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FIGHT OUTSOURCING - WE NEED YOUR HELP
GET TO WORD OUT NOW!

Charlie Crystal
is running for PA US Senate against US Sen Spector.
http://www.crystleforsenate.com/offshoring.html
Stop the unfair practice of 'offshoring'
Petition: To The President and Congress of The United States Whereas the
practice of “offshoring” is defined as creating jobs overseas at the expense
of US workers, and Whereas a large number of “American” companies engage
in the practice of offshoring in order to lower costs by securing cheap labor
abroad, and Whereas American workers of all skills, education, training, and
vocation are threatened with unemployment or underemployment because of the
practice of offshoring, and Whereas the principle of “chasing the cheapest
price” benefits the few at the expense of the many, and is the core principle
informing the practice of offshoring, and Whereas we Americans embrace and
follow the principles of economic justice, social justice, and equality of
opportunity for all, and Whereas the labor, human rights, democratic,
and environmental standards are generally lower in the countries to which said
companies send our jobs, and Whereas American companies that engage in
the practice of offshoring do so from the privileged position of the American
business environment, to which they owe their success and to which they
generally sell their goods and services, and Whereas the American
economy is unlikely to recover from said practices, hurting our communities,
schools, families, and national security, and Whereas the United States of
America is a country and not a business, formed on the basis of the concept of
“We the people”, not “we the corporation”
We, the undersigned, demand the following action to contain the practice of
offshoring:
- Develop a balanced solution to stop or modify the current practice of
offshoring.
- Create a tax incentive for US companies to curtail the practice of
offshoring.
- Create a tariff disincentive to curb US companies.
- Ban all offshoring for US taxpayer-financed projects, including State
and local contracts.
- Create incentives for Venture Capital-backed startup companies to
refrain from offshoring.
- Conduct open, televised hearings on the practice of offshoring, with
representatives from labor, small business, big business, and state
governments present.
- Conduct open, televised hearings concerning the fraud and abuse of the
L-1 and H-1B visas.

Fight H1B Visa Immigration
SUPPORT HR 2688 Write to Congress!!
See: http://www.usinpac.com/TakeAction.asp
A bill introduced on July 9, 2003 by
Representative Thomas Tancredo (R-CO). This bill seeks to eliminate the H1-B
visa program
The Honorable full name:
United States House of Representatives
Washington, DC 20515
I am writing to express my support to HR
2688, a bill introduced on July 9, 2003 by Representative Thomas Tancredo
(R-CO). This bill seeks to eliminate the H1-B visa program which allows U.S.
employers to hire highly educated foreign professionals on a temporary basis.
While it is highly unlikely that this bill will gather enough support to become
a law, it is cause for concern in immigrant communities. The stated purpose of
H.R. 2688 is to prevent 'any skilled worker from overseas to enter the US - so
that Americans do not lose their jobs to immigrants'. The U.S. was, is and will
continue to remain a nation of immigrants.
The H-1B program benefits the U.S. economy
by allowing employers to hire professionals with specialized technical skills or
knowledge while protecting the interests of U.S. workers through built-in
safeguards. The H-1B program has played an important role for many types of U.S.
businesses including biotechnology and healthcare, information technology, and
scientific research and development. Examples of H-1B employees include medical
researchers, professors, engineers, and computer professionals.
Businesses would not go the extra burdens,
costs, and delays of hiring foreign professionals through the H-1B program, if
they could fulfill their labor needs with U.S. workers. Employers typically hire
employees under the H-1B program because they need the specialized or unique
skills that the H-1B professional offers or to relieve temporary work shortages.
There are important safeguards built-in to the H-1B program that ensure that
employers protect U.S. workers when they hire H-1B professionals; if they fail
to comply with the regulations, employers may be subject to investigations
and/or hefty monetary penalties. Employers also must pay a fee of $1,000 for
each H-1B application, in addition to application fees and other associated
costs. Without the H-1B program, it would be impossible for U.S. companies to
maintain a competitive edge in the global market. In fact, the U.S. Chamber of
Commerce has pointed out that the U.S. continues to need the H1-B visa program
and that we still have needs to hire skilled workers from overseas. Last year,
some 79,000 H1-B visas were granted, showing the need for this visa category.
It is my fervent hope that you will not only
support this measure, but that you will introduce and support even more
reasonable bills on that restrict immigration. As a voting member in your
constituency I appreciate and applaud your anti-immigrant position and thank you
for your help in fighting such just bills as HR 2688. I am confident that you
will act in the interest of our businesses; education, research and immigration
needs and support such a bill to become law. I also oppose the initiative
of the United States Indian American Political Action Committee (USINPAC)
together with the various other pro-immigration and pro-business coalitions that
have come together to fight this just bill.
Sincerely yours,
Your name and address

http://www.techsunite.org/news/techind/031020_md.cfm
MD State Lawmaker to Fight Export of Jobs
By Mark Gruenberg Oct 20, 2003
Press Associates Union News Service
COLLEGE PARK, Md. (PAI) -- Pauline Menes wants to stop export of
white-collar jobs from Maryland before an exodus starts. And the way to do so,
the state delegate believes, is to put the weight of the state government behind
the Free State's white-collar workers. Menes, a Democrat from College Park, met
Oct. 15 in its city hall with unionists concerned about the issue, to discuss
strategy for and details of legislation on the issue that she will introduce in
the state capital of Annapolis next year. Her legislation, like measures in
other states, would ban state agencies and contractors from exporting
white-collar jobs -- computer techs, data processing, engineering and the like
-- to other countries. Those exports deprive U.S. workers of jobs. Though
Maryland has yet to experience such an exodus of white-collar government jobs,
other states had such migration. And the departure of private white-collar jobs
is worse. Public pressure in New Jersey, for example, forced the state to bring
nine white-collar jobs that a contractor had outsourced to India -- handling a
"help line" for welfare recipients -- back to Camden, an area of high
unemployment. But in Florida, Gov. Jeb Bush (R) let some similar welfare-related
jobs go overseas via a state contractor.
Studies estimate that at least 3.3 million private-sector white collar jobs will
be exported in the next decade to nations such as Russia, China and India.
There, workers with similar skills would perform them -- at much lower cost --
for firms such as Microsoft, IBM, the Bank of America and Hewlett-Packard.
Meanwhile, high-tech workers here at home would be jobless -- and the vaunted
"information economy" which was supposed to make up for blue-collar job losses
would not do so. Menes admits her bill would affect few state government jobs,
but it would have more impact on state contractors. And its real impact is as a
signal to Maryland's high-tech companies. "It's a way to influence them," she
points out.
"We have to take people to Annapolis who know the problem and get them to talk
to the (legislative) committees about it" at next year’s hearings, she said.
"That way they would understand its importance to you and to the rest of the
labor movement." That may be easier said than done. "White collar workers have
traditionally not been very good at advocating for themselves," said Paul
Almeida, President of the AFL-CIO Department of Professional Employees, who
attended the meeting. "If the public was aware and raised its voice, this would
stop." That happened in New Jersey, he noted.
Other participants included top DPE official Mike Gildea, and Mike Blain of
WashTech -- a Seattle-based Communications Workers local that has led the fight
on the issue. They agreed a state-by-state strategy is the best way to get
federal attention to the white-collar job exodus. Some federal lawmakers are
already paying attention. The House Small Business Committee held its second
hearing on the issue on Oct. 20.
And the Justice Department is investigating a case where a California-based
manufacturer of Palm Pilot-type devices sent its techs over to India to train
workers, promised the techs their jobs would not be dumped after they came back,
and then reneged. Menes introduced legislation last year to ban export of
state-funded white collar jobs, but did not mobilize support for battling the
job exports, except for a letter from officials in one department of GOP
Governor Robert Ehrlich's administration.
"I thought it was so clear that union people experienced in the information
technology field would come out" for hearings on it, she said. But none showed
up. Blain noted the AFL-CIO can use the white-collar job exodus as an
organizing tool. As an example, he said WashTech's email list in New Jersey grew
by more than 500 percent in the months after WashTech circulated word of the
transfer of the nine white-collar jobs to India, before their return to Camden.
"We mobilized people via emails and action alerts and, within two weeks, they
generated more than 1,200 e-mails and faxes to state legislators" leading to the
return of the jobs, he said. And WashTech now has a critical mass for organizing
in the Garden State. "As we have different events nationwide, people respond.
But here in Maryland we can be ahead of the game" with Menes' bill, Blain
explained. "We have to play up the insanity of sending jobs overseas at a time
when we have high unemployment in our own country," Almeida concluded.
Paul Almeida,
President, AFL-CIO Department for Professional Employees -
We have to play up
the insanity of sending jobs overseas at a time when we have high unemployment
in our own country.'
See.
www.dpeaflcio.org palmedia@dpeaflcio.org
www.ifpte.org &
http://www.ifpte.org/news/pdfs/PEA.pr.pdf
http://www.mdarchives.state.md.us/msa/mdmanual/06hse/html/msa12270.html

PAULINE H. MENES
Democrat, District 21,
Anne Arundel &
Prince George's Counties
Lowe House Office Building, Room 210
84 College Ave.
Annapolis, MD 21401 - 1991
(410) 841-3114, (301) 858-3114
1-800-492-7122, ext. 3114 (toll free)
e-mail:
pauline_menes@house.state.md.us
fax: (410) 841-3116, (301) 858-3116
3517 Marlbrough Way
College Park, MD 20740 - 3925
(301) 935-6270

Indiana Lawmakers fights Outsourcing of Jobs
to Tata
Information Week Anti-Outsourcing
Legislation
Oct. 13, 2003
http://www.informationweek.com/story/showArticle.jhtml?articleID=15300050
An Indiana state senator is drafting legislation to restrict
public agencies' ability to outsource it work to foreign countries or to use
vendors whose U.S. staff consists largely of visa workers. Jeff Drozda, a
Republican from the Indiana district of Westfield, found out that a state agency
charged with job creation had outsourced work to India's Tata Consultancy
Services.
http://www.in.gov/legislative/senate_republicans/homepages/s21/10-6-03.htm
Senator Jeff Drozda

