[Congressional Record Volume 144, Number 129 (Thursday, September 24, 1998)]
[Senate]
[Pages S10877-S10879]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        AMERICAN COMPETITIVENESS

  Mr. ABRAHAM. Mr. President, I rise to announce an agreement between 
the White House and supporters of the American Competitiveness Act 
which I hope and expect will insure passage and implementation of 
legislation to safeguard the competitive edge of American business.
  Mr. President, the American Competitiveness Act was designed to 
address a growing shortage of skilled workers for certain high 
technology positions important to American business.
  This shortage threatens all sectors of our economy. Economist Larry 
Kudlow reports that high technology companies account for about one 
third of real economic growth. Overall, electronic commerce is expected 
to grow to $80 billion by the year 2000.
  But high technology firms are running into serious worker shortages.
  A study conducted by Virginia Tech estimates that right now we have 
more than 340,000 unfilled positions for highly skilled information 
technology workers.
  And, while Department of Labor figures project our economy will 
produce more than 1.3 million information technology jobs over the next 
10 years, our universities will not produce the graduates needed to 
fill those positions.
  In fact, it is estimated that the shortfall will be very, very 
substantial. If they are to keep their major operations in America, 
firms must find workers with the skills needed to fill important 
positions in their companies. This requires that we do more as a nation 
to encourage our young people to choose high-technology fields for 
study and for their careers. In the long term this is the only way we 
can stay competitive and protect American jobs.
  As I said, the shortfalls clearly demonstrate the need for us to grow 
more talent here at home. In fact, you need

[[Page S10878]]

only look at the high-tech companies that are feeling this shortage. 
When I visit manufacturing companies in my State, they indicate that 
they are having increasing trouble finding sufficient information 
technology workers to meet their needs. This is because so many of our 
industries are now, in one form or another, dependent on technology 
jobs. For the long term, the solution clearly must rest here at home, 
with American workers being trained to fill these jobs, with college 
students being given incentives to study in the areas where the next 
century's job creation will take place.
  However, over the short term, until we are producing more qualified 
high technology graduates we must do more to fill the gap between high 
technology needs and high technology skills.
  This has required that we allow companies to hire a limited number of 
highly skilled workers from overseas to fill essential roles. To do 
this they must go through a fairly onerous process to get one of the 
65,000 ``H-1B'' temporary worker visas allotted by the INS.
  Mr. President, in the history of this program, that 65,000 limit was 
never breached until last year when we hit the 65,000 annual limit at 
the end of August. The limit was hit this year in May. It is projected 
that if we do not change the limit, it will be hit next year as early 
as February. What that means, in short, as so many of my colleagues 
know, is that since May of this year not one American company, 
regardless of the emergency circumstances and the needs, has been able 
to bring in a highly skilled foreign worker to fill a job slot. As a 
consequence of that, we have lost opportunities and economic growth is 
paying a price.
  This is dangerous for our economy. And that is why my American 
Competitiveness Act, in addition to providing significant incentives 
for Americans to enter the high technology sector, will add a limited 
number of additional H-1B visas so companies can find the workers they 
need to keep facilities and jobs in the United States, and keep our 
high-tech industry competitive in the global marketplace.
  Let me be specific, Mr. President. In the absence of an increase in 
these numbers, if we can't find the people to fill the jobs here in 
this country, what is going to happen is American companies are going 
to shift operations overseas, and that means not only the loss of the 
particular job which an H-1B worker might fill, but it means the loss 
of other jobs in the division of the company where the H-1B position is 
vacant.
  Let me just quickly outline the compromise agreement reached by the 
White House with our office.
  First, the bill provides increased access to skilled personnel for 
American companies and universities. It will do this by increasing the 
number of H-1B temporary worker visas from 65,000 now to 115,000 in 
fiscal year 1999, 115,000 in fiscal year 2000, and 107,500 in fiscal 
year 2001. The visa limit will then return to 65,000 in the year 2002.
  In addition, Mr. President, the bill provides new funding for college 
scholarships and job training for American workers.
  10,000 scholarships per year will be provided to low income students 
in math, engineering and computer science through the National Science 
Foundation, with training provided through the Jobs Partnership Act.
  This program will be funded by a $500 fee per visa petition and a 
$500 fee for visa renewals, which combined will raise an estimated $75 
million each year.
  Further, Mr. President, this legislation provides three types of 
layoff protection for American workers.
  Let me add that throughout the process of working on this 
legislation, we have been very mindful of the concerns people have that 
somehow these H-1B temporary workers might end up filling a position 
where an American worker could have filled the slot. Our goal is to 
make sure that does not happen, and we have built protections into this 
agreement which we and the administration feel will accomplish that 
objective.
  First, any company with 15% or more of its workforce in the United 
States on H-1B visas must attest that it will not lay off an American 
employee in the same job 90 days or less before or after the filing of 
a petition for an H-1B professional.
  Second, an H-1B dependent company acting as a contractor must attest 
that it also will not place an H-1B professional in another company to 
fill the same job held by a laid off American 90 days before or after 
the date of placement.
  Third, any employer, whether H-1B dependent or not, will face severe 
penalties for committing a willful violation of H-1B rules, underpaying 
an individual on an H-1B visa and replacing an American worker. That 
company will be debarred for 3 years from all employment immigration 
programs and fined $35,000 for each violation. Penalties for other 
violations also will be substantially increased.
  In addition, Mr. President, H-1B dependent companies must attest that 
they recruit according to industry-wide standards and that the H-1B-
holding individual was as, or more, qualified than any American job 
applicant. An American not hired can file a complaint with an 
arbitration panel, which can fine employers violating this provision.
  Penalties and enforcement will be increased from those under current 
law.
  The Department of Labor will be given authority to investigate 
suspected willful and serious violations of H-1B visas if it receives 
specific and credible evidence of such violations and receives the 
personal sign-off of the Secretary of Labor.
  The purpose of this authority is to respond to situations of 
potentially egregious wrongdoing where a complaint had not been filed. 
This new authority sunsets with the increase in the visas, which will 
give Congress the opportunity for close scrutiny of whether or not DOL 
acts responsibly.
  Finally, Mr. President, this legislation eliminates any financial 
incentive for companies to hire under-compensated foreign temporary 
workers by permanently reforming the prevailing wage attestation that 
is required prior to the hiring of anyone under the H-1B program.
  Under this legislation, employers must offer benefits and the 
opportunity to earn bonuses to H-1B employees if those benefits and 
bonuses are available to that company's similarly-employed American 
workers.
  In short, it will not be possible to bring in a foreign worker under 
the H-1B program to fill a job where that person is not being paid the 
prevailing wage inclusive of potential benefits and other forms of 
compensation.
  In addition, this legislation provides sanctions for violations of 
new whistleblower protections and contains provisions against 
unconscionable contracts and against so-called benching.
  I am convinced, Mr. President, that this legislation is crucial to 
maintaining American economic competitiveness and to protect American 
jobs.
  It will increase the skills and employability of American workers 
while making certain that no qualified American worker is replaced by 
any immigrant worker.
  It gives our high technology companies the tools they need to compete 
in world markets without sacrificing in any way the economic 
opportunities and well-being of American workers. Indeed, by keeping 
America competitive it will increase economic growth and the ability of 
all Americans to achieve and maintain economic security and 
prosperity. And as we move this bill through the final process--first, 
of course, in the House and then hopefully here soon--I will be urging 
my colleagues to support the legislation.

