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Delaware Valley Delaware Valley Relocation CouncilRelocation Council

May 5, 2010May 5, 2010

Your PresentersYour Presenters William (Pat) PattersonHuman Resources Lead – US Global Careers ProgramAccenture

Nancy Sharp ZieglerDirector, Client Services - Global ImmigrationFragomen, Del Rey, Bernsen & Loewy

Lynn ShotwellExecutive DirectorAmerican Council on International Personnel

Overview of PresentationOverview of Presentation Global Labor and Mobility TrendsGlobal Labor and Mobility Trends The Closing Door to the United StatesThe Closing Door to the United States The Swinging Doors in the U.K., India, The Swinging Doors in the U.K., India,

Australia and MexicoAustralia and Mexico Strategizing to Get Through the Strategizing to Get Through the

Revolving DoorsRevolving Doors

World Economic ForumWorld Economic Forum

The talent shock is coming. It will arrive in years, not decades, The talent shock is coming. It will arrive in years, not decades, regardless of the current economic crisis. It is now time for regardless of the current economic crisis. It is now time for all involved stakeholders to ally forces and prepare for the all involved stakeholders to ally forces and prepare for the era of extreme labour scarcity, significant talent mobility era of extreme labour scarcity, significant talent mobility

and a truly global workforce.and a truly global workforce.

““Stimulating Economies Through Fostering Talent Mobility,” 23 March 2010Stimulating Economies Through Fostering Talent Mobility,” 23 March 2010

Workforce 2020 – Shortage and Surplus(in millions)

US -17China -10Japan -9Russia -6Germany -3UK -3France -3Spain -3Italy -3Australia -1Source: Brookfield Global Relocation

Trends 2010

India 47Pakistan 19Bangladesh 7Mexico 5Indonesia 5Philippines 5 Egypt 4Vietnam 4Brazil 3Iran 3Turkey 2Iraq 2

Last Week in Migration…Last Week in Migration…

FinlandIndia

New ZealandSwitzerland

United KingdomUnited States

The Closing Door in the U.S.The Closing Door in the U.S.

Quick refresher - Visa Types and optionsQuick refresher - Visa Types and options Changing immigration environment in the USChanging immigration environment in the US

• Recent developmentsRecent developments• Potential legislationPotential legislation

RFE’s, Employer control and Site VisitsRFE’s, Employer control and Site Visits Increasing Prevailing WagesIncreasing Prevailing Wages Risk managementRisk management Impact on internal processes and planningImpact on internal processes and planning Shifting business focusShifting business focus

US Visa Types & Their IntentionsUS Visa Types & Their Intentions

H1B – Specialty industry skills not available in the USH1B – Specialty industry skills not available in the US• USCIS Managed with DOL input as part of a labor strategyUSCIS Managed with DOL input as part of a labor strategy• Transferrable to new employerTransferrable to new employer• Prevailing wage requirementPrevailing wage requirement

L’s - basic intent is to foster foreign investment in the L’s - basic intent is to foster foreign investment in the US. To put people in positions in the US, from US. To put people in positions in the US, from overseas that drive the growth of business. overseas that drive the growth of business. • L1A – Managers, managing people or an essential function.L1A – Managers, managing people or an essential function.• L1B - Specialized company or client technical, business L1B - Specialized company or client technical, business

function knowledge.function knowledge.

Issues Impacting the Debate Shift of Power in CongressShift of Power in Congress

• Senate 59 Democrats, 41 RepublicansSenate 59 Democrats, 41 Republicans• House 253 Democrats, 178 RepublicansHouse 253 Democrats, 178 Republicans

Secretary of Labor Hilda Solis Secretary of Labor Hilda Solis

•New Senate Immigration New Senate Immigration Subcommittee Chairman Subcommittee Chairman SchumerSchumer

•Economic factors will continue Economic factors will continue to drive scrutiny of foreign to drive scrutiny of foreign worker programsworker programs

Recent DevelopmentsRecent Developments Senator Grassley’s letter to Microsoft (1/22/09)Senator Grassley’s letter to Microsoft (1/22/09)

• What is the breakdown in the jobs that are What is the breakdown in the jobs that are being eliminated? What kind of jobs are they? being eliminated? What kind of jobs are they? How many employees in each area will be cut?How many employees in each area will be cut?

• Are any of these jobs being cut held by H-1B or Are any of these jobs being cut held by H-1B or other work visa program employees? If so, how other work visa program employees? If so, how many?many?

