Vance says H-1B 'indentured servants' remark was wrong, aimed at companies not workers

US Vice-President J.D. Vance has finally clarified the controversy that followed his description of H-1B visa holders as "indentured servants". Speaking at a CBS town hall, Vance accepted that his words were wrong or incomplete, and explained why he had called H-1B holders "Foreign Indentured Servants".

Vance made clear that his criticism was not directed at hard-working Indian or other foreign employees. According to him, the target was the exploitative policies of American companies and a visa system riddled with flaws.

The matter began when Vance, criticising the H-1B visa programme at an event, called foreign technology professionals "indentured servants". India's Ministry of External Affairs (MEA) expressed displeasure in very strong terms over the remark. India had said Indian IT professionals contribute to the American economy through their ability and skill, and that calling them "indentured servants" was highly objectionable because the term carries a very painful historical and colonial background. After India's firm stand, considerable political pressure had built up on the US administration, and especially on the Vice-President.

From the CBS town hall stage, Vance said that if anyone had been misled by his remarks, or had lost an opportunity because of them, he took full responsibility. Vance said, "My intention was never to insult or belittle H-1B visa holders. My real criticism is of the American companies that misuse this visa system. These companies often fire American employees and hire foreign workers at lower salaries. Not only that, these foreign employees work under pressure, because they know that if they protest or disagree with the employer, they will lose their jobs and have to return to their country."

Vance went on to explain that the current H-1B system has become one in which the worker must depend entirely on a single company. This gives companies the opportunity to put excessive pressure on employees. According to him, the situation is in a way unchecked, and that is why he had compared the arrangement to a system of "hostage-taking" or "indentured labour". He accepted, however, that using the term directly for employees sent out the wrong message.

Adding an emotional and family note, Vance also mentioned his South Indian in-laws and his wife of Indian origin. He said he respects the Indian community and its contribution.

Indian technology professionals account for more than 70% of H-1B visa holders in the US. Indian companies such as TCS, Infosys and Wipro, along with big American technology firms such as Microsoft, Google, Amazon and Apple, give thousands of Indian engineers jobs in the US on H-1B visas every year. Vance's clarification has brought some relief to Indian IT professionals and the diaspora in the US. Even so, H-1B visa rules in the US are expected to be tightened further in the coming period, which could directly affect Indian professionals and the technology sector.