Tag Archives: Outsourcing

One Million Troops Ordered for Civil War?

Is Obama Really Preparing For Civil War?

According to an obscure report in the European Union Times (EUTimes.net), “Russian Military Analysts are reporting to Prime Minister Putin that US President Barack Obama has issued an order to his Northern Command’s (USNORTHCOM) top leader, US Air Force General Gene Renuart, to ‘begin immediately’ increasing his military forces to 1 million troops by January 30, 2010, in what these reports warn is an expected outbreak of civil war within the United States before the end of winter.

“According to these reports, Obama has had over these past weeks ‘numerous’ meetings with his war council abut how best to manage the expected implosion of his Nation’s banking system while at the same time attempting to keep the United States military hegemony over the World in what Russian Military Analysts state is a ‘last ditch gambit’ whose success is ‘far from certain.'”

The EU Times article continues by saying, “To the fears of Obama over the United States erupting into civil war once the full extent of the rape and pillaging of these peoples by their banks and government becomes known to them, grim evidence now shows the likelihood of this occurring much sooner than later.”

The Times story goes on to say that there are “over 220 million American people armed to the teeth and ready to explode.”

The Times article concludes by saying, “Though the coming civil war in the United States is being virtually ignored by their propaganda media, the same cannot be said of Russia, where leading Russian political analyst, Professor Igor Panarin has long warned that the economic turmoil in the United States has confirmed his long-held view that the US is heading for collapse.”

Many of us would be inclined to pooh-pooh such a story, but then there is this column from Bloomberg.com entitled “Arming Goldman With Pistols Against Public,” written by Alice Schroeder. According to Ms Schroeder:

“‘I just wrote my first reference for a gun permit,’ said a friend, who told me of swearing to the good character of a Goldman Sachs Group Inc. banker who applied to the local police for a permit to buy a pistol. The banker had told this friend of mine that senior Goldman people have loaded up on firearms and are now equipped to defend themselves if there is a populist uprising against the bank.” Full Story

America’s Make Believe Economy

What Economy?
There’s Nothing Left to Recover
Paul Craig Roberts

There is no economy left to recover. The US manufacturing economy was lost to offshoring and free trade ideology. It was replaced by a mythical “New Economy.”

The “New Economy” was based on services. Its artificial life was fed by the Federal Reserve’s artificially low interest rates, which produced a real estate bubble, and by “free market” financial deregulation, which unleashed financial gangsters to new heights of debt leverage and fraudulent financial products.

The real economy was traded away for a make-believe economy. When the make-believe economy collapsed, Americans’ wealth in their real estate, pensions, and savings collapsed dramatically while their jobs disappeared.

The debt economy caused Americans to leverage their assets. They refinanced their homes and spent the equity. They maxed out numerous credit cards. They worked as many jobs as they could find. Debt expansion and multiple family incomes kept the economy going.

And now suddenly Americans can’t borrow in order to spend. They are over their heads in debt. Jobs are disappearing. America’s consumer economy, approximately 70% of GDP, is dead. Those Americans who still have jobs are saving against the prospect of job loss. Millions are homeless. Some have moved in with family and friends; others are living in tent cities.

Meanwhile the US government’s budget deficit has jumped from $455 billion in 2008 to $2,000 billion this year, with another $2,000 billion on the books for 2010. And President Obama has intensified America’s expensive war of aggression in Afghanistan and initiated a new war in Pakistan. Full Story

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V.P. Biden: “We Misread How Bad The Economy Was”

IBM’s Anti-American Labor Practices

Today, on International Workers’ Day, I bring you a story on IBM’s labor practices. The post IBM Outsourcing Thousands of Jobs to India has been one of the most widely read and commented articles on this blog. Understandably, there is a lot of agitation around the issue of outsourcing American jobs. I recently spoke with Alliance@IBM Representative Rick White on what is transpiring at IBM. Following the interview are a series of videos with IBM in the news. The hypocritical comments from IBM CEO Sam Palmisano in the first video, and his audacity to ask for stimulus money, are reprehensible.

