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Disney Making Laid-Off US Tech Workers Train Foreign H1-B Replacements 614

WheezyJoe writes: The NY Times brings us a story on the Disney Corporation laying off U.S. tech workers and replacing them with immigrants visiting the country under H1-B visas. The twist is that the immigrant workers are not your nice local visiting foreign guy from the university who wants to stick around 'cause he likes the people here... they are employees of foreign-based consulting companies in the business of collecting H1-B visas and "import[ing] workers for large contracts to take over entire in-house technology units." The other twist? The U.S. tech workers are required to train their replacements before vacating their jobs, or risk losing severance benefits (excerpts of the Disney's layoff notice are included in the article).
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Disney Making Laid-Off US Tech Workers Train Foreign H1-B Replacements

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  • by amalcolm ( 1838434 ) on Thursday June 04, 2015 @07:16AM (#49837991)
    ...just what you'd expct from Disney
    • by Anonymous Coward on Thursday June 04, 2015 @07:29AM (#49838051)

      ...just what you'd expct from Disney

      Just about ALL of corporate America that can get away with it will do it - defense contractors cannot.

      And the difference in pay goes to CEO bonuses for doing a "great" job. Why you could write a Python script called CEO.py to do their job. The algorithm is just:

      Lower costs by canning people,sending work overseas or hiring H1-bs. Selling off under performing divisions. Concentrating on more profitable businesses.

      Please, we don't need to offshore CEOs; just automate them with scripts.

      • by Opportunist ( 166417 ) on Thursday June 04, 2015 @07:40AM (#49838129)

        As a python script I feel insulted by offering me this kind of useless job! A bash script could do it!

    • by mwvdlee ( 775178 ) on Thursday June 04, 2015 @07:35AM (#49838089) Homepage

      It IS how a lot of fairy tales begin; with evil villains causing unjust and misery.

    • by msauve ( 701917 )
      Disney is evil, there's no news here.
    • by Tx ( 96709 ) on Thursday June 04, 2015 @07:58AM (#49838267) Journal

      I feel for those workers; I had to train my replacement once, when the company I worked for was bought up by an American company, and the UK locations closed down. Fucking soul-destroying.

      • by AmiMoJo ( 196126 ) on Thursday June 04, 2015 @08:59AM (#49838701) Homepage Journal

        I was in the position of being trained by such a person once. I wasn't an immigrant, but the guy had been demanding more and more money over the years and they decided to get someone cheaper in, which turned out to be me. He really wasn't interested in training me at all, and it was a nightmare. I hated it because I wasn't good at my job, because I had no training or knowledge of the company's systems. Lots of jargon and stuff outside my normal field to learn, which would have been fine if it were possible to learn. There wasn't even documentation to refer to.

        I left in six months. It's a shitty thing to do to both the old person and their replacement, and it never ends well.

        • Comment removed based on user account deletion
          • by chihowa ( 366380 )

            Management's job should be to ensure institutional knowledge is well documented.

            That's not flashy, takes resources away from more visible (to the manager's manager) tasks, and may not even pay off until after the manager has moved on to a better gig. Management's job should include a lot of things that management doesn't actually do because the incentives are structured so that there's no point in actually doing those things. (Which, of course, is a result of failures at even higher levels of management and so on...)

      • by rnturn ( 11092 ) on Thursday June 04, 2015 @09:50AM (#49839055)

        I've trained my replacement before. Or I should say I trained my replacements before. My sysadmin job was sliced and diced to be done by multiple "teams". User account management? Separate team. Storage? Separate team. Backups? Separate team. You get the picture. Another admin and I conducted more than one online training session for each of these teams and those were followed up by two (count 'em!) in-person visits by several members of each of the teams. After my end date came around, the outsourcing company hired me on as a contractor (at about the same as I was making but I actually made out pretty well since the contract work was entirely remote and I had zero transporation costs). For the better part of four years I was still doing most of the work that was supposed to have been farmed out to these teams. Everything these teams were supposed to be doing was taking 2-3 times longer as tasks would sit and sit and sit in the queue until some manager got me involved. It was rather pathetic. Cost savings? Where? Well, I guess my previous employer didn't have to pay out my bonus anymore and I wasn't taking paid vacation time.

    • by syn3rg ( 530741 ) on Thursday June 04, 2015 @08:18AM (#49838411) Homepage
      Not just Disney:

      Do any of my fellow IT workers see 200k more IT jobs than domestic workers can fill?

