Forwarding Rob Sanchez' JOB DESTRUCTION NEWSLETTER


<<<<< JOB DESTRUCTION NEWSLETTER No. 1728 -- 7/12/2007 >>>>>

Bill Gates has been threatening to move Microsoft out of the United States
unless Congress gives him more H-1Bs. His blackmail strategy didn't work
because Congress didn't give him the H-1Bs he demanded. Now it appears that
Gates is making good on his threat by moving a Microsoft division to
Canada. Gates hates losing so now he is throwing a little hissy fit.

Microsoft's announced move is a brilliant PR ploy. News articles are
appearing all over the country proclaiming that the Microsoft move is proof
positive we need more H-1B visas. The amusing thing is that despite the
scare mongering over a shortage of H-1B visas, Microsoft actually admits
that they would have moved even if H-1B was increased.

Microsoft spokesman Lou Gellos said that while the immigration
issue was a factor, the company would be opening the center in
Vancouver even if it were not for the immigration challenges.

You would never know what Microsoft said if you read the LA Times.

High-tech companies are so frustrated by the limits on visas for
skilled labor that they're not just opening offices in India and
China to recruit local talent. They're also putting facilities
in places like Vancouver for prized recruits from around the
world -- many of them trained at U.S. universities -- who cannot
work here.

The Reuters article actually had a similar quote from Lou Gellos, but right
up at the top of the article you get the impression that a lack of H-1B
visas is causing a mass exodus:

It may signal the start of a new hiring trend, with other U.S.
high-tech firms following in Microsoft's footsteps to Canada,
where lawyers say it is easier for foreign nationals to obtain
work credentials.


You gotta like this one -- Ruthizer calls Microsoft's actions a fulfillment
of a promise. It would be far more honest to say Microsoft is making good
on its threat to blackmail the American middle class.

Microsoft and other companies have been saying for a long time,
'If you make it so difficult for U.S. companies to bring in
talented foreign national that they need, companies are going
to fill those positions abroad,'" said Ted Ruthizer, who runs
the business immigration practice for the U.S. law firm Kramer
Levin Naftalis and Frankel.

"This is just the fulfillment of this promise," Ruthizer said.


I have several thoughts on the Microsoft move.

Thought #1
Microsoft's move is more of a problem for Canada than for us. As Microsoft
imports large numbers of foreign workers into Canada then the resultant
problems they cause with unemployment and overpopulation are Canada's, not
ours. Canada makes it very easy for foreign workers to immigrate. As the
CTV article explains, Canada has no limit on the number of employment visas
so it's no surprise that Microsoft is slobbering over the prospect of
importing a vast new pool of cheap labor.


Thought #2
There is an implication that Washington State in particular and the U.S. in
general is losing jobs because of Microsoft's move. Of course there is
hysteria that other companies will follow suit. What none of the news
articles mention is the fact that if Bill Gates would have gotten his H-1B
visa increase, Microsoft would be hiring foreign workers, not Americans. It
makes no difference to Americans whether foreigners are employed in Canada
or whether the H-1Bs are allowed to work in Microsoft -- the jobs are lost
either way.


Thought #3
There is more to the Microsoft move than meets the eye, which of course
means that the only one who will see what's going on is me (and of course
all of you that are savvy enough to subscribe to this newsletter!). The
Canadian Microsoft plant in Vancouver is a two hour drive away from its
Redmond campus. It will be very easy for Microsoft to obtain TN (Trade
NAFTA) visas for anyone that they need to transfer between the two
locations. Basically the Canadian location is a backdoor into the U.S.,
which allows Microsoft to escape the H-1B cap. TN visas are unlimited so
Microsoft will have no problem moving as many people as they want to the
U.S. I have been warning for years that the TN visa is a time bomb but very
few people seem to appreciate how this visa can be used to transfer people
between Mexico, Canada, and the U.S.

TN visas will allow Bill Gates to thumb his nose at us. Thank NAFTA for
that. I'm sure all of you have heard how the Chinese are going to use NAFTA
to sell cars in the USA by building them in Mexico and then using NAFTA as
a ruse to import them to the U.S. In case you haven't heard about the
Chinese cars be sure to read recent Lou Dobbs transcripts on the subject.
As far as NAFTA is concerned, moving people across the Canadian border or
cars across the Mexican border is nothing more than the movement of
commodities.

Canada makes it very easy for foreign workers to become naturalized
citizens, which would make them eligible for TN visas. It's also very and
quick and easy to get a visa in Canada that's similar to an H-1B.

The Canadian government has specific programs for quickly bringing
high-tech workers with certain skills into the country, a process
that can take two to eight weeks, said Evan Green, an immigration
attorney and partner at Toronto-based law firm Green & Spiegel.

This statement makes it even clearer:

Sergio Karas, an immigration attorney based in Canada, also
believes Microsoft's move to Canada is in reaction to U.S.
immigration policy. "This move by Microsoft is H-1B driven.
There is no cap in Canada. Depending on the country of origin,
we usually prepare an application, and in three weeks, a
person can be working here," said Karas.


