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- Washington Post: Judge
Orders More IBM Pension Case Info. Excerpt: A federal
judge has ordered International Business Machines Corp. and workers suing
the company in a landmark pension case to give him more information about
how much they think IBM should have to pay in damages, the judge said Wednesday.
... I'm going to do my very best to get this case wrapped up by summer," Murphy
said. "I've asked them to give me some more materials and they're in the
process of doing that." The move followed a ruling by Murphy earlier this
month that IBM must make back payments to workers disadvantaged by a new
retirement plan. No damages have yet been set in the class-action suit, but
IBM has said that it could owe $6 billion in back benefits if the judge were
to adopt an earlier proposal by plaintiffs.
- The Journal News (Westchester, Rockland, and Putnam Counties, New York):
balance pensions plans continue to lose in court. Excerpt: Thousands
of former salaried employees of Georgia Pacific will receive letters by
late March saying they will get part of a $67 million court settlement.
The Feb. 3 tentative settlement is another in a recent string of legal
setbacks for corporations that include Armonk-based IBM and Xerox on changes
they made to their pension plans. ... For employees and their advocates,
the friendly court decisions are interpreted as a clear signal that employers
have been caught failing to comply with existing federal regulations. "Clearly,
Congress needs to pay attention to what is happening in the judicial arena," said
Kathi Cooper, an IBM employee who was lead plaintiff in the lawsuit against
two changes the company made to its pension plan in 1995 and 1999. "Clearly,
the employees have been duped with unlawful plans. And clearly, this must
not continue a minute longer." IBM has estimated that the federal court
ruling saying it illegally discriminated against employees on the basis of
age might add $5.7 billion in costs to its pension plan. But a federal judge
handling the case has not yet determined the company's liability for shortchanging
up to 225,000 current and former employees.
- Washington Post: IBM
Shifts Options Rules for Top Execs. Excerpt: In an unusual
move, IBM Corp. is adding a wrinkle to stock option awards - executives
can cash out only if the company's shares gain more than 10 percent. IBM
says the decision would make the technology giant's top 300 executives
more accountable to investors. The change was approved at a board meeting
Tuesday and was to take effect immediately. "We believe this is clearly
a statement about good governance," said
Randy MacDonald, IBM's senior vice president for human resources. "We
think it's an obvious connection to let shareholders get some upside
before we take the upside.
- Reuters (courtesy of Forbes): IBM
investors ask for review of pay and offshoring.
shareholders will vote on a proposal to require a review of how executive compensation
policies could affect decisions to move jobs overseas to cheaper locations, according
to an employee activist. ... According to Lee Conrad, a representative of Alliance@IBM,
an affiliate of the Communications Workers of America that has tried to
organize IBM employees, a proposal from fellow Alliance member and IBM
employee James Mangi will appear on the ballot. Mangi was not immediately
available for comment. The proposal requests a review of compensation policies
to see if they create incentives for executives to make short-sighted decisions
by linking bonuses to performance measures such as earnings. The proposal
says it appears that some compensation policies create an enormous temptation
for executives to cut costs in the short-term by exporting American jobs
to cheaper locations overseas without regard for the long-term effect on the
company or employees.
- New York Times: From
Coffee to Jets, Perks for Executives Come Out in Court.
Excerpt: Haircuts. Shower curtains. Parking reimbursements. Country
club memberships. Use of corporate jets. Recent criminal and civil
court cases involving top executives have brought to the fore an open
secret in corporate America: for executives with multimillion-dollar
salaries, no company-paid perk is too small — or too big — to
accept. ... The trial of L. Dennis Kozlowski and Mark H. Swartz, two
former top executives at Tyco
International , a manufacturing conglomerate, has revealed that Tyco
paid an array of their expenses. The bills included tuition to private
schools for Mr. Swartz's three children and $1 million for a birthday
party in Sardinia for Mr. Kozlowski's wife. And then there was the
infamous $6,000 shower curtain and a $15,000 umbrella stand. Such
extravagances draw criticism from an unlikely combination of corporate
watchdog groups and management consultants who create executive pay packages.
