¿ Puertas Abierdas o Cerradas ?

1. ¿Puertas Abierdas o Cerradas? Delaware Valley Relocation Council May 5, 2010

2. Your Presenters William (Pat) Patterson Human Resources Lead – US Global Careers Program Accenture Nancy Sharp Ziegler Director, Client Services - Global Immigration Fragomen, Del Rey, Bernsen & Loewy Lynn Shotwell Executive Director American Council on International Personnel

3. Overview of Presentation • Global Labor and Mobility Trends • The Closing Door to the United States • The Swinging Doors in the U.K., India, Australia and Mexico • Strategizing to Get Through the Revolving Doors

4. World Economic Forum The talent shock is coming. It will arrive in years, not decades, regardless of the current economic crisis. It is now time for all involved stakeholders to ally forces and prepare for the era of extreme labour scarcity, significant talent mobility and a truly global workforce. “Stimulating Economies Through Fostering Talent Mobility,” 23 March 2010

5. US -17 China -10 Japan -9 Russia -6 Germany -3 UK -3 France -3 Spain -3 Italy -3 Australia -1 Source: Brookfield Global Relocation Trends 2010 India 47 Pakistan 19 Bangladesh 7 Mexico 5 Indonesia 5 Philippines 5 Egypt 4 Vietnam 4 Brazil 3 Iran 3 Turkey 2 Iraq 2 Workforce 2020 – Shortage and Surplus(in millions)

6. Last Week in Migration… Finland India New Zealand Switzerland United Kingdom United States

7. The Closing Door in the U.S. Quick refresher - Visa Types and options Changing immigration environment in the US Recent developments Potential legislation RFE’s, Employer control and Site Visits Increasing Prevailing Wages Risk management Impact on internal processes and planning Shifting business focus

8. US Visa Types & Their Intentions H1B – Specialty industry skills not available in the US USCIS Managed with DOL input as part of a labor strategy Transferrable to new employer Prevailing wage requirement L’s - basic intent is to foster foreign investment in the US. To put people in positions in the US, from overseas that drive the growth of business. L1A – Managers, managing people or an essential function. L1B - Specialized company or client technical, business function knowledge.

9. Issues Impacting the Debate Shift of Power in Congress Senate 59 Democrats, 41 Republicans House 253 Democrats, 178 Republicans Secretary of Labor Hilda Solis • New Senate Immigration Subcommittee Chairman Schumer • Economic factors will continue to drive scrutiny of foreign worker programs

10. Recent Developments Senator Grassley’s letter to Microsoft (1/22/09) What is the breakdown in the jobs that are being eliminated? What kind of jobs are they? How many employees in each area will be cut? Are any of these jobs being cut held by H-1B or other work visa program employees? If so, how many? How many of the jobs being eliminated are filled by Americans? Of those positions, is Microsoft retaining similar ones filled by foreign guest workers? If so, how many? How many H-1B or other work visa program workers will Microsoft be retaining when the planned layoff is completed?

11. Recent Developments H-1B TARP Amendment in the Economic Stimulus Package (2/2009) Requires companies who receive TARP funding or emergency loans from the Federal Reserve to comply with the H-1B dependent employer restrictions in order to hire an H-1B visa holder over the next two years. The employer will not displace any similarly employed U.S. worker within 90 days before or after applying for H-1B status, or an extension of status for any H-1B worker; The employer will not place any H-1B worker employed pursuant to the LCA at the worksite of another employer unless the employer first makes a bona fide inquiry as to whether the other employer has displaced or intends to displace a similarly employed U.S. worker within 90 days before or after the placement of the H-1B worker; and The employer, before applying for H-1B status for any alien worker pursuant to an H-1B LCA, took good faith steps to recruit U.S. workers for the job for which the alien worker is sought, at wages at least equal to those offered to the H-1B worker. Also, the employer will offer the job to any U.S. worker who applies and is equally or better qualified than the H-1B worker. This attestation does not apply if the H-1B worker is a "priority worker" within the meaning of Section 203(b)(1)(A), (B), or (C) of the INA.