    • by MitchDev ( 2526834 ) on Thursday June 04, 2015 @08:57AM (#49838689)

      They deserve a corporate "Death Penalty" for this, as does any corporation pulling this crap

  • by Anonymous Coward on Thursday June 04, 2015 @07:20AM (#49838011)

    So how many "nerds" and information technology workers are going to reward Disney by buying tickets to see the new Star Wars movie this December? Wouldn't it be funny if their target audience boycotted the movie out of solidarity and it flopped?

    • by gl4ss ( 559668 ) on Thursday June 04, 2015 @07:23AM (#49838019) Homepage Journal

      sure they are.

      if jar jar doesn't keep you away, if abrams doesn't, then nothing will.

      but well. I'm not american so I don't really care.

      the gist is though that isn't this incredibly risky for Disney? the government could cut down on the numbers of h1b's any year and then they would be boned.

      and the existence of companies like this should surely work toward doing limiting of h1b visas or at least who it is applicable to.

      though I suspect the point is that now the entire department IS dependent on h1b visa workers, so they can say that if they don't get them then they're boned.

      • by vux984 ( 928602 ) on Thursday June 04, 2015 @07:30AM (#49838059)

        the gist is though that isn't this incredibly risky for Disney? the government could cut down on the numbers of h1b's any year and then they would be boned.

        Therefore all but ensuring the government won't do it.

        though I suspect the point is that now the entire department IS dependent on h1b visa workers, so they can say that if they don't get them then they're boned.

        Precisely.

        Its 'too big to fail all over again' -- if you change the h1b quota you'll hurt us a lot, and in turn hurt the economy. It doesn't even matter that they deliberately put themselves in this situation just to be able to leverage the harm they would endure as a bargaining chip.

        Governement completely lacks the will to inflict any serious short term pain on large corporations right now.

  • by Crashmarik ( 635988 ) on Thursday June 04, 2015 @07:23AM (#49838023)

    You can toss in So Cal Edison in the same bin
    http://www.computerworld.com/a... [computerworld.com]

    Now unless I misunderstand the law. H1-B is supposed to be for jobs Americans can't do. Tell me how a dept that is and has been doing the work is suddenly unskilled and unable to do the job but is able to train their replacements. Also if these people have the "Skills" why are they being trained by those they displace ?

    • by BVis ( 267028 ) on Thursday June 04, 2015 @07:29AM (#49838055)

      Now unless I misunderstand the law. H1-B is supposed to be for jobs Americans can't do.

      No, it's for jobs that businesses don't want to pay prevailing wages for. Why pay a native worker $100k and listen to them bitch about "work-life balance" and "not being worked to death", when you can pay an H1-B visa holder $65k and not hear a single complaint?

      Tell me how a dept that is and has been doing the work is suddenly unskilled and unable to do the job but is able to train their replacements.

      They're suddenly unskilled because some suit figured out that H1-Bs are a lot cheaper and easier to abuse.

      Also if these people have the "Skills" why are they being trained by those they displace ?

      They're not hired for their technical skills or coding ability. They're hired because they're cheap and easily abused.

    • Re: (Score:2, Interesting)

      by Anonymous Coward

      Somebody need to report the replacements to the authorities.
      H1B is for skilled workers. Since they come for training, and are not skilled, they may be in the US based on fraud.

    • > Now unless I misunderstand the law. H1-B is supposed to be for jobs Americans can't do.

      You misunderstand the law. There is absolutely no requirement that an American cannot do the job. Hiring H1Bs to replace US workers is perfectly legal, and acceptable.

  • So, we all have heard we have a lack of workers with necessary skills...

    Given that US citizens are now training these H1B workers with their job skills, what sort of skills were they lacking in order to justify the "need" for the imported skilled workers?

    • by a_n_d_e_r_s ( 136412 ) on Thursday June 04, 2015 @07:36AM (#49838097) Homepage Journal

      The skill to do a job with 2/3rds the salary and be happy about it.

    • Re: (Score:3, Insightful)

      by Trachman ( 3499895 )

      No, the skills and talents of US workers are fine.

      You are missing the point that H1B workers will get trained and will go back to India so that they could work remotely in many instances.

      The problem is that there is so many taxes, both direct and indirect, that it just makes more sense to assign a function, assuming it can be assigned, to the worker residing in India.

      Back in India, Walt Disney IT technician will be a specialist, will belong to the middle class, and will do fine with 50% of the US pay.

      • by N1AK ( 864906 ) on Thursday June 04, 2015 @07:46AM (#49838173) Homepage

        The problem is that there is so many taxes, both direct and indirect, that it just makes more sense to assign a function, assuming it can be assigned, to the worker residing in India.

