2 hrs ago
US suspends major IT firms from green-card certification programme
The US government says it is stopping some large technology companies from using a process that can lead to green cards for foreign workers.
Officials say the move is meant to address alleged fraud and encourage companies to hire more Americans.
The companies named by the labour secretary include Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.
The government says it will not take new applications or continue processing pending ones involving those companies.
The labour secretary said the firms had sought millions of foreign workers since 2009.
The announcement also referred to H-1B visa approvals and permanent labour certifications.
Nasscom, an Indian technology industry group, said H-1B visas and permanent residency are different matters.
It said H-1B visas help US employers fill short-term skill gaps.
US officials announced that major IT firms would be suspended from the PERM green-card certification programme, citing alleged fraud and a goal of encouraging hiring of Americans.
The companies named by Labour Secretary Keith Sonderling were Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.
Sonderling said the government would accept no new or process no pending PERM applications involving the companies.
He said the named companies had requested almost three million foreign workers since 2009, received more than 230,000 H-1B approvals and over 100,000 permanent labour certifications.
Nasscom said H-1B visas and permanent residency are distinct issues, and that H-1B visas help address short-term US skill gaps.
- Who
- The US government, including Labour Secretary Keith Sonderling and Vice-President JD Vance, announced the action; Nasscom responded.
- What
- Access to the PERM permanent labour certification process was suspended for named IT firms, with new and pending applications affected.
- Where
- The United States.
- When
- The announcement was made on Thursday; no date is specified in the article.
- Why
- Officials cited alleged fraud and said the move was intended to push companies to hire more American workers.
US government
Nasscom
Purpose and impact of hiring foreign workers
US government
Officials cited alleged fraud and argued that the companies' use of foreign-worker programmes had taken jobs from American workers; they said companies should hire more Americans.
Nasscom
Nasscom said skilled immigration and talent mobility should not be treated as one issue, and that H-1B visas have helped address short-term skill gaps in the US.
Relationship between H-1B visas and green cards
US government
The announcement cited both H-1B approvals and permanent labour certifications while describing the companies' foreign-worker hiring.
Nasscom
Nasscom stressed that the H-1B visa programme and the permanent residency process are distinct and should not be viewed through the same lens.
Key facts
- Programme
- Permanent Labour Certification Programme (PERM), a step required before most employment-based green-card petitions.
- Companies named by the labour secretary
- Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.
- Applications affected
- Officials said no new or pending PERM applications involving the named companies would be accepted or processed.
- Foreign workers requested
- Sonderling said the companies had requested almost three million foreign workers since 2009.
- H-1B approvals
- Sonderling said the companies had received more than 230,000 H-1B visa approvals.
- Permanent labour certifications
- Sonderling said the companies had received more than 100,000.
- Nasscom's position
- It said H-1B visas and permanent residency are distinct issues, and H-1B visas address short-term skill gaps.
Quotes
Keith Sonderling
US labour secretary
“I am hereby suspending from the Permanent Labour Certification Programme (PERM) some of the largest IT outsourcing firms in the world, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.”
telegraphindia.com
“Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers.”
telegraphindia.com
Nasscom
Indian technology industry body
“The H-1B programme has historically played an important role in addressing short-term skill gaps in the US, and it will continue to be used to address short-term talent gaps.”
telegraphindia.com
Sources
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