NYT: Lawsuits Claim Disney Colluded to Replace U.S. Workers With Immigrants

danlb_2000

Premium Member
This has been discussed quite a bit when it first went down....

Here's the link. Also, a PDF Link to the Complaint from Federal Court

From the New York Times...

Even after Leo Perrero was laid off a year ago from his technology job at Walt Disney World in Orlando, Fla. — and spent his final months there training a temporary immigrant from India to do his work — he still hoped to find a new position in the vast entertainment company.

But Mr. Perrero discovered that despite his high performance ratings, he and most of the other 250 tech workers Disney dismissed would not be rehired for at least a year, and probably never.

Now he and Dena Moore, another American laid off by Disney at that time, have filed class-action lawsuits in federal court in Tampa against Disney and two global consulting companies, HCL and Cognizant, which brought in foreign workers who replaced them. They claim the companies colluded to break the law by using temporary H-1B visas to bring in immigrant workers, knowing that Americans would be displaced from their jobs.

“I don’t have to be angry or cause drama,” said Ms. Moore, 53, who had worked at Disney for 10 years. “But they are just doing things to save a buck, and it’s making Americans poor.”

Ms. Moore had also trained her replacement. After she was laid off, she applied for more than 150 other jobs at Disney. She did not get one.

The lawsuits by Mr. Perrero and Ms. Moore, who each filed a separate but similar class-action complaint on Monday, represent the first time Americans have gone to federal court to sue both outsourcing companies that imported immigrants and the American company that contracted with those businesses, claiming that they collaborated intentionally to supplant Americans with H-1B workers.

A furor over the layoffs in Orlando last January brought to light many other episodes in which American workers, mainly in technology but also in accounting and administration, said they had lost jobs to foreigners on H-1B visas, and had to train replacements as a condition of their severance. The foreign workers, mostly from India, were provided by outsourcing companies, including the two named in the lawsuits, which havedominated the H-1B visa system, packing the application process to win an outsize share of the quota set by Congress of 85,000 visas each year.

The Labor Department opened investigations of the outsourcing companies — the direct employers of the temporary immigrants — at Disney and at Southern California Edison, a utility that laid off hundreds of American workers in 2014. The investigations are continuing. At least 30 former Disney workers also filed complaints with the federal Equal Employment Opportunity Commission, claiming that they faced discrimination as American citizens.

The lawsuits by Mr. Perrero and Ms. Moore are based on the rules for H-1B visas, which were designed by Congress to bring foreign workers with special skills into the country. Employers are required to declare to the Department of Labor that hiring foreigners on the visas “will not adversely affect the working conditions of U.S. workers similarly employed.”

“Was I negatively affected?” Ms. Moore asked. “Yeah, I was. I lost my job.”

Sara Blackwell, a lawyer in Sarasota representing the former Disney employees, said the suits charged that the companies lied under oath when they said that no Americans would lose their jobs.

Disney has vigorously denied any violations, saying it requires its contractors to obey all laws. Disney has said all but 95 of the tech workers laid off in Orlando were rehired to other positions or moved on voluntarily. Last year, it canceled 35 layoffs scheduled in other areas of the company.

HCL and Cognizant have said that they carefully comply with United States laws. Cognizant has said that it employs many thousands of Americans in this country, with H-1B workers only a minority of its labor force.

Responding to the frustration of American workers, Congress in December renewed and increased a fee on outsourcing companies that it had allowed to lapse. Larger companies employing many H-1B workers in the United States will pay an extra fee of $4,000 for each new H-1B visa — up from $2,000 — and another $4,000 to move an H-1B immigrant who is already in the country to a new employer.

Senator Bill Nelson of Florida, a Democrat who has been openly critical of Disney’s layoffs, offered a bill to reduce the H-1B quota by 15,000 visas a year to 70,000. The issue came up in the presidential race, as Senator Ted Cruz of Texas, a Republican candidate, introduced a bill with Senator Jeff Sessions of Alabama, a Republican hard-liner on immigration, to sharply increase the minimum wage for H-1B workers to $110,000 a year, to discourage outsourcing companies from using the workers to lower wages.