The surprising thing about Canada is that they are even stupider than the
U.S. when it comes to immigration policy. Our H-1B policy is downright sane
compared to their unlimited fast track to work visas.

Canada even has an organization that rivals our ITAA -- it's called
Information and Communications Technology Council (ICTC). Paul Swinwood,
the president of the ICTC sounds just like the ex-president of the ITAA,
Harris Miller:

"[Canada] has been basically built by immigration. We're a country
that looks at immigration as part of our natural birthright and
the supply of the growth of the country."



Thought #4
Corporate blackmail like the latest from Microsoft can be stopped but only
when we as a nation refuse to allow the "faith based" economists from
forcing free-trade down our throats. If our country had the backbone to put
heavy trade tariffs on corporate misfits like Microsoft it wouldn't be
economical for them to continue to export our jobs. Of course the "free
trade" ideologues in our government won't stop this type of behavior
anytime soon and the voters seem oblivious to the damage that is happening
on a daily basis to our economy.

One thing we don't want to do is to award companies by expanding the H-1B
visa program. Kissing the rear end of Bill Gates by increasing H-1B is the
wrong thing to do because the displacement of American workers will be
perpetuated. Whenever you see a Congressman groveling on his or her knees
in order to kiss Gate's butt, be sure to try to pull them back up on their
feet, and slap them until they come to their senses!


**************
Articles Used
**************


http://transcripts.cnn.com/TRANSCRIPTS/ ... dt.01.html
Lou Dobbs, Aired July 6, 2007 - 18:00 ET


http://www.latimes.com/technology/la-ed ... 3621.story
Microsoft moves north


http://www.informationweek.com/news/sho ... =200900554
Microsoft Looks To Dodge Visa Limits With Canadian Software Center


http://news.com.com/Microsoft+sings+O+C ... lenges/210
0-1014_3-6195049.html
Microsoft sings 'O Canada' amid immigration challenges


http://in.today.reuters.com/news/NewsAr ... s&storyID=
2007-07-06T024747Z_01_NOOTR_RTRMDNC_0_India-283414-1.xml
Microsoft expands in Canada amid U.S. visa crunch


http://www.infoworld.com/article/07/07/ ... office-res
ponds-to-immigration-woes_1.html
Microsoft Vancouver responds to immigration woes


http://www.ctv.ca/servlet/ArticleNews/s ... ration_job
s_070707/20070707?hub=CTVNewsAt11
U.S. immigration woes push jobs to Canada


http://www.axcessnews.com/index.php/art ... w/id/11550
Microsoft uses jobs in Canada to push immigration reform at home


http://www.computerworld.com/action/art ... Basic&arti
cleId=9026820&intsrc=news_ts_head
Software development, eh? Canada seeks foreign tech workers


http://computerworld.com.sg/ShowPage.as ... 5&pubid=3&
tab=Home&issueid=114
Microsoft takes a big step to near-shoring in Canada

++++++++++++++++++++++++++++++++++++++++++++++++++ +

http://transcripts.cnn.com/TRANSCRIPTS/ ... dt.01.html

Aired July 6, 2007 - 18:00 ET

PILGRIM: Microsoft tonight is continuing its assault on American middle
class workers. The company's efforts to expand the H1-B visa program in the
U.S. have been unsuccessful, so Microsoft is opening a new software
development center in Canada, where there are fewer restrictions on hiring
foreign workers.

Casey Wian has our report.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): Now that Bill Gates has lost
his title as world's richest man to a Mexican billionaire, his company is
seeking to expand its fortunes across the border, the northern border.

Microsoft plans to open a software development center in Vancouver. The
company's press release freely admits the move is an effort to recruit and
retain highly skilled people affected by immigration issues in the U.S.

In other words, to get around U.S. restrictions on H1-B visas for high-tech
workers from India, China and elsewhere, Microsoft is expanding in Canada,
which has no such limits.

BILL GATES, MICROSOFT CHAIRMAN: We have to welcome the great minds in this
world, not shut them out of our country. Unfortunately, our immigration
policies are driving away the world's best and brightest, precisely when we
need them the most.

WIAN: For months Gates has been trying to persuade the federal government
to allow more foreign high-tech workers into the United States. One analyst
says Microsoft's Canadian venture may be a form of blackmail.

RON HIRA, ROCHESTER INSTITUTE OF TECHNOLOGY: Unfortunately, they've chosen
to advocate for unlimited H1-Bs, when it's clear the H1-B program has been
corrupted, both by outsourcing firms as well as by cheap labor.

WIAN: The United States grants about 85,000 H1-B visas for skilled, foreign
workers each year. Most of them go to companies that either outsource jobs
overseas or choose not to hire Americans.

Microsoft declined to be interviewed on camera but released a statement
saying, "Microsoft is a global company, and our greatest asset is smart,
talented, highly skilled people. Our goal as a company is to attract the
next generation of leading software developers from all parts of the world,
and this center will be a beacon for some of that talent."

(END VIDEOTAPE)

WIAN: Microsoft plans to hire about 200 new employers in Vancouver this
fall. Canadian reports say that could be expanded eventually to about 1,000
people -- Kitty.

