WCA November 2010

From the americas

This, taken together with the rare consensus among the senators, argues a strong perceived correlation in the American mind between IT workers on work permits and persistent high domestic unemployment. Senator Charles Schumer, of New York, who sponsored the bill, cited the unemployment factor. But there is another strong element in the Senate bill: illegal immigration. The fee increases are to help finance a $600 million effort to boost security at the US–Mexican border, including the addition of 1,500 guards and other officials. Indian Trade Minister Anand Sharma promptly protested the measure in a letter to his opposite number, US Trade Representative Ron Kirk, claiming that the impending legislation will hurt primarily companies of Indian origin. A statement posted 10 th August on the official government website declared, “Though the need of the US government to strengthen their border security is understandable, it is inexplicable to our companies to bear the cost of such a highly discriminatory law.” Writing from New Delhi in Bloomberg News , reporters Kartik Goyal and Unni Krishnan noted that the law would not affect US technology companies such as International Business Machines Corp, Microsoft Corp, and Google Inc, since less than half their workers are on work visas. But, they pointed out, “[Indian] technology companies such as Wipro and Infosys bring skilled workers from overseas, often from India, into the US to develop software and manage projects for customers in the country.” (“India Expresses Concern on ‘Discriminatory’ US Bill,” 10 th August) According to informed estimates, the bill awaiting the reconvened US Congress could cost such companies up to $250 million a year. Another ❖ ❖ Bloomberg reporter, Asia regional editor Bruce Einhorn, wrote that the higher fee for a work visa will not deter Indian companies from sending people to the US. The bigger concern, he wrote, is “where this leads.” (“India Criticizes New US Outsourcing Fee,” 10 th August) In the view of Sudeshna Sen of the Economic Times , it leads to the wide dissemination of a highly skewed view of Indian IT workers overseas. On 9 th August, Ms Sen wrote, “This is just the beginning, with other Western governments likely to follow the American lead. In a situation of high local unemployment, and political unrest about illegal immigration, new urban myths are being created: in Europe, US, UK, wherever. In the minds of the public, Indian IT workers on work permits, transfers, or [work visas] equate to jobs stolen from locals — and [from] community and national resources in the host countries that these people use.” Ms Sen called on Nasscom, lobbyist for the Indian IT industry, to launch publicity campaigns to dispel these misapprehensions and educate Westerners about what Indian IT workers do. “Interesting idea,” commented Bloomberg ’s Mr Einhorn. “But with unemployment rates so high, Nasscom would have to run quite a PR campaign to convince people that they’re wrong about outsourcing.”

more than 40 American steel companies went bankrupt because they could not compete with steel companies in countries such as China. Paul J Nyden of the Gazette-Mail noted that the union official and his fellow USW members once worked at Weirton Steel, a West Virginia mill whose downsized production facilities are now owned by Luxembourg-based ArcelorMittal. (“Raese’s Comments on Steel Draw Criticism,” 7 th August) Himself the president and CEO of a steel company – Greer Industries (Dover, Ohio), which makes cold-rolled strip steel for autos and motorcycles, as well as smaller products – John Raese is also a strong proponent of regulatory reform. “I am in manufacturing,” he told Mr Nyden. “I send products out of [the US]. When we compete with China, or any other country, we don’t have the same laws. In 2008, Congress levied over 3,800 new regulations directed toward business. Does that do us any good?” Answering his own question, the Senate hopeful said, “Some safety regulations do us some good. But some of the regulatory nightmares our businesses face need more of a business touch than a career politician’s touch.” AK Steel (Middletown, Ohio) has boosted its spot market ❖ ❖ base price by $40 per ton on all new orders for its carbon steel products. The company attributed the increase to strengthening demand, as well as to the need to offset higher costs for raw materials. Writing in the Middletown Journal (5 th September), Jessica Heffner quoted the president of the workers’ union at the company as saying that the Middletown Works is running at 85% capacity, compared with 45% a year before. Scott Rich said, “It has been a remarkable turnaround.” Acting on a complaint from steel maker JSL Ltd, the ❖ ❖ government of India has begun an investigation into alleged dumping into the Indian market of cold-rolled flat steel by exporters from the United States, the European Union and South Korea. JSL, India’s largest stainless steel producer, asserted that the imports caused injury to the domestic steel industry. The probe is to look into imports over the 15-month period January 2009–March 2010. As reported by the Economic Times (5 th September), India has recently imposed duties in 15 anti-dumping cases across various sectors. Elsewhere in steel . . . A steep rise in visa fees for IT workers outsourced to the US is interpreted – and resented – as targeting Indian companies Before disbanding for its late-summer recess, the US Senate unanimously passed a bill that – if, as seems likely, it becomes law – will nearly double the fees on work visas for IT companies sending more than half their employees on assignment to the United States. The fee hike would be steep ($2,000 per person). Employment

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Wire & Cable ASIA – November/December 2010