The Institute of Electrical and Electronics Engineers, an international association of tech workers, posted an online petition to encourage Americans who were displaced to file complaints with the Justice Department. In a letter to the group in December, Alberto Ruisanchez, a Justice Department lawyer in charge of prosecuting immigration abuses, confirmed that it would be a violation of anti-discrimination laws for an employer, or a contracting firm, to fire workers or hire replacements “because of citizenship or immigration status.”

Mr. Perrero, like many Americans who have lost their jobs, said he was long reluctant to speak out publicly against his former employer. At 42 and with a family to support, he worried that he would not find another job in Orlando, where Disney rules as the largest employer by far. He spoke with The New York Times anonymously in an article in June about the humiliation of training his foreign replacement.

But local recruiters told him that despite the company’s statements, Disney managers said they would avoid rehiring workers who were laid off. Mr. Perrero said he knew of only two workers from the close-knit group of more than 200 who were dismissed who went back to tech jobs at Disney.

Mr. Perrero said he was “part Italian, part English, part Swedish.” He said, “I wholeheartedly believe our country needs to have amazing people come here to build a long-term foundation.” But he said the H-1B program had been abused.

Ms. Moore said that even with strong programming credentials, it was hard for her to start over in her 50s with another company. She has 13 grandchildren, and she confessed that one of the difficult losses was a pass that allowed her to take them to Disney World at no cost.

I am just about to start the second project with a consulting company that was just bought by HCL.
 

BigThunderMatt

Well-Known Member
That should come out in Discovery. But from what I've heard? It isn't good for the mouse....

What's the worst that could happen to them? A hefty fine? Some bad PR? I'd wager 40-50% of Disney's first timer annual attendance isn't going to give a flip about this case...considering I have first hand experience in dealing with these people and would be very shocked if they even read/watch the news.
 

monothingie

Nakatomi Plaza Christmas Eve 1988. Never Forget.
Premium Member
If big corporations were going to "settle" then this article never would have happened because their legal team would have known they would lose and nipped it in the bud long before anything would have been filed. My guess is Disney knows this will probably get thrown out, like it or not.

Its amazing some people actually think these huge companies dont cross their T's or dot their I's.

Jimmy Thick- Well...Maybe not...


Ever hear of jury nullification Thick? Disney is going to get buried in front of a jury.
 

PhotoDave219

Well-Known Member
Original Poster
What's the worst that could happen to them? A hefty fine? Some bad PR? I'd wager 40-50% of Disney's first timer annual attendance isn't going to give a flip about this case...considering I have first hand experience in dealing with these people and would be very shocked if they even read/watch the news.

I'd wager 90% of Disney's audience doesnt care... this is more aimed at governmental fines, bad PR and the stock price.

Wall Street is the audience here.
 

ford91exploder

Resident Curmudgeon
Unfortunately from what I've seen is that CIOs are still very much IT experienced, they add a ton of bureaucracy in an effort to be Lean or follow ITIl, screw up their ability to serve their clients and then have to throw their team to the outsourcing consultants. (Which are consultants with no IT exp).

Speaking as a ITIL practitioner ITIL actually works if you put the effort into it.

Basically it's a change management methodology for IT. Document changes, get clearance from the stakeholders in the changes and what is the backout plan if it goes pear shaped. It's actually the last bit which helps most organizations the most because it documents how one recovers from a failed change.

LEAN is more a manufacturing methodology ie do you have 10 specialized machines which sit idle for 90% of the time or do you have 2-3 flexible machining cells which can make all the parts with each machine being active 40-60% of the time with the others being maintained or undergoing process setup. LEAN can be applied in other domains but it takes a lot to translate from the physical to the virtual and in most of those cases it's more about being 'Buzzword Compliant' than adding actual value.
 
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raven

Well-Known Member
Not that this has anything to do with this story but it's good for mentioning:

Walt Disney World is the largest single-site employer in the United States yet the unemployment rate in Orlando is extremely high (7% last I remembered). They proven themselves to rely on hiring people from different countries (or even poverty stricken countries) to get that government tax break.