        You cant credibly just claim that taxes are the cause of every issue and expect it to be taken at face value. Do you really think that taxes are the only reason why Disney can save huge amounts by outsourcing from the US to India? Sure a combination of taxes, worker rights etc, combined with much lower living costs in India may justify it, but do you really want to slash the services provided by government and allow American firms to disregard worker safety and rights to the same extent as India, in the likely false hope that it will stop firms moving labour abroad where they can.

  • by geekmux ( 1040042 ) on Thursday June 04, 2015 @07:29AM (#49838053)

    Wow. Train your replacements. Bit like making the condemned sharpen the guillotine before they step up.

    Can't say I've heard of a dick move like that since FuckedCompany.com was tracking this sort of thing.

    And to think I was considering visiting many of your parks this year. With friends and family. I'll be certain to inform them all what a magical place you've become.

    Fuck you Very Much Disney. I hope your bottom line feels this shit. Have a Nice Day.

    • by Opportunist ( 166417 ) on Thursday June 04, 2015 @07:48AM (#49838185)

      Very obviously whoever made this smart decision never had to do a hostile takeover of an internal project. You get all the information you ask for, not one word more. You don't know what questions to ask? Wow, sucks to be you.

      I really doubt it will be any different in this case. They will give them all the information they have to relay to ensure they cannot be considered hostile, while leaving out everything that "they assumed that the new guy already had to know". It's just common sense, ya know? Everyone knows that. Ask around in the office, everyone will tell you that this is something you really don't have to spell out simply because it's OBVIOUS. It's not to your new hire? Gee, maybe you should have hired someone who knows his trade? Ok, I'll make sure the new tech will learn everything from now on and explain it all to him. Ok. Look, new guy. This here we call a hammer...

    • by cdrudge ( 68377 ) on Thursday June 04, 2015 @07:57AM (#49838259) Homepage

      Wow. Train your replacements. Bit like making the condemned sharpen the guillotine before they step up.

      If you are going to get your head cut off regardless, you might as well make it as sharp as possible...

  • Nasty loophole (Score:4, Interesting)

    by Dog-Cow ( 21281 ) on Thursday June 04, 2015 @07:30AM (#49838065)

    The contracting company can claim H1Bs are required because the current employees are not actually looking for jobs. And of course, quitting en mass wouldn't help because the H1Bs have already been approved.

    The employees should trash Disney's systems. Completely and totally cripple them. Using time bombs that trigger after they are certain to be gone. Blame can always be laid at the incompetent H1Bs.

  • by 140Mandak262Jamuna ( 970587 ) on Thursday June 04, 2015 @07:34AM (#49838083) Journal

    “The program has created a highly lucrative business model of bringing in cheaper H-1B workers to substitute for Americans,” said Ronil Hira, a professor of public policy at Howard University who studies visa programs and has testified before Congress about H-1B visas.

    By law the H1B should not be cheaper than hiring Americans. They need to demonstrate they are paying prevailing wages and that they have made good faith effort to recruit Americans. But the companies game the system thoroughly. They lobby the congress to create strict dead lines like, "if there is no reply from immigration side for 90 days the application is deemed to be approved" and they the congress cuts the budget and staff of the immig department. They pad up the qualification requirements on one hand, "degree in math/engineering, x years of experience in y technology blah blah blah", then on the payment side they name the positions that have low pay. Naturally they would not find qualified Americans willing to work at that pay.

    The way around these issues should be to create some sort of bounty program. Let the government crowdsource it. Make these H1B applications and the documentation supplied by these companies public. Any one should be able to challenge and point out the "gaming". There should be some sort of reward for people who catch them cheating. There should be some safe guards against frivolous challenges, and this program could be revenue neutral by making the cheaters pay for this by fines.

    In some fields in some ways H1-B applications are legitimate. People who come to USA, get a degree from accredited US university who work in the field they got their degrees in are not to be confused with these body shopping companies that import people with degrees from diploma mills in India. Indians who came in the early 1990s with degrees from top univs like IITs, IISc, TIFR, AIIMS, RECs and got further degrees in US universities earned the good will and the reputation for Indian engineers. Now all that is being squandered by these cheap body shoppers gaming the system bringing ill-repute to all Indian Americans.

    • by NotDrWho ( 3543773 ) on Thursday June 04, 2015 @07:47AM (#49838181)

      By law the H1B should not be cheaper than hiring Americans.

