At best CS/EE/ME and others are 20 year jobs, then you are considered obsolete.

I have a way (tongue in cheek) to control H1B numbers! Let them come to the US BUT require all to take and pass four years of useless high school English. I've wondered why if you're born and educated here you're forced to take 4 years of English comp, literature, writting etc but if you walk in with a H1B or other Visa you don't need any of this crap. And the broken English (spoken and written) of the Visa crowd proves it!

#113036

Posted by unregistered user at 3/30/08 12:28 p.m.

Someone mentioned that if a visa student cannot get a job in two months after graduating they should be forced to leave. The person who said it has NO idea how screwed up our visa and immigration system is. The reason why many of the best international students (from MIT or Stanford even) not get hired is because of how bad the visa process is. They might get multiple offers, but they would not be able to start working until the visa approval comes through. In many cases, because of the visa cap - even though they have a job offer, there might not be a visa number available for them to start working.
Also, there are specific salary levels that are set by the US government for people working on visas - these match or exceed industry averages. So, the argument that Gates is trying to use foreign workers to keep out americans is not accurate. Sure - improving the total supply might keep the average salaries from growing as rapidly, but then if you don't do that, as a country we cannot be competitive against countries where there are more technically trained students.

! Login below to post a comment.

Registered users, log in here
E-mail 
Password 
Remember me
 HELP! I forget my password

Unregistered users, sign up now

Or post anonymously (About this feature)

Your comment (No HTML allowed, use these special codes instead)
Violating our Terms of Service may result in your post being removed.

Special codes
  • [b]selected text[/b] -- Display the selected text in bold.
  • [i]selected text[/i] -- Display the selected text in italics.
  • [link]www.seattlepi.com[/link] -- Creates a link to the url between the link tags.
  • [link title="Seattle Post-Intelligencer"]www.seattlepi.com[/link] -- Creates a link to the url between the link tags, uses title as link text.
  • [mail]newmedia@seattlepi.com[/mail] -- Creates a link to an email address.
Enter the code shown:
What is this?
BLOGGER BIO
photo
Todd Bishop:
P-I reporter
CONTACT INFO

Have a news tip or a comment? E-mail me or call directly, 206-448-8221.

MSFT: DAILY TREND

FEATURED COMMENT

PictureI think taking a larger share of Facebook would be a good move. Facebook is preparing itself to be the platform of the web and this is exactly what MS needs. Also incorporating facebook services with outlook and hotmail could be extremely useful. Unfortunately, a complete buyout would put MS's name behind the service which could turn users away (as fickle as young people are) so, like the previous 250 million investment, it would need to be quiet."

-- Wilker, on Poll: Whom should Microsoft pursue next?

BALLMER MOOD INDEX

Picture About this feature

TOPIC: WINDOWS VISTA

· Vista at One Year: Progress and Pain
· Computer shop's sales pitch: 'We remove Vista'
·
Full text: Microsoft execs on Vista problems
· All stories and posts

MICROSOFT KEYWORDS

Our interactive timeline analyzes three decades of key documents to provide a scrolling snapshot of the issues at the center of Microsoft's consciousness across the years.

ARCHIVES
May 2008
SMTWTFS
        123
45678910
11121314151617
18192021222324
25262728293031
Browse by month
Browse by category

Recent entries
· Next up: A Microsoft-Google antitrust fight?
· News Corp. says no MySpace-Microsoft talks
· Poll: Whom should Microsoft pursue next?
· Opinion: A Microsoft shareholder's manifesto
· Excerpt: Warren Buffett, Bill Gates on Yahoo
· Microsoft's new automotive deal: Hyundai-Kia
· Microsoft adds NBC, other TV shows to Zune
· Reports: Yahoo still 'open' to Microsoft talks