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Can you tell us a little about your role in the Alliance IBM. What are you attempting to accomplish?

I’m presently the Treasurer, Web Maintenance, Organizer, and Health & Safety Representative for Alliance@IBM CWA Local 1701. Alliance@IBM was formed in August of 1999 as a union and employee advocate for IBM employees, domestic USA.

We’re a National/Local which is not an oxymoron; but appears that way. We represent all IBMers that want to be represented by CWA (Communications Workers Of America) and we also serve as a Local for each IBM USA location where we have active and public members. Since the 1990’s, 40% or more of USA IBMers have been working from home. Many of these workers are in IBM departments that are scattered around the world, i.e. their boss could be in Texas, their co-workers as far away as China; while they work at home in Poughkeepsie, NY.

We also work closely with unions in Europe and Japan that are firmly placed in IBM locations there. Since IBM is an “International” company by definition, we believe that it should be unionized internationally. That status is yet to be realized, but we’re continuing to work at it.

Our goals are preserving and improving our rights and benefits at IBM. We also strive towards restoring management’s respect for the individual and the value we bring to the company as employees. Our mission is to make our voice heard with IBM management, shareholders, government and the media. While our ultimate goal is collective bargaining rights with IBM, we are building our union now and continue to challenge IBM on the many issues facing employees from off-shoring and job security to working conditions and company policy.

Our membership is large by local standards, but very small by national standards. We have @5000 total supporters and about 360 dues paying members, out of a company population of about 120,000 USA wide. The reasons we formed in 1999 were centered around IBM’s treatment of it’s workers; both blue-collar and white-collar in regard to the Pension swindle and layoff practices, and other issues in the 1990’s. We forced IBM to change its policy on its Cash Balance pension plan in 1999, from no choice for IBMers with less than 25 years of service; to the option for an additional 35,000 IBMers (40 years of age and 10 years of service) to choose between the Cash Balance pension and the defined benefit pension (the one workers with 25 years service had).

We even got help from the Senate Finance Committee, when they asked then IBM HR director, Tom Bouchard to testify before them and explain why there was such a disparity between the two plans. Mr. Bouchard announced and offered the choice between the two plans on the day he testified before the committee.

How many jobs have been lost at IBM in 2009? Prior to then?

That is a hard question to answer. Mostly because of the churn, over the years and the offshoring and outsourcing; which has been happening in IBM, steadily since the 1990’s. The other reason is that IBM rarely announces the numbers. When they do; its a hard figure to confirm. IBM USA employed roughly 135,000 people in the 1990’s…we’ve run the calculations many times, and the number keeps changing because of the way IBM does business in other countries. We can never get a net job loss. My guess is somewhere between 15,000 and 25,000 jobs or more, since the 1990’s. Again, it’s very hard to know for sure. (Note: Resource Action is IBM’s term for firing. it’s not a lay-off because the workers are not recalled to work.)

How many of those job losses were a result of outsourcing?

Again, very difficult to answer. It’s very complicated; or appears to be as a result of IBM’s practices world wide. In 2007 and 2008 IBM replaced 14,000 jobs world-wide. We still don’t know for sure, how many of those were here in the US.

Did IBM offer to relocate the employees to the countries the jobs were being outsourced too?

No. IBM usually tells employees being RA’ed that they have 30 days to find another job within IBM; however, behind the scenes, IBM freezes internal IBM hiring for IBMers being fired. It’s nothing but an egregious ruse.

You may also be referring to an IBM company policy called “Project Match”; which offers IBMers that are fired, an “opportunity” to move out of the United States and go to IBM Brazil, IBM Russia, IBM India, IBM China, IBM Vietnam, IBM Philippines, etc. Supposedly, IBM pays for the trip, but that’s it. Once the ex-IBMer leaves he/she cannot have their USA IBM job back. They must work for the IBM location they chose and figure out how to function in the same job capacity, for say 40% of their pay or less in their new ‘home’ country. They are also assigned the additional task of training the employees in that country, once they arrive.