      Two points:

      1) The law doesn't mean jackshit if it's not enforced

      2) H1-B's aren't hired just for their cheaper salaries. They also come with a number of other perks. For one thing, they are indentured servants, meaning they can't leave your employ no matter how badly you treat them. If they quit or try to go somewhere else, they lose their visa. They also, as a whole, help keep the salaries for American citizen workers held artificially low. After all, no one is going to ask for a raise if they know you can replace them with an H1-B.

      • by Pulzar ( 81031 )

        2) H1-B's aren't hired just for their cheaper salaries. They also come with a number of other perks. For one thing, they are indentured servants, meaning they can't leave your employ no matter how badly you treat them. If they quit or try to go somewhere else, they lose their visa.

        That is not true. H1-B holders are free to switch jobs. They can't just quit and stick around in US, but they most certainly can transfer their visa to another job.

        • That is not true. H1-B holders are free to switch jobs. They can't just quit and stick around in US, but they most certainly can transfer their visa to another job.

          There is no such thing as an H1-B transfer.

          What actually happens is the new employer files a new H1-B petition, they just don't have to worry about the H1-B cap restriction. The filing is required to inde copies of the most recent 3 pay stubs (i.e. do not expect it to work if you have not worked in the U.S. for at least a month and a half), a copy of the most recent for I-797, a copy of all pages of their passport, a copy of their form I-94, a copy of their current visa stamp, a copy of their latest resume

    • by Diss Champ ( 934796 ) on Thursday June 04, 2015 @08:09AM (#49838337)

      A very simple solution, which will of course never be passed:
      Require each company to pay an extra $100k tax/year for each H1B worker on their payroll. This tax not to be offsetable by deductions or credits.

      This means that except for cases where the H1B actually has a special in-demand skill that can't be found otherwise, it will not be wise to hire H1B instead of others.

      Of course, it doesn't fix the problem of simply moving the jobs out of the country.

  • Hedge your bets: keep working/training but look now.

    If you get an offer try to negotiate a start date after your release date to grab the severance... but consider that you need to beat your fellow soon-to-be-unemployed colleagues to the remaining jobs in the area, so the few weeks pay is not really worth it.

    Too bad all the local employers know what is going on and the well is somewhat poisoned.

    • Hedge your bets: keep working/training but look now.

      If you get an offer try to negotiate a start date after your release date to grab the severance... but consider that you need to beat your fellow soon-to-be-unemployed colleagues to the remaining jobs in the area, so the few weeks pay is not really worth it.

      Too bad all the local employers know what is going on and the well is somewhat poisoned.

      If the well is poisoned, then the only logical answer is to not have a handful of employees quit ASAP, but every fucking one of them.

      A strike would perhaps send a ripple back through this entire H1-B bullshit and put and end to the loopholes being gamed.

  • Age discrimination (Score:3, Insightful)

    by AntronArgaiv ( 4043705 ) on Thursday June 04, 2015 @07:40AM (#49838133)
    The 57-year-old project manager and software developer. His boss said he was doing a great job. Now, he's replaced by an H1-B with limited English. Yeah. I can't blame Disney for doing what they need to do to make their bottom line look good, but if this wasn't illegal, I don't know what is. I guess I'm just glad Disney doesn't make software for aircraft or medical equipment, because the quality they're going to get from these H1-B workers is going to be proportional to what they're paying them.
  • by goruka ( 1721094 ) on Thursday June 04, 2015 @07:44AM (#49838157)
    They keep thinking their jobs are lost due to H1Bs, or due to Indians being hired overseas when the company opens a branch there.
    Truth is, that jobs are lost at a much higher level because American management nowadays hires foreign contractors, but this is invisible to blue-collar workers.
    Contractors are the easiest way to outsource, because a cheaper price is offered over a proven track record. It's as simple as that.
    I run a company overseas that gets contract work from American companies, which recently fired 1000 American employees because they would rather outsource the job to companies like mine.

    But even though that is the most common case scenario, you won't see that in the news. If 1000 Americans were fired and replaced by H1Bs instead, then it would be all over the American news sites and everyone would be outraged.
  • by pla ( 258480 ) on Thursday June 04, 2015 @07:45AM (#49838167) Journal
    The U.S. tech workers are required to train their replacements before vacating their jobs, or risk losing severance benefits

    I'll start by saying, I have no shortage of cynicism and this doesn't surprise me in the least. So I know, "legally" doing this and "no one cares" don't mean the same thing.

    But in order to hire H1Bs, I thought a company needs to demonstrate that they have advertised locally for the positions and can't find any sufficiently qualified people to take them. The fact that they have laid off their existing staff (a pool of local people willing to do the work), and the existing staff has sufficient skills to actually train their replacements, seems 100% antithetical to the conditions required for a company to hire H1Bs.

