Senator Charles Schumer explains his remark on Indian IT companies and visa fee hike

On August 13, 2010, at the Senate floor, Senator Charles E Schumer, clarified his position on his remarks on Indian IT companies and the visa fee hike to raise funds for the newly introduced “Border Security Bill.”

Without making any direct reference to Indian IT companies Mr. Schumer referred the firms as “body shops.” He also said that his government is not targeting Indian companies. He said, "I also want to make clear that the purpose of this fee is not to target businesses from any particular country. Many news articles have reported that the only companies affected by this fee are companies based in India and that ipso facto the purpose of this legislation is to target Indian IT companies,"

He said that the purpose of this legislation is not to target Indian companies. They are raising fees for companies that use the H-1B visa “to do things that are contrary to the programme’s original intent,..”

Mr. Schumer said that visa fees will be only increased for companies that contain more than 50 workers and those who would continue to employ more than 50 percent of their employees through the H-1B programme.

Had the companies used H-1B visa to innovate new products and technology, then it would not be a problem, but they are using the H-1B visa to hire cheaper workforce at the cost of American workers which goes against the true spirit of the H-1B programme.