US bars Microsoft, Tata, Wipro and 6 others from PERM programme over worker replacement
GS2Polity · Governance · IR· India's bilateral relations· Prelims + Mains·
Labor protectionism and migration policies: a GS2 case study on India-US trade relations.
Why in news
The Donald Trump administration barred eight IT firms, including Microsoft and Tata, from the PERM programme, alleging the companies use the process to replace American workers.
Background
The US government barred eight firms: Microsoft, Tata, Wipro, Infosys, Adobe, Cognizant, HCL, and Capgemini. The move targets the Permanent Labour Certification (PERM) programme, which is a critical pathway for obtaining green cards.
Facts for Prelims
- BodyPERM: Permanent Labour Certification programme used by the US for employment-based residency.
- FactEight firms barred: Microsoft, Tata, Wipro, Infosys, Adobe, Cognizant, HCL, and Capgemini.
- PlaceThe action was taken by the United States government.
Prelims practice question
What is the primary purpose of the PERM programme in the United States?
- (a)Employment-based residency
- (b)Educational scholarships
- (c)Trade tariff exemptions
- (d)Agricultural subsidies
Show answer
Answer: (a) Employment-based residency — The PERM programme is a critical pathway for obtaining green cards for employment-based residency.
For Mains
Q. Discuss the implications of restrictive labor certification policies on the global IT services trade and the mobility of skilled professionals between the US and India.
Dimensions to cover in your answer
- Labor market friction: Conflict between protecting domestic employment and maintaining a globalized talent pool
- Trade-off analysis: Impact on Indian IT service exports vs. US labor protectionist policies
- Regulatory hurdle: Complexity of PERM compliance for multinational corporations and their workforce
Keywords: Labor Certification · Protectionism · Skilled Migration · Trade Relations · Employment Policy
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