Bay Area Council Wins $2.9 Million Grant from Department of Labor to Reduce Demand for H-1B Visas; Program Provides Local Workers with Advanced IT Training.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Feb. 2, 2004

Today, the Bay Area Council announced that it has received a nearly $3 million grant from the Department of Labor for a three-year effort to reduce the demand employers have for H-1B visa foreign workers. The program will use the grant money to train and improve the skill levels of employers' current U.S. permanent resident workforce. For the effort, the Bay Area Council formed a consortium with the Bay Area Technology Education Collaborative (BayTEC) and employer partners representative of information technology, manufacturing, and service industries including IBM, Global Visa Solutions, Pinnacle Technical Resources, Robert Half International and others.

The consortium will provide 759 incumbent workers of IBM, Global Visa Solutions, Pinnacle Technical Resources, Robert Half International and others with advanced-level skills training in the information technology (IT) field. The Bay Area Council consortium expects to help participating workers at the employer partners:

-- Reach advanced technological skill levels commensurate with

H-1B occupations;

-- Advance to positions with new or increased job

responsibilities;

-- Retain employment in a highly competitive environment;

-- Gain salary increases;

-- Obtain recognized certifications in advanced skill areas as

appropriate; and

-- Access high-level training consistent with recognized

competencies and skills standards.

The Bay Area Council and BayTEC will use a mix of traditional classroom training and e-learning. Training will be conducted at locations across the nation, including California, Arizona, New Jersey, Michigan, Florida and Texas.

"It's no secret that employment levels in the Bay Area and beyond have suffered in recent years, especially in technology related jobs," said Raul Garcia, the acting-president and CEO of the Bay Area Council. "Even so, employers' demand for non-resident H-1B visa workers with advanced-level IT skills remains relatively high. Indeed, 25,658 openings were certified for H-1B visas in the nine-county Oakland-San Francisco-San Jose Bay Area in fiscal year 2001-2002. Of these, 80 percent were for IT occupations. This effort will help U.S. workers upgrade their skills and help employers find more U.S. permanent residents to fulfill their employment needs."

"Employer needs will decide how we deliver services to these companies," said Mike Wilson, President and CEO of BayTEC. "We contacted Bay Area Council members to engage them in strategic discussions concerning both their current use of H-1B visas and the most efficient way to help domestic workers fill H-1B level IT positions. Although each of the participating companies currently invests in their workers, they are challenged to individually fund the scale of training needed to address their skills shortages. This program will insure that these highly trained U.S. workers are well positioned to compete internationally and act as a hedge against future lay-offs."

Garcia of the Bay Area Council added, "The consortium partners are very engaged in this program and are backing that engagement with dollars. Collectively, we are prepared to match the $2,999,185 in federal grant dollars with private in-kind contributions that total $3,243,819 -- a level that is 108% of the federal funds awarded."

H-1B is a type of visa issued by the U.S. Immigration and Naturalization Service to foreign workers permitting them to fill a job in the United States that an employer claims it has been unable to fill with a U.S. citizen. The H-1B worker can hold a job in the United States for three years with the possibility of one three-year extension. At the end of the six years, the worker can apply for permanent residence in the United States.

"This grant to the Bay Area Council illustrates the kind of workforce development partnerships we encourage to address the challenges facing 21st century businesses," said Emily Stover DeRocco, assistant secretary of labor for employment and training. "When businesses identify the skills their workforce needs, educators and our public workforce system can be key players in preparing workers for the highly skilled jobs in high-demand fields."

The companies participating in this proposal make extensive use of H-1B visas to meet critical skills shortages -- collectively accounting for more than 3,509 certified H-1B visa requests during the 2001-02 year. Several studies conducted within the information technology industry provide evidence that upgrading technical skills result in longer-term employee retention.

About the Bay Area Council

Founded in 1945, the Bay Area Council (www.bayareacouncil.org) develops and drives regional public policy initiatives and researches critical infrastructure issues. Led by CEOs, the Bay Area Council presents a strong, united voice for more than 275 major employers throughout the Bay Area region in promoting economic prosperity and quality of life.