Indiana State Senator, District 21 200 W. Washington Street
Indianapolis, IN 46204 (317) 232-9400 (800) 382-9467
October 6, 2003 Letter Spotlight: Jeff Drozda Offshore deal
won't Energize Indiana
Several weeks ago, I was contacted by a former information technology
executive who expressed concern that a major contract was to be awarded by the
Indiana Department of Workforce Development to a firm notorious for displacing
American high-tech workers with L-1 visa immigrants. All of this was to be done
with $39.3 million of taxpayer funds via federal dollars paid through the
Energize Indiana program. After voicing my concerns with high-ranking officials
from the DWD, I was informed that the contract had not been awarded and DWD was
fully aware of the concerns that some had about awarding this contract to an
Indian firm. On Sept. 29, The Star reported that DWD awarded the contract to the
same foreign company in question. As a member of the Indiana General Assembly as
well as a taxpayer, I am outraged at the lack of common sense on this decision.
Energize Indiana's claim to fame was to "create 200,000 new high-wage,
high-skill jobs, grow per-capita income faster than the national average, and
invest in (Indiana's) people and their future." In this most recent contract
award, it is hard to see the connection. This outrage is not limited to any
political party or profession. The IT community, other white-collar
professionals, union members, and Democrat and Republican policymakers are all
scratching their heads on this one.
Workforce officials declared that no Indiana firm bid on this contract. Why?
There aren't any Indiana firms that do this type of work? Then maybe we should
use the Energize Indiana funds to create firms that do. After all, we need to
start doing something. A recent report revealed that Indiana will decline in
national standings in the areas of research and development, and there will be
no increase in the number of newly created high-tech jobs. Alan Degner, DWD
commissioner, was quoted as saying that the foreign winner is "committed to
paying U.S. market wages." This offshore corporation says it will pay the U.S.
Department of Labor's prevailing wage for each type of worker. A programmer
analyst would be paid at least $36,733 a year. However, after reviewing the
Department of Labor's Web site, one can see that the mean annual rate for an
Indiana computer systems analyst is $53,780. Do state officials not have any
legal or moral responsibility to put Indiana workers first? Will these H1-B and
L-1 temporary workers pay state income taxes and local property taxes? What are
we saying to those students in colleges and universities around the state who
are working on degrees in these areas? As a newly appointed member of the
Indiana Human Resources Investment Council, I have asked the chairman to place
this issue on the agenda for the next meeting. The council has jurisdiction over
the use of federal job training funds as well as make recommendations to the
governor on human investment needs in Indiana. I anticipate the questions will
not stop there. Policymakers should be asking many more questions in the months
ahead, especially as the state continues to release additional funds to
"Energize" Indiana. It is unfortunate that common sense was absent on this
contract award. As one local union official told me, "They should have pulled
this one back; what were they thinking?" Drozda is a Republican state
senator from Westfield
http://www.in.gov/dwd/

The Energize Indiana vision has become a reality. As a part of the Energize
Indiana economic development plan the Department of Workforce Development has
two special initiatives.
 | To put more Hoosiers to work in high-skill, high-demand occupations and
help employers find those workers |
 | To make our Unemployment Insurance system work faster and more efficiently
while saving employers and workers time and money |
Through the 21st Century JOBS initiative and Unemployment Insurance
Modernization, DWD will do our part to help move Indiana into an exciting future
full of more possibilities than ever before.
Job Opportunities Business Services (JOBS)
The JOBS initiative was created to strengthen and diversify Indiana's economy
by focusing on four targeted sectors - Advanced Manufacturing, Information
Technology, 21st Century Logistics, and Life Sciences. The JOBS initiative was
allocated $25 million in federal money over five years as a part of House
Enrolled Act 1001.
The primary goal of this statewide effort is to place Hoosier workers in
high-wage, high-skill and high-demand occupations. Money allocated will allow
DWD to build on already existing job placement tools and start exciting new
initiatives to connect Hoosier workers with the employers who need their
sophisticated skills. Through the JOBS initiative, three main goals will be
accomplished: Workforce recruitment; worker assessment and job profiling; and
job placement.
Read more about JOBS
Unemployment Insurance System Modernization
The Indiana Department of Workforce Development is embarking upon one of the
most innovative initiatives since the inception of the agency in
1938—modernizing our entire Unemployment Insurance system.
This strategic component of Energize Indiana will provide the most advanced
and efficient user-friendly, public/private system in the nation. Through
information technology, Hoosier workers and employers will have easy access to
the resources they need—anytime, anywhere.
Read more about UI
Modernization

Unemployment Insurance System Modernization
House Enrolled Act 1001 provided $39.2 million for the Indiana Department of
Workforce Development to embark upon one of the most innovative initiatives
since the inception of the agency in 1938—modernizing our entire Unemployment
Insurance system.
From a technical standpoint, the current UI program is a system whose time
has passed. Built in 1989, it uses operating system software that will no longer
be supported after July 2003. Replacement parts are becoming scarce or
unavailable, and programming changes are becoming difficult as well.
Modernization is an investment in the future for all stakeholders of the
Unemployment Insurance program and will dramatically change the way DWD does
business. Improving the system has several distinct advantages for both Hoosier
employers and Hoosier workers.
Advantages For Hoosier Employers
As the Hoosier economy transforms, more and more new Hoosier companies will be
able to register with DWD over the Internet, saving them valuable time getting
their new business off to a good start. A
2003 report by Gartner,
Inc., a research and advisory firm, indicated that using the new UI system
to conduct Unemployment Insurance business over the Internet could save Hoosier
employers $36.4 million annually. Time and money-saving services include:
 | Access to services 24 hours a day |
 | Automatically generated payment reminders |
 | Immediate notification of unemployment claims |
 | Ability to file appeals on line |
 | Power to pay Unemployment Insurance tax online |
 | Ability to view and make changes to tax account information |
 | Wage and tax report filing |
 | Reduction in postage expenses |
 | Faster service |
Advantages For Hoosier Workers
Unemployment Insurance system modernization also benefits Hoosier workers.
Modernization gives workers a more efficient way to do business and offers these
online advantages:
 | Filing claims faster |
 | Getting unemployment benefit checks faster |
 | Checking the status of claims |
 | Filing an appeal |
 | Presenting evidence for appeals |
 | Downloading forms and manuals |
Other Benefits
According to an initial report by the Information Support Service Center, a
non-profit unemployment insurance technology think tank, the savings to Indiana
Workforce Development from this project may total up to $355.5 million over ten
years, a return on investment of 1,165 percent! But the advantages don't stop
there. There are other benefits for Hoosier workers and employers:
 | Improved performance getting benefits and processing employer taxes |
 | Ability for existing staff to handle larger volumes of claims, ensuring
overall customer satisfaction remains high |
 | Better security for highly sensitive information provided by both
employers and workers |
 | Significant reduction of unemployment insurance fraud and benefit
overpayments |
 | Continued healthy balance of the Unemployment Insurance trust fund |
This strategic component of Energize Indiana will provide the most advanced
and efficient user-friendly, public/private system in the nation. This all
translates to earning more federal incentive dollars; tax savings to employers;
and the availability of more dollars to be used for services and benefits for
the citizens of Indiana. Through information technology, Hoosier workers and
employers will have easy access to the resources they need—anytime, anywhere.
For more information on Workforce Development's Energize Indiana plan contact
Brett Wineinger, Director of Advance Indiana (317) 233-5514, or
bwineinger@dwd.state.in.us
Visit the Energize Indiana web site at
www.in.gov/gov/energize
http://www.in.gov/dwd/newsroom/pubs/March_Developments.pdf
Mar 2003 Gov O’Bannon Appoints Degner to Head DWD
Governor Frank O’Bannon appointed Alan Degner to be commissioner of the
Indiana Department of Workforce Development. "I am looking forward to being a
part of this great team and to working with our partners throughout the state,"
Degner said. Degner comes to DWD after several years in state government. He
started in Legislative Services as a fiscal analyst before moving to the
Economic Development Council. He served as Lt. Gov. Joe Kernan’s chief of staff
from July 2001 through January 2003. According to Degner, "One of the most
important elements for ensuring a strong economy is access to a prepared
workforce. Whether we are helping an individual as they search for a new job, or
joining forces with our local partners to provide training and skill
enhancements, DWD helps to prepare Hoosier workers for the high-skill, high-wage
jobs of tomorrow."
Contact the Indiana Governor let him know your concerns.
jkernan2@state.in.us
http://www.in.gov/gov/
Wonder if it is possible that Tata is setting up some folks in this
deal with offshore accounts were they get a couple bucks per hour per person?

NJ Lawmakers
fights Outsourcing of Jobs to India
This is your chance to help out send emails to NJ's Assembly tell them your
viewpoints to support the bill to keep the jobs in America!.. All the H1-B Visa
opposition is working hard to stop this. This is includes folks like Avaya's Pat
Russo's Lobby efforts...She was a former top manager at Lucent..When the firm
fell apart the FCC blamed three managers Jim McGinn CEO, Carly Fiornia Now CEO
of HP and Pat Russo...This management style made them millions and destroyed the
companies and the American Jobs, Infrastructure in the process. They are very
heavy users of H1-B/L1 Technical Labor!.. If this bill goes thru another 5-10
more states will follow thru... Your emails can help get this passed send your
viewpoints to the emails at the end of the page.
SenTurner@njleg.org
With your help, I am confident that we can pass S-1349/A-2425 through the Assembly. I look
forward to your continued support