Food for thought.
 

PhotoDave219

Well-Known Member
Original Poster
Not that this has anything to do with this story but it's good for mentioning:

Walt Disney World is the largest single-site employer in the United States yet the unemployment rate in Orlando is extremely high (7% last I remembered). They proven themselves to rely on hiring people from different countries (or even poverty stricken countries) to get that government tax break.

Food for thought.

Youre right, it has nothing to do with the story.
 

fosse76

Well-Known Member
Ever hear of jury nullification Thick? Disney is going to get buried in front of a jury.
Jury nullification is when a jury reaches a verdict which contradicts the law. This occurs when the jury disagrees with the law as it applies to the defendant(s). Assuming the allegations are true (and based on the general behavior of large corporations, they probably are), this is a law that a jury would not nullify.

I find it funny that Jimmy Thick thinks that all companies are so above-board that they do everything by the book. Case law is littered with tens of thousands of cases in which companies, including Disney btw, have behaved in an illegal manner.
 

fosse76

Well-Known Member
Presuming this is civil suit, a majority wins. Then come appeals.
There is no presumption. It IS a civil suit. Only the government (local or Federal) can file a criminal suit. Not to say there won't be a criminal suit, apparently the investigation is ongoing.
 

fosse76

Well-Known Member
Not that this has anything to do with this story but it's good for mentioning:

Walt Disney World is the largest single-site employer in the United States yet the unemployment rate in Orlando is extremely high (7% last I remembered). They proven themselves to rely on hiring people from different countries (or even poverty stricken countries) to get that government tax break.

Food for thought.
It's not relevant to this thread, but I'll say this: it is common practice for theme parks to hire international employees to supplement the workforce. There are literally hundreds of reasons why there are people still unemployed in the areas where these parks are located, most of which have nothing to do the hiring of foreign workers (the case in this thread notwithstanding). This is not a causal effect of the local unemployment rate.
 

PhotoDave219

Well-Known Member
Original Poster
It's not relevant to this thread, but I'll say this: it is common practice for theme parks to hire international employees to supplement the workforce. There are literally hundreds of reasons why there are people still unemployed in the areas where these parks are located, most of which have nothing to do the hiring of foreign workers (the case in this thread notwithstanding). This is not a causal effect of the local unemployment rate.


Yet that has nothing to do with the practice of gutting your IT department only to bring in contractors and replace them.

Its happened or happening everywhere in the industry, hence why people are out for blood.
 

kpilcher

Well-Known Member
Not that this has anything to do with this story but it's good for mentioning:

Walt Disney World is the largest single-site employer in the United States yet the unemployment rate in Orlando is extremely high (7% last I remembered).

Actually, Unemployment was 4.2% here in Orange County in December. 4.9% in Osceola. As a region, we averaged out to 4.4% in December (and that includes notoriously high Sumter County with 6.3%)
 

Jimmy Thick

Well-Known Member
Jury nullification is when a jury reaches a verdict which contradicts the law. This occurs when the jury disagrees with the law as it applies to the defendant(s). Assuming the allegations are true (and based on the general behavior of large corporations, they probably are), this is a law that a jury would not nullify.

I find it funny that Jimmy Thick thinks that all companies are so above-board that they do everything by the book. Case law is littered with tens of thousands of cases in which companies, including Disney btw, have behaved in an illegal manner.

Well, I find it amusing the court of public opinion, the ultimately impotent court, is so quick to come to a conclusion based on one side of this story. People can flock in solidarity to whatever dramatic cause because Disney is cheap and execuitive bonuses, etc, what have you, when facts say, and Disney released a statement saying the two people were offered jobs with the same pay, well that right there blows this whole little shin-dig right out of the water.

This isn't about morals or employment, its about money and Disney did not payoff these people and now they went public. Look up all the other times the legal experts from this site predicted Disney settling or losing court judgements in the past, track record is embarrassing to put it nicely.

This gets thrown out of court.

Jimmy Thick- Abe Vigoda dying is bigger news.
 

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