TCS replaces American techies with Indians on H-1B visa: Report
What's the story
Indian tech giant, Tata Consultancy Services (TCS), is facing allegations of unlawful discrimination from a group of American professionals.
The Wall Street Journal reports that these individuals claim TCS abruptly terminated their employment, replacing them with Indian workers holding H-1B visas.
The H-1B visa program allows US firms to hire foreign workers with specialized technical skills for a period typically ranging from three to six years.
Complaints
American professionals lodge complaints against TCS
The Equal Employment Opportunity Commission (EEOC) has received complaints from at least 22 American workers.
These individuals, aged between 40 and 60 and from diverse ethnic backgrounds, assert that TCS unlawfully discriminated against them based on race and age.
They argue that while layoffs often impact more senior employees, TCS violated the law by targeting them due to their age and race.
Denial
TCS denies allegations of discrimination
In response to these claims, a TCS spokesperson stated to WSJ, "Allegations that TCS engages in unlawful discrimination are meritless and misleading.
"TCS has a strong track record of being an equal opportunity employer in the US, embodying the highest levels of integrity and values in our operations."
Professionals alleging discrimination hold advanced degrees, including MBAs, and reside across various US states.
They claim that TCS showed favoritism toward Indian workers in the US already holding H-1B visas.
Scrutiny
H-1B visa system under scrutiny amid allegations
The H-1B visa system, which grants 65,000 visas annually and an additional 20,000 for applicants with advanced degrees from US institutions, is under scrutiny.
Critics suggest this system allows companies to take advantage of inexpensive overseas labor, potentially displacing American workers and driving down wages.
Tech firms heavily depend on the H-1B visa program to attract global talent through a lottery system managed by the US Citizenship and Immigration Services.
IT giant's presence
TCS employs 45,000 people across US
TCS is a leading recruiter in the US IT services sector, having hired over 21,000 individuals in the past three years.
The company employs 45,000 people across the US, aiding customers on their transformation journeys.
Notably, in 2018, a California court cleared TCS of charges alleging bias toward Indian employees over US residents in an employment discrimination case.
The verdict came as a significant development for the company, which has consistently maintained its commitment to equal opportunity employment.