PILGRIM: Casey, why is Microsoft choosing Vancouver?

WIAN: As opposed to other places in Canada? Vancouver is close to Microsoft
headquarters in Washington. And, also, Vancouver has a very large
population of immigrants from India and China, the very pool that Microsoft
wants to pull its future software engineers from, Kitty.

PILGRIM: Thanks very much, Casey Wian.

++++++++++++++++++++++++++++++++++++++++++++++++++ +

http://www.latimes.com/technology/la-ed ... 3621.story

Microsoft moves north
Unable to meet its hiring needs because of U.S. immigration policy, the
software company is opening an office in Vancouver

July 10, 2007

MICROSOFT CORP. is expanding in the Pacific Northwest, hiring several
hundred software wizards to help develop new products. Instead of landing
at the Redmond, Wash., mother ship, however, the new workers will toil in
Vancouver, British Columbia. Here's why, according to the company's news
release (emphasis added): "The Vancouver area is a global gateway with a
diverse population, is close to Microsoft's corporate offices in Redmond
and allows the company to recruit and retain highly skilled people affected
by immigration issues in the U.S."

Consider it just the latest in a series of monuments to the United States'
botched immigration policy, as well as a reminder of the Senate's recent
failure to pass a comprehensive fix despite bipartisan support. High-tech
companies are so frustrated by the limits on visas for skilled labor that
they're not just opening offices in India and China to recruit local
talent. They're also putting facilities in places like Vancouver for prized
recruits from around the world -- many of them trained at U.S. universities
-- who cannot work here.

The demand for H-1B visas for high-skilled immigrants has become so much
greater than the supply that almost twice as many applications arrived in a
single day as there were slots available for the year -- 65,000, plus
20,000 for those with advanced degrees from U.S. schools. Other countries,
by contrast, are starting to make it easier for skilled workers to
immigrate. That's because they're focusing on the benefits those employees
can bring to their economies, not the competition they present to native
labor.

Many of these immigrants become the innovators and entrepreneurs who create
companies, employ more people and create wealth. Just look at the U.S.
experience -- about 25% of all venture-capital-backed start-ups here were
launched or co-founded by foreign nationals, including Yahoo, Google and
EBay. The same benefits come from talented U.S. workers too, but not enough
of them are pursuing science, math and engineering careers to fill the
voracious demand at Microsoft and other high-tech powerhouses. A
comprehensive fix to U.S. immigration policy is overdue, but failing that,
Congress should at least adopt a more sensible approach to H-1B visas.


++++++++++++++++++++++++++++++++++++++++++++++++++ +

http://www.informationweek.com/news/sho ... =200900554

Microsoft Looks To Dodge Visa Limits With Canadian Software Center

The company says the new center will allow it to "recruit and retain highly
skilled people affected by immigration issues in the U.S." and station them
near its Washington headquarters.


By Paul McDougall, InformationWeek
July 5, 2007

Among the more vocal advocates for the defunct immigration reform bill was
software maker Microsoft. The company, led by chairman Bill Gates, has long
argued that the U.S. needs to raise caps on the number of visas it grants
each year to foreign high-tech workers.

The immigration bill would have doubled the number of so-called H-1B visas,
but it died in the Senate last week. Now, Microsoft appears to be taking a
different tack.

The company on Thursday said it would open a new software development
center in Canada this fall and stock it with "highly skilled people
affected by immigration issues in the U.S." Microsoft said it plans to open
the center in the vicinity of Vancouver, B.C. -- about a two-hour drive
from its Redmond, Wash., headquarters.

Only a handful of other, major Microsoft software development facilities --
in Ireland, Denmark, and Israel -- are located outside the U.S. Microsoft
maintains an office in Toronto primarily to oversee Canadian sales and
marketing efforts.

Microsoft did not disclose how much it expects to invest in the Vancouver
site. A company spokesman said the facility will initially house 200
workers, "with room to grow." The spokesman said the Vancouver workers
would likely develop software for the full range of Microsoft's products.

Microsoft in a statement said the Vancouver center would attract workers
"from all parts of the world."

"The Vancouver area is a global gateway with a diverse population, is close
to Microsoft's corporate offices in Redmond, and allows the company to
recruit and retain highly skilled people affected by immigration issues in
the U.S.," Microsoft said.

Virtually all major U.S. tech firms have been pushing for a relaxation of
limits on the number of foreign high-tech workers allowed into the country,
arguing that the U.S. faces a shortage of such individuals. Conversely,
worker groups such as the Programmers Guild claim that no such shortage
exists and say tech vendors simply want to import cheap labor.

Microsoft's spokesman said the timing of Thursday's announcement is not
directly related to last week's demise in the Senate of the Comprehensive
Immigration Reform Act, which would have roughly doubled the current 65,000
H-1B visa cap. "It's not a direct response, but we're being upfront about
the fact that immigration issues factored into the decision," said the
spokesman.

