[IP] H1B Training Program to be axed (or screw the worker)
Delivered-To: dfarber+@xxxxxxxxxxxxxxxxxx
Date: Wed, 11 Feb 2004 19:36:35 -0500
From: Pike236@xxxxxx
Subject: H1B Training Program to be axed
To: dave@xxxxxxxxxx
From Wired Magazine:
http://www.wired.com/news/business/0,1367,62234,00.html?tw=wn_tophead_4
----------------------------------
Facing a drop in funding and a tough job market for technology
professionals, the Department of Labor is poised to kill a program that
trains Americans to fill positions held by foreign guest workers.
The department created the H-1B Training Program in the late 1990s as a way
for Americans to learn skills in high demand by employers. The funding came
from fees employers of foreign workers paid to get H-1B visas, which
allowed the foreigners to take technical jobs that went unfilled during the
dot-com boom. The Labor Department used those fees and other funding to pay
$328 million in scholarships and grants to community groups to develop
training programs for U.S. citizens and permanent residents.
But the flow of funds could soon come to a halt. In its budget proposal for
fiscal 2005, the Bush administration is seeking to eliminate H-1B training
grants. The grants, the budget proposal states, "have not been proven
successful in raising the skills of U.S. workers in specialty occupations."
Current recipients of funds, some of whom received grants as recently as
this month, say the move to eliminate H-1B-funded training programs is
premature.
"It would kill a program that mitigates the need for foreign workers by
training U.S. citizens," said Mike Wilson, chief executive of the Bay Area
Technology Education Collaborative, which runs training programs in the
greater San Francisco area. "That's a hard one to swallow."
Wilson has high hopes for his latest project: a joint effort with the Bay
Area Council, an economic development group, and area employers to help
workers acquire skills needed for H-1B positions. Last week, the council
received a grant of nearly $3 million from the Labor Department for a
program that would retrain about 750 workers.
But while he remains optimistic about future programs, Wilson admits that
earlier attempts at training technology workers were hurt by the downturn
in the job market that began about three years ago. Against a backdrop of
mass layoffs and limited new hiring, many workers trained in computer
skills had difficulty finding positions.
According to the Labor Department, the main impetus for shutting down the
H-1B Training Program is a change in visa rules that will effectively
eliminate its main source of funding.
Up till now, training grants were funded by a $1,000 fee the federal
government charged employers every time they hired a H-1B worker. The
charge was initially $500 and was raised to $1,000 in 2000. Congress also
raised the annual cap on H-1B visas from 65,000 to 195,000 to accommodate a
spike in demand during the dot-com boom.
When the technology job market turned soft, however, Congress chose not to
extend the elevated visa cap. As of October, the annual visa limit fell
back to 65,000. Additionally, employers of H-1B workers no longer have to
pay the $1,000 fee for each visa holder they employ, the Labor Department
said.
The White House's statement that the H-1B training grants "have not been
proven successful" should not be construed to mean that the program is a
failure, said a Labor Department spokeswoman. Rather, she said, no one has
yet evaluated the program to determine, one way or another, whether it has
reduced demand for H-1B visas and improved skills of U.S. workers.
Raul Garcia, acting president of the Bay Area Council, believes grant
recipients can do a better job of reducing H-1B visa demand by focusing on
people who are at risk of being laid off. The council's latest grant
program, half-funded by local businesses, is built on the concept of
training working people who need to update their skills.
"Technology moves so fast. If they're not retrained, they're going to lose
their jobs in months," Garcia said. He's hopeful retraining will dampen
demand for new specialist visas in Silicon Valley, one of the nation's
largest regional employers of H-1B workers.
Recently laid-off workers say they too can benefit from government-funded
training.
Patrick Ronan, a British native and permanent resident of the United
States, credits the H-1B training grant program with helping him find
gainful employment after he was laid off by United Airlines.
Although Ronan worked with computers at United, he had no formal training
in PC operating systems or network computing, and therefore had limited job
opportunities.
Through an H-1B grant-funded program in Oakland, California, however, Ronan
completed certification programs to become a computer technician and a
Cisco Certified Network Associate (CCNA). Afterward, he landed a job
installing computers at the Oakland Unified School District.
"There are jobs, but you need to have some qualifications," Ronan said. "My
training at United Airlines suited me fine for where I was at, but it would
have been no use outside the airline industry."
-------------------------------------
You are subscribed as roessler@xxxxxxxxxxxxxxxxxx
To manage your subscription, go to
http://v2.listbox.com/member/?listname=ip
Archives at: http://www.interesting-people.org/archives/interesting-people/