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http://www.hindustantimes.com/news/5967_437737,001600060001.htm
Indian American seeks New Jersey Senate seat
Indo-Asian News Service Washington, October 29
Upendra Chivukula, one of the few Indian Americans to hold an elected office,
is now seeking a seat in the New Jersey Senate. A Democratic elected
representative in the state assembly and a
long-time resident of Franklin Township, the Chennai-educated Chivukula is
seeking a seat from the 17th District.
The mid-term poll will be held on November 4. Chivukula, 52, was educated at
the Vivekananda College in Chennai and then went to an engineering college in
the same city before coming to
the U.S. where he took a masters degree in engineering from the City
University of New York.
He has served in the New Jersey Assembly since 2002. He has worked with
Congressman Frank Pallone, a Democrat from New Jersey, who is the
founder chair of the Congressional Caucus on India and Indian Americans,
from the time the Caucus was formed. He is married to Dayci Chivukula
and they have two children -- a son, Suraj, and a daughter, Damianty.
The election will signal whether New Jersey's voters are angry enough
about Democrat Governor James E. McGreevey's tax increases and political
missteps to throw the Democrats out of power, as contended by the Republicans.
At present the Senate is split 20-20 between Democrats and Republicans,
and only a handful of races are competitive enough to swing the upper
house. Chivukula is running a close race along with seven other
contenders. A management consultant by profession, Chivukula is
described by friends as a highly motivated "do it now" person whose
actions have benefited every community in which he has lived. He
is director, marketing, at Sira Tech International, Inc., Somerset, New
Jersey. He has co-authored six books.
Chivukula has extensive technical and business experience working at AT&T Bell
Laboratories where he implemented supplier management practices. The
issues and proposals on which he is seeking the state Senate seat are:
Property taxes: "Our state continues to have the highest property tax
dependence among all te states. I support a constitutional convention to study
the problem. I am also open to other ways of findingsolutions."
Jobs: "New Jersey is suffering like the rest of the nation in a
non-job-growth economy. I will work to protect our existing small
businesses and attract additional high-tech businesses to our state."
Auto insurance: "New Jersey needs a real, no-nonsense reform to bring
down our 'highest in the nation' auto insurance rates. I will fight to
attract more insurance companies to New Jersey and to get uninsured drivers
off our roads." |
 | |
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This NJ
Lawmaker Stalls |
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NJ Bill to Stop
Outsourcing Jobs to India!!
|
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http://www.njleg.state.nj.us/Members/chivukula.asp |
http://www.iacfpa.org/election/candidate.html
Upendra Chivukula (D) State Assembly - 17th Legislative District
UPENDRA CHIVUKULA, STATE ASSEMBLY CANDIDATE
LEGISLATIVE DISTRICT #17
The District contains Middlesex County municipalities of Highland Park,
Milltown, New Brunswick, North Brunswick, and Piscataway. Somerset County
municipality of Franklin. Political Platform: Property tax reform, Patient's
bill of rights, Affordable auto insurance, Affordable housing, Protect our
environment.
Bio: Mr. Upendra Chivukula is Director-Marketing at Sira Tech International,
Inc. Somerset. Mr. Chivukula has a Master's degree in Electrical Engineering
from City College of CUNY, NY and is a co-author of six books. Mr. Chivukula has
served as mayor, deputy mayor and councilman of Franklin Township. He worked
with Congressman Frank Pallone who organized the Indian Caucus (170 members) and
Caucus on Indian Americans. He is married with two children. Website:
www.upendraforassembly17.com
http://www.ialipac.org/candidates/upendra.html
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Upendra Chivukula
Upendra
Chivukula is a longtime resident of Franklin Township. He is married to
Dayci Chivukula for 25 years. Together they have raised two lovely children,
a son, Suraj and daughter, Damianty. Upendra is highly motivated "do it now"
person whose determination and civil mindedness has benefited every
community in which he has lived. His humility, sense of fairness and his
loyalty to his ideas have won him the respect of leaders at all levels of
government and private sector. Here is what they say:
"Upendra Chivukula, a tireless public servant, is uniquely qualified
to represent all the residents of 17th Legislative District in the New
Jersey Assembly. I am honored to know and support him" - United States
Senator. "Upendra...I know you will make the Democratic Party proud"
- Robert G. Torricelli, United States Senator. "Upendra...I appreciate
the leadership, energy and ideas you offer... Your colleagues...speak very
highly of your ability and commitment." Thomas A. Daschle, United States
Senator.
PUBLIC SERVICE
Franklin Township 5th Ward Councilman, Franklin Township Mayor (2000),
Franklin Township Franklin Township Deputy Mayor (1998), Franklin Township
Democratic Party as Municipal Chair from 1993 to 1996. Franklin Township
Community Foundation, Finance Oversight Committee, Traffic Management
Committee, Fire Prevention Board, Emergency Life Support Delivery,
Integrated Communications Committee, Emergency Management, Franklin Township
Planning Board, Economic Development Committee, Community/Senior Center
Steering Committee, Bicentennial Celebration Committee.
Somerset County Democratic Committee as Executive Committee Member since
1992, Somerset County Affordable Housing Board of Trustees, Cultural and
Historic Commission, Middlesex County Cultural and Historic Commission.
State of New Jersey
Governor Florio appointed him to be a Public Member, New Jersey State
Board of Social Work Examiners, a regulatory body. He served on the board
from 1994 to 1997, New Jersey state Cross-Acceptance Committee.
National Member of Delegation to Democratic National
Convention in 1996 and 2000.
Civic Activities He is a Leadership New Jersey
Fellow (1998), Past President of Franklin Township Lions Club and Zone 2
Chairman in District 16-D. He is National Committee Member of the
Association of Indians in America, Past Secretary of NJ Chapter of Indian
American Forum for Political Education and Past President of Asian American
Political Coalition. Upendra worked with Congressman Frank Pallone from the
beginning of the formation of the India Caucus and Caucus on Indian
Americans. The India Caucus has 170 members today and is one of the most
powerful caucuses.
PROFESSIONAL - He is Director - Marketing at Sira Tech
International, Inc., Somerset, NJ. Co-author of six books-- Supplier Quality
Management, AT&T Corporate Quality Office including Practical Engineering
Guides for Managing Risk, McGraw-Hill. Upendra has extensive technical and
business experience working at AT&T Bell Laboratories where he implemented
supplier management practices. He has helped organizations achieve higher
productivity through workflow automation, strategic technology management,
activity-based costing and process management.
EDUCATION Upendra has a Master's degree in Electrical
Engineering from City College of the City University of New York.
PERSONAL Upendra's dedication to his family and
community, to truth and integrity and to the desire to help those less
fortunate, have most shaped.
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http://www.cwanj.org/news.asp?id=531
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STOP Loss of New Jersey Public Sector Jobs to Foreign
Countries
Support
S1349/A2425.
Sponsored by Senator Shirley Turner (D-15), and Assemblyman
Reed Gusciora (D-15), would require that only U.S. citizens or persons
authorized to work in the U.S. could be employed in performing the work of
State contracts.
Status.
S1349
passed the Senate 12/16/02 by a vote of 40-0 and is now stalled in the
Assembly State Government Committee along with its companion,
A2425,
due to intense corporate opposition.
Action Needed:
Send an Email Message to the members of the Assembly State
Govrnement Committee, Speaker Sires, Senator Turner and Assemblyman Gusciora,
and tell them you support A2425/S1349 and would like to see it released
from Committee and passed by the full Assembly.
Information/Background
The intent of this legislation is to prohibit subcontractors
from outsourcing the work of State contracts to foreign countries. Current
law allows the practice which in turn, allows them to take away public
sector jobs by submitting low bids.
The bill was introduced when it was discovered that a company called eFunds,
Inc. which received a seven year State contract to process welfare and food
stamp cards, subsequently moved its customer service center to India. The
company processes the cards for about 194,000 New Jersey residents.
Citizens are Vulnerable
The company employs English speaking workers and has them answer the phone
using names like Mary or Bill. They reportedly watch American TV shows like
Friends and Ally McBeal to keep up on the latest American phrases. So when
people call them with a problem or question with their card, they do not
know that the voice on the other end is not in the United States of America.
If they then give the workers personal identification information, they have
little or no recourse if the workers in the foreign country does something
unscrupulous with it.
Threat to Pubic Sector/Erosion of American Jobs
The Americans who performed the work of the contract earned $10 - $12 per
hour; the company shipped the jobs to India because the workers there make
as little as $2.00 per hour. If companies are allowed to perform the work of
public services overseas, they can consistently submit extremely low bids on
government contracts.
More Info
Read Gordon Bishop's politicsnj.com piece,
NEW JERSEY WORKERS VS.
FOREIGN WORKERS
Get the Star-Ledger Editorial,
Bring state jobs home
Links
CWA New Jersey Locals
|
|

| CWA NJ Home |
Legislative & Political Action |
Mobilization |
Links |
National CWA Website | |

http://www.techsunite.org/news/techind/njoutsourcing1.cfm
March 13, 2003
NJ legislator: Reports in Indian
press on outsourcing bill are 'completely false'
|
By Mike Blain
Responding to reports in the Indian press that she helped block a state
bill that aims to stop offshore outsourcing of state government projects, New
Jersey Sen. Shirley Turner has labled such claims as "completely
false".
|
Take
Action!
Tell New Jersey legislators you believe they should
support A2425/S1349, which to stop offshore outsourcing of work done
on state government contracts.
|
The India Times reported earlier this week that Sen. Turner had helped to
table the bill after heavy lobbying by the Information Technology Association
of American, and its Indian counterpart, which also lobbies in New Jersey.
"This is another dirty tactic by the individuals who seek
to see this bill destroyed," wrote Sen. Turner in an email to supporters.
She added that she had been "extremely encouraged" by all the emails
and faxes she had received in support of the bill.
The TechsUnite web action in support of the New Jersey bill has generated
nearly 150,000 total messages to 120 New Jersey legislators in the past week.
New Jersey Assembly Rep. Gary Guear (D-14) reports that the TechsUnite
online campaign has already set a one-day record for the number of
emails received by his office.

http://www.techsunite.org/news/techind/031024_congress.cfm
White-collar Job Flight Concerns Lawmakers
By Mark Gruenberg October 24, 2003
Press Associates Union News Service
'At what point will
we send so many jobs overseas that we won't have any jobs here to buy the
products, regardless of where they're made?'
--
U.S. Representative Donald Manzullo (R-Ill.), speaking at a House Small
Business Committee Hearing
(See Numbers
this shows his actions do not follow his statements ...He has a track record
on this issue just as poor as many other political figures.)
WASHINGTON (PAI) -- The flight of white-collar jobs overseas, never to
return, is catching lawmakers' attention. But measures to deal with it face
opposition from the information technology industry's lobby group. Those views
emerged at an Oct. 20 House Small Business Committee hearing, the second on the
issue. It featured a former Silicon Valley worker telling lawmakers about the
human impact of the white-collar job flight--and the information technology
asso-ciation’s lobbyist claiming the problem is overstated. Studies show up to
3.3 million high-tech and white-collar jobs--those of call center workers,
computer software engineers, automotive engineers, financial services workers
and the like--will be exported from the U.S. to developing nations such as
Russia, China and India during the next decade. Those jobs would take $136
billion in payroll with them. Such job exports also cut or eliminate
opportunities for U.S. high-tech workers and graduates of U.S. universities,
Committee Chairman Donald Manzullo (R-Ill.) said. "At what point will we send so
many jobs overseas that we won't have any jobs here to buy the products,
regardless of where they're made?" he asked. Natasha Humphries' job has already
left, for India. Humphries, the former senior quality assurance engineer at
Palm, Inc.--a maker of Palm Pilots--told the panel she and other engineers were
sent from California to India in late 2002 to train engineers there in software
quality assurance testing. They returned to the U.S., were promised their jobs
would remain--and were laid off in August. Fourteen engineers, or 40 percent of
the firm's QA engineering workforce, lost their jobs. Only one has found
subsequent employment. "After securing bids for pay rates as low as $2 to $5 an
hour, or $4,200-$10,400 a year, management made the decision to outsource all
testing assignments to software quality assurance engineers in India," she
explained. That saved Palm, which was "struggling to...meet Wall Street and
shareholder fiscal expectations...50 percent to 70 percent on salaries alone,"
Humphries added. Outsourcing continues at Palm. Humphries, who is working with
the AFL-CIO Department for Professional Employees on the white collar job export
issue, said education and retraining for advanced work--as the Bush
administration proposes--may not solve the problem. She cited her constant
education, during her years with Palm and her 7-year career, to improve her
information technology knowledge and skills. And then she told lawmakers about
the runaround Palm gave her when she tried to continue her upgrades after
returning from the training sessions she ran in India. By mid-2003, Palm was
outsourcing other testing and information technology tasks to India, and
ultimately the U.S. software engineers, including Humphries, lost their jobs.
She's not alone. "During TechsUnite meetings, I have met many software engineers
and information technology workers who have been unemployed or underemployed on
average between 18-24 months," she testified. And the panel released a partial
list of U.S. white-collar jobs sent offshore in recent months. It featured some
big names in U.S. business--and 3,400 state government payroll jobs.
General Electric sent 10,000 information services jobs, some from Georgia, to
India. Electronic Data Systems--Ross Perot's ex-company--exported 13,800 jobs to
several nations. In 1992, Perot warned of the "giant sucking sound" of job loss
to NAFTA. Microsoft spent $100 million on a new call center in the Philippines.
Citigroup and Bank of America both sent software development jobs--similar to
Humphries'--to India. Northwest Airlines established a call center there. AT&T
and Hewlett-Packard set up call centers in the Philippines. Lawmakers and
witnesses offered few solutions for the job flight, though both Manzullo and
Humphries said the U.S. tax system needs revision to encourage firms to keep
jobs here and to penalize firms that export jobs abroad. "Current laws promote
offshoring," Humphries told the committee. "An e-mail sent to me noted that
current law does not make distinctions between American and foreign labor" in
giving companies tax incentives for job creation. She also suggested creation of
a think-tank to consider all the issues involved in exporting white-collar jobs
overseas, including taxes, trade and retraining, and for what."Retraining didn't
reverse Palm's decision" to fire her and her colleagues, Humphries pointed out.

