A blow to exploitation, a win for workers

The new H-1B rules are not anti-worker, they are pro-worker. They do not weaken the industry— they expose its dependence on exploitation

- M MUNEER

WITHTHE SEPTEMBER 19 announcement of the newH-1B restrictions, the panic of Indian information technology (IT) and IT-enabled services giants is understandable. They will incur big expenses on lobbyists and probably will have to cut down on estimates of bottom lines. Analysts warn of doom. CEOs paint a picture of collapsing margins and lost competitiveness.

Let’s be honest. This isn’t about protecting workers or saving jobs. This is about protecting profits. The Indian IT industry’s outrage has little to do with fairness and everything to do with greed.

For decades, these IT companies have perfected a business model built on wage exploitation. Hire thousands of engineers in India at rock-bottom pay, send the cheapest among them overseas on H-1B visas, and bill clients at global rates. The companies pocket the difference; the workers get crumbs.

The truth is ugly: most Indian H-1B employees in the US are not living middle-class lives by American standards. On a purchasing-power basis, their lifestyles are only slightly better than their peers back home. The “American dream” becomes a mirage, while their employers rake in billions.

And now, when new rules drive parity pay in terms of CTC at least—so that an Indian engineer in California earns the same as an American peer—the industry howls. Not because workers will lose, but because shareholders will.