• How many of the jobs being eliminated are filled How many of the jobs being eliminated are filled by Americans? Of those positions, is Microsoft by Americans? Of those positions, is Microsoft retaining similar ones filled by foreign guest retaining similar ones filled by foreign guest workers? If so, how many?workers? If so, how many?

• How many H-1B or other work visa program How many H-1B or other work visa program workers will Microsoft be retaining when the workers will Microsoft be retaining when the planned layoff is completed?planned layoff is completed?

Recent DevelopmentsRecent DevelopmentsH-1B TARP Amendment in the Economic Stimulus Package (2/2009)H-1B TARP Amendment in the Economic Stimulus Package (2/2009)

• Requires companies who receive TARP funding or emergency loans Requires companies who receive TARP funding or emergency loans from the Federal Reserve to comply with the H-1B dependent employer from the Federal Reserve to comply with the H-1B dependent employer restrictions in order to hire an H-1B visa holder over the next two years.restrictions in order to hire an H-1B visa holder over the next two years.

• The employer will not displace any similarly employed U.S. worker The employer will not displace any similarly employed U.S. worker within 90 days before or after applying for H-1B status, or an extension within 90 days before or after applying for H-1B status, or an extension of status for any H-1B worker; of status for any H-1B worker;

• The employer will not place any H-1B worker employed pursuant to the The employer will not place any H-1B worker employed pursuant to the LCA at the worksite of another employer LCA at the worksite of another employer unlessunless the employer first the employer first makes a bona fide inquiry as to whether the other employer has makes a bona fide inquiry as to whether the other employer has displaced or intends to displace a similarly employed U.S. worker within displaced or intends to displace a similarly employed U.S. worker within 90 days before or after the placement of the H-1B worker; and 90 days before or after the placement of the H-1B worker; and

• The employer, before applying for H-1B status for any alien worker The employer, before applying for H-1B status for any alien worker pursuant to an H-1B LCA, took good faith steps to recruit U.S. workers pursuant to an H-1B LCA, took good faith steps to recruit U.S. workers for the job for which the alien worker is sought, at wages at least equal for the job for which the alien worker is sought, at wages at least equal to those offered to the H-1B worker. Also, the employer will offer the job to those offered to the H-1B worker. Also, the employer will offer the job to any U.S. worker who applies and is equally or better qualified than to any U.S. worker who applies and is equally or better qualified than the H-1B worker. This attestation does not apply if the H-1B worker is a the H-1B worker. This attestation does not apply if the H-1B worker is a "priority worker" within the meaning of Section 203(b)(1)(A), (B), or (C) "priority worker" within the meaning of Section 203(b)(1)(A), (B), or (C) of the INA.of the INA.

Possible Changes in Upcoming LegislationPossible Changes in Upcoming Legislation

New Mandatory Employer Verification SystemNew Mandatory Employer Verification System Establish a Commission on Employment Based Establish a Commission on Employment Based

VisasVisas Green Cards available to students graduating Green Cards available to students graduating

from US institutions in Science, Technology, from US institutions in Science, Technology, Engineering or Mathematics who have a job offer Engineering or Mathematics who have a job offer from a US Employerfrom a US Employer

New H-1B Restrictions:New H-1B Restrictions: L-1 Restrictions including the possibility of a L-1 Restrictions including the possibility of a

prevailing wage and worksite restrictionsprevailing wage and worksite restrictions

Employer ControlEmployer Control Recent USCIS Memo on ControlRecent USCIS Memo on Control

• Jan 2010 memo enforcing working relationships between Jan 2010 memo enforcing working relationships between employers and H1 visa holders.employers and H1 visa holders.

Increasing H1B Prevailing WagesIncreasing H1B Prevailing Wages

Complex process often managed and controlled Complex process often managed and controlled by immigration attorneysby immigration attorneys• Leverages their industry experienceLeverages their industry experience• Insures controls and complianceInsures controls and compliance

2 Step2 Step• Determining the RoleDetermining the Role• Determining the Wage LevelDetermining the Wage Level

Increasing H1B Prevailing WagesIncreasing H1B Prevailing Wages

Determining the RoleDetermining the Role• Example – Example – “Computer” Roles at Online.ONETCenter.org• Limited list of roles suitable for visasLimited list of roles suitable for visas

Wage Levels determined generally by Wage Levels determined generally by • Yrs Experience requirementsYrs Experience requirements• Education RequiredEducation Required• Special Skills or Knowledge requiredSpecial Skills or Knowledge required

Influenced by resume contentsInfluenced by resume contents Example - Example - Data Source underlying Data Source underlying FLCDatacenter.com Somewhat subjective process resulting in Somewhat subjective process resulting in

business risk which must be managed closelybusiness risk which must be managed closely

Source – Computerworld.com

List of top 15 H1B Visa Users 2008

•Periodically publicly circulated data

•Can drive public sentiment and queries

•Critical to maintain a high level of control over processes and manage risk.