For example, an Operation Analyst may make between $40,000 and $60,000/year working in the US for IBM. When he/she becomes an IBM India employee in the same job, they make about 250,000 rupees or $5,000.00/year. Living conditions are unknown to us so far. Rick Clark, fired IBM employee spoke to the press about his experience during his RA and subsequent offer to go to another country. To read the interview with Rick Clark: If You Want a Job…

Were there employees who chose the option of relocation?

There may be. We haven’t confirmed any yet. Our Comments sections have mentioned people actually doing it, but they didn’t leave their name or contact information. My guess is, not many take it.

What is the solution to keeping these jobs in the U.S.?

One step to take is for IBMers and ex-IBMers to speak out about this and come forward and testify, if necessary, to the Federal govt about this program and the offshoring. Globalism may not be stopped; but we should stop giving bailout money and tax breaks to companies that offshore and outsource, without regard to the impact on the USA.

IBMers need to organize and get IBM to the bargaining table. In exchange for very limited outsourcing, a union contract could stipulate a process that benefits both the workers and the company. The details could be worked out to everyone’s advantage.

Explain what an “At Will Employee” is.

Basically, “At Will Employee” means that a worker has the right to quit without notice for any reason or no reason; and the Company has the right to fire the worker without notice for any reason or no reason. The workers have no bargaining rights whatsoever, under this policy. The Dept. of Labor will not help workers who are fired under this policy. That’s why a union contract is so important. Most workers in the USA today do NOT understand “At Will Employee” policy.

How are labor laws skewed in favor of corporations (such as IBM) over the employee?

They have high priced lawyers that have subverted labor law in favor of the corporations. They have used labor law cases and sympathetic labor board members to turn labor law against the employees. They use their power, money and influence to run roughshod over workers.

Most present day labor policies are derived from the NLRB decisions on the multitude of cases brought before the NLRB, between unions and management of a company. These are disputes, over a large list of reasons for filing an Unfair Labor Practice or other reasons, between labor and management. Many are only significant to the particular company or union and do not affect the whole USA. For example, a union organizer gets fired for “misconduct” during an organizing campaign at a particular company. The union files a ULP (Unfair Labor Practice) and the case goes to an NLRB appointed administrative judge. The judge decides in the union’s favor, and the company appeals to the NLRB labor board. The NLRB also decides in favor of the union organizer. The company appeals to the US District court of appeals The Court decides in favor of the company. This means only union organizers in that Court’s district are affected by that decision; however, if the union appeals to the Supreme Court, and the Court hears the case and then decides in the company’s favor, the decision applies to ALL union organizers in that situation, in the entire country.

A relatively recent case (2004) was the reversal of the Weingarten Rights. The right of employees to have union representation at investigatory interviews was announced by the U.S. Supreme Court in a 1975 case (NLRB vs. Weingarten, Inc. 420 U.S. 251, 88 LRRM 2689). These rights have become known as the Weingarten rights. The reversal basically removed Weingarten Rights from non-union workers, enacted in 2000, under the Clinton Administration. Which means that workers called into the boss’s office for a disciplinary meeting or investigatory interview, etc.; no longer have the right to have a co-worker witness the meeting and/or exchange between the affected worker and his/her boss.

Union workers still have Weingarten Rights. Here is a link to a Weingarten Rights explanation: EMPLOYEE’S RIGHT TO UNION REPRESENTATION

How common is it for an employee nearing their retirement to be fired from their job at IBM?

Fairly common since the 1990’s. IBM disguises the reason, to steer clear of age discrimination law suits; Although there have been Class Action law suits filed, in the past.

A review of their Resource Action packages will show, statistically, that the older workers (45-60yrs) are affected in greater amounts than the younger ones (18-35yrs).

Are there currently any online petitions or actions in circulation?

We currently have a “Take Action” on our web site to contact The President, Vice President, and the respective Congressional and Senate Reps for the person’s districts: Take Action” is “Job cuts and job shifting offshore by IBM!

Where can readers learn more about issues re to IBM?

Our web site is chock full of information about IBM: AllianceIBM There are also many articles on the internet that discuss IBM and its practices and Globalism in general.