With a software center in Vancouver, Microsoft could bring programmers from
India and other low-cost countries to North America and place them within a
two-hour drive of Redmond without having to obtain H-1B visas for them,
assuming the workers could obtain Canadian employment authorization. It
would also offer a place for Microsoft to station foreign workers already
in the U.S. whose visas are close to expiration.

Microsoft's spokesman said the Vancouver center would be staffed with "a
mix" of Canadian-born workers and workers from other countries.

In March, Gates told the Senate that he would like to see the H-1B visa cap
eventually increased to 300,000. But with no cap raise imminent, Microsoft
is looking north. The big question: will other U.S. tech giants follow
suit?

++++++++++++++++++++++++++++++++++++++++++++++++++ +

http://news.com.com/Microsoft+sings+O+C ... lenges/210
0-1014_3-6195049.html


Microsoft sings 'O Canada' amid immigration challenges
Company plans to open a software development center later this year in
Vancouver, partly because of immigration issue.
By Ina Fried and Anne Broache
Staff Writer, CNET News.com

Published: July 5, 2007, 1:33 PM PDT
TalkBackE-mailPrint del.icio.us Digg this

Amid challenges getting enough foreign programmers admitted into the U.S.,
Microsoft plans this fall to open a development center in Canada.

The new software development center will open somewhere in the Vancouver,
British Columbia, area and will be "home to software developers from around
the world," Microsoft said in a statement on Thursday.

"The Vancouver area is a global gateway with a diverse population, is close
to Microsoft's corporate offices in Redmond, and allows the company to
recruit and retain highly skilled people affected by immigration issues in
the U.S.," Microsoft said.

The announcement of Microsoft's Canadian plans follows the failure of an
immigration bill that would have expanded the number of foreign high-tech
workers that could have come to the country each year under so-called H1-B
visas.

High-tech companies have been pushing hard to get Congress to increase the
number of visas they are allotted. In separate Capitol Hill appearances,
Microsoft Chairman Bill Gates made a strong plea for unlimited H-1B visas,
while a Google executive credited the company's success to foreigners and
called for expanded ability to hire them.

But so far, a broader feud has killed two attempts by the U.S. Senate to
overhaul the immigration system, including a bump in the H-1B quota from a
base level of 60,000 to at least 115,000. Silicon Valley wasn't pleased
with all of the bill, but it was also counting on passage of amendments
that would provide greater assurances that green cards for permanent
residency come through and create new exemptions for foreigners with
advanced degrees.

Now companies are left to hope that their congressional allies will pass
standalone bills, severed from the larger immigration debate, to accomplish
those tasks. Although a number of senators have indicated support for the
tech industry's goals, others have taken an arguably more measured
approach, proposing bills aimed at curbing H-1B abuse while upping the
quota.

Microsoft spokesman Lou Gellos said that while the immigration issue was a
factor, the company would be opening the center in Vancouver even if it
were not for the immigration challenges. That said, Vancouver is
particularly attractive since it is a short drive from Redmond, Wash., but
not bound by U.S. immigration policies.

"It does help us address that challenge we have in the United States of
hiring very qualified people, many of whom are graduating from schools in
the U.S., but who cannot acquire the necessary documentation to work in the
U.S.," Gellos said.

Microsoft plans to start with a couple hundred workers, but is looking for
a spot "with room to grow," Gellos said. "We haven't finalized the actual
facility or the site yet," he said. "Once we get an indication of where we
can do the center, that will help us to clarify the numbers."

The software maker currently has just over 900 workers in Canada, most of
whom are based in Toronto, where Microsoft has its local subsidiary as well
as sales, marketing and some development staff. There is also a sales
office in Vancouver.

Now on News.com
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Extra: 12 IT skills that employers can't say no to
Microsoft's move is hardly its first venture offshore. While the bulk of
its workers are in the greater Seattle area, Microsoft has expanded its
development efforts in recent years, adding efforts in Denmark, Israel,
India, China and the United Kingdom, among other locales. Microsoft
recently announced plans to expand operations in Bellevue, Wash., near its
Redmond campus, and in Fargo, N.D. The company also has development efforts
in North Carolina and Silicon Valley.

Microsoft Canada President Phil Sorgen said his unit had long pushed Canada
as a great place for the software maker to do development work.

"We have burgeoning high-tech and software industries and a globally envied
quality of life, and our cities represent exactly the kind of environment
that leading information workers want to live in," he said in a statement.
"This center will help Microsoft remain globally competitive while
providing strong economic benefits to British Columbia and Canada."


++++++++++++++++++++++++++++++++++++++++++++++++++ +

http://in.today.reuters.com/news/NewsAr ... s&storyID=
2007-07-06T024747Z_01_NOOTR_RTRMDNC_0_India-283414-1.xml

Microsoft expands in Canada amid U.S. visa crunch
Fri Jul 6, 2007 2:48 AM IST


By Jim Finkle and Allan Dowd

BOSTON/VANCOUVER, British Columbia (Reuters) - Microsoft Corp. said on
Thursday it will open a software development center in Vancouver, giving it
a place to employ skilled workers snagged by U.S. immigration quotas.