12. Possible Changes in Upcoming Legislation New Mandatory Employer Verification System Establish a Commission on Employment Based Visas Green Cards available to students graduating from US institutions in Science, Technology, Engineering or Mathematics who have a job offer from a US Employer New H-1B Restrictions: L-1 Restrictions including the possibility of a prevailing wage and worksite restrictions

13. Employer Control • Recent USCIS Memo on Control • Jan 2010 memo enforcing working relationships between employers and H1 visa holders.

14. Increasing H1B Prevailing Wages • Complex process often managed and controlled by immigration attorneys • Leverages their industry experience • Insures controls and compliance • 2 Step • Determining the Role • Determining the Wage Level

15. Increasing H1B Prevailing Wages • Determining the Role • Example – “Computer” Roles at Online.ONETCenter.org • Limited list of roles suitable for visas • Wage Levels determined generally by • Yrs Experience requirements • Education Required • Special Skills or Knowledge required • Influenced by resume contents • Example - Data Source underlying FLCDatacenter.com • Somewhat subjective process resulting in business risk which must be managed closely

16. In Public View • List of top 15 H1B Visa Users 2008 • Periodically publicly circulated data • Can drive public sentiment and queries • Critical to maintain a high level of control over processes and manage risk. Source – Computerworld.com

17. In Public View Avg Prevailing Wage H1B Visa Users Public H1B Case Data Simple average of H1B PW Data lacks detail for a true comparison of wage determination practices.

18. Cross Border Transfers • Shifting business focus • Shift in direction • Past 10 yrs, Low cost to high cost • Next 10 yrs, High cost to low cost • Business focus now on getting leaders and skills into emerging markets • Good news for the relocation industry

19. India • Quota System: • Employment Visas restricted to 1% of the employee population in India, up to a max of 20 • Applications for Employment Visas above quota will be referred to the Ministry of Labor for determination • Business Necessity letter is recommended • Processing time increased by 4-6 weeks • Discretionary authority of consulates causing inconsistent results

20. India • Anticipated Changes (Subject to change pending issuance of actual rules): • Cap on Employment Visas for Highly Skilled positions eliminated • Minimum Salary requirement: USD 25,000 • Initial visa will be issued for 3 years for US nationals and 2 years for other nationals • Changes to FRRO processing also scheduled but no details provided

21. UK • Points Based System (PBS) • Initiated in November 2009 • Sponsoring entities must be registered • Adjudication is now at Consulate level • UK company responsible for meeting compliance requirements • Documentation, tracking, notice requirements, etc.

22. Australia • Effective Sept. 14 2009 major changed implemented to improve protections on Australian labor market • Amended criteria to be a sponsor • Redefined sponsorship obligations • Expanded government authority to monitor and investigate for non-compliance • Increased penalties for employers who breach sponsorship obligations

23. Mexico • New Immigration Procedures Manual effective May 1, 2010 • Designed to simplify applications procedures and reduce processing times • Nationals eligible to enter Mexico without a visa obtain an FMM allowing stays of up to 180 days (business visitors, professionals, and technical workers); may be permitted to perform some work activities • Visa nationals obtain FMM at consulate, obtain pre-approved work permit after arrival in Mexico, and completing registration procedures • Holders of temporary work authorization in the US with valid US visa do not need to get a visa in advance of travel to Mexico • APEC Business Traveler Card (ABTC) allows holder to perform business activities in Mexico for up to 59 days • New application form to be issued

24. Preparing for the Future • Develop a dialogue with key stake holders: • What are the key destinations? • What activities will be performed in the destination country? • When will employees need to be in country? • Planning: • Provide a detailed description of the process • Manage expectations on processes, timing, and requirements • Monitor progress and results • Expect the unexpected