    Any IAL's want to comment on how Mickey can get away with this?
  • by bkmoore ( 1910118 ) on Thursday June 04, 2015 @07:49AM (#49838209)
    If Disney wants to boost profitablity, they should bring in an H1-B replacement for Robert Iger. I'm sure they could find lots of qualified candidates from India or China who have experience managing an organization the size of Disney and who would be willing to do the job for less than 46.5 [wsj.com] million dollars per year. Replacing this one employee would have a larger savings effect than replacing the entire IT staff, while allowing the IT staff to continue innovating and making Disney run smoothly. As a gesture of corporate good will, Disney could allow Mr. Iger to continue working at a theme park as a cast member, preferrably wearing the Goofy costume.
  • by Pulzar ( 81031 ) on Thursday June 04, 2015 @07:50AM (#49838213)

    The author of the article is guessing (*) (and presenting it as a fact) that they are on H1-B visas, since they happen to be unpopular... Most likely, though, these are L1 visas, used by foreign companies with offices in US to do intra-company transfers.

    The L1 visa has no caps and no requirements for prevailing wages, and makes it much easier to bring in foreign workers into US.

    (*) - http://www.computerworld.com/article/2915904/it-outsourcing/fury-rises-at-disney-over-use-of-foreign-workers.html [computerworld.com]

  • by schwit1 ( 797399 ) on Thursday June 04, 2015 @08:06AM (#49838317)
    If they did this as a group upon being notified of the layoff they could have negotiated a better severance package. It may also have gotten the NLRB involved.
  • by ripvlan ( 2609033 ) on Thursday June 04, 2015 @08:12AM (#49838365)

    We could create a GoFundMe for the laid off US workers to make up for lost severance. Then let them walk !!

  • by Muntzsky ( 4001535 ) on Thursday June 04, 2015 @08:18AM (#49838415)
    ...whom I'm friends with, they say that of the 250 notified, only about 50-60 left the company because most were able to stay in the same field/department. The reason for the staff change is for a large system replacement being provided by an Indian software company. The people who left were maintaining very old systems that needed replacement...we're talking green screens here. Now, I'm not saying I agree with the concept of the hard push for increasing H1-B employees in the US, but there may be more to the story than what was presented in the article.
    • It's Wipro, Tata or Infosys coming in and pushing the lower cost of labor hype. Rather than invest in retraining or letting the staff grow into new positions they'll just axe them because it's the MBA way of doing things.

  • by walterbyrd ( 182728 ) on Thursday June 04, 2015 @08:36AM (#49838545)

    As a US tech worker, I am glad to see this getting some attention. But, I am also a little puzzled as to why this is getting so much attention.

    This sort of thing has been going on in IT for decades. In recent years, the trend has accelerated significantly. In 2009 Bill Gates sat before the US congress, and explained that the tech industry was suffering from huge shortages, and desperately needed more foreign guest workers. At the same time, Microsoft was laying off thousands of US workers.

    BTW: US workers are naive to think they can solve this problem by raising public awareness, or by voting. The only way to solve the problem is to organize and fight back. But, I doubt that will happen, especially tech workers.

    • The basic problem is that IT is not wizardry. I think we have more goddam IT than we do welders.

      IT used to be an elite position, but that jewel has lost its luster.

      America is losing tech jobs just as it lost textiles and shoes.

      Time for that workforce to go obsolete and retrain for something else.

  • by walterbyrd ( 182728 ) on Thursday June 04, 2015 @09:00AM (#49838713)

    Forget about "raising public awareness" public only cares about issues that affect them directly.

    Forget about voting the problem away: about 99% of politicians favor more guest workers.

    We need to organize.

    Consider the following situations:

    1)
    Management: train your h1b replacement before we fire you, or you do not get a severance, or a good reference.
    Worker: I guess resistance is futile.

    2)
    Management: train your h1b replacement before we fire you, or you do not get a severance, or a good reference.
    Everybody at the company: you try to pull that bullshit and we all walk out right now.
    Management: okay, never mind.

  • by gestalt_n_pepper ( 991155 ) on Thursday June 04, 2015 @09:37AM (#49838967)

    A subtle mistake in a script. A few well placed words in some documentation that nobody will read for a few months to a few years and POP goes the server security. (*Cough* SONY *Cough, cough*).

    Plausible deniability. It's what's for breakfast!

  • by sexconker ( 1179573 ) on Thursday June 04, 2015 @11:23AM (#49839765)

    All they have to do is strike. They can't be fired while striking, and if there's any hint of punishment for striking they'll get a much bigger payday than their severance package.

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