It may signal the start of a new hiring trend, with other U.S. high-tech
firms following in Microsoft's footsteps to Canada, where lawyers say it is
easier for foreign nationals to obtain work credentials.

U.S. businesses want Congress to lift quotas on the number of visas the
government issues to skilled professionals such as the software engineers
that Microsoft employs. But as recently as last week lawmakers rejected
legislation that would have addressed their concerns. Canada doesn't impose
quotas on the number of visas it issues each year.

Microsoft said it plans to open the Vancouver facility by the end of the
year. It will initially have about 200 workers, and employ about 900 within
a couple years.

Businesses, particularly technology firms, say they need to recruit foreign
nationals, many of whom have received their graduate degrees in the United
States, to compensate for a shortage of qualified programmers, engineers
and scientists.

Evan Green, a Toronto immigration attorney who helps businesses obtain
visas for employees, said that other U.S. companies could follow
Microsoft's lead.

"Lots of companies are looking at (expanding in Canada) because of their
frustration with getting U.S. visas," Green said.

But supporters of the U.S. cap say it prevents firms from using temporary
foreign workers to displace higher paid American employees.

Microsoft said in a statement that the Vancouver center will "allow the
company to continue to recruit and retain highly skilled people affected by
the immigration issues in the United States."

But company spokesman Lou Gellos said Microsoft's frustration with the U.S.
government's visa policy wasn't the only reason for the expansion in
Canada.

It is part of a larger program to diversify software development outside of
Microsoft headquarters in Redmond, Washington, Gellos said.

The company has operations in North Carolina, Ireland, Denmark and Israel,
and has already announced plans for sites in Boston and Bellevue,
Washington.

"We would be opening this center in Vancouver even if this visa situation
didn't exist," Gellos said.

Still, U.S. interest in placing workers in Canada has risen since the
beginning of April, when Washington announced there would be a severe visa
shortage this year.

The United States grants about 85,000 H-1B visas annually to workers with
skills in specialized fields. A record 150,000, requests, or nearly double
the annual quota, were filed on just the first day applications were
accepted for this year's allotment.

"Microsoft and other companies have been saying for a long time, 'If you
make it so difficult for U.S. companies to bring in talented foreign
national that they need, companies are going to fill those positions
abroad,'" said Ted Ruthizer, who runs the business immigration practice for
the U.S. law firm Kramer Levin Naftalis and Frankel.

"This is just the fulfillment of this promise," Ruthizer said.

Green said Vancouver, Toronto and Montreal are poised to get the most jobs
as a result of the U.S. visa restrictions.

Vancouver, Canada's third-largest city, is only about three hours' drive
from Microsoft's headquarters, and is already a popular destination for
immigrants.

Efforts to ease restrictions on the U.S. work visa system were dealt a blow
last week when the Senate killed President George W. Bush's planned
overhaul of the country's immigration policy.

The bill's supporters say Congress is unlikely to revisit the issue until
after the November 2008 election.


++++++++++++++++++++++++++++++++++++++++++++++++++ +

http://www.infoworld.com/article/07/07/ ... office-res
ponds-to-immigration-woes_1.html

Microsoft Vancouver responds to immigration woes
The company will open an office in Vancouver in order to retain foreign
workers without being subject to H-1B restrictions



By Nancy Gohring, IDG News Service

July 05, 2007


Microsoft will open a software development office in Vancouver, Canada,
later this year, in part as a way to retain talented workers who can't stay
in the U.S. because of immigration laws.



Software developers from around the world will staff the center, which will
allow Microsoft to keep skilled workers who are affected by U.S.
immigration issues, the company said in a statement Thursday.

Microsoft, along with other high-tech companies, has been a vocal supporter
of legislation that would increase the number of foreign workers allowed to
stay in the U.S. Proposed amendments to the current foreign worker
regulations were part of a larger controversial immigration bill that
stalled in the U.S. Congress last week.

Without new regulations, companies across the country are competing for
65,000 H-1B visas issued each year.

"This is especially a problem for Microsoft because it's so big and doing
so much hiring," said Susannah Malarkey, executive director of the
Washington Technology Alliance, an association of companies promoting
education and an entrepreneurial environment in the state. "If you can't
use visas to bring people in, you have to take the jobs to where the people
are," she noted.

Companies like Microsoft can "either create a worksite in the country of
origin of these people or lose out on them altogether," she said.

In addition to its Redmond headquarters, Microsoft already has development
centers in Ireland, Denmark, Israel, and North Carolina. The Vancouver
location is in part attractive because of its proximity to Redmond,
Microsoft said.

Microsoft did not reveal the Vancouver facility's size or precise location.


++++++++++++++++++++++++++++++++++++++++++++++++++ +

http://www.ctv.ca/servlet/ArticleNews/s ... ration_job
s_070707/20070707?hub=CTVNewsAt11

U.S. immigration woes push jobs to Canada

Microsoft Chairman Bill Gates delivers a keynote speech at the Consumer
Electronics Show in Las Vegas in late January. (AP / Jae C. Hong)

CTV.ca News Staff

Updated: Sat. Jul. 7 2007 8:13 PM ET

The United States' struggles with developing an immigration policy are
providing job opportunities in this country.

