Posts Tagged ‘outsourcing’

“I had a wonderful job,” Craig DiAngelo said of his work in Hartford, Connecticut with Northeast Utilities, New England’s largest electricity and natural gas provider with over 3.4 million customers. “It was like family at work. I would have kept working there until I couldn’t work anymore. It was the best job I ever had.” Then in October 2013, Diangelo and his 219 fellow IT workers learned they were being replaced by less skillful, but cheaper, imported labor through a US program called the H1-B visa.

“The CIO (Chief Information Officer) came down from Boston,” Diangelo said, “and said that she would hold a town hall meeting to discuss the future of IT at our company which was then known as Northeast Utilities. We all got into the room, 220 of us. She proceeded to tell us that, ‘…well folks we are going to outsource IT infrastructure and IT development, and we have chosen two companies Infosys and Tata. And the reason that we’re doing this is because global workers can adjust to change a lot faster than the American worker.’” The CIO lied.

The idea that a worker from India is a global worker and a US worker is not is an absurdity in and of itself, which Diangelo realized immediately.

“Now when you take a look at this,” Diangelo said. “Isn’t the American worker also a global worker? Don’t we have some input into what we say, or what gets said of a global economy? We (the USA) are a very large market.”

The first H1-B visa workers began arriving in mid-December 2013. The soon-to-be-former employees trained their replacements, but management called this “knowledge transfer,” Diangelo said. “The people we trained didn’t have the skills to do our jobs. Management assumed the replacements could be trained in a few weeks, but the people from India were so unskilled the knowledge transfers lasted several months.”

Hundreds of thousands of US high tech workers have been replaced by poverty wage H1-B visa workers. Some estimates place the number of displaced US high tech workers in the low millions. The list of US corporations using this scam is long, Disney, Hewlett-Packard, Google, Xerox, Toys R Us, Facebook, Microsoft, Apple, and thousands of other companies.

The AFL-CIO reported in 2009 that as many as 25% of imported workers have fraudulent visas. Today, this translates to as many as 17.5 million foreign employees gaming the system.

The US government, which is controlled by the billionaires bankrolling both major political parties, use a number of ways to redistribute income from the 99 to the 1 percent. One of these ways is through the H1-B visa.

The H-1 temporary worker visa program was originally established in the 1950s to grant foreign individuals with “distinguished merit and ability” an opportunity to find legal employment inside the United States. It was amended by the Immigration Act of 1990 (IMMACT), a measure that added the specialty occupation requirement – which means the job must require a bachelor’s degree or higher, or equivalent work experience, in a specialized field – and the visa’s dual intent status, which allows petitioners to seek legal permanent residency (a green card) while petitioning for and holding their temporary resident status. With recommendations from industry leaders and academics, the act also established the 65,000-visa cap. The visa became known as the H1-B in 1990.

U.S. corporations use the visa to outsource US high tech jobs to poverty wage nations while some corporations import these temporary low wage workers into the US in order to displace their higher compensated US citizen-employees.

Proponents of the visa say 130,000 to 195,000 H1-B visa workers are necessary every year to meet the “market conditions” of the United States. This is a lie. Pure and simple. The real market conditions in the United States mean higher compensation to US workers, but the H1-B visa distorts salaries and benefits downward. Importing low wage workers via the H1-B visa means artificially increasing the supply of US labor. This is called “distorting the market.”

At any time there are millions of H1-B visa workers in the United States since these workers can apply for the three-year extensions, and then apply for permanent residency via green cards, all of which distorts the labor market of the United States in favor of the billionaire shareholders.

According to the liberal Economic Policy Institute (EPI), US employers pay their H1-B visa workers “up to 40 percent less” than the US employees they replace. The EPI report does not mention most H1-B visa workers do not receive any benefits for their work, and that is particularly true of the US jobs outsourced and taken over by H1-B visa workers in India and elsewhere. This suggests a great amount of H1-B visa workers receive less than 50 percent of the total compensation package US high tech workers earn.

The difference between the higher US employee compensation and the new poverty wages and salaries of the H1-B visa workers goes straight into the pockets of the 1 percent via higher corporate profits, surging share prices, and rising dividends.