http://www.house.gov/delauro/press/2003/L1_bill_7-10-03.htm
FOR IMMEDIATE
RELEASE
Contact: Lesley Sillaman
July 10, 2003
(202)
225-3661
www.house.gov/delauro
DeLauro Introduces Bipartisan Legislation
to Protect American Workers
Washington, DC – Congresswoman Rosa L. DeLauro (CT-3) today introduced
bipartisan legislation, titled the “L-1 Non-Immigration Reform Act” that would
close the loopholes in the immigration law that allow large corporations to
bring in foreign workers, pay them less, and replace good paying American jobs
held by American citizens.
“This legislation would protect American workers from losing jobs by
preventing companies from using L-1 visas to displace American workers for
foreign workers working for less money,” said DeLauro. “At a time when domestic
unemployment is at an all-time high and tens and thousands of jobless tech
workers and others are looking for work, it is important to close the loopholes
that disadvantage American workers.”
The L-1 visa program allows a multi-national corporation to bring into the
U.S. employees from their overseas subsidiaries on an “intra-company transfer”
basis. The only requirements are that these guest workers must have worked for
the company for one year out of the last three years prior to the transfer and
the foreign worker’s prior education , training, and employment must qualify
him/her to perform the intended services in the U.S. The L-1 visa is issued for
one year and is renewable for up to five years and seven years for high level
executives.
The L-1 visa program has no safeguards in place to ensure that corporations
do not use the program to bring in lower wage labor to displace American
workers. For example, under the L-1 program, there is no limit on the total
number of foreign workers that can be brought into the U.S.; a corporation does
not have to apply with the Department of Labor to attest that they are not
displacing American workers; there is no requirement that the L-1 foreign guest
worker can be paid prevailing wages and benefits for the duration of their
employment; and corporations can execute blanket petitions for the L-1
transferees.
DeLauro’s legislation would specifically address these issues by:
• Placing a cap of 35,000 annual L-1 visas allowed;
• Banning the practice of filing blanket petitions to hire L-1 workers;
• Prohibit L-1 visa to any firm that has laid off an American worker
within the preceding six months and for six months after the application is
filed;
• Add a prevailing wage requirement to protect L-1 workers and to protect
U.S. workers from being displaced by lower wage L-1 visa holders;
• Require the L-1 guest worker to have been employed by the petitioning
firm full time, continuously for three years; authorize the Department of
Labor to conduct ongoing surveys of the level of compliance by employers of
the provisions and requirements of the L-1 visa program, and permit the
secretary of Labor to impose administrative remedies.
“Our economy has been in a downturn for three years,” said DeLauro. “More
than three million people have lost their jobs since President Bush took office.
Now, more than ever, we need to ensure that all Americans have access to
good-paying jobs. Closing the loopholes in the L-1 visas will ensure that
Americans are given opportunities to work.”
Currently, the legislation is cosponsored by:
Rep. Christopher Shays (R-CT)
Rep. George Miller (D-CA)
Rep. John F. Tierney (D-MA)
Rep. James McGovern (D-MA)
Rep. Bernard Sanders (I-VT)
Rep. Major Owens (D-NY)
Rep. Barney Frank (D-MA)
Rep. Gene Green (D-TX)


May 31, 2003
|
May 30, 2003
Rep. Inslee says U.S. won’t stem outsourcing
WashTech News
By David Beckman

'We want to keep
the doors open. I believe any effort to restrict market access
will adversely impact the U.S. economy. The policy of
protectionism will not take us anywhere.'
--
Rep. Jay Inslee (D-WA).

|
Despite appeals from many of his constituents to help stem the flow of
high-tech jobs to countries like India, U.S. Rep. Jay Inslee (D-WA) of
Washington state is in New Delhi this week, where he assured Indian
government officials and business executives that any measures currently
before state legislatures or the U.S. Congress which aim to curb
offshore outsourcing are likely to fail.
“These bills won’t go anywhere,” the Associated Press reported
Inslee as saying Wednesday.
Inslee said he traveled to India this week to promote trade
opportunities for his state’s businesses, namely Boeing and Microsoft.
He was also scheduled to be the keynote speaker at the Third Annual
Baramati Initiative on Information Computer Technology and Development.
During a telephone interview from New Delhi Friday, Inslee said that his
trip was paid for by Digital Partners, a group that describes itself as
a Seattle-based non-profit institute with chapters in the United States
and India. Many of the group’s leaders are past or current Microsoft
employees who are from India.
Digital Partners Web site says the organization aims to tap the power of
the digital economy to “develop market-based solutions that benefit
the world's poor.”
Numerous Indian press reports this week quoted Inslee as saying that
U.S. companies will continue to outsource jobs to India, despite
proposed measures in states like Maryland, New Jersey and Connecticut
that would prohibit government contracts from being outsourced offshore.
The New Jersey Senate passed a bill in December that would prohibit
offshore outsourcing of state projects. The bill has since been held up
in committee, after intense lobbying from U.S. and Indian tech
employers, and is scheduled for a hearing in June.
Contact
Rep. Inslee about IT offshoring
Send a message to Rep. Inslee and let him know
that offshore outsourcing is an issue of concern to consituents
in his district, hundreds of thousands of IT workers throughout
the United States, and millions of U.S. citizens.
|
Inslee said no one from Digital Partners has approached him about the
issue of offshore outsourcing, but the primary issue he has been asked
about by the Indian press and government and business leaders is about
whether the U.S. government will restrict offshore outsourcing. There is
a great deal of concern in India that Congress will act to curb
India’s access to U.S. labor markets, he said.
Many Indian officials proclaim that their country’s vast pool of
English-speaking, highly-skilled technical workers have helped transform
their country into a self-described, “outsourcing superpower.”
“I can empathize with dislocated workers,” Inslee said. “I welcome
any solution that will create jobs.”
He said the best solution is not to restrict U.S. companies from
outsourcing, but to increase trade.
“We have to compete internationally — we have to sell our products
overseas,” he said.
Inslee said he was not aware of any measure in Washington state to
introduce a bill to curb outsourcing.
Indian government officials have charged that such measures to curb
outsourcing prohibit free market access and have vowed they would take
up the matter with the World Trade Organization should any of the bills
become law.
“People are worried about job security in the U.S. and therefore it is
not terribly surprising to find a few people who will oppose outsourcing
to other countries,” The Economic Times of India quoted Inslee as
saying.
Inslee represents Washington State's 1st congressional district and is a
member of the Democratic Advisory Group on high-tech issues. Much of his
district comprises King and Snohomish counties, home to huge
multinational companies such as Microsoft Corp. and Boeing Co. But since
2001, the district has been plagued by the economic downturn and massive
aerospace and tech industry layoffs. State economists say that within
the past two years more than 80,000 jobs have been lost in King and
Snohomish counties alone. Many of those jobs have been lost to offshore
outsourcing.
“I don’t think it [a ban on offshore outsourcing] is going to
happen,” Inslee said. “We want to keep the doors open. I believe any
effort to restrict market access will adversely impact the U.S. economy.
The policy of protectionism will not take us anywhere.”
In his district, Inslee must answer to two large groups that may already
be showing signs of polarization. One is the software industry, which
embraces offshore outsourcing as a way to boost profit margins by
cutting labor costs.
The other is organized labor, which opposes replacing domestic workers
with less expensive foreign labor.

'Why
should taxpayers in this state have to subsidize the elimination
of their own jobs, through tax giveaways to companies that ship
jobs overseas?'
--
WashTech member Mike Blain

|
“Companies like Boeing and Microsoft receive significant state and
local tax breaks that are explicitly intended to stimulate economic
development and job creation in Washington state,” said Mike Blain, a
past president and current editor-in-chief for the Washington Alliance
of Technology Workers, or WashTech, in Seattle. "But now many
companies are taking these tax breaks – really public subsidies from
taxpayers -- and then offshoring as much work as possible."
"Why should taxpayers in this state have to subsidize the
elimination of their own jobs, through tax giveaways to companies that
ship jobs overseas?" Blain asks. "We think that offshore
outsourcing and tech tax breaks should to be linked – if you offshore
jobs that were formerly based in Washington, your state and local tax
breaks should be curtailed or eliminated entirely. "
Marcus Courtney, WashTech’s current president, said that since
mid-January, WashTech members and supporters around the country have
sent more than 10,000 email and fax messages to members of Congress
regarding the movement offshore of high-tech jobs, supporting the
union’s call for a congressional study of offshore outsourcing.
“These are our best-paying, highest-skilled jobs,” Courtney said.
“I would hardly call those numbers ‘a few people.’”
During the 2002 elections, Inslee received more high-tech money in
campaign contributions than any other member of Congress, according to
opensecrets.org, a Web site that tracks campaign contributions in U.S.
elections. Most of the contributions -- $82,100 – came from the
Microsoft Corporation Political Action Committee, or individual
Microsoft employees.
Inslee received more money from organized labor groups than he did from
the software industry. Still, while seven of his top 10 contributors in
the 2002 campaign were unions, the $82,100 he received from the
Microsoft PAC or its employees was more than the combined contributions
of those seven labor organizations.
|