Earlier this week, Microsoft announced the opening of a software
development centre in Vancouver after losing a fight to ease restrictions
on the admission of foreign workers to the United States.

"Unfortunately, our immigration policies are driving away the world's best
and brightest, precisely when we need them most," Microsoft chairman Bill
Gates said in March.

U.S. companies are desperate to hire more computer engineers from India and
China.

To work in the U.S., those candidates would need a so-called H-1B visa.
However, the U.S. will only issue 85,000 such visas this year, while
companies applied for 150,000.

U.S. senators defeated an immigration bill last week, one supported by U.S.
President George W. Bush, that would have eased the limit.

"A lot of us worked hard to see if we could find common ground. It didn't
work," Bush said.

Canada has no such limit, if qualified Canadians can't be found.

In announcing the Canadian operation, which would be located a three-hour
drive north of Microsoft's Redmond, Wa. headquarters, Microsoft said it was
an effort to "recruit and retain highly skilled people affected by
immigration issues in the U.S.

Some accuse the company of using Vancouver as blackmail to get more U.S.
visas for lower-paid foreigners, although Microsoft has said it wants to
diversify software development outside of Redmond.

"It's clear that the H-1B program has been corrupted by both outsourcing
firms as well as cheap labour," said Ron Hira of the Rochester Institute of
Technology.

Toronto immigration lawyer Evan Green thinks the situation will continue to
benefit Canada.

"Business is going to talk with its feet and its moving out of the U.S.
because they just can't deal with it anymore," he told CTV News. "That's
why Canada is such an attractive option."

Microsoft plans to start with 200 new workers and increase that to 900,
although that could be scaled back if the U.S. allows more workers to enter
on visas.

Most Washington observers think Congress is unlikely to revisit the
immigration issue until after the November 2008 U.S. elections.

With a report from CTV's Roger Smith


++++++++++++++++++++++++++++++++++++++++++++++++++ +

http://www.axcessnews.com/index.php/art ... w/id/11550

Thursday, 12 July 2007
Microsoft uses jobs in Canada to push immigration reform at home



By Dave Porter

(AXcess News) Reno - Microsoft Corporation (Nasdaq: MSFT) said Thursday
that it was planning on opening a software development center in British
Columbia, Canada. Microsoft also said the Vancouver office will help the
company "recruit and retain highly skilled people affected by immigration
issues in the U.S." About 200 employees will be hired initially, Microsoft
said.

With U.S. immigration reform still up in the air, companies like Microsoft
are beginning to look to Canada as a location for expansion due to the
unsure outcome of domestic immigration law. But the response is welcome
news to Canada, whose own immigration rules are no where near as
restrictive as those in the United States.

Microsoft's Canadian location will be one of only a handful development
centers outside the company's headquarters in Redmond, Wash., the software
company said Thursday. It previously announced plans to build sites in
Boston and Bellevue, Wash., but with a new development center being planned
in Vancouver, just how many software developers will be added to Boston or
Bellevue is unknown.

"Microsoft is a global company, and our greatest asset is smart, talented,
highly skilled people," said S. Somasegar, corporate vice president of the
Developer Division at Microsoft, in a statement Thursday.

Microsoft first entered the Canadian market in 1985, establishing Microsoft
Canada Co in Mississauga, Ontario. Microsoft Canada now has eight regional
offices throughout Canada as well as a software development center in
Toronto.

Microsoft announced its plans to open the software development center in
Vancouver just one week after a failed immigration bill was turned back by
lawmakers which would have relaxed limits on the number of foreign
technology workers allowed into the U.S.

Critics argue that Microsoft doesn't take advantage of skilled domestic
workers but instead has called for the federal cap on H-1B visas be lifted.

The H-1B visa program allows skilled foreign guest workers to enter the
country for up to six years to fill spot labor shortages in high skilled
areas. Under current law, the program allows for 65,000 new H-1B visa guest
workers a year, with some exemptions that can raise that number to 120,000.
The program is highly controversial and is one of the biggest divides
between labor and management in the technology sector. Labor groups argue
that expanding the program creates a labor market where too many workers
are competing for too few jobs which will have the effect of depressing
salaries for professionals in the field.

In March, Microsoft founder Bill Gates told lawmakers that the country is
facing an "acute crisis" in its shortage of engineering professionals and
those professionals with the right skills will be guaranteed a good paying
job.

One Senator asked Gates about what is a good number above 65,000 that the
Senate should consider. "300,000 would be a fantastic improvement," was his
reply. Gates also said that the average pay is $100,000, but according to
a Seattle-based technology labor union, the average pay at Microsoft in
2006 was $85.500. That union says Gates is only using this move to Canada
as a way of pressuring lawmakers to increase the limits on H-1B visa
applications.

Marcus Courtney, president of the Washington Alliance of Technology
Workers, a Seattle-based labor union, was quoted in a Seattle-Times story
as saying, "They [Microsoft] want to try to use this announcement to
bolster their specious arguments about why they need to increase the H-1B
visa cap."

