1. Welcome! Please take a few seconds to create your free account to post threads, make some friends, remove a few ads while surfing and much more. ClutchFans has been bringing fans together to talk Houston Sports since 1996. Join us!

Microsoft Refuses Senator's Request to Cut Foreign Workers First

Discussion in 'BBS Hangout: Debate & Discussion' started by JJae, Mar 10, 2009.

  1. JJae

    JJae Member

    Joined:
    Mar 28, 2006
    Messages:
    61
    Likes Received:
    1
    Company says its job cuts are unbiased and will be based on necessity and performance

    After missing its earnings forecasts, Microsoft was forced to make job cuts -- 5,000 to be exact --- to placate shareholders. The discussion has turned increasingly ugly in past weeks.

    First, Sen. Charles Grassley, a senior Republican Senator from Iowa, where Microsoft has a significant presence, wrote the company and suggested that they lay off foreigners before Americans. Then Microsoft revealed that it had paid its fired employees too much severance pay and wanted them to return part of their severance checks. It at last relented after a series of scathing reports in online and print news.

    Now Microsoft is back to talking about its job cuts and is taking another controversial stance. It is defying Sen. Grassley's request and has released a statement to the Senator and the public, informing them that the cuts will be entirely unbiased.

    While Microsoft will cut approximately 5 percent of its workforce, it says its number of foreign workers on H1-B visas will remain approximately the same. Microsoft General Counsel Bradford Smith writes, "We do not expect to see a significant change in the proportion of H-1B employees in our workforce following the job reductions. The potential to tap into the world's best minds has long been essential to our success."

    Sen. Grassley has already gone on record to state his dissatisfaction with Microsoft response. He states, "I'm still left without much information about how Microsoft is ensuring American workers are being protected or specifics of its H-1B visa hiring practices."

    In Mr. Smith's letter, he says that approximately 15 percent of Microsoft's workforce consists of H-1B employees -- this, and his previous comments seem to indicate that most of the cuts will be coming from Microsoft's American employees.

    Microsoft has long championed the H1-B visa program. It has consistently urged Congress to rethink the H1-B limits and allow more foreign workers into America. It says that its H1-B workers are a key to its success.

    While Microsoft is firing some workers, it is also hiring others, so it says the net impact will only be 2,000 to 3,000 fewer jobs.

    While Microsoft's letter certainly provides an enlightening response on the cuts, it falls short of the detailed breakdown of how many H1-B jobs were being cut versus jobs of American citizens, which Sen. Grassley demanded of Microsoft CEO Steve Ballmer. Senator Grassley is the ranking Republican member of the Senate Finance Committee.

    Link
     
  2. pgabriel

    pgabriel Educated Negro

    Joined:
    Dec 6, 2002
    Messages:
    43,783
    Likes Received:
    3,704
    I agree Microsoft has a right to cut who they want as long as the foreign workers are here legally. They aren't taking government money.

    On a sidenote, if things get much worse and we see a lot more jobs lost, you will see stories like this and I believe it will get pretty ugly. you're going to see people upset about foreigners keeping jobs, women, minorities, etc., lets just hope it doesn't get to ugly.
     
  3. Major

    Major Member

    Joined:
    Jun 28, 1999
    Messages:
    41,681
    Likes Received:
    16,205
    I hate this kind of garbage. This protectionist crap flows through both parties. If you want Microsoft to be successful in the long-run, they should be laying off the least-needed workers, not the foreign ones just because they are foreign. I'm glad Microsoft took a stand on this.
     
  4. FranchiseBlade

    Supporting Member

    Joined:
    Jan 14, 2002
    Messages:
    51,803
    Likes Received:
    20,461
    Exactly. It's ridiculous to suggest they lay off workers not on importance to the company but on nationality.
     
  5. SamFisher

    SamFisher Member

    Joined:
    Apr 14, 2003
    Messages:
    61,826
    Likes Received:
    41,300
    Dumb move by Grassley, I thought he was smarter than that.
     
  6. basso

    basso Member
    Supporting Member

    Joined:
    May 20, 2002
    Messages:
    33,363
    Likes Received:
    9,290
    it's not like all that high-priced foreign talent pays us income taxes...

    oh wait...

    Good for MSFT (never thought i'd say that). we need more, not fewer H-1B visas.
     
  7. pirc1

    pirc1 Member

    Joined:
    Dec 9, 2002
    Messages:
    14,137
    Likes Received:
    1,882
    Why do we need the H1B program under current economical condition? :confused: Because there are not enough laid off IT workers in the US right?
     
  8. MoonDogg

    MoonDogg Member

    Joined:
    Nov 12, 1999
    Messages:
    5,167
    Likes Received:
    495
  9. Air Langhi

    Air Langhi Contributing Member

    Joined:
    Aug 26, 2000
    Messages:
    21,941
    Likes Received:
    6,695
    They could just hire more people in their Indian offices.

    think the H1B program is bad. They force foreign worker to stay at one company because if they switch then they can't get green card.
     