By avoiding expenses lower-level employees must pay, executives will only worsen
the cynicism that ordinary Americans and professional investors have about
them, the critics say. "It just reflects a disconnect from the way that
average people live," said
Diane Doubleday, a principal at Mercer Human Resource Consulting. ... The
average chief executive at a big public company now makes well over $10
million a year, including stock options, almost 20 times the level in 1981
and 500 times the average worker's salary. In that context, perks are a
relatively small part of executive compensation, said Joe Bachelder, a
lawyer for many chief executives. And companies typically give midlevel executives
some extras as well, including reimbursement of their cellphone bills,
expense accounts for meals and occasionally company cars. "The real
question is perception," Mr. Bachelder said. "It's a question of where you
draw the line." Benefits are rarely made public in filings with the Securities
and Exchange Commission, where companies must report the pay and
options that their five highest-paid executives receive.
- Washington Post: Greenspan
Pushes Social Security Cuts. Excerpt: Federal
Reserve Chairman Alan Greenspan, stepping into the politically charged
debate over Social Security, said Wednesday the country can't afford the
retirement benefits promised to baby boomers and urged Congress to trim
them. He said that unless Congress acts, soaring budget deficits from out-of-control
entitlement programs could lead to a "very debilitating" rise
in interest rates in coming years. Democratic presidential candidates
denounced his proposals, and President Bush and other Republicans sought
to distance themselves from the Republican Greenspan. The central bank
chairman also repeated his view that Bush's tax cuts should be made permanent
to bolster economic growth. He said the estimated $1 trillion cost should
be paid for, preferably, with spending cuts so the deficit would not be
worsened. ... Democratic front-runner Sen. John Kerry said the way to address
the deficit was to roll back tax cuts for the wealthy and "the wrong way to
cut the deficit is to cut Social Security benefits. If I'm president, we're
simply not going to do it." Sen. John Edwards, D-N.C., called it "an outrage'
for Greenspan to call for cuts in Social Security while at the same time endorsing
making Bush's tax cuts permanent. Rep. Dennis Kucinich, D-Ohio, went even further
and called for Greenspan to resign as Fed chairman, saying his comments were "a
- New York Times: The
Social Security Promise Not Yet Kept. Excerpt: Since
1983, American workers have been paying more into Social Security than
it has paid out in benefits, about $1.8 trillion more so far. This year
Americans will pay about 50 percent more in Social Security taxes than
the government will pay out in benefits. Those taxes were imposed at the
urging of Mr. Greenspan, who was chairman of a bipartisan commission that in
1983 said that one way to make sure Social Security remains solvent once the
baby boomers reached retirement age was to tax them in advance. On Mr.
Greenspan's recommendation Social Security was converted from a pay-as-you-go
system to one in which taxes are collected in advance. After Congress adopted
the plan, Mr. Greenspan rose to become chairman of the Federal Reserve.
- San Francisco Chronicle: Antidepressants
hazardous to health care coverage.
Insurance plans stymie individual policyholders. Excerpt: When Amy M.
left her steady job to become a freelance advertising copywriter, she had
no idea the antidepressant she took to combat depression would have an
unexpected side effect. She couldn't get health insurance. "I was turned
down by Blue Cross, Blue Shield and Kaiser," said
the 35- year-old Oakland resident, who has been taking the antidepressant
Celexa for several years. "My rejection letters from the insurance companies
stated the reason for the denial: antidepressants." With nearly 19 million
Americans under a diagnosis of depression, antidepressant use is skyrocketing
in the United States. The newer antidepressants are the second most commonly
prescribed class of drugs in the country, according IMS Health, a firm
that tracks the pharmaceutical industry.
- Bloomington-Normal (Illinois) Pantagraph: Treasurers'
activism annoys Wall Street, firms. Excerpt: Burned from losing billions of dollars in scandals
and bankruptcies, a growing band of state treasurers have scrapped their
low profiles to wage a campaign to clean up Wall Street and America's corporate
suites. The treasurers and comptrollers are sounding out from often-obscure
capital backwaters, places like Albany, N.Y., and Sacramento, to more actively
wield the clout of more than $1.5 trillion in public investment funds.
In California, New York, Connecticut, North Carolina and elsewhere, they are
pushing reforms, demanding less extravagant executive salaries, for instance.
They are yanking their investments from companies that move their headquarters
abroad for tax purposes or from mutual funds accused of mishandling money.
- Detroit Free Press: Drug
rebate program may end. U.S. agency says states' effort still under review. Excerpt: The Bush administration has threatened
a Michigan and Vermont program that jointly negotiates lower prescription
drug prices from pharmaceutical companies, Gov. Jennifer Granholm said
Monday. The two states were the first to pool their resources for buying
drugs under the Medicaid program, which provides health care to poor people.