But in Canada, there are no limits on the number of skilled foreign workers
who can come into the country and becoming a resident is much more relaxed
than in the United States, partly because Canada had faced labor shortages
for years.

Sam Sullivan, Vancouver's Mayor, was obviously pleased with Microsoft's
announcement saying, "We have a very responsive immigration system here in
Canada that gives us a distinct advantage."

Microsoft currently employs about 900 people in Canada and that figure
could double over the next several years.


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http://www.computerworld.com/action/art ... Basic&arti
cleId=9026820&intsrc=news_ts_head

Software development, eh? Canada seeks foreign tech workers
Patrick Thibodeau
July 11, 2007 (Computerworld) O Canada, indeed. No H-1B visa cap. An
immigration system that favors tech workers. An exchange rate that puts the
Canadian dollar almost at parity with its U.S. counterpart. And now an
endorsement from Microsoft Corp. as a place to develop software.

For Colin Hansen, minister of economic development in British Columbia,
Microsoft's decision last week to open a software development center in
Vancouver was proof that Canada's strategy to grow its economy is working.
And it's a strategy that is very dependent on foreign workers.

Hansen said the economy in British Columbia is growing by as much as 4.5% a
year, with technology being the fastest-growing sector. The province's
total workforce is now at about 2.3 million people, and Hansen predicts
that over the next 12 years, there will be approximately 1 million job
vacancies in British Columbia -- half the result of retirements, and the
other half due to the creation of new jobs.

But over that same 12-year period, the province's secondary schools are
expected to graduate a total of about 650,000 students. "On the very face
of it, we will be short 350,000 workers, which will have to come through
immigration," Hansen said.

The Canadian government has specific programs for quickly bringing
high-tech workers with certain skills into the country, a process that can
take two to eight weeks, said Evan Green, an immigration attorney and
partner at Toronto-based law firm Green & Spiegel.

The government "recognizes that these people don't exist" within Canada,
Green said. He added that if an employer is seeking a worker who has a
specific set of skills, education and work experience and will be paid a
salary on par with what Canadians earn, a foreigner can successfully get a
work permit. Unlike the annual cap on the number of H-1B visas issued in
the U.S., there is no numerical limit on foreign workers entering Canada,
according to Green.

Microsoft, which is been a vocal critic of the H-1B program's restrictions,
announced on July 5 that it plans to open the development center in
Vancouver -- a mere 150 miles from the company's Seattle-area headquarters.
The software vendor said it decided to set up the Vancouver facility, which
is due to open in the fall, partly to help it "recruit and retain highly
skilled people affected by immigration issues in the U.S."

It was a stick-in-the-eye announcement to opponents of legislative
proposals to increase the H-1B cap, and it came as Congress prepares for
the next round of that debate following the recent failure in the Senate of
a broad immigration-reform bill that would have raised the visa cap.

John O'Grady, an economic and statistical analysis consultant in Toronto,
said he thinks Canada is becoming attractive to companies such as Microsoft
for more reasons than its immigration policies alone. "The pendulum is just
beginning to swing in our favor," he said.

One thing that's helping Canada retain jobs and create new ones is the fact
that the Canadian dollar now is trading at about 96 cents to the U.S.
dollar -- much higher than in years past.

"When the Canadian dollar was low, frankly, the U.S. was this giant vacuum
cleaner" taking technology jobs out of Canada, O'Grady said. With the two
currencies at near parity, "that flow has stopped," he said. Meanwhile,
wages for high-tech workers can be as much as 20% lower than what U.S.
workers are paid.

Canadians also hope that the country's quality of life adds appeal. Taxes
may be higher that they are in the U.S., but Canada offers national health
insurance, a good university system and much lower crime levels. For
instance, there were 35 homicides last year in Toronto, which has a
population of about 2.5 million. In Chicago, with about 2.9 million people,
there were 452 homicides.

In addition, Canada has become far more receptive to immigration than the
U.S. is, according to O'Grady. In 2006, nearly 1.3 million foreigners
became permanent residents of the U.S. But Canada -- with a total
population that is only about one-tenth the number of U.S. residents -- has
been accepting about 250,000 new permanent residents annually, O'Grady
said.

In the technology sector, such immigration is needed to fill new jobs. Paul
Swinwood, president of the Information and Communications Technology
Council, an Ottawa-based industry group, estimates that there are about
620,000 high-tech workers in Canada. The number of available jobs is
expected to increase by about 100,000 over the next several years, Swinwood
said. But Canadian universities graduate only about 15,000 students with
tech skills annually, short of what is required.

Swinwood said that employees who are brought in for temporary work can
usually get permanent residency. "When you have a job here in Canada,
that's a pretty fair indication to the immigration department that you are
of value to the country," he said. "[Canada] has been basically built by
immigration. We're a country that looks at immigration as part of our
natural birthright and the supply of the growth of the country."