The H1-B visa is one of the many perfect examples of how easily income and wealth have been redistributed from the 99 to the 1 percent via government actions. This, in itself, demonstrates how corrupt the US government is. No doubt, our current government is one of the most, if not the most, corrupt in the advanced economies of the world. So, too, are both major political parties.

The corporate press will always lie to you on this issue regardless of whether liberal or conservative. They will tell us the US has a shortage of high tech workers, and that we must import workers to fill jobs. The press will never tell you there are hundreds of thousands (perhaps millions) of US high tech workers unemployed in their field, like Craig DiAngelo, who are ready and raring to go.

As for Craig DiAngelo, he is now running for the US Congress as a Republican, and, as you might expect, one of his key issues has to do with the H1-B visa.

New data on H-1B visas prove that IT outsourcers hire a lot but pay very little

Top 10 H-1B employers are all IT offshore outsourcing firms, costing U.S. workers tens of thousands of jobs–Economic Policy Institute

Read Full Post »

Carrier Corporation is moving to Mexico, and laying off hundreds of workers in Indianapolis.

Carrier Corporation is moving more production to Mexico, and laying off hundreds of workers in Indianapolis.

Donald Trump negotiated with United Technology (UT) officials to keep 1000 US jobs from being exported to Mexico. That means, however, that Trump failed to save 1100 other United Technology jobs from being exported to Mexico. Give Trump some credit. He negotiated and won some concessions.

Last year UT announced it would export 2100 jobs to Mexico, and Trump railed about how he would tax the products of any US jobs exporter that manufactured stuff overseas, and then exported their products to the USA. Trump was going to be tough on corporations like UT.

So when push came to shove, tough guy Trump backed down. Trump made a promise to save all of those jobs, and he backed far away. Give him credit, Trump wasn’t as weak-kneed on this issue as President Obama. He saved some of the jobs.

Trump will reportedly give the company tax and regulatory favors that the corporation has sought.

Bernie Sanders wrote,

“Instead of a damn tax, the company will be rewarded with a damn tax cut. Wow! How’s that for standing up to corporate greed? How’s that for punishing corporations that shut down in the United States and move abroad? In essence, United Technologies took Trump hostage and won. And that should send a shock wave of fear through all workers across the country.”

This sends a loud and clear signal that any corporation can threaten to export jobs and receive tax cuts that will be paid for by US workers.

Instead of being tough, Trump was pummeled into submission. United Technologies makes billions of US defense contracts. Instead of leveraging that, Trump offered them tax cuts. What a wimp! He had them by the financial scotum with those defense contracts, or through the use of selective tariffs, and Trump fell to his knees with a light verbal body blow. Apparently, taking a dive is Trump’s art of the deal.

So what needs to be done?

Sanders wrote, “If United Technologies or any other company wants to keep outsourcing decent-paying American jobs, those companies must pay an outsourcing tax equal to the amount of money it expects to save by moving factories to Mexico or other low-wage countries. They should not receive federal contracts or other forms of corporate welfare. They must pay back all of the tax breaks and other corporate welfare they have received from the federal government (and state governments, and with interest). And they must not be allowed to reward their executives with stock options, bonuses or golden parachutes for outsourcing jobs to low-wage countries. If Donald Trump won’t stand up for America’s working class, we must.”

For more on the story click the link below.

Bernie Sanders: United Technologies Executives Just Showed Corporations How To Beat Donald Trump-Washington Post

Read Full Post »


The New York Times recently reported that Toys R Us had exported 67 jobs from its headquarters to India via the H1B visa.

According to the Times,

“A temporary visa program known as H-1B allows American employers to hire foreign professionals with college degrees and “highly specialized knowledge,” mainly in science and technology, to meet their needs for particular skills. Employers, according to the federal guidelines, must sign a declaration that the foreign workers “will not adversely affect the working conditions” of Americans or lower their wages.

