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Healthcare providers through rural areas (much of the US) do this often. They contract out specialized health professionals because the local economies and regi
by Frost1x 4y ago
Healthcare providers through rural areas (much of the US) do this often. They contract out specialized health professionals because the local economies and regions struggle to attract and retain healthcare professionals and cant produce enough locally either. As a result, many regional healthcare salaries balloon when you normalize cost of living. Healthcare professionals start getting a bigger cut of federal subsidies (Medicare, Medicaid) and risk pools (insurance).
Several bodyshops popped up that specialize in international recruitment, sponsor healthcare workers internationally who expect significantly lower comp, and work out the logistics of getting them licensed, sponsored, and moved where demand exists (note that I say logistics, the person often pays some or all of these fees). They offer a low rate to these international workers (which is high to them) by your typical position advertising gymnastics then rent them out to healthcare providers in set contracts. The worker signs a contract that typically includes a fee for breach of contract. For nurses and physical therapists, I've seen it at $20-$40k which doesn't seem significant until you consider the person likely has nothing of that magnitude in savings because they came from a poorer area.
You then may think, well healthcare workers can make $100+k so with strict savings one could limit their indentured servitude and breach before, then realize they're actually paying closer to $40-60k to their workers, benefiting of economies of scale to manage the logistics (like managing visas) and pocketing the rest of the margins. The workers are often locked into these areas for several years before they're financially stable enough to leave while bodyshops dangle greencard sponsorship over their heads which is a long process in and of itself but is even longer when it's a carrot held for 3-5 years of servitude first.
Once your workers have their greencards they have more leverage in negotiation and typically move on to make truly competitive salaries. Meanwhile, the bodyshops basically pocket high margins, manage a little bit of risk, and just leech off those in desperate situations (hospitals, their patients, and international workers looking to better themselves).
Some may say this is just the cost of admission to immigrate to the US. I think it's more a failure of neoliberal principles. I imagine IT isn't much different. The work visa program is largely used as just a leveraged global labor recruitment position for businesses to exploit. It wasn't designed this way and isn't always used this way, but it is done far far too often.