In Public View

In Public ViewIn Public View Avg Prevailing Wage H1B Visa Avg Prevailing Wage H1B Visa

UsersUsers Public H1B Case DataPublic H1B Case Data Simple average of H1B PWSimple average of H1B PW Data lacks detail for a true Data lacks detail for a true

comparison of wage comparison of wage determination practices.determination practices.

Cross Border TransfersCross Border Transfers Shifting business focus Shifting business focus Shift in directionShift in direction

• Past 10 yrs, Low cost to high costPast 10 yrs, Low cost to high cost• Next 10 yrs, High cost to low costNext 10 yrs, High cost to low cost

Business focus now on getting leaders and skills Business focus now on getting leaders and skills into emerging marketsinto emerging markets

Good news for the relocation industryGood news for the relocation industry

IndiaIndia Quota System:Quota System:

• Employment Visas restricted to 1% of the Employment Visas restricted to 1% of the employee population in India, up to a max of employee population in India, up to a max of 2020

• Applications for Employment Visas above Applications for Employment Visas above quota will be referred to the Ministry of Labor quota will be referred to the Ministry of Labor for determinationfor determination

Business Necessity letter is recommendedBusiness Necessity letter is recommended Processing time increased by 4-6 weeksProcessing time increased by 4-6 weeks

• Discretionary authority of consulates causing Discretionary authority of consulates causing inconsistent results inconsistent results

IndiaIndia

Anticipated Changes (Subject to change Anticipated Changes (Subject to change pending issuance of actual rules):pending issuance of actual rules):• Cap on Employment Visas for Highly Skilled Cap on Employment Visas for Highly Skilled

positions eliminatedpositions eliminated• Minimum Salary requirement: USD 25,000Minimum Salary requirement: USD 25,000• Initial visa will be issued for 3 years for US Initial visa will be issued for 3 years for US

nationals and 2 years for other nationalsnationals and 2 years for other nationals• Changes to FRRO processing also scheduled Changes to FRRO processing also scheduled

but no details provided but no details provided

UKUK Points Based System (PBS)Points Based System (PBS)

• Initiated in November 2009Initiated in November 2009• Sponsoring entities must be registeredSponsoring entities must be registered• Adjudication is now at Consulate levelAdjudication is now at Consulate level• UK company responsible for meeting UK company responsible for meeting

compliance requirementscompliance requirements Documentation, tracking, notice requirements, etc.Documentation, tracking, notice requirements, etc.

AustraliaAustralia Effective Sept. 14 2009 major changed Effective Sept. 14 2009 major changed

implemented to improve protections on implemented to improve protections on Australian labor marketAustralian labor market• Amended criteria to be a sponsorAmended criteria to be a sponsor• Redefined sponsorship obligationsRedefined sponsorship obligations• Expanded government authority to monitor Expanded government authority to monitor

and investigate for non-complianceand investigate for non-compliance• Increased penalties for employers who breach Increased penalties for employers who breach

sponsorship obligationssponsorship obligations

Mexico New Immigration Procedures Manual effective

May 1, 2010• Designed to simplify applications procedures and reduce

processing times• Nationals eligible to enter Mexico without a visa obtain

an FMM allowing stays of up to 180 days (business visitors, professionals, and technical workers); may be permitted to perform some work activities

• Visa nationals obtain FMM at consulate, obtain pre-approved work permit after arrival in Mexico, and completing registration procedures

• Holders of temporary work authorization in the US with valid US visa do not need to get a visa in advance of travel to Mexico

• APEC Business Traveler Card (ABTC) allows holder to perform business activities in Mexico for up to 59 days

• New application form to be issued

Preparing for the FuturePreparing for the Future Develop a dialogue with key stake holders:Develop a dialogue with key stake holders:

• What are the key destinations?What are the key destinations?• What activities will be performed in the What activities will be performed in the

destination country?destination country?• When will employees need to be in country?When will employees need to be in country?

Planning:Planning:• Provide a detailed description of the processProvide a detailed description of the process• Manage expectations on processes, timing, Manage expectations on processes, timing,

and requirementsand requirements Monitor progress and resultsMonitor progress and results

• Expect the unexpectedExpect the unexpected