  10. JuanValdez

    JuanValdez Member

    Joined:
    Feb 14, 1999
    Messages:
    35,055
    Likes Received:
    15,229
    Kudos to Microsoft. Grassley is a Republican? Is he losing confidence in free markets?
     
  11. fredred

    fredred Member

    Joined:
    Oct 31, 2008
    Messages:
    239
    Likes Received:
    4
    Yes, but that one company is sponsoring them and without that company they would not be here.
     
  12. pirc1

    pirc1 Member

    Joined:
    Dec 9, 2002
    Messages:
    14,137
    Likes Received:
    1,882
    What is the reason for H1B? There is not enough trained US worker in certain fields right? I am sure that is the case in the next couple years. Ya right.
     
  13. Deckard

    Deckard Blade Runner
    Supporting Member

    Joined:
    Mar 28, 2002
    Messages:
    57,785
    Likes Received:
    41,212
    While doing what Grassley and others suggest doesn't make economic sense if the retained foreign workers are producing more than the American workers being laid off, and while it may also be, arguably, immoral to layoff foreign workers to save American jobs, I can still see both sides of the argument. In many cases, the company line, back when the foreign workers were hired, was that there weren't enough trained Americans to fill many of these positions. That was a justification used for bringing these people over. Today, that may not be the case. Looking at it from the other side, is it immoral not to replace those foreign workers with Amercians of equal training and ability, but recently laid off? I don't think that notion is all that easy to dismiss.
     
  14. JuanValdez

    JuanValdez Member

    Joined:
    Feb 14, 1999
    Messages:
    35,055
    Likes Received:
    15,229
    I think Grassley's request is self-defeating. Microsoft runs an information business and wants the best people in the world. If they can't work here in the US, Microsoft will employ them in some other country.
     
  15. Master Baiter

    Master Baiter Member

    Joined:
    Jul 6, 2001
    Messages:
    9,608
    Likes Received:
    1,376
    From my experience in the IT field, using H1B's have absolutely nothing to do with getting the "best" people and everything to do with getting cheap labor. Most of these workers are taken advantage of because they have to work or they get kicked out. They get their visa held over their head.

    That being said, the majority of the time, the companies get exactly what they pay for.
     
  16. rockbox

    rockbox Around before clutchcity.com

    Joined:
    Jul 28, 2000
    Messages:
    22,775
    Likes Received:
    12,529
    The choice is the foreigners work here in the US or job get outsourced to another country. I rather have them here spending their money here.
     
  17. pirc1

    pirc1 Member

    Joined:
    Dec 9, 2002
    Messages:
    14,137
    Likes Received:
    1,882
    So just say we want the cheapest labor and that is the reason for H1B. Stop treating people like idiots and say it is because a shortage of skilled workers.
     
  18. CrazyDave

    CrazyDave Member

    Joined:
    Nov 21, 2002
    Messages:
    6,027
    Likes Received:
    439
    I think they worded it poorly. [We don't want to fire the foreign employees because we need to keep the best minds] implies that they are doing it because Americans aren't smart enough, which is absurd.

    I do think they should be able to choose who they keep on, but saying that, and not admitting at least part of the reason is due to employee cost and control, is spin.

    It's just reality in today's global economy and free/open markets, USA standard of living was way up compared to most, so once those flood gates opened, there has to be a reckoning of some sort. This is part of it. Sucks, but maybe there will be a happy medium, and we will regain an edge through competition. Until it balances out though, expect that companies who are allowed, without protectionist legislation, will take advantage of cheaper labor that is easier to maintain and control.

    That said, if there are other "advantages" to hiring foreign workers of equal qualification, or disadvantages to hiring American workers, that playing field should be leveled, I would think.

    Regardless, M$ should be more upfront about it, or at least not come of as insulting to Americans. Some here, so I'm told, actually like their products.
     
  19. Sweet Lou 4 2

    Sweet Lou 4 2 Member

    Joined:
    Dec 16, 2007
    Messages:
    39,183
    Likes Received:
    20,334

    Because other workers from other countries are smarter and better than ours - that's what happens when you have a crappy education system.

    I can't believe I agree with Basso. But absolutely - I think more than ever - business needs to put the priority on finding the best talent to compete - not the most American.
     
  20. madmonkey37

    madmonkey37 Member

    Joined:
    Jun 20, 2003
    Messages:
    2,499
    Likes Received:
    52
    It isn't all on the education system. American students have to want to go into computer science or electrical engineering. These majors require a ton of high level math and science classes, which most Americans don't like. Add that to the fact that most computer engineers have the stereotype of being geeks who sit in cubicles all day(probably true), its no surprise being an engineer isn't appealing to a lot of Americans.
     

Share This Page

  • About ClutchFans

    Since 1996, ClutchFans has been loud and proud covering the Houston Rockets, helping set an industry standard for team fan sites. The forums have been a home for Houston sports fans as well as basketball fanatics around the globe.

  • Support ClutchFans!

    If you find that ClutchFans is a valuable resource for you, please consider becoming a Supporting Member. Supporting Members can upload photos and attachments directly to their posts, customize their user title and more. Gold Supporters see zero ads!


    Upgrade Now