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World US Senator Charles Schumer calls Infosys 'chop shop'

Discussion in 'Breaking News' started by kds1980, Aug 10, 2010.

  1. kds1980

    kds1980 India
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    http://timesofindia.indiatimes.com/...ls-Infosys-chop-shop-/articleshow/6275459.cms

    NEW YORK/NEW DELHI: Criticising companies outsourcing highly-paid American jobs, a US Senator has described Indian IT major Infosys as a "chop shop", a place where stolen cars are dismantled and parts sold separately.

    The comments were made by Democrat Senator of New York Charles E Schumer during discussions on the Border Security Bill, a $600-million emergency package aimed at strengthening security along the porous Mexican border.

    "The emergency border funds will be paid for by assessing fees on foreign companies known as chop shops that outsource good, high-paying American technology jobs to lower wage, temporary immigrant workers from other countries.

    "These are companies such as Infosys," Schumer said on the Senate floor on Thursday.

    The comments made during the discussion are posted on the Senate website.

    When contacted, an Infosys spokesperson said the company would not like to comment on the Senator's remarks.

    Schumer also pointed out the bill would not affect the high-tech companies such as Intel or Microsoft that play by the rules and recruit workers in America.

    The $600 million-spending bill approved by the Senate would see significant hike in application fees for H-1B and L1 visas, which are most sought after by Indian IT professionals.

    The proposed bill would hike the visa fee to $2,000 per application on those entities that have less than 50 per cent of their employees as US citizens.

    Infosys has thousands of employees in the US. For the three months ended June 30, the company had raked in 67.3 per cent of its total revenues from North America.

    After the passage of the bill in the Senate, Democrat Senator of Missouri Claire McCaskill on Thursday said the proposal would increase fees for particular companies that exploit two categories of visas - H-1B and L.

    "A handful of foreign-controlled companies that operate in the United States - such as Wipro, Tata, Infosys and Satyam - rely on H-1B and L visas to import foreign workers to the US.

    "The Senate Democrats' border security proposal would increase the visa fees paid by these companies by roughly USD 2,000 per visa application," she had said in a statement.
     
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  3. spnadmin

    spnadmin United States
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    Kanwardeep Singh ji

    Let's follow this story. Somethings here don't add up. For one thing it amazes me that Charles Shumer would be the one promoting this idea. I think we should stay on top of this. It is of course possible that he is catering to Republican party mud-slinging about immigrants and the economy in an election period which is going to be very hard on the incumbent Democrat officials. Very possible.

    BTW the comments by Times of India readers were really interesting. Worth reading them.
     
  4. kds1980

    kds1980 India
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    http://business.rediff.com/slide-sh...d-at-chop-shop-slur-on-infosys.htm#contentTop

    Expressing outrage over a US Senator calling Indian information technology major Infosys a 'chop shop', an industry body representing US firms has said that Indian companies were helping US create value and keep ahead of the global competition.

    "It is totally outrageous in this day in age, when the world is so interconnected by the Internet, that draconian measures would be floated by the US Congress that tarbrushes Indian companies as 'chop shops'," US India Business Council president Ron Somers said on Tuesday.

    "Our companies are creating value around the clock thanks to tie-ups with India, keeping us ahead of the global competition," Somers said.

    The Washington-based USIBC represents some 350 American companies, including many in Fortune 500 list, like Boeing, Wal Mart, PepsiCo and General Motors and Lockheed Martin that do business in India.

    Click NEXT to read further. . .

    Somers came down heavily on various moves in US to restrict the movement of high-tech professionals and outsourcing of work to India.

    "Cutting our nose off to spite our face by imposing restrictions on movement of high-tech professionals will hobble American companies' ability to compete in the global marketplace," he said.

    "Value addition is being provided by Indian companies 12 hours a day, 7 days a week for US companies, complimenting the value being generated by the American workforce.

    "When our day winds down and our workforce shuts the lights off, the Indian workforce awakes for their morning to continue adding value," Somers added.

    USIBC said it remains committed to removing restrictions to bilateral trade and investment between the worlds two largest free-market democracies.

    Criticising companies outsourcing American jobs, New York Senator Charles Schumer had last week described Infosys as a 'chop shop', a place where stolen cars are dismantled and parts sold separately.

    He said such companies outsource high-paying American tech jobs to immigrants willing to take less pay.

    The USIBC statement comes a day after Commerce and Industry Minister anand Sharma said in the Rajya Sabha that such a remark from a the New York Senator was unfortunate.

    "Infosys is one of the leading companies. It has a global name and brand. Any disparaging remark, I would term it unfortunate and avoidable," Sharma had said.
     
  5. spnadmin

    spnadmin United States
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    Now Somers has nailed the economic value and realities of the situation. I am glad to see this expressed. Do you remember when we were discussing it a few months back? I mean the economic side of this. This has to be a sorry situation when a real champion of rights, Charles Shumer stoops as he did to satisfy the anti-immigration groups because of Democratic fears for re-election. It is based on a lie to begin with. There are not enough workers in the US trained to do these jobs. That is why the companies involved are out-sourcing to begin with.

    If there were this would not be a story. Or it would have ended quickly.

    All sides should be asking WHY our educational institutions have not been able to supply the level of worker needed?

    Or maybe this is all myth designed to keep the controversy going?
     
  6. Spades

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    I think everyone also needs to keep in mind that the Democrats are currently pegged as party more favorable to the American worker (even though they aren't) so Schumer could be also trying to keep that facade to placate their union base by basically telling them that they got their backs in case something should happen to one of their jobs.
     
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  7. spnadmin

    spnadmin United States
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    Definitely, Spades ji. Except in this particular instance, Indian companies are doing the US good work - particularly in the arena of off shore workers. Most of the visas issues to work on US soil are for very specialized work. But these arguments are just too complex for the average news paper to print. So it is always a matter of the quick news story that speaks to gut instincts rather than reason.
     
  8. Spades

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    Rationality and capitalistic values go out the window pretty fast during a recession. People are scared to death of becoming poor and politicians know it so they try to throw the blame on everything from the opposition parties to evil corporate execs (who do deserve some of the blame) but never say the words "It's my fault" and they definitely will never say that the American people deserve some of the blame.

    Otherwise you will be pegged as an evil Islamic Communist Nazi that wants to ban country music, apple pie, and guns. :roll:
     
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