Granholm said she was told late Friday that the Centers for Medicare and Medicaid
Services was rejecting the program as a violation of federal procurement procedures.
- Milwaukee Journal-Sentenel: Doyle
makes case for buying cheaper drugs from Canada.
Administration stance on issue rebuked at D.C. hearing. Excerpt: Wisconsin
Gov. Jim Doyle took his case for letting state residents buy cheaper medicines
from Canada to Capitol Hill on Tuesday, speaking at a hearing that included
strong rebukes of the Bush administration. The event drew three other governors
as well as federal lawmakers, some of whom angrily lashed out at the White
House and the U.S. Food and Drug Administration for standing in the way
of letting people import less expensive drugs. "Let's be clear: There
are Americans who are dying because they can't afford to pay for the prescription
drugs they need," said Rep. Bernard
Sanders, an independent from Vermont. Sanders, who said he was the first
in Congress to take constituents by bus across the border to buy cheaper
prescriptions, charged that drug companies had "bought off the White House" through "huge" campaign
contributions and lobbying efforts. "We are sick and tired of the American
people being taken for fools and being forced to pay the highest drug prices
in the world," he said.
- FastCompany: Are
All Consultants Corrupt? That's one possible conclusion in the
wake of the Enron scandal. According to David Maister, who's been studying
professional-services firms for more than 20 years, it's time to clear
the air. Excerpt: Is the problem with professional services due to a
lapse in ethics? The real problem is that people do what they're told.
They're simply in compliance mode. What's even more interesting is that
there's so much going on that's stupid. People are making the wrong calls
on stuff that doesn't even come close to ethics. But that's just common
practice. It's what happens inside firms, because that's how people have
been raised in business. Before they even get to an ethical issue, they've
been taught that if there's cash to be made, then make it. So it's not
as if they were wonderful to begin with and then suddenly there was an ethical
challenge and they lost their way. The message has always been that nothing
trades off against cash. Too many professional-services firms have never
met a dollar they didn't like. The question that they need to ask themselves
is, Do we believe in our own strategy and our own standards, even when
we're tempted by cash? Good business is about having the guts to stick to
a strategy. You can count on the fingers of a single maimed hand the number
of professional-services firms that have the courage to stick to their strategy.
- The IBM South Africa Pension Fund Action Group (PFAG) Newsletter No 19, February
2004, is now available [PDF--34 KB]. Excerpt: Pensioners
in Johannesburg, Cape Town and PE conducted
protests against IBM’s interference with the governance of the
Fund and its use of fund assets for its own benefit. The object was
to publicise several major issues of mal-governance by IBM.
These were IBM’s denial of adequate pension increases to
pensioners, failure to make contributions to the fund, use of fund
assets to fund their retrenchment programmes, improper
accounting of pension fund assets earmarked for employees who
opted to transfer to the provident fund and IBM’s appointed
trustees changing of the fund’s Rules to keep control of the fund.
The protest event attracted substantial media attention including a
front-page story in the Business Day, the STAR, Die Burger,
Cape Times, ITWEB, SA Computing and several TV and radio
coverages. A key part of the protest was the delivery of a letter to
S Palmisano, Chairman of the IBM Corporation. A copy is
included in this newsletter.
- Washington Times: Mass
layoffs set record in January. Excerpt: There were
more mass layoffs in January in the United States than in any previous
January for the nine-years that such records have been kept.
- "dlgabry" comments
on IBM's severance program for U.S. employees and contrasts it with the
program offered to IBM Germany employees who, unlike their U.S. colleagues,
are protected by union contracts. Full excerpt: It (severance pay) is
not a gift. It's payment for having your signature on a one-sided *contract*
that places limitations on you after you leave,
such as your right to sue. In a sad sort of a way, it's the only
contract many will see.
With a union contract, the separation process would be clearly
specified, and likely would provide more for the worker. Per an
article in "ThinkTwice", when the Mainz plant was closed, workers
over 50 will receive 70% of their salary until age 60, and a cash
bonus of .4 times the number of years of their monthly salary.
Workers under 50 would receive .7 * number of years * 112%-125% of
their monthly salary. With 20 years of service, that's close to 3
years pay. Without that union contract, we currently have an up to 13
standard package, and an up to 26 week "enhanced" package. And
guarantee of that.
