Disney Workers Replaced With H-1B Visa Workers

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Table of Contents

Introduction
The Imperfections in the Existing Process of H-1B Visas Approval
Conclusion
Work Cited

Introduction

The case of Disney workers replaced with imported workers from HCL and Cognizant presents an example of the global outsourcing trend, which spreads to different business areas such as production or human resources management. In this particular case, it is uncertain whether the opportunity to displace initial workers with foreign workers became a prominent factor in the decision to dismiss 250 employees. However, in any event, the case displays the imperfections in the existing process of H-1B visas approval.

The Imperfections in the Existing Process of H-1B Visas Approval

Firstly, the existing process of H-1B visas approval primarily centers on the protection of the interests of immigrant workers with little concern about non-immigrant workers. In particular, the protection of non-immigrant workers does not apply to high-paid employees with over a $60,000-year salary and certain skill and education levels. The policy presumably was meant to ensure natural changes in the labor market, where individual educated immigrants could freely apply for a high-paid jobs. However, in Disney’s case, the displacement of non-immigrant workers in the IT sector presents an example of systematic change where consulting companies such as HCL and Cognizant import workers for the company’s benefits. In other words, consulting companies benefit from both employers and workers, causing systematic changes in the labor market, which affect non-immigrant workers in the IT sector. Moreover, it can be that immigrant workers are intentionally employed in consulting companies to avoid causing adverse effects on similarly employed workers formally. Therefore, the changes in the existing H-1B visas processing and approval should limit the ratio of immigrant workers’ applications and prohibition of participation of third parties in the deal.

Considering the consequences of the case, President Trump, who campaigned against the H-1B program in the presidential race, signed an Executive Order directing the government to review the H-1B visa program policies. The Trump administration introduced visas limitations for H-1B workers recruited by third-party counseling agencies such as HCL and Cognizant. The limitation extended to the length of the H-1B visa duration; if previously the visa was active for a three-year period, the new policies limited the visa duration to a few months (Thibodeau). The change negatively influenced the activity of big companies, which primarily relied on immigrant labor. According to Thibodeau, the limitation significantly worsened the relationships between IT consulting firms and employers. Therefore, one could suggest that Disney’s decision to displace resident employees with immigrant workers did not have good results.

One of the main reasons big companies resorted to using an immigrant workforce for IT services was that their labor is more flexible. Immigrant workers have no family connections, and therefore they are easier to relocate every few months (Thibodeau). The unstable working conditions of immigrant workers caused by the Trump administration’s limitation raised immigrant workers’ application rates for Green Card visas. However, with increased wait periods for Green Cards, the immigrant employees from many companies had no chance but to return to India.

Conclusion

While President Trump’s administration’s executive order improved the situation with the dismissal of American workers in favor of the immigrant workforce, it did not entirely stop the process. The companies continue to use immigrant workers with H-1B for cheaper labor costs, and IT consulting companies continue to provide services for employers and immigrant talents. It is recommended that the future additional changes to the H-1B visa processing and approval rules will specify that immigrant workers should be paid fair wages and must be employed by a direct employer.

Work Cited

Thibodeau, Patrick. “Trump’s H-1B work visa actions disappoint ex-Disney workers.” Tech Target, 2020, Web.

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Disney Workers Replaced With H-1B Visa Workers

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