  In closing, Mr. President, let me just summarize as follows: We have 
a serious crisis confronting our high-tech industries. We need to have 
more skilled workers on a longer-term basis. We need the scholarship 
and job training programs contained in this legislation to achieve the 
technology worker goals that we have set, but until those programs are 
adequate to meet the demand, we need to fill the gaps that exist today.
  This legislation will increase on a temporary basis the number of 
temporary workers who can come to this country which will help us meet 
that challenge. In short, it will allow us to keep the economy going 
and at the same time prepare us for the future. Most importantly, it 
will protect American workers so that this program

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cannot be exploited in any fashion that would cause somebody to lose a 
job or lose the chance to be hired for a job because a foreign worker 
was being selected for that assignment.
  So there are safeguards for workers. There are the long-range 
education and job training components and there is the temporary 
increase in the number of workers who can come into this country to 
meet the immediate crisis. It is a balanced approach. It is one that, I 
think, deserves our support.
  In closing, let me say thanks to those in the administration with 
whom we have been working. But also I would like to thank a number of 
our colleagues who have worked with me throughout this process, 
including Senator Hatch, chairman of the Judiciary Committee; Senator 
Gorton, who has had a special interest in this for a variety of reasons 
relating to his interest in high-tech companies; the majority leader, 
who has been very supportive; Senator Phil Gramm, who worked with me on 
a number of the negotiations; Senator Lieberman, who played a very 
active role throughout the process, both here in the Senate and in the 
recent deliberations; Senator Bob Graham, who was an early and active 
supporter of this effort; and especially to the chairman of the 
Commerce Committee who worked with me as we moved this legislation 
forward, both here in the Senate and in the intervening timeframes. 
Senator McCain, whose commitment to this type of an approach of making 
sure on a variety of fronts that America is ready to enter the digital 
age and the digital economy, has given the kind of leadership I think 
we all admire. I thank him especially for his efforts.
  Mr. President, I yield the floor.
  Mr. McCAIN addressed the Chair.
  The PRESIDING OFFICER. The Senator from Arizona is recognized.
  Mr. McCAIN. Mr. President, let me say that what the Senator from 
Michigan, Senator Abraham, has described today is a signal event. I 
recently visited Silicon Valley, which politicians seem to be doing 
more and more of nowadays. I was told that there were two major 
priorities that they felt were critical to the future of their 
industry. One was this, what we know now as the H-1B visa bill, and the 
other is the Internet tax freedom bill.
  Senator Abraham took an issue, which very few believed we could, and 
turned it into reality. He worked with both sides of the aisle, with 
the White House, and with the Silicon Valley folks, as well as labor. I 
believe that he has come up with a remarkable package, a remarkable 
product, which will allow us to maintain the incredible high-tech lead 
we have in the world. Without the ability to have trained, qualified 
and educated people in this industry, obviously we cannot have as 
predictable a future as we would like.
  A part of this bill, Mr. President, will be the National Science 
Foundation Scholarship Program for Science and Math. At the appropriate 
time, I will offer language to name these scholarships the ``Spencer 
Abraham Scholarship Program.''
  Again, I congratulate Senator Abraham, because what he has achieved 
in this time of labeling the Congress as a ``do-nothing Congress,'' 
very frankly, is the best example of working on both sides of the aisle 
and with the administration for the good of the Nation. I hope that 
many of the rest of us, including this Senator, will follow his 
example.
  I also hope we will be able to take up the Internet Tax Freedom Act 
so that we can also get that legislation passed before we leave.
  I note the presence of Senator Dorgan on the floor. I thank him for 
his patience. I yield the floor.
  Mr. DORGAN addressed the Chair.
  The PRESIDING OFFICER. The distinguished Senator from North Dakota is 
recognized.

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