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let’s break down how the LCA/PERM system enforces wage dependency and suppresses bargaining, step by step, so the structural distrust becomes very concrete:
1. Wage determination under LCA/PERM Employers must classify jobs under specific occupational categories defined by the Department of Labor. Each category has predetermined wage levels based on experience, skill, and geography. Once certified: The employee’s wage is locked to that category. Employers cannot freely give raises outside this formula without updating the LCA or PERM, which is bureaucratically slow. Effect: Employees’ earning potential is tied to bureaucratic labels, not performance or market dynamics. 2. Tied raises create dependency To give one employee a raise, employers often must adjust the wage for all employees in the same category. Raises cannot be individualized without triggering compliance audits or re-certifications. Effect: Employees have little leverage to negotiate based on merit — their wages are structurally constrained. 3. Lack of collective bargaining Normally, wage floors are enforced through unions or collective agreements, where workers have a say. Under LCA/PERM: Employees cannot negotiate collectively. Employers hold all leverage, because compliance is tied to bureaucratic approval, not worker power. Effect: You are dependent on the employer’s willingness to update the system, not on negotiation or market fairness. 4. Employer incentives The system benefits employers by: Maintaining control over foreign workers (H-1B or green card applicants). Suppressing wages relative to free-market dynamics. Ensuring that compliance satisfies regulatory appearance without improving worker agency. Effect: Even honest enforcement of the rules still favors employer interests over employee fairness. 5. Outcome: a structural hierarchy Domestic employees: relatively free but indirectly affected by wage category rules. H-1B/green card employees: locked into employer dependency, wage tied to bureaucratic categories. Result: a caste-like system, where mobility, bargaining, and pay growth are constrained by bureaucratic rules, not merit. 6. Why this fuels distrust Employees and observers see the DOL’s rules as protective on paper but exploitative in practice. Even if the bureaucracy is fully compliant and transparent, the design itself enforces inequity and suppresses autonomy. This is structural distrust: the platform itself is engineered in a way that cannot be trusted to serve the people it claims to protect. |
Think they'd be accepted or even employed? Aren't our CS majors having a tough time finding jobs? |
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This has been going on for many years. It's not just about depressing the wages of American workers in this sector, but also about the middlemen and various consultancies taking a cut while having access to these jobs because they are not posted through proper channels. In the beginning it used to be monopolized by the top offshore consultancies like Tata, Wipro, Cognizant, etc who would get contracts with the Fortune 500 companies for IT/tech work and then hire visa masses as their "employees" to farm them out at a nice profit. They in turn farm out some of their recruiting to smaller firms that would act as second/third middlemen where these jobs/contracts would be passed around with everyone taking a cut. The worker may get as little as half the pay of what the client pays. it got abused so bad that client companies started to limit maximum spread primary vendors could charge and limit workers through secondary vendors, and large consultancies started hiring American workers to save face and also due to quotas, but smaller sketchier firms like the one in the example offering this worried H1B a job for a 30% cut are hard to regulate. |
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Read this twice. A worker wins an H-1B lottery, gets no job, and now faces “consultancies” offering him a visa placement for 30% of his salary. This is the system Silicon Valley says we can’t live without. Exploitation….rebranded as innovation. |
Yep, for all of the "technology" the only thing they seem to invent are labor abuse schemes. AI just being the latest variation. EG using devices manufactured in low wage labor markets to disrupt labor in high wage markets. They can't even afford to build the devices in America or use American labor to program them, and we're supposed to believe they are some sort of productivity enhancer? |
if they are paying taxes, they are paying for the schooling. And you are not paying for their research; the company is. Loss of tax revenue is not a small thing. There's a thread about how the US population is going to start shrinking starting from 2050. MAGA says we should allow educated people to immigrate to help stabilize the population. But, then, on this thread, people are saying we shouldn't import educated people because it takes jobs away from Americans. I am not sure how you think we can do both: stabilize our population with educated people AND not allow in educated people because they take jobs away from Americans. And no, we aren't just talking about IT people. H1s are used by other industries. I'm all for not offshoring our jobs or bringing in foreign workers. Trump, otoh, seems to like using foreign workers at his businesses. But, MAGA don't care about that. And let me add, it's not the h1 educated people who tend to over stay their visas. It's the unskilled labor, like H2B visas that Trump uses who overstay their visas. But, if you want to stop this, then advocate for more regulation. and make companies stick to it and not have "exemptions". I'm sure Trump will try to get his resorts exempted, and MAGA will not make a peep. The enemy is the big corporations, and the politicians, including Trump, who are bought. So, if you want power to the people and not corporations, then you shouldn't have voted for a business person bought by corporations, and one who bankrupted numerous casinos. |
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India’s fake degrees: hundreds in Singapore, Malaysia, US, Canada left questioning qualifications after Manav Bharti University scandal List of state-wise fake universities as notified by UGC |
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In addition to all of the above posts pointing out the scam operations, let's dwell for a while on the character of these H1B candidates....
The have NO ethics. They have NO character. They are NOT honest. Do we really want these opportunists to be the new Americans? They're part of a swindle racket stealing jobs from Americans. |
| No wonder 47 won. Everything he’s doing is well deserved |
So I'm tech how exactly is this supposed to help me? Are you proposing to do some enforcement of casinos and hotels or something. Seems like a nothing burger to me. That's all you have in your argument. Nothing. I mean I get the issue with exemptions and the crooked immigration system. I get that part, but after that you have no proposals nothing. It's kind of like Biden's immigration plan, "Trust me I'm not Trump." |
You are dense. Trump is a hypocrite and not a great business man. That was the point of the bolded. He's also beholden to many corporate elitist. The new $100K fee isn't going to really help you that much. Companies will just offshore the work. Like I said, if you really want to protect American jobs you are going to have to push for more regulation, which is supposedly antithetical to Rs. They'd have to put an "offshore" tax on every job that goes overseas. But, then how do you really regulate that? Because outsourcing is not illegal. You are buying services from a vendor. So good luck with that. Corporations don't care about anything but profit. And outsourcing/offshoring is cheaper and helps the bottom line. This is what happened to the manufacturing jobs during the Reagan administration when they offshored the manufacturing to MX. My dad's manuf plant was hit by that, and he was laid off. BTW, I've been in the tech industry for 25 years, and my kid is a CS major. I've worked with offshore teams and H1 workers my entire career. American exceptionalism has turned into exceptionally greedy by corporate execs. Their pay is outrageous compared to the pay for the average worker in their company. Other countries regulate how much CEOs can be paid; we don't do that. So, again, if you want to pull back on the corporate greed, you need more regulation to do that. |
I'm fine with offshoring h-1bs. More space on the road for me. |
Isn't this more of a comment on unregulated capitalism as practiced and advocated for by wealthy tech oligarchs? They paid for politicians to open up these immigration quotas to get cheap labor and then an industry got propped up to fill this demand. Who is surprised by this? There are plenty of opportunists in America and these people will right in. They see the current US President lying, taking bribes, hawking bibles and cheap watches, scamming crypto, and on and on... |