| Back to
http://www.OutsourceCongress.org:81/ |
| |
|
 |
| US will not ban
outsourcing: Congressman
From siliconindia News
Thursday, April 17, 2003
Joseph Crowley, a visiting US Congressman, has said a New
Jersey bill that seeks to ban outsourcing of technical jobs to non-US
entities is an unhealthy legislation and such laws will not find favour
with other American states.
MUMBAI: "I don't think this is a healthy legislation, as
outsourcing results in a win-win situation for both the countries,"
Crowley, the New York Congressman, told reporters on the sidelines
of a function organised in Mumbai, by Confederation of Indian
Industry (CII) and Nasscom.
Crowley, who heads India Caucus, is visiting India along with a
group of US legislators. He allayed fears that Indian software industry
and professionals would be gradually barred from operating in the US.
Who does NY Rep Joseph Crowley care for?
India Outsourcers or his Constituents?
More jobs lost in Crowley's NY district
"About 2.6 million jobs were lost in US during the last two years, with
a million quarter from New York itself. This is highly sensitive issue
and we'll have to guarantee jobs to our citizens," he said, adding
outsourcing increased job opportunities in both India and US.
Earlier, speaking at the seminar Crowley said India was an "elephant"
among Asian tigers. "India might have a slow start, but once set off
there is no stopping the country."
Sheila Jackson Lee, a US legislator, said reduction in number of visas
to US, which would be reviewed this November, was due to a slowdown in
US economy.
"This is not a negative move, because as economy revives the cap will be
also raised," she added. Talking on the Enron issue, Lee said that more
trasparency should be brought in to check unethical practices.
|
|

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=32673
BIZNETDAILY
Cheap
labor at America's expense
3.3
million U.S. jobs predicted to be transferred offshore by 2015
Posted: May 20, 2003
5:00 p.m. Eastern
Editor's
note: WorldNetDaily is pleased to have a content-sharing agreement with Insight
magazine, the bold Washington publication not afraid to ruffle establishment
feathers. Subscribe
to Insight at WorldNetDaily's online store and save 71 percent off the cover
price.
By Kelly Patricia O'Meara
© 2003 News World Communications Inc.
"Hey, it's good work if you can get it," says New Jersey state Sen.
Shirley Turner about the outsourcing of the Garden State's welfare-processing
contract. But neither New Jerseyites nor any other Americans are getting the
work, so she has introduced legislation that she believes will keep those jobs
at home.
Turner, a Democrat, filed her proposal after learning that the New Jersey
Department of Human Services had contracted with an Arizona-based company to
service paperwork for the state's welfare recipients at the
"cost-saving" price of $326,000 a month. The Arizona company had
established a call center in Green Bay, Wis., but once the New Jersey contract
came through, the call center was relocated to Bombay, India.
"It seems like a race to the bottom," says Turner. "All these
jobs are leaving the state and the country, and our unemployment rate continues
to climb. We're in a recession and you have to wonder where it ends. The point
of the contract was to save money - assuming that these people overseas can do
it cheaper and more efficiently. But this is a ruse because we're supposed to
help provide jobs to these [unemployed] people here."
The irate Turner continues, "Neither the people in India who have the
jobs, nor the people who are unemployed here in the U.S., are giving anything
back in the way of taxes or buying and consuming U.S. goods and services, which
is what stimulates our economy. By outsourcing these jobs to other countries
we're helping the poor remain poor in this country. We have a $5 billion deficit
in New Jersey and outsourcing these jobs to foreign countries only adds to the
burden that the state must pick up when our citizens need [welfare] services.
When people lose their jobs, and their unemployment benefits run out, the state
must step in and take up the burden to provide the services. That's not cost
savings and it really just snowballs when jobs are taken offshore."
Turner's bill has made it through the New Jersey Senate but has run into
stiff opposition in the General Assembly from lobbies representing companies
taking advantage of the cheap offshore labor. And no wonder: Outsourcing to
countries that exploit cheap labor appears to be the corporate wave of the
future. Kishore Mirchandani, president of Outsource Partners International, a
U.S.-based company specializing in outsourcing finance and accounting services,
tells Insight, "There are a lot of companies in India handling the
accounting and finance of major corporations. General Electric, American Express
and Citibank all do business in India."
Mirchandani's company, although U.S.-based, handles the tax-return
preparation for the business clients of the accounting firm Ernst & Young at
Outsource Partners' facilities in India. "We get business from CPA
[certified public accountant] firms in the U.S.," explains Mirchandani,
"who then contract with us to get the processing of returns in India. We
have about 700 people working for us between India and the United States. A lot
of people have raised concerns about the privacy of information, but we have
taken steps to ensure that all information is secure."
According to Mirchandani, "the cost savings are tremendous." He
says, "The cost to process these returns is anywhere between $100 to $200,
whereas in the U.S. the processing would cost $400 to $600. If they outsource it
to us the CPA firm saves $300. We hire accountants at about 25 percent of what
it costs here in the U.S. A lot of major corporations have already done the
outsourcing on their own and our company is an alternative to the companies who
don't want to handle the outsourcing directly. General Electric has 12,000
people in its office in India to do its processing of financial information, and
these are mostly Indians working there."
To get a better idea of just how many corporations are exporting jobs to take
advantage of cheap labor overseas, this magazine followed up on those
Mirchandani leads. General Electric did not return Insight's calls. Ken
Kerrigan, a spokesman for Ernst & Young, confirmed that his company
outsources tax-return processing to India.
"Ernst & Young," explained Kerrigan, has "an office in
India and we send [tax] information through our networks so there is no physical
paper that goes there. The people who work in our offices in India are locals
but are trained by Americans who know tax law."
According to Kerrigan, just "2 percent of all U.S. tax returns done by
Ernst & Young are processed in India. It's a tiny percentage that allows us
to work faster and better. The labor is cheaper, but that's not an issue for
anybody. For us it's more of a time factor."
Tim Connolly, a spokesman for the accounting firm KPMG, tells Insight that
"we are not currently outsourcing returns to India. However, if we did
proceed, we would ensure that it was a joint decision and that each client was
consulted beforehand. Any firm involved in tax-preparation business is
continuously seeking to provide the highest-quality service in the most
efficient manner. As technological advances progress, we're considering all
options to serving our clients."
Rob Black, a spokesman for the International Brotherhood of Teamsters, sees
the current tidal wave of American jobs floating boats to foreign shores much in
the same way as state Sen. Turner. "Essentially what you've got," says
Black, "is a race to the bottom for the cheapest wages." Black
explains: "First we saw corporations in the Northeast move to the Southern
states where there were no strong unions. Then, in the 1990s with the unfair
trade deals like the North American Free Trade Agreement [NAFTA], we saw
corporations move to Mexico. Now these companies have been in Mexico awhile and
the workers' standards are rising a little so, sure enough, the jobs are being
moved to Guatemala, China and India. So really, these corporations are just
chasing the globe for the cheapest labor rates possible."
According to the Teamsters spokesman, "The people with big business that
are on the side of unfair trade love to talk about the markets this allegedly
will open for U.S. products, but the fact is workers in Bangladesh aren't buying
our personal computers and video games. And any cost benefits that are gained by
shipping jobs overseas clearly are going to the top executives, not the
consumers. It's hard to accept salary reductions and layoffs when the executives
of these corporations aren't feeling the same pain. Slash and burn may be the
overnight cure for shareholders' woes, but if you invest in workers you will
build a stable citizenry that will buy your products."
The U.S. Department of Labor released figures for the last week in April that
revealed U.S. employers had cut jobs for the third straight month. Unemployment
rose to 6 percent, meaning that 448,000 people filed new claims for unemployment
benefits the last week of April, which was only slightly down from the previous
week's 461,000 claims. This is not good, even without outsourcing American jobs
to India and elsewhere.
But, Insight found, trying to get solid figures about the level of
outsourcing is about as difficult as finding Iraq's weapons of mass destruction.
Corporations such as American Express, rather than identify the number of jobs
that are being handled outside the United States either by Americans or
foreigners, tells Insight that "we've built flexibility into our business
model to better withstand external fluctuations in the marketplace. This
includes outsourcing some work." Such as the IBM deal.
According to Susan Korchak, a spokeswoman for American Express, the "IBM
deal" is a $4 billion, seven-year contract awarded to IBM to provide
American Express with utilitylike access to its vast computing resources.
Whether IBM is outsourcing any of those services to foreign countries is
"unknown" to Korchak. However, IBM has acknowledged having such
service centers in India, Mexico, Argentina, Brazil, Venezuela, Canada and
China.
According to market-research firms Gartner Inc. and Forrester Research, as
reported by Ed Frauenheim of CNET News, "More than 300 of the Fortune 500
firms do business with Indian information-technology-services companies."
And it is predicted that "by 2004, more than 80 percent of U.S. companies
will have considered using offshore IT services." Furthermore, Frauenheim
reports that according to Forrester Research, "by 2015, some 3.3 million
U.S. jobs and $136 billion in wages will transfer offshore to countries such as
India, Russia, China and the Philippines."
These figures represent only outsourced information-technology services such
as credit-card and bank financial transactions that are contracted by U.S.
companies to be performed for miniscule wages by foreign citizens. The figures
do not account for the $500 billion trade deficit the United States now is
facing with its trading partners.

http://www.njleg.state.nj.us/
S1349
Provides that only citizens or
persons authorized to work in the US pursuant to federal law may be employed
in performing certain State contracts. *
State Government
|
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|
3/21/02 Introduced And Referred To
Senate State Government Committee
9/19/02 Reported Senate Committee Amendments 2nd Reading
12/16/02 Passed Senate (40-0)
12/16/02 Received In Assembly Referred To Assembly State Government
Committee
Introduced - 2 pages
PDF Format
HTML Format
Statement - SSG 9/19/02 - 1 pages
PDF Format
HTML Format
Reprint - 2 pages
PDF Format
HTML Format
|
|
SENATE
STATE GOVERNMENT COMMITTEE
STATEMENT
TO
SENATE, No. 1349
with
committee amendments
STATE OF NEW JERSEY
DATED:
SEPTEMBER 19, 2002
The
Senate State Government Committee reports favorably Senate Bill No. 1349.
Recent published reports have indicated that telephone inquiries by
welfare and food stamp clients under New Jersey's Families First Program were
being handled by operators in Bombay, India, after the contractor moved its
operations outside of the United States as a cost-cutting measure.
This
bill directs the Director of the Division of Purchase and Property and the
Director of the Division of Property Management and Construction in the
Department of the Treasury to include in every State contract for the
performance of services provisions which specify that only citizens of the
United States and persons authorized to work in the United States pursuant to
federal law may be employed in the performance of services under the contract or
any subcontract awarded under the contract.
COMMITTEE AMENDMENTS:
The
committee amended the bill to provide that in addition to United States
citizens, any person authorized to work in the United States pursuant to federal
law, not just legal resident aliens, may be employed in the performance of
services under a State contract.
ASSEMBLY, No. 2425
STATE OF NEW JERSEY
210th LEGISLATURE
INTRODUCED
JUNE 13, 2002
Sponsored by:
Assemblyman REED GUSCIORA
District 15 (Mercer)
Assemblywoman BONNIE WATSON COLEMAN
District 15 (Mercer)
Assemblyman GARY L. GUEAR, SR.
District 14 (Mercer and Middlesex)
SYNOPSIS
Provides that only citizens or legal residents of the United States may be
employed in performing certain State contracts.
CURRENT VERSION OF TEXT
As
introduced.
(Sponsorship Updated As Of: 3/14/2003)
An Act
concerning State contracts
and supplementing chapter 34 of Title 52 of the Revised Statutes.
Be
It Enacted by the Senate and General Assembly of the State of New
Jersey:
1.
The Director of the Division of Purchase and Property and the Director of the
Division of Property Management and Construction in the Department of the
Treasury shall include, in every State contract for the performance of services,
provisions which specify that only citizens of the United States and legal
resident aliens in the United States shall be employed in performance of
services under the contract or any subcontract awarded under the contract.
2. This
act shall take effect immediately.
STATEMENT
This
bill directs the Director of the Division of Purchase and Property and the
Director of the Division of Property Management and Construction in the
Department of the Treasury to include, in every State contract for the
performance of services, provisions which specify that only citizens of the
United States and legal resident aliens in the United States may be employed in
performance of services under the contract or any subcontract awarded under the
contract.
Recent
published reports have indicated that telephone inquiries by welfare and food
stamp clients under New Jersey's Families First Program were being handled by
operators in Bombay, India after the contractor moved its operations outside of
the United States as a cost-cutting measure. The bill is intended to ensure that
State funds are used to employ people residing in the United States and to
prevent the loss of jobs to foreign countries.
Thank you for your recent letter to my office regarding my anti-outsourcing
bill, S-1349/A-2425. I appreciate> hearing from you. I am very grateful to you
for your support.
The offshoring of our jobs is disenfranchising an entire segment of our skilled
workers. It is now time to take the fight to the Assembly! Please urge your
friends and colleagues to email Governor McGreevey and the members of the
General Assembly to voice their support for S-1349/A-2425. I have
provided their email addresses for you below.
Governor McGreevey Can email him if you access website:
http://www.state.nj.us/governor/govmail.html
NJ Assembly State Government Committee
Assemblyman Alfred Steele:
AsmSteele@njleg.org
Assemblyman Mims Hackett:
AsmHackett@njleg.org
Assemblyman Nicholas Asselta:
AsmAsselta@njleg.org
Assemblywoman Linda Greenstein:
AswGreenstein@njleg.org
Assemblyman George Geist:
AsmGeist@njleg.org
Assembly Leadership
Assemblyman Albio Sires, Speaker of the Assembly:
AsmSires@njleg.org
Majority Leader, Assemblyman Joe Roberts:
AsmRoberts@njleg.org
All other Assembly Representatives
Assemblyman Matt Ahearn:
AsmAhearn@njleg.org
Assemblyman Michael Arnone:
AsmArnone@njleg.org
Assemblyman Joe Azzolina:
AsmAzzolina@njleg.org
Assemblyman Peter Barnes:
AsmBarnes@njleg.org
Assemblyman Christopher Bateman:
AsmBateman@njleg.org
Assemblyman Peter Biondi:
AsmBiondi@njleg.org
Assemblyman Francis Blee: AsmBlee@njleg.org
Assemblyman Francis Bodine:
AsmBodine@njleg.org
Assemblyman Jon Bramnick:
AsmBramnick@njleg.org
Assemblyman John Burzichelli:
AsmBurzichelli@njleg.org
Assemblyman Wilfredo Caraballo:
AsmCaraballo@njleg.org
Assemblyman Michael Carroll:
AsmCarroll@njleg.org
Assemblyman Larry Chatzidakis:
AsmChatzidakis@njleg.org
Assemblyman Herb Conaway:
AsmConaway@njleg.org
Assemblyman Jack Conners:
AsmConners@njleg.org
Assemblyman Christopher Connors:
AsmConnors@njleg.org
Assemblyman Steve Corodemus:
AsmCorodemus@njleg.org
Assemblywoman Nilsa Cruz Perez:
AswCruz-Perez@njleg.org
Assemblyman Joseph Cryan: AsmCryan@njleg.org
Assemblyman Paul D'Amato:
AsmD¢Amato@njleg.org
Assemblyman Alex DeCroce:
AsmDeCroce@njleg.org
Assemblyman Paul DiGaetano:
AsmDiGaetano@njleg.org
Assemblyman Patrick Diegnan:
AsmDiegnan@njleg.org
Assemblyman Michael Doherty:
AsmDoherty@njleg.org
Assemblyman Peter Eagler:
AsmEagler@njleg.org
Assemblyman Willis Edwards:
AsmEdwards@njleg.org
Assemblyman Joseph Egan: AsmEgan@njleg.org
Assemblywoman Clare Farragher:
AswFarragher@njleg.org
Assemblyman Douglas Fisher:
AsmFisher@njleg.org
Assemblyman Rafael Fraguela:
AsmFraguela@njleg.org
Assemblywoman Arline Friscia:
AswFriscia@njleg.org
Assemblyman E. Scott Garrett:
AsmGarrett@njleg.org
Assemblyman Jerry Green: AsmGreen@njleg.org
Assemblyman Louis Greenwald:
AsmGreenwald@njleg.org
Assemblyman Guy Gregg: AsmGregg@njleg.org
Assemblyman Gary Guear: AsmGuear@njleg.org
Assemblywoman Rose Marie Heck:
AswHeck@njleg.org
Assemblyman James Holzapfel:
AsmHolzapfel@njleg.org
Assemblyman Anthony Impreveduto:
AsmImpreveduto@njleg.org
Assemblyman Gordon Johnston:
AsmJohnson@njleg.org
Assemblyman Sean Kean: AsmSKean@njleg.org
Assemblywoman Alison McHose:
AswMcHose@njleg.org
Assemblyman John McKeon:
AsmMcKeon@njleg.org
Assemblyman Richard Merkt:
AsmMerkt@njleg.org
Assemblyman Jeffrey Moran:
AsmMoran@njleg.org
Assemblyman Eric Munoz: AsmMunoz@njleg.org
Assemblyman Connie Myers: AswMyers@njleg.org
Assemblyman Kevin O'Toole:
AsmOToole@njleg.org
Assemblyman William Payne:
AsmPayne@njleg.org
Assemblyman Joseph Pennacchio:
AsmPennacchio@njleg.org
Assemblywoman Elba Perez-Cinciarelli:
AswPerezCinciarelli@njleg.org
Assemblywoman Nellie Pou: AswPou@njleg.org
Assemblywoman Mary Previte:
AswPrevite@njleg.org
Assemblywoman Joan M. Quigley:
AswQuigley@njleg.org
Assemblyman John Rooney:
AsmRooney@njleg.org
Assemblyman David Russo: AsmRusso@njleg.org
Assemblyman Paul Sarlo: AsmSarlo@njleg.org
Assemblyman Robert Smith:
AsmRSmith@njleg.org
Assemblyman Tom Smith: AsmTSmith@njleg.org
Assemblywoman Linda Stender:
AswStender@njleg.org
Assemblyman Samuel Thompson:
AsmThompson@njleg.org
Assemblyman Donald Tucker:
AsmTucker@njleg.org
Assemblyman Jeff Van Drew:
AsmVanDrew@njleg.org
Assemblywoman Bonnie Watson Coleman:
AswWatsonColeman@njleg.org
Assemblywoman Loretta Weinberg:
AswWeinberg@njleg.org
Assemblyman John Wisniewski:
AsmWisniewski@njleg.org
Assemblyman David Wolfe: AsmWolfe@njleg.org
With your help, I am confident that we can pass S-1349/A-2425
through the Assembly. I look forward to your continued support.
Shirley K. Turner NJ Senator - 15th District

