H1-B & TN VISAS AN AUTOMOTIVE PERSPECTIVE
During the 2016 presidential campaign, many issues were identified and discussed, none more intensely than immigration and trade agreements. Candidate Donald Trump repeatedly said he was going to “tear up” the North American Free Trade Agreement (NAFTA) and in general, make it more difficult for non-United States Citizens to work in the US. President Trump recently signed an executive order calling for the review of the H1-B visa program and continues to say he is going to keep his NAFTA pledge.
What does this mean for the automotive industry? The implications are many and varied with most in the realm of speculation; however the impact on staffing is already being felt.
The deep recession of several years ago hurt every business and industry, but none worse than automotive. The industry was hit early and hard, but it also was in the fore front of economic recovery. Improving car sales required people to support this growth, however in the intervening period, the work force changed. Many people who had been laid off, had either retired or left the industry. Additionally, vehicles were adding more and more electronic and computer content, requiring engineers with this type of background which were in short supply.
The industry has essentially experienced full employment for the last several years with the demand for Mechanical, Electrical, Computer and Information Technology Engineers at an all-time high. There are not enough qualified United States citizens to fill the employment needs of the automotive industry, however there are people with the right skills from other countries who can help fill this void. The ability to access this talent pool using the H1-B visa program created in the Immigration Act of 1990 and the TN Visa provided for by NAFTA has been critical to the industry’s current and future growth.
Every company I know would prefer to hire qualified candidates who do not need immigration support for the simple reason it is complicated, costly and time consuming. However, companies are willing to use this option in order to fill critical and strategic needs. In all other ways, the candidate with immigration requirements once hired, is treated no differently than those without, which specifically includes compensation.
President Trump’s recent Executive Order to review the H1-B visa program has essentially stopped most if not all companies from considering candidates who need an H1-B visa. This has also significantly reduced the number of companies who will even consider hiring someone with a current H1-B visa who will either need Green Card sponsorship or the assumption of sponsorship of an existing application. The administration’s pledge to renegotiate NAFTA is having a similar impact on hiring, though not as severe. The TN Visa was created by NAFTA and could be eliminated by its renegotiation. The uncertainty surrounding both has eliminated a valuable pool of talent and positions are remaining unfilled as a result.
The automotive industry is a primary economic driver of the United States’ economy. Being able to hire highly qualified professionals for key positions on a timely basis is critical to its on-going success.
RBK Consulting, Inc. is an executive search firm focusing the automotive industry. Steve Wassman, the president has worked in the industry since 1995.