In recent years, however, global outsourcing and consulting firms have obtained thousands of temporary visas to bring in foreign workers who have taken over jobs that had been held by American workers. The Labor Department has opened an investigation of possible visa violations by contractors at the Walt Disney Company and at Southern California Edison, where immigrants replaced Americans in jobs they were doing in this country. Four former workers at Disney have filed discrimination complaints against the company. The companies say they have complied with all applicable laws.”

The problem with the H1-B visa are numerous. They are primarily used to reduce American wages and salaries, for starters. In addition, there must be a shortage of US workers in order for a US corporation to bring in H1-B workers, but there never is a shortage. The Times reports, “…in recent years, many jobs that American workers lost have been in accounting and back-office administration — although there is no shortage of Americans qualified to do that kind of work.”

Then the H1-B visa worker must have “exceptional skills,” but that is rare, especially in the case of Toys R Us. Toys R Us employees trained their replacements so their jobs could be more easily exported to India.

Christine Brigagliano, a lawyer in San Francisco with extensive experience advising American companies on obtaining visas, says “Those contractors are signing on the bottom line, saying we will not undercut the wages and working conditions of Americans. But, in fact, they are.”

Of course they are! That is the purpose of the H1-B visa, and always has been.

Read Full Post »


Computerworld reports that the University of California is outsourcing eighty IT jobs to an Indian corporation, HCL. US workers are now training their H1-B replacements. Note that H1-B visas are supposed to be given only when qualified Americans cannot be found to do a job in the USA.

The situation is really this; US citizens are qualified to train their H2-B replacements. This means the H1-B visa recipients are not qualified to do the job until they receive training from the US citizens they are replacing, who are sufficiently qualified to train their replacements.

In other words, the H1-B system is being used to undercut US wages and salaries. That is this program’s sole purpose. When a US worker has to train an H1-B visa worker to do their job it is the H1-B worker who is not qualified and the US worker who is.

One of the effected University of California employees wrote California US Senator Diane Feinstein, a person who was reported to be worth between $43 and $99 million in 2005. Her wealth and income has likely grown since then. Much of the growth is likely due to exporting jobs and outsourcing jobs to H1-B visa workers. When you push wages down, or export jobs overseas, the difference between the old higher pay and the new lower wages goes straight into the pockets of the rich via higher corporate profits, rising share prices and surging dividends.

Feinstein clearly has an incentive to say one thing in public and an opposite thing with private bankers.

Anyway, the US citizen IT worker wrote,

“The decision to move the University of California San Francisco datacenters from California to Washington was difficult to grasp. I saw several of my long time co-workers terminated, and my California tax dollars that go into the UC system being diverted to the state of Washington.

“The recent decision to outsource 17% of Information Technology to India based Company HCL has literally hit home. I am being asked to do knowledge transfer to a foreigner so they can take over my job in February of 2017.

“I am asking for your support in requesting an oversight with the Department of Labor in regards to the contract between HCL of India and University of California San Francisco. This contract will more than likely not save the University money, but it will definitely wipe out what is now a somewhat diverse workplace.”

According to Computerworld, “As a U.S. senator, Feinstein could have asked the U.S. Department of Labor, Department of Homeland Security and other agencies to review the situation. She could have also asked California’s governor to take a look at the IT outsourcing or contact the University of California directly — a public institution that also receives federal dollars — to ask why a partially taxpayer-supported university is moving jobs to India.”

Instead Feinstein did nothing, except respond with a form letter.

For more on this story, click the following link to Computerworld. Outsourced Workers Ask Feinstein for Help and Get a Form Letter in Return–Computerworld

Read Full Post »

At least 36,000 Verizon workers have been on strike since Wednesday of last week after failing to reach a new labor agreement. This strike is about lowering labor costs via exporting jobs and using low wage contractors in order to redistribute income from Verizon’s employees to rich shareholders via higher corporate profits, rising dividends and soaring share prices.

Here’s how the system is rigged by federal legislators.

Verizon earned, or overcharged their customers depending on your point of view, $39 billion over the last three years, and now management wants employees to make concessions in pay and benefits, as well as other things. Workers at Verizon have said enough is enough! Verizon made $19.3 billion in US pretax profits from 2008 to 2012, yet didn’t pay any federal income taxes during the period. Instead, it got $535 million in tax rebates. Verizon’s effective federal income tax rate was negative 2.8 percent from 2008 to 2012. Now the company wants to reduce employee compensation despite billions in profits.