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http://computerworld.com.sg/ShowPage.as ... 5&pubid=3&
tab=Home&issueid=114

10 Jul 2007

Microsoft takes a big step to near-shoring in Canada

Ephraim Schwartz
InfoWorld

Updated: 10 Jul 2007
When Microsoft made what appeared to be a minor announcement last week that
it would expand its Canadian operations with the creation of the Microsoft
Canada Development Centre for software development based in the greater
Vancouver, British Columbia area, it went mostly unnoticed.

One of the only exceptions was a story on InfoWorld, Microsoft Canada
Responds to Immigration Woes, which recognized something new was afoot.

What no one in the lower 48 states realized at the time was how significant
this move north might be and how the Canadian immigration policy makes it
all possible.

Nevertheless, Canadian Katarina Onuschak, a licensed immigration consultant
and owner of T&CS Canada, a consultancy for Canadian immigration, says she
immediately recognized the significance of the Centre when she read the
news.

"It will be a beginning of new era," said Onuschak.

There are two pieces to the puzzle that, when brought together, may indeed
represent a new era for Canada's high tech industry and for U.S. companies
who prefer near-shoring as opposed to offshoring.

Canada's far more liberal immigration policy for temporary high tech
workers combined with Microsoft's stated intentions of opening the software
development center to house developers "from around the world" makes it
clear why Onuschak responded as she did.

This makes it possible for Microsoft and others to have their cake and eat
it too.

Near-shoring gives companies better time zone management and allows
companies to hire programmers based on whatever parameters they choose,
which may be skills or pay scale, while not having to face the limitations
of green card and H-1B regulations.

Of course it will also kick start a mostly slow-growing software
development industry in Canada.

As the Microsoft announcement plainly stated, "The Vancouver area is a
global gateway with a diverse population, is close to Microsoft's corporate
offices in Redmond, and allows the company to recruit and retain highly
skilled people affected by immigration issues in the U.S."

Many companies may follow Microsoft's lead say the experts.

The liberal Canadian policy comes from a project targeted specifically at
information technology workers, who are considered a special category by
Canada's immigration agency.

The special category created by the Canadian government for information
technology workers and the six categories under which workers must qualify
was actually created back in 1997 as a pilot project to make sure Canada
had enough programmers to deal with Y2K.

As interpreted by the National Labor Market [Canada's equivalent to the
U.S. Department of Labor], any software developers falling into the six
major developer categories do not have to go to Service Canada, Canada's
Immigration and Naturalization agency, to apply for a work permit. Workers
can go straight to a Canadian visa office to apply. This speeds up the visa
process.

The ruling states that "under this process, no confirmation letter from
Human Resources and Skills Development Canada (HRSDC) is necessary for
specific jobs for which finding a foreign worker will not have a negative
impact on Canadian or permanent-resident job seekers and workers."

The six categories of software developers include the following:

Senior Animation Effects Editor, Embedded Systems Software Designer, MIS
Software Designer, Multimedia Software Developer, Software Developer --
Services, Software Products Developer, and Telecommunications Software
Designer.

The policy from Citizenship and Immigration Canada goes on to state, "This
means that if you are coming to Canada to work in one of the jobs listed
... you do not need a letter from HRSDC, and your work permit application
may be processed more quickly."

There is little doubt that the Microsoft Development Centre will be home to
software developers from around the world," as Microsoft says in its press
release.

Even critics who believe current U.S. immigration policy for high tech
workers is too liberal agree on what this Centre will represent.

"Make no mistake about it. That programming group Microsoft will set up in
Vancouver won't be staffed with many Canadians ... you'll find that the
programmers in that group will be mainly people on work visas, not Canadian
citizens or permanent residents," said Norm Matloff, a professor of
computer science at University of California at Davis.

In the meantime, immigration lawyers on both sides of the border say that
the leveraging of liberal Canadian immigration law by Microsoft has the
potential to jump start a major move north for software development.

Greg Siskind, a partner at Siskind Susser Bland and an immigration attorney
here in the States says that he's been warning lots of people who agree
with CNN's Lou Dobbs when he rails against outsourcing at the same time
that he complains about the H-1B visa program that they can't have it both
ways.

"I would say I am surprised it is taking this long. Companies have few
choices. They can either make do without or move operations or steal
workers from other companies," said Siskind

Sergio Karas, an immigration attorney based in Canada, also believes
Microsoft's move to Canada is in reaction to U.S. immigration policy.

"This move by Microsoft is H-1B driven. There is no cap in Canada.
Depending on the country of origin, we usually prepare an application, and
in three weeks, a person can be working here," said Karas.

However, Karas believes the pilot program needs updating to better reflect
current needs for software development -- Karas wants to see revisions in
the six original software development categories -- as well as revisions in
pay scales.

"The pay scales required have not been revised for some time."

Even at lower pay rates, however, Microsoft and others may very well be
able to attract skilled workers to software development centers like
Microsoft's. The fact is the U.S. and Canada are still both highly prized
working environments whose standard of living and pay scales, even when low
by national standards, are typically higher than what a worker can earn in
his home country.

Karas says it is still too early to tell if the Microsoft move will create
a wave of similar centers. Siskind says he is surprised it took so long to
happen. And Onuschak says, "If that's Bill Gates intention, it would be
great if it happens."

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