GS 2: GovernanceGS 2: International RelationsGS 3: EconomyPrelimsGS 2: Effect of Policies and Politics of Developed and Developing Countries on India's Interests

US Suspends Indian IT Majors From Green Card Programme, Pg1

US suspends major Indian IT firms like Tata, Infosys, Wipro from PERM green card program, citing alleged fraud and impact on American jobs.

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Key Highlights:

  • The US government suspended several major Indian IT firms, including Cognizant, Infosys, Tata, Wipro, and HCL, from the Permanent Labor Certification Program (PERM).
  • The suspension was announced by US Secretary of Labor Keith Sonderling, citing alleged fraud and the displacement of American workers.
  • Microsoft and Adobe were also suspended from the program.
  • The move impacts Indian professionals seeking permanent residency in the US through these companies.
US PERM Access.jpg

US PERM Access.jpg

Detailed Insights:

  • The PERM program is a crucial system used by US employers to sponsor foreign workers for permanent residency, with many Indian IT companies relying on it.
  • The US administration under Donald Trump intensified scrutiny on foreign worker programs like H-1B and PERM, emphasizing a "hire American" policy.
  • The suspension means affected employees cannot make fresh PERM filings, delaying their ability to secure a priority date for an employment-based Green Card.
  • This is particularly impactful for Indian workers who already face significant backlogs due to country-specific limits on Green Cards.
  • Inability to initiate the PERM process can also affect H-1B visa holders nearing their six-year limit, as PERM filing can allow for extensions.
  • The US authorities alleged that these companies requested permanent residency for nearly a million foreign workers since 2009, leading to hundreds of thousands of jobs "taken from American workers."

Key Concepts Involved:

  • Permanent Labor Certification Program (PERM): A process administered by the US Department of Labor requiring employers to prove no qualified US workers are available before hiring foreign workers for permanent roles.
  • H-1B Visa: A non-immigrant visa allowing US employers to temporarily employ foreign professionals in specialty occupations.
  • Green Card: Officially a Permanent Resident Card, it grants foreign nationals permanent residency in the United States.
  • Priority Date: The date a PERM application is accepted by the Department of Labor, determining an applicant's place in the queue for an employment-based Green Card.
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