From Endicott Alliance

From Endicott Alliance

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IBM CEO Palmisano

IBM criticized for plans to shift U.S. jobs to India while seeking stimulus money

IBM draws criticism for job cuts, outsourcing

IBM Outsourcing Thousands of Jobs to India

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IBM draws criticism for job cuts, outsourcing

IBM’s reported plans to lay off thousands of U.S. workers and outsource many of those jobs to India, even as the company angles for billions in stimulus money, doesn’t sit well with employee rights advocates.

Business Week reports that IBM’s workforce increased from 386,558 in 2007 to 398,000 at the end of 2008.

IBM employees are being dealt a double blow, said Lee Conrad, national coordinator for Alliance@IBM, a pro-union group that has been fighting IBM’s outsourcing for years.

“We’re outraged that jobs cuts are happening in the U.S. and the work is being shifted offshore,” Conrad said. “This comes at the same time IBM has its hand out for stimulus money. This to us is totally unacceptable.”

IBM wants a share of the money in President Obama’s American Recovery and Reinvestment Act for projects updating power grids, creating electronic health care records and furthering the use of broadband.

“In the research we’ve done working with the transition team, we know that $30 billion could create 1 million jobs in the next 12 months,” IBM CEO Sam Palmisano said in January.

The problem is where those jobs would be, said Ron Hira, a professor of public policy at the Rochester Institute of Technology.

Full Story

Video

JP Morgan/Chase Outsourcing to India

JPMorgan Chase to Increase India Outsourcing 25%
America’s second-largest bank plans to spend $400 million on work outsourced to India to streamline its IT operations

The second-biggest bank of the US, JP Morgan Chase, which acquired Washington Mutual and Bear Stearns recently, will increase its outsourcing to India by 25% this year to nearly $400 million. It will also manage the integration of the acquired companies from India to bring down the cost of integrating different information technology (IT) systems.

Right now, JP Morgan outsources $250-300 million worth of IT and back-office projects every year to Cognizant, TCS and Accenture, apart from to its own captive centre in Mumbai.

“JP Morgan CIO Guy Chiarello said last week that he will increase outsourcing to India, and will drive several integration projects from there,” a New York-based expert, familiar with JP Morgan’s outsourcing plans, told ET last week, on conditions of anonymity. A spokeswoman for JP Morgan India could not reply to an email query sent by ET on Friday, and the bank’s spokesperson in the US too did not reply.

“JP Morgan is one of the first banks in the US to have fleshed out its outsourcing
strategy ever since the banking meltdown happened. Many others are still undecided about their IT spend,” said a senior official at one of the technology firms, who did not wish to be quoted.

The bank, which cancelled its $5-billion outsourcing contract with IBM in 2004 – following the merger with Bank One – had brought back around 4,000 IT staff in-house after the new CIO Austin Adams had proposed a “do-it-yourself” strategy for the merged entity.

Full Story

Begging China for Handouts

Obama Sells U.S. to China Inc.

The truth is starting to seep out. Because of the need for more money to finance the latest bailout―the Obama economic stimulus plan―America is going further in debt to the Chinese Communists. Our country is officially being sold to the highest bidder. And we have striking confirmation of this fact from Secretary of State Hillary Clinton.

The good news is that a correspondent for the mainstream media―Wyatt Andrews of CBS News―has figured this out and has managed to get on the air with his terrifying findings. Andrews’ report on the Friday CBS Evening News with Katie Couric was direct and to the point. Clinton is in China to beg for a handout.

“The truth is the Administration needs China’s help. America’s stimulus is very expensive and the U.S. wants China to help finance it,” Andrews reported. This is what America has become―a country that sends its Secretary of State abroad to beg for money from foreigners. In this case, it’s a communist dictatorship that forces women to have abortions, tortures Christians, and threatens the freedom and democratic government of Taiwan.

So the cost of the “stimulus” is more sacrifice of American independence and sovereignty, as well as our own values, ideals, and commitment to human freedom. It is a sad day both for America and China.

Full Story

U.S. Manufacturers Blast China