In a major disappointment for Indian IT professionals, US President Donald Trump on Monday (August 3) signed an executive order banning federal agencies from hiring H1-B visa holders for federal contracts.

Image Courtesy Zee News

In a major disappointment for Indian IT professionals, US President Donald Trump on Monday (August 3) signed an executive order banning federal agencies from hiring H1-B visa holders for federal contracts.

Earlier on June 23, President Trump had passed an order suspending the H-1B visas along with other types of foreign work visas until the end of 2020. The Trump administration had justified the move saying it was done to safeguard the American workers in the time of coornavirus COVID-19 pandemic. The new restrictions came into effect from June 24.

The H1B visa is most sought-after among Indian IT professionals as it allows US companies to hire foreigners for jobs which require theoretical or technical expertise.

Speaking to mediapersons on Monday, Trump said, “Today, I am signing an executive order to ensure that the Federal government lives by a very simple rule: Hire American”.

President Trump asserted that he will not tolerate sacking of American workers in the pursuit of cheap foreign labour.

“As we speak, we’re finalising the H-1B regulation so that no American workers be replaced ever again. H-1B should be used for top highly paid talent to create American jobs, not as inexpensive labour programmes and destroy American job,” said Trump.

It is to be noted that the chair of the Tennessee Valley Authority (TVA) Skip Thompson has been fired by President trump for hiring foreign workers. Trump said that he will also sack other board members of TVA if they continue to hire foreign workers. President Trump took the decision after TVA announced that it would outsource 20% of its technology jobs to companies based in foreign countries. 

Trump also ordered the TVA board to hire a new chief executive officer who “puts the interests of Americans first.” According to Trump, the incumbent CEO Jeff Lyash earns $8 million a year.

“The new CEO must be paid no more than $500,000 a year. We want the TVA to take action on this immediately. … Let this serve as a warning to any federally appointed board: If you betray American workers, you will hear two words: ‘You’re fired,’ Trump said. 

News Credit Zee News