Senator Bernie Sanders Critiques H-1B Programme for Displacing American Workers with Lower-Paid Foreign Labour

Bernie Sanders, a prominent US senator, has criticised the H-1B programme. He claims it replaces well-paid American jobs with lower-paid foreign workers. Sanders introduced legislation to increase the cost of hiring H-1B workers. He argues this will ensure hiring foreign workers isn't cheaper than employing Americans.

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Sanders has proposed an amendment to the Laken Riley Act. This amendment aims to prevent corporations from hiring foreign workers at lower costs than American employees. "The main function of the H-1B programme is not to hire the best and the brightest but rather to replace good-paying American jobs with hundreds of thousands of lower-paid guest workers from abroad who are often treated as indentured servants," Sanders stated.

H-1B Programme Criticism

Sanders suggests doubling the H-1B fee for corporations hiring foreign workers. This change could generate over USD 370 million annually. The revenue would fund nearly 20,000 scholarships for American students in STEM fields. Sanders believes this will enhance US competitiveness.

The amendment also requires companies to raise wages before hiring H-1B workers. It proposes setting the prevailing wage at least equal to the local median wage. "In other words, if the H-1B programme is truly meant for the best and the brightest, it should not be used as a tool to undercut the wages of high-skilled American workers," Sanders explained.

Impact on American Workers

The amendment seeks to stop companies from replacing laid-off Americans with H-1B workers. Sanders argues that firms conducting mass layoffs shouldn't replace American employees with foreign workers. He emphasises that treating H-1B workers as indentured servants is unacceptable.

Currently, H-1B workers often face lower pay and job insecurity. Their visas can be revoked if they report unfair conditions. Sanders' amendment would make these visas portable, allowing easier job changes for guest workers.

Criticism of Industry Leaders

Sanders criticised Elon Musk and Vivek Ramaswamy for supporting H-1B. "Elon Musk, the wealthiest man in the world with a net worth of nearly USD 430 billion, and other multi-billionaires in the high-tech industry claim that the H-1B federal guest worker programme is vital to our economy because of the scarcity of highly skilled engineers and other technology workers in the United States," he said.

He cited data from the Economic Policy Institute showing significant layoffs by top H-1B users between 2022 and 2023. These companies laid off 85,000 Americans while hiring over 34,000 foreign workers. In 2019 and 2020, most H-1B visas went to entry-level positions paying less than similar American roles.

Wage Disparities

Sanders highlighted wage disparities between H-1B and American workers. In Dallas, H-1B software developers earn USD 44,000 less than their American counterparts. In Houston, accountants face a USD 40,000 pay gap. In Santa Barbara, California, H-1B computer system engineers earn USD 45,000 annually compared to over USD 110,000 for Americans.

"Why would a corporation hire an American computer systems engineer at a salary of USD 110,000 a year when it is USD 65,000 cheaper to hire an H-1B worker for that same position?" Sanders questioned.

Concerns Over Job Outsourcing

Sanders noted that up to 33% of new IT jobs in America are filled by guest workers. Census Bureau data shows many Americans with advanced STEM degrees are unemployed in their fields. Half of the top 30 H-1B employers are known for outsourcing jobs, often referred to as "body shops."

"They are two sides of the same coin," Sanders stated about companies supplying cheap labour both domestically and abroad.

If there truly is a shortage of skilled tech workers as Musk claims, Sanders questions Tesla's actions. Tesla laid off over 7,500 American workers last year while applying for more H-1B visas.

Sanders also questioned Tesla's employment practices regarding salaries for associate roles filled by H-1B workers. He pointed out that these positions were paid significantly less than what might be expected for highly skilled roles.