Puertas Abierdas o Cerradas Delaware Valley Relocation Council

¿Puertas Abierdas o Cerradas? Delaware Valley Relocation Council May 5, 2010

Your Presenters William (Pat) Patterson Human Resources Lead – US Global Careers Program Accenture Nancy Sharp Ziegler Director, Client Services - Global Immigration Fragomen, Del Rey, Bernsen & Loewy Lynn Shotwell Executive Director American Council on International Personnel

Overview of Presentation n n Global Labor and Mobility Trends The Closing Door to the United States The Swinging Doors in the U. K. , India, Australia and Mexico Strategizing to Get Through the Revolving Doors

World Economic Forum The talent shock is coming. It will arrive in years, not decades, regardless of the current economic crisis. It is now time for all involved stakeholders to ally forces and prepare for the era of extreme labour scarcity, significant talent mobility and a truly global workforce. “Stimulating Economies Through Fostering Talent Mobility, ” 23 March 2010

Workforce 2020 – Shortage and Surplus (in millions) US China Japan Russia Germany UK France Spain Italy Australia -17 -10 -9 -6 -3 -3 -3 -1 Source: Brookfield Global Relocation Trends 2010 India Pakistan Bangladesh Mexico Indonesia Philippines Egypt Vietnam Brazil Iran Turkey Iraq 47 19 7 5 5 5 4 4 3 3 2 2

Last Week in Migration… Finland India New Zealand Switzerland United Kingdom United States

The Closing Door in the U. S. n n Quick refresher - Visa Types and options Changing immigration environment in the US • Recent developments • Potential legislation n n RFE’s, Employer control and Site Visits Increasing Prevailing Wages Risk management Impact on internal processes and planning Shifting business focus

US Visa Types & Their Intentions n H 1 B – Specialty industry skills not available in the US • • • n USCIS Managed with DOL input as part of a labor strategy Transferrable to new employer Prevailing wage requirement L’s - basic intent is to foster foreign investment in the US. To put people in positions in the US, from overseas that drive the growth of business. • L 1 A – Managers, managing people or an essential function. • L 1 B - Specialized company or client technical, business function knowledge.

Issues Impacting the Debate n Shift of Power in Congress • Senate 59 Democrats, 41 Republicans • House 253 Democrats, 178 Republicans n Secretary of Labor Hilda Solis • New Senate Immigration Subcommittee Chairman Schumer • Economic factors will continue to drive scrutiny of foreign worker programs

Recent Developments n Senator Grassley’s letter to Microsoft (1/22/09) • What is the breakdown in the jobs that are being eliminated? What kind of jobs are they? How many employees in each area will be cut? • Are any of these jobs being cut held by H-1 B or other work visa program employees? If so, how many? • How many of the jobs being eliminated are filled by Americans? Of those positions, is Microsoft retaining similar ones filled by foreign guest workers? If so, how many? • How many H-1 B or other work visa program workers will Microsoft be retaining when the planned layoff is completed?

Recent Developments H-1 B TARP Amendment in the Economic Stimulus Package (2/2009) • Requires companies who receive TARP funding or emergency loans from the Federal Reserve to comply with the H-1 B dependent employer restrictions in order to hire an H-1 B visa holder over the next two years. • The employer will not displace any similarly employed U. S. worker within 90 days before or after applying for H-1 B status, or an extension of status for any H-1 B worker; • The employer will not place any H-1 B worker employed pursuant to the LCA at the worksite of another employer unless the employer first makes a bona fide inquiry as to whether the other employer has displaced or intends to displace a similarly employed U. S. worker within 90 days before or after the placement of the H-1 B worker; and • The employer, before applying for H-1 B status for any alien worker pursuant to an H-1 B 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 to those offered to the H-1 B worker. Also, the employer will offer the job to any U. S. worker who applies and is equally or better qualified than the H-1 B worker. This attestation does not apply if the H-1 B worker is a "priority worker" within the meaning of Section 203(b)(1)(A), (B), or (C) of the INA.

Possible Changes in Upcoming Legislation n n New Mandatory Employer Verification System Establish a Commission on Employment Based Visas Green Cards available to students graduating from US institutions in Science, Technology, Engineering or Mathematics who have a job offer from a US Employer New H-1 B Restrictions: L-1 Restrictions including the possibility of a prevailing wage and worksite restrictions

Employer Control n Recent USCIS Memo on Control • Jan 2010 memo enforcing working relationships between employers and H 1 visa holders.

Increasing H 1 B Prevailing Wages n Complex process often managed and controlled by immigration attorneys • Leverages their industry experience • Insures controls and compliance n 2 Step • Determining the Role • Determining the Wage Level

Increasing H 1 B Prevailing Wages n Determining the Role • Example – “Computer” Roles at Online. ONETCenter. org • Limited list of roles suitable for visas n Wage Levels determined generally by • • • n n n Yrs Experience requirements Education Required Special Skills or Knowledge required Influenced by resume contents Example - Data Source underlying FLCDatacenter. com Somewhat subjective process resulting in business risk which must be managed closely

In Public View List of top 15 H 1 B 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. Source – Computerworld. com

In Public View n n Avg Prevailing Wage H 1 B Visa Users Public H 1 B Case Data Simple average of H 1 B PW Data lacks detail for a true comparison of wage determination practices.

Cross Border Transfers n n Shifting business focus Shift in direction • Past 10 yrs, Low cost to high cost • Next 10 yrs, High cost to low cost n n Business focus now on getting leaders and skills into emerging markets Good news for the relocation industry

India n Quota System: • Employment Visas restricted to 1% of the employee population in India, up to a max of 20 • Applications for Employment Visas above quota will be referred to the Ministry of Labor for determination n n Business Necessity letter is recommended Processing time increased by 4 -6 weeks • Discretionary authority of consulates causing inconsistent results

India n Anticipated Changes (Subject to change pending issuance of actual rules): • Cap on Employment Visas for Highly Skilled positions eliminated • Minimum Salary requirement: USD 25, 000 • Initial visa will be issued for 3 years for US nationals and 2 years for other nationals • Changes to FRRO processing also scheduled but no details provided

UK n Points Based System (PBS) • • Initiated in November 2009 Sponsoring entities must be registered Adjudication is now at Consulate level UK company responsible for meeting compliance requirements n Documentation, tracking, notice requirements, etc.

Australia n Effective Sept. 14 2009 major changed implemented to improve protections on Australian labor market • • • Amended criteria to be a sponsor Redefined sponsorship obligations Expanded government authority to monitor and investigate for non-compliance • Increased penalties for employers who breach sponsorship obligations

Mexico n 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 preapproved 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 Future n Develop a dialogue with key stake holders: • What are the key destinations? • What activities will be performed in the destination country? • When will employees need to be in country? n Planning: • Provide a detailed description of the process • Manage expectations on processes, timing, and requirements n Monitor progress and results • Expect the unexpected