US Calls H-1B Visa Holders 'Bonded Labourers': Why Are Indian Professionals In The Spotlight?

Washington: A new debate has erupted in America regarding foreign professionals working on H-1B visa. US Vice President JD Vance has alleged that companies are affecting the employment opportunities of American citizens by hiring foreign workers at low wages. He questioned the recruitment policies of big companies by comparing H-1B visa holders to 'bonded labourers'. Meanwhile, the US government has suspended eight companies including Infosys, TCS, Wipro, HCL from the PERM process related to the green card. This may impact the permanent residence plans of Indian IT professionals working in America.

What did JD Vance say about H-1B visa?

JD Vance claimed that employees working in the US on H-1B visas earn an average of 20,000 dollars less than US citizens employed in the same position. He also claimed a salary difference of up to 48,000 dollars for employees hired through foreign outsourcing companies.

Vance alleges that some companies are firing American workers and hiring foreign professionals to reduce labor costs. However, detailed data based on comparable positions, experience and industry is required to confirm these salary figures.

Which 8 IT companies did America take action against?

The US administration has suspended eight companies from PERM i.e. Permanent Labor Certification Program. These include Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.

According to the US Department of Labor, the processing of new and pending PERM applications of the companies concerned has been stopped. The government says the move is aimed at investigating alleged visa irregularities and protecting the employment interests of US workers.

How will stopping the PERM process affect Indians?

PERM is an important step in the process of obtaining a green card based on employment in the US. Under this, the employer has to certify that there will be no adverse impact on the employment of American employees qualified for the post in question.

Stopping this process may delay the green card applications of some Indian employees working in the affected companies. Those professionals who depend on their employer's sponsorship for permanent residence may be particularly affected. However, every employee's situation may be different.

Will H-1B visas also be cancelled?

The pause on PERM processing for the time being does not mean that all H-1B visas have been cancelled. The H-1B visa allows temporary work in the US, while the PERM is part of the employment-based green card process.

Therefore, existing visa holders should check the status of their job and visa from the concerned company. Those whose green card process is pending should consult an immigration expert depending on their circumstances.

Why were questions raised on Microsoft?

Vance accused Microsoft of hiring foreign workers amid layoffs in the US. He appealed to the company to give priority to American employees. Microsoft, on the other hand, has said that most of its H-1B visa applications are for employees already working at the company.

Overall, this action of the US administration may increase uncertainty among Indian IT professionals regarding green cards and permanent employment. However, the actual impact will depend on the period of suspension, further investigation and the legal options available to the companies concerned.