Search this blog

Older archives

RSS/Web feeds (help)
RSS 2.0RSS 1.0Atom
Headlines for your site

LINKS

News and information
· WinInfo
· Microsoft Watch
· Directions on Microsoft
· WinInsider
· ActiveWin
· KOMO News: Microsoft
· NetworkWorld: Microsoft
· Google News: Microsoft
· Yahoo News: Microsoft
· Microsoft Research News
· Microsoft PressPass
· Channel 9
· Anti-Microsoft News
· NewsForge: Linux News
· Linux Today
· Mac News Network
· Mac Daily News
· Washington Post Filter
· G.M. Silicon Valley
· OS News
· Gillmor Gang

Blogs about Microsoft
· Mary Jo Foley: All About Microsoft
· LiveSide.net
· Microsoft Monitor
· Unofficial MSFT Blog
· IW Windows Weblog
· Xbox 2 Blog
· Inside Microsoft
· CNet Microsoft Blog
· Bink.nu
· Long Zheng, istartedsomething.com
· Beyond Binary, Ina Fried of CNet News.com

Computer Security
· Microsoft Security
· Wash. Post Security Fix
· Microsoft Security Response Center Blog
· Be Careful Out There
· Security Awareness Blog
· Bruce Schneier's Blog
· eWeek Security News
· Larry Seltzer
· Symantec Security Resp.
· McAfee Virus Information
· CNet Security Blog
· Security Focus
· Kaspersky Lab Analyst's Weblog
· Michael Howard (MSFT)
· Stephen Toulouse (MSFT)
· Network World Security
· Planet Security

Microsoft employees
· Employee Blog Portal
· MS Watch List
· S. Somasegar
· Raymond Chen
· Dare Obasanjo
· Brad Abrams
· Heather Hamilton
· Korby Parnell
· Matt Goyer
· Don Box
· Chris Anderson
· Joshua Allen
· Chris Sells
· John Porcaro
· John Montgomery
· Kevin Schofield
· Rick Schaut
· Marc Miller
· Sean Alexander
· Larry Hryb
· Jobs Blog
· Greg Roth
· Harry Pierson
· Mini-Microsoft

Search-related sites
· John Battelle
· Greg Linden
· Unofficial Google Blog
· Yahoo! Search Blog
· MSN Sandbox
· MSN Search Weblog
· Google Blog
· Search Engine Lowdown
· Search Engine Watch
· Google Like a Hawk

Browser-related sites
· Internet Explorer team
· mozillaZine
· Surfin' Safari
· Opera news
· Browser News

Technology Weblogs
· Robert Scoble
· Paul McNamara
· Dwight Silverman
· Charlene Li
· Joel Spolsky
· Engadget
· Gizmodo
· Corante Apple Blog
· Amy Wohl
· Dan Gillmor
· Simon Phipps
· Buzz Andersen
· Chris Seper
· Hiawatha Bray
· Paul Andrews
· Doc Searls
· Chris Pirillo
· Campbell & Swigart
· Longhorn Blogs
· PDC Bloggers

Antitrust info
· FindLaw: Microsoft
· DOJ Microsoft site
· Microsoft legal site
· Findings of Fact
· ComputerWorld Report
· Sun legal page
· Dan Kegel's antitrust site

Additional sites
· Google Microsoft Search
· About Microsoft
· Microsoft User Network
· Tablet PC Buzz
· Living Without Microsoft
· Lockergnome
· WSA
· WashTech
· CyberLodge
· Microsoft Permatemps
· Apache Foundation
· Librenex
· Electronic Frontier Foundation

ADVERTISING

Most recent posts
· Mariners blog: Mariner exec Shaffer taking a look at Griffey
· John Cook's Venture Blog: NYT: Opening the "walled garden" of real estate listings
· Seattle Shopper: spotlight on: MOMS, Maids, and More

*Would you like to blog for us?

Advertising

Seattle Post-Intelligencer
101 Elliott Ave. W.
Seattle, WA 98119
(206) 448-8000

Home Delivery: (206) 464-2121 or (800) 542-0820
seattlepi.com serves about 1.7 million unique visitors
and 30 million page views each month.

Send comments to newmedia@seattlepi.com
Send investigative tips to iteam@seattlepi.com
©1996-2007 Seattle Post-Intelligencer
Terms of Use/Privacy Policy

Hearst Newspapers