Software Success Has India Worried

Namas Bhojani for The
New York Times
A crowd lined up last
December to apply for jobs at a call center in Bangalore, India. The software
and services industry has been growing robustly despite the broader slowdown
in technology spending.
By SARITHA RAI
OMBAY,
Feb. 12 — Is the United States going to start turning its back on
outsourcing, the lifeblood of India's software and services industry?
The global economic downturn and possible war with Iraq are, of course, big
concerns for industry executives, who are gathered here this week for an
annual industry conference to meet with analysts, consultants and the chief
information officers from American corporations, their most important
customers. But the growing threat of a political reaction against outsourcing
is the worry dominating the discussion.
So far, the only concrete signs of a reaction are in the public sector.
After the eFunds
Corporation of Scottsdale, Ariz., a contractor hired by the State of New
Jersey to manage a welfare and food-stamp program, moved its customer-service
operations to Bombay from Wisconsin, a New Jersey legislator, Shirley K.
Turner, introduced a bill that would require that workers hired under state
contracts be American citizens or legal aliens or they occupy some specialty
niche that American workers cannot be found to fill. " `I say it's time
to bring 'em back from Bombay,' Senator Turner said of the client service jobs
currently based in India," a news release stated.
Connecticut, Maryland, Wisconsin, and Missouri have also begun considering
such laws.
Though public-sector work directly accounts for only a tiny part of India's
software and services exports to the United States, executives here are
concerned about a chilling effect, with American customers reluctant to send
work overseas lest it complicate dealings with government bodies.
The $10 billion software and services industry is hugely important to
India. It has so far grown robustly despite the broader slowdown in technology
spending, as more Western companies, especially American ones, cut expensive
jobs at home and contract out software development and support, call-center
operations and other functions to low-cost suppliers in India and elsewhere.
By 2008 the Indian government expects the industry to account for about 8
percent of all economic output, up from 2.87 percent now.
More than half the world's top 500 companies, including General
Electric and American
Express, outsource work to India.
To supply the demand, Indian companies like the Bangalore-based Infosys
Technologies and Wipro,
and Tata Consultancy Services, or T.C.S., of Bombay, part of the Tata
conglomerate, have been hiring by the hundreds, bucking the generally sluggish
global trend. Revenue from software and services exports from India were $6.9
billion in the last three quarters of 2002, up 28 percent from the period in
2001, according to data released Tuesday by the National Association of
Software and Services Companies. The association, known as Nasscom, organized
this week's conference.
The legislation being considered in several states has software and
services executives worried that American opposition to outsourcing in India
is growing. They worry that regardless of whether such laws are enacted, the
sentiment will spread. It may, they fear, slow companies' decisions to
outsource — and perhaps even encourage them to send work to other countries.
India's exporters are divided over whether such legislation should be
challenged at the World Trade Organization. "Legislation banning
contracts from going abroad is a nontariff barrier, and we are exploring the
possibility of countering this at the W.T.O.," Nasscom's president, Kiran
Karnik, said.
But some leading companies with large American corporations among their
customers said that the job loss issue was emotional and was best underplayed.
Even within Nasscom, a division was evident this morning at a session on
global technology trends. When one panelist, E. Jeffrey Berg, executive
director of Citigroup
Program Management, brought up the proposed New Jersey legislation, Som Mittal,
vice chairman of Nasscom and chief executive of Digital GlobalSoft, an Indian
subsidiary of Hewlett-Packard,
cut in, saying that even a discussion would sensationalize the issue.
Nasscom has recently engaged the public relations firm Hill & Knowlton
to work with businesses and politicians in the United States to counter the
opposition toward outsourcing to India and to increase the global brand equity
of the Indian software industry.
While in the past there has been opposition in the United States to moving
manufacturing jobs overseas, those moves primarily affected blue-collar
workers. Now, the jobs of white-collar workers are on the line. "This is
the vocal, articulate middle class who form an important constituency of every
political party," Mr. Karnik said.
Nasscom said it was campaigning to show how Indian software and services
exporters were helping the American economy to be more effective. In a letter
to the governor of New Jersey, Nasscom said its preliminary data indicated
that outsourcing to India gave American banks a 10 percent to 20 percent cost
advantage over their European peers and resulted in an $8 billion savings for
the banking industry in the last four years.
Nasscom is also talking to nearly 40 state senators in New Jersey in a
campaign against the legislation, saying that state governments would have to
burden their citizens with more taxes if they insisted that work be done in
high-cost locations.
Despite the controversy, outsourcing deals are still being struck by Indian
companies. Among them, the World Bank is scheduled to announce next week a $10
million to $20 million technology services deal outsourced to an Indian
software company. "Backlash is a natural reaction even at the World Bank,
but in this era of globalization, sustaining business and securing jobs is
more likely to happen if projects are executed in the most efficient
destinations," said Mohamed V. Muhsin, chief information officer of the
World Bank.
Gartner
Inc., the research firm based in Stamford, Conn., has prepared a note
advising its Indian clients to promote the value of their services not just to
customers but to the public.
In the note, "How to handle backlash against offshore services,"
two Gartner analysts, Rolf Jester and Partha Iyengar, warn, "To ignore
the problem, or to pretend it is not real, is to allow negative perceptions to
fester, generating a climate of opinion in which selling becomes more
difficult
|
|
|

eFunds Corporation provides electronic transaction processing,
automated teller machine (ATM) outsourcing and decision support
and risk management services to financial institutions, retailers,
electronic funds transfer networks, e-commerce providers and
government agencies. The Company also offers business process
outsourcing services to complement the Company's payments
business. The Company's services enable clients to reduce their
transaction and infrastructure costs, detect potential fraud and
enhance their relationships with their customers. eFunds operates
two principal businesses, Payment Systems and Services and
Government Services. |
| More from Multex: Expanded
Business Description |
|
| Financial Summary |
|
EFDS provides electronic transaction processing, ATM
outsourcing, and risk management services to financial
institutions, retailers, electronic funds networks, and government
agencies. For the nine months ended 9/30/02, revenues rose 3% to
$411.5 million. Net income rose 9% to $23.7 million. Revenues
reflect the acquisition of ATM networks from Hanco, Samsar,
Evergreen, and CRI. Net income also reflects decreased employee
costs and reduced income tax provisions.
Recent Earnings Announcement
For the 3 months ended 12/31/2002, revenues were 131,644; after
tax earnings were 881. (Preliminary; reported in thousands
of dollars.)
|
| More from Multex: Significant
Developments |
|
|
|
|
FY2001 Pay |
|

|
Paul Walsh, 53
Chairman, CEO |
-- |
Thomas Liston
CFO |
-- |
Steven Coleman, 43
Sr. VP, Gen. Counsel, Sec. |
-- |
Colleen McKeown Adstedt, 39
Sr. VP of HR and Admin. |
$819K |
Kathleen Flanagan
|
|
|

Again within NJ the CIO is a former Accenture Employee...This is a clear
conflict of interest with reputation of this firm!!
http://www.state.nj.us/it/cio.html
 |
Judith L. Teller
Chief Information Officer
PO Box 001
Trenton NJ 08625-0001
Phone: (609) 777-2245
Judith.Teller@gov.state.nj.us |
State CIO
|
Judith Teller Biography
Judith Teller's oversight of the operations of all state government
information and technology systems ensures that technology supports and
enhances government services while reducing waste and costs. In support of
Governor McGreevey's policy agenda, Teller directs an innovative approach to
information technology that reduces both the cost of providing governmental
services and the constituents' cost of obtaining them while concurrently
improving service quality and accessibility for New Jersey's citizens,
businesses, local governments, and employees.
Prior to joining the McGreevey administration, Teller worked for Accenture,
the management and technology services consulting firm, for 27 years, the
last 18 of which she was a partner specializing in providing services to
state and local governments. Throughout her career, Teller focused on
large-scale projects, especially those involving creative and innovative
uses of technology. Her clients have included the New York City Board of
Elections, the Philadelphia Office of the Mayor, the Fairfax County (VA)
Department of Social Services, the New Hampshire Department of Social
Services, the Missouri Judiciary, the New York City Board of Education, and
the New York State Department of Motor Vehicles.
As a senior manager and new partner at Accenture, Teller spent more than
five years in the 1980s working on projects with agencies in New Jersey,
leading Accenture's efforts to help the state with the implementation of an
unemployment insurance benefit system, a wage reporting system and several
systems for the Judiciary. In addition, she served as an advisory partner on
the company's work for the New Jersey Department of Banking and Insurance
and the New Jersey Department of Treasury.
Teller is a graduate of the Wharton School of the University of
Pennsylvania. She is an active member of the Governor's Budget Efficiency
Savings Team (BEST) and is also currently serving on the Education Task
Force for Measuring Student Achievement.
For more details
on Accenture
See:
http://www.h1bvisasucks.com/H1BDiscussions_issue_accenture.htm
|
| |

http://www.newsmax.com/archives/articles/2003/3/20/114513.shtml
High-Tech
Industry Fires Americans, Hires Indians
NewsMax.com Wires and NewsMax.com
Thursday, March 20, 2003
Computer giant Sun Microsystems Inc. fired thousands of American high-tech
workers to replace them with younger, lower-paid engineers from India, a lawsuit
charges.
The legal action will step up the conflict between technology companies and
American engineers over the H-1B visa program, which lets companies
"temporarily" bring foreign workers into the United States ... whether
they are needed or not.
Class-action status is being sought for the lawsuit, filed Monday by Walter
Kruz, 52, in California Superior Court in Santa Clara. He worked at Sun from May
2000 until late 2001, when Sun was laying off about 2,500 of its workers in the
United States.
The lawsuit says Sun had a bias against Americans and in favor of Indian
hires. Sun's Indian-born co-founder, Vinod Khosla, admitted this year on CBS's
"60 Minutes" that people from India "are favored over almost
anybody else."
"According to the lawsuit, hardly any of those laid off by Sun were
people of Indian descent. Instead, the company created a performance evaluation
program that required managers to classify a certain percentage of workers as
underperformers, the suit alleges. At the same time, workers who had been at the
company for a short time were exempted from this evaluation program, ensuring
that few H-1B visa holders would be subject to it. As a result, most of those
found to be underperfomers were older, American-born workers," the Boston
Globe reported Tuesday.
"At the same time, the suit alleges that Sun was applying for permission
to bring in about 2,400 foreign workers, mostly from India, to fill technical
jobs."
The law says H-1B workers must receive the same pay as U.S. employees, but
Kruz's attorney says this requirement is easily evaded.
India's Tech Industry Faces Global Backlash
A few months ago, when unemployed mothers in New Jersey dialed a toll-free
number to find out the status of their benefit checks, a call center thousands
of miles away based in Bombay, India, answered their calls.
When New Jersey state senator Shirley Turner came to know about it, she
saw the irony of it. An angry Turner drafted a bill that barred state contracts
from going overseas, and the state senate passed the bill unanimously.
She wanted to ensure that government funds were used to employ people living
in the United States, rather than workers in India.
Although the bill was later blocked by the state assembly, it sparked similar
moves by four other states: Maryland, Wisconsin, Connecticut and Missouri.
"This
is were we need your help to email the NJ Assembly!"
Anti-India IT sentiment isn't restricted to the United States. From Germany,
France and Britain to Indonesia and Malaysia, the Indian IT industry,
particularly its software professionals, is facing the ire of workers,
policy-makers and powerful unions.
Whether it's a case of enacting new laws or plugging holes in old laws, or
imposing visa restrictions on Indian IT staff, or even harassment of Indian IT
staff in some countries, forces are aiming to curtail Indian IT companies from
expanding abroad.
"Our success has led to some resistance ... a kind of a pushback,"
said Kiran Karnik, president of the country's powerful software lobby, National
Association of Software and Services Companies.
There are reasons for the economic and social backlash: IT and other
high-tech jobs are migrating from developed economies to less-developed
economies such as India, Russia and China. More than a quarter of the Fortune
500 companies have shifted, or are shifting, back office work to India.
3.3 Million U.S. Jobs Shipped to India
In a recent report, the research and consulting firm Forrester Research said
that 3.3 million U.S. jobs in the services sector and $136 billion in wages are
expected to move to countries like India, Russia, China and the Philippines by
2015. The IT industry is expected to lead the trend.
The report said that like the shift in manufacturing jobs in the last half of
the 20th century, the huge cost advantage of these low-wage countries would
drive the movement of services jobs.
That's bad news for developed countries, which are dealing with sluggish
economies and high unemployment.
"Our formal request to members of Congress at this time is
two-fold," said Marcus Courtney president of Washington Alliance of
Technology Workers, a group of high-tech workers formed to advocate improved
benefits and workplace rights. The group is an affiliate of the union
Communications Workers of America.
"One, what is their position on the issue of high-technology jobs moving
offshore, and would they support a Congressional investigation. Second is in
terms of specific legislative proposals, though we have not come up with one,
but it is something we are working on."
But the backlash is bad news for the Indian IT sector, which is still hoping
to reach its $80 billion revenue target by 2008 (up from about $12 billion) by
selling software and services abroad.
How is India facing the global backlash?
The Ministry of External Affairs hasn't done much yet, except in extreme
cases such as a recent incident in Indonesia. There, two Indian software
executives were held hostage by the Indonesian army in December.
So Nasscom has risen to the challenge. The IndUS Entrepreneurs, which
evangelizes for Indian entrepreneurship and services globally, is also pushing
the same agenda.
"The ball has already been set rolling," said Kiran Karnik of
Nasscom, "and we are interacting with key decision and policy makers in the
United States about the advantages of outsourcing to India that will accrue to
the sagging U.S. economy.
"Nasscom will share information on how U.S. industries, especially
banks, insurance and other financial institutions have benefited due to
increased outsourcing of back office operations to India, over the years.
"U.S. banking and allied sectors are estimated to have saved $8
billion over the last four years by outsourcing to India." Nasscom is also
working with Information Technology Association of America
and U.S. businesses to draw up strategies to tackle the outsourcing issue.
The body has retained a public relations firm in the United States, Hill and
Knowlton, to reach federal and state representatives.
But mostly, India's IT industry is banking on the fact that it still offers
good value in software services, especially amid a global recession. The
industry hopes that the United States and Europe face the cold economic facts
sooner rather than later