As Verizon employee James Brugund said, “American companies want American profits, but they don’t want to pay American wages, and that should be stopped.”

Among the union’s complaints: the offshoring of thousands of jobs to workers abroad, and shifting work to low-wage, non-union contractors. But one of their chief complaints is about being forced to work in locations far from home for months at a time.

“Verizon lineman Ting Chin, who already commutes more than 80 miles from Poughkeepsie, NY, to Manhattan, said that several of his colleagues were sent to Buffalo, New York — almost 400 miles away — for a long-term job, a fate that he says he narrowly avoided.”

In addition, Verizon wants to shift 50 percent of its work to low wage contractors, via a new labor union contract. Other jobs that are no longer done by Verizon employees but are instead handed to lower-wage contractors from outside or inside the U.S. include:

* VZ Business Monitoring
* eService email, chat and offline
* Dispatch
* Digging work for copper plant and FiOS
* In-home installation and networking
* Door-to-door sales of FiOS
* Materials distribution work/delivery
* Smart Home technology installation/customer
* service and other specialized home services

The company is also negotiating to export more jobs overseas. The company has been in the process of exporting these jobs, mostly, it seems, to Manila, Philippines. Thousands of jobs have been exported in recent months.

Read Full Post »


President Obama is visiting Oregon to push Fast Track and the Trans-Pacific Partnership trade deal. This morning, May 8, he’ll be at Nike headquarters to discuss how the TPP will benefit rich shareholders and CEO’s of huge job exporters like Nike, but he won’t mention how many hundreds of thousands of jobs will be exported via the TPP in order to achieve this, at least not to the public.

Nike is exemplary of the race-to-the-bottom globalization that has plagued American manufacturing jobs and fostered the sweatshop labor industry abroad. In fact, Phil Knight, the founder of Nike, even wrote his graduate school thesis on a business model based on low-wage foreign labor.

Nike is a perfect example of America’s lost jobs and low-wage future under the TPP. Join us at Nike to tell Obama, #JustDon’tDoit! Stop Fast Track and the TPP!

So join us either at the church listed above, or in front of Nike headquarters on Friday May 8, 2014

On the way back we’ll stop by Rep. Bonamici’s Beaverton office (12725 SW Millikan Way) to tell her: Don’t Walk Away From Jobs & the Environment! If you can, bring a pair of old shoes to leave at her office as a reminder! We’ll be back by 11:30am.

Read Full Post »

(Reuters) – Nike makes all of its products overseas, mostly in Vietnam and China. It does not employ production workers in the United States. If the Trans Pacific Partnership (TPP) is passed by congress, minimal US tariffs on goods imported from Vietnam will virtually vanish, and this means more profits for Nike, but it also means New Balance Shoes will need to export all of its jobs in Maine to Vietnam or China in order to stay competitive with Nike.
In what must be some sort of ridiculous joke, President Barack Obama will travel to outsourcer and jobs exporter Nike Inc headquarters in Oregon May 8 to argue that a 12-nation Pacific trade deal and the fast-track legislation needed to finalize the pact, and this is good for workers.
Obama faces tough opposition from his fellow Democrats in Congress over the Trans-Pacific Partnership (TPP) trade deal, which they fear could hurt American jobs and the environment.
He will use the trip to the headquarters of Nike, a company once criticized for its use of “sweatshops,” to “discuss how workers will benefit from progressive, high-standards trade agreements that would open up new markets and support high-quality jobs,” the White House said in a statement.
Nike was targeted by labor activists in the early 1990s for contracting with factories in Asia where workers faced dangerous conditions and low pay. The criticism prompted the company to create a code of conduct for contractors and open factories for inspections.
Obama has made the TPP a key part of his effort to rebalance his foreign policy to Asia to counter China’s economic might.
He has argued that the deal would be the most “progressive” and transparent in history, with protections for labor and the environment.
But he has so far failed to sway allies in the labor and environmental movements.

Read Full Post »

Older Posts »

%d bloggers like this: