US suspends Infosys, TCS, Wipro and five other firms from Permanent Labor Certification programme
The US Labor Department has suspended eight companies from the programme that lets firms sponsor foreign workers for green cards, and will accept no new applications from them.
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The United States has taken action that is a major blow to the Indian IT sector. The US Department of Labor has suspended eight companies, including Infosys, Tata, Wipro, HCL, Cognizant and Capgemini, along with Microsoft and Adobe, from the Permanent Labor Certification programme. The programme helps companies clear the way for permanent residence in the US, or a green card, for eligible foreign employees.
US Labor Secretary Keith Sonderling announced the move on Thursday. He said new applications linked to these companies would not be accepted. Sonderling has accused the companies of affecting the jobs of American workers.
Figures on the companies have also emerged. Since 2009, together they have sought nearly 3 million foreign workers. Of these, more than 230,000 H-1B visas were approved, and more than 100,000 permanent labour certifications were issued.
US Vice President JD Vance has also backed the decision. According to him, under the Permanent Labor Certification process a company must first consider workers already available in the US. Only then must it show that it needs to hire a foreign worker permanently. The administration alleges that the process is being misused.
Meanwhile, the US administration has also begun investigating some universities over the J-1 visa programme for foreign students. Vance said nine universities, including Harvard, Yale and Stanford, are being investigated.
What this means for Indian employees is now a matter of debate. The decision could have the most direct impact on the green card process of Indian IT workers in the US. However, the suspension of PERM does not mean that existing H-1B visas will be cancelled immediately.
PERM is an important step in the process of obtaining permanent residence through a job. The restrictions on this step could therefore mainly affect future green card applications. They could also affect employee retention and workforce planning in the US.