A Mainframe-Size Visa Loophole L1 Visa
BusinessWeek 3/6/2003
|
More companies are using L-1 visas to bring in
low-wage foreign info-tech workers -- and replace Americans
|
Senior systems analyst Patricia Fluno was shocked when she found out last summer
that she and 11 colleagues in the Lake Mary (Fla.) offices of Siemens (SI
) were being replaced by techies brought in by Tata Consultancy Services,
India's largest information-technology (IT) consulting firm. Fluno, 53, couldn't
understand how Tata and Siemens could bring Indian workers into the U.S.

After all, in 2001, Congress had specifically banned the displacement of U.S.
employees by foreigners brought in under the controversial H-1B visa program,
which many employers had tapped to fill vacant jobs in the booming 1990s.
Congress also had demanded rules requiring employers to pay H-1B workers
prevailing U.S. wages -- and Siemens made no bones about the cost-cutting nature
of the layoffs. When Fluno asked one of the replacements about his visa during
the two months that she trained him to take her job, Fluno says a Siemens
manager told her not to ask such "personal" questions.
Fluno was onto something. In fact, Muralidhar Naidu Kollu, the Tata IT analyst
who now sits at Fluno's desk and does her job, didn't have an H-1B at all.
Instead, Fluno learned, Tata used a more obscure visa called the L-1, which is
designed for intracompany transfers by multinational corporations. Even though
Tata's primary business is supplying off-shore IT expertise to U.S. companies,
it used the loosely regulated L-1 program to place Kollu and 11 other Indians in
Siemens' Florida offices. Reached at Fluno's old phone number, Kollu, who speaks
halting English, says he specializes in SAP software, just like Fluno. He
declined to discuss his salary, but Fluno says her Siemens supervisors told her
he earns just one-third of her $98,000 a year.
FULL COMPLIANCE? "Is my government
telling me that if an H-1B visa holder replaces me it's illegal, but if an L-1
replaces me, it's O.K.?" demands Fluno, who has been looking for a
permanent job ever since. "If this is a loophole, it needs to be
stopped." Tata officials say the company fully complies with the L-1 law
and pays the prevailing industry wage to all its U.S.-based employees, although
they declined to provide specifics about Kollu or other employees at Siemens.
Siemens spokeswoman Paula Davis says her company isn't responsible for Tata's
employment practices. "They don't work for us. They work for Tata,"
she says.
Fluno's experience is just one example of an explosion in the use -- and in some
cases, the abuse -- of L-1 visas. With the travails of the high-tech industry
and the jump in IT unemployment, fewer U.S. companies can tap the H-1B program
these days by saying qualified Americans aren't available. At the same time,
many employers looking to slash costs have discovered that they can use firms
that hire L-1s to dump high-paid Americans in favor of cheaper workers from
abroad.
As a result, many companies are subcontracting thousands of jobs to outsourcing
companies such as Tata, Infosys Technologies (INFY
), and Wipro Technologies (WIT
) -- the three largest Indian software servicing companies, which all are using
more L-1s. Among those using such IT contractors are Bank of America (BAC
), Dell Computer (DELL ),
General Electric (GE ), Merrill
Lynch (MER ), and Siemens (SI
).
BACKLASH. Bombay-based Tata now uses L-1s to
bring in half of the 5,000 IT workers it has placed at companies in the U.S.,
says CEO S. Ramadorai. Nearly one-third of Infosys' 3,000 U.S.-based workers
hold L-1s, the company says, as do 32% of Wipro's 1,500. Like Tata,
Bangalore-based Infosys and Wipro say they follow the letter of the L-1 law.
But they may be violating the spirit of the law. "Is it O.K. to use L-1s
for outsourcing to other firms? The answer is no," says State Dept.
spokesman Stuart Patt. Tata's outside public-relations firm says that Tata
"is in complete compliance with all laws and regulations with respect to H
and L visas."
Legal or not, the growing use of L-1s has sparked a backlash. The program has
been plagued by accusations that individuals use it to gain illicit entry into
the U.S. Complaints from the Siemens workers have led the Justice Dept. to
launch investigations. Fluno's case was dismissed on Feb. 11; three others
continue. At the same time, the Immigration & Naturalization Service is
reviewing the L-1 visa program "to assess whether companies are using the
L-1 to circumvent the H-1B program," says an INS official. And
Representative John L. Mica (R-Fla.) vows he'll try to amend the L-1 statute if
Justice doesn't prosecute in the Siemens case. "It's a back door to cheap
labor," he says.
EXPLOITING LOOPHOLES. While many L-1s ease the
intracompany transfers they're meant for, outsourcing has triggered a surge in
their numbers. New L-1s jumped by 50% from 1998 to 2002, to 58,000, and climbed
an additional 10% in the first five months of fiscal 2003, according to State
Dept. data. Meanwhile, new H-1B visas plunged by 27% through 2002 and fell 17%
so far in fiscal 2003. What's more, L-1s allow employees to remain in the U.S.
for up to seven years and can include multiple workers. H-1Bs are issued to
individuals, who are limited to six-year stays. There were 384,000 people
working in the U.S. on H-1Bs in 2001, the last year available, and at 329,000,
nearly as many on L-1s.
Companies like Tata have grabbed U.S. market share in IT consulting in part by
exploiting the L-1's loopholes. The private company, which supplies outsourced
IT services to client companies from 48 offices in the U.S., saw its business
from U.S. companies grow 29%, to more than $500 million, in its latest fiscal
year, which ended March, 2002.
Tata says nearly three-quarters of its sales come from supplying IT expertise to
an impressive list of blue-chip U.S. clients such as Apple Computer (APPL
), Bank One (ONE ), Boeing (BA
), and Eli Lilly (ELI ). But
with half its U.S. labor here on L-1s, Tata's growth might well be smaller if it
relied solely on H-1Bs. "Demand is so great that people will massage any
visa category," says Jessica Vaughn, senior policy analyst at the Center
for Immigration Studies in Washington.
Fluno and colleagues, meanwhile, are still looking for IT work (Siemens says it
helped five of them find comparable jobs). They hope to start a campaign against
L-1 abuse. But with so many major companies already using them, their campaign
may be all uphill.

By Brian Grow in Orlando, Fla., with Manjeet Kripalani in
Bombay 
Contact:
Chris McManes
Marketing Communications/Public Relations Coordinator
Phone: +1 202 785 0017, x8356
E-mail: c.mcmanes@ieee.org
Offshore
Outsourcing and Labor Importing Put the Squeeze on Jobs in the U.S.
High-Tech Industry
WASHINGTON (24 March 2003)
— The United
States lost 560,000 jobs in the high-tech industry in 2001-02, according
to a 19 March report by the American Electronics Association (http://www.aeanet.org/PressRoom/idmk_2002_tech_employment_press.asp).
While IEEE-USA commends AeA for its Tech Employment Update, the
unanswered question is where these jobs have gone.
“In addition to the
downturn in the U.S. economy, we’re worried about the eagerness of
American businesses to move high-tech jobs overseas,” IEEE-USA
President-Elect John Steadman said. “Congress should take a close look
at overseas outsourcing to see what can be done to create and keep
high-value, high-tech jobs here in the U.S.”
During roughly the
same time period (FY ’01 and ’02) our nation lost more than
half-a-million high-tech jobs —
both blue collar
and professional — 799,700
new or renewal H-1B visas were issued. And according to a 6 March
article in Business Week, another 329,000 people were working in
the U.S. on L-1 visas in 2001, many in the high-tech sector.
In “A Mainframe-Size
Visa Loophole,” Business Week noted that the L-1 visa is
intended for “intracompany transfers by multinational corporations,”
but “many employers looking to slash costs have discovered that they
can use [outsourcing] firms that hire L-1s to dump high-paid Americans
in favor of cheaper workers from abroad.” Read on at http://www.businessweek.com/careers/content/mar2003/ca2003036_6655.htm.
The unemployment rate
for electrical and electronics engineers (EEs) has more than tripled
since 2000, going from 1.3 percent to 4.2 percent last year. For
computer scientists, the jobless rate jumped from two percent to five
percent.
“We have thousands
of unemployed engineers, computer scientists and recent college
graduates who are having difficulty finding employment because many of
the jobs are taken by cheaper, foreign labor,” Steadman said. “With
jobs disappearing and historically high levels of unemployment among
high-tech professionals, IEEE-USA asks why we continue importing
thousands of new workers through the H-1B and L-1 visa programs.
“We should put our
own people to work before sending any more good jobs to other
countries.”
Moreover, IEEE-USA
President Jim Leonard, in a 10 March letter, asked every member of
Congress to limit the number of H-1B visas available for admission to
the U.S., and ensure that more of the H-1B fee revenue is used to
address the specialized instructional needs of unemployed engineers,
scientists and other high-tech professionals. The money currently goes
more to entry-level training for lower-skilled workers.
Leonard further urges
Congress to let the current H-1B visa cap of 195,000 drop back to the
historical level of 65,000, which will happen on 1 October with no
further congressional action.
IEEE-USA is an
organizational unit of The Institute of Electrical and Electronics
Engineers created in 1973 to promote the careers and public-policy
interests of the more than 235,000 electrical, electronics, computer and
software engineers who are U.S. members of the IEEE. The IEEE is the
world's largest technical professional society. For more information, go
to http://www.ieeeusa.org.
The Institute
of Electrical and Electronics Engineers, Inc. —
United States of America
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Washington, DC 20036-5104
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