- Vault's IBM
Business Consulting Services message board is a popular hangout
for IBM BCS employees, including many employees acquired from PwC. Some sample
Privilege and Self-Worth, by "ancientblueconsultant". Full excerpt: You
touched on a sensitive subject for me. I want you to know that IBM is
not about privilege, but about business and demographics in a with collapsing
market and entrenched management. Although I have never met you, I will
wager you are better than many of those above you. Many of those above
you have never billed a real working day in their lives. Many haven't
spent hours at airport terminals, taking crap from insolent and mad clients
and had to work crazy hours to get a project done. IBM is as much a psychological
puzzle palace as much as it is a business. There is a widespread perception
among GM's and VP's that because they can fire you and control your salary
they have to be better than you. The reality is that many have sacrificed
their ethics and personal relationships to get there. Many, like some
senior VP's, get addicted to all the attention the serfs give them at
ABI or other events. They become blinded by the semblance of corporate
power into thinking that they are somehow better than you. Nothing can
be further from the truth. The reality is that IBM is a collapsing pyramid
today so there are many of the alleged privileged class desperately looking
for work without any true skills. There are very few new director, VP
and GM slots, so many real good players can't move up. That's one of
the reasons for the 2+ rating. Don't ever forget that you have a boss,
but that doesn't mean you boss is better in anyway than you. I remember
an IBM first line marketing manager in PA one time very frustrated by
I was working for him at the time as a marketing rep. He was a very down
to earth, nice guy. He was beginning to question his self-worth, something
IBM tries very hard to destroy in individuals. So I suggested to him
he leave the blue pig and find another company. He shook my hands, thanked
me for my candor and advice and eventually left IBM. His name was John
Chambers, and he used IBM's arrogance to build a company called Cisco.
Now you know why I'm not worried about unemployment.
don't exceed expenses!, by "ancientblueconsultant". Full excerpt:
A funny but true story that will help you understand the Armonk mind set.
When IBM started its consulting business, they hired a very successful outsider
for one of its practices. He was given a revenue and expense target,
with some investment money. Very simple task, go forth, start a business
and make money. The problem was that he was too successful. By May of
that fiscal year he had already made 514% of his revenue plan. However,
he was reaching near 100% of his expense plan. He decided on his own
he could make 800-900% of his realized revenue target by just going 200%
of his expense budget. More profits, more money and more market share.
It was there for the pickings. In any B-School graduate would have done
the same thing. Anyone with any common sense, but not IBM. He was given
a 3 appraisal and he left the company in disgrace, even though he made
918% of the realized revenue plan and his pipeline was about 1005% of
the original plan. Why was he canned? Because he asked to go over his
expense budget and it was denied. He was told he had to wait until next
January (fiscal cycle) to get more money. He left with 65 other practitioners
to form a competitor which is still viable and growing today. IBM is
run by bean counters and lawyers, not by line executives. This is changing,
but very slowly and painfully. That's why so many young high potential
folks leave all the time. In extreme blue recruiting they give them free
reign and the love it, but when they become full time the "SG&A
handcuffs" suddenly appear.
- NewsMax.com: Where
Did All the Jobs Go? Excerpt: For years as U.S. multinationals
moved manufacturing offshore, Americans were told that their future was
jobs.” Today knowledge jobs are being moved offshore more rapidly than
manufacturing jobs were. What are the unemployed computer engineers and
information technology workers supposed to retrain for? What high value-added
be outsourced? Only those in the nontradable sector, such as dentists
and surgeons. If everyone becomes a dentist or a surgeon, those incomes
will be driven down. Many young engineering graduates have discovered
that they invested in acquiring skills for which there are no jobs and
are headed to law schools in an effort to retrieve their future. I know
young software engineers who are substitute teachers in middle schools,
and others who are trying to organize rock bands to play the club and bar circuits.
They have no idea what to retrain for, and neither do the economists who tell
them retraining is the answer.
- International Herald Tribune: Should
burger-flipping be a heavy industry? Excerpt: Is cooking a hamburger
patty and inserting the meat, lettuce and ketchup inside a bun a manufacturing
job, like assembling automobiles?. That question is posed in the new
Economic Report of the President, a thick annual compendium of observations
and statistics on the health of the U.S. economy.
The latest edition, which was sent to Congress last week, questions whether
fast-food restaurants should continue to be counted as part of the service
sector or should instead be reclassified as manufacturers. No answers were
| Coverage on H1-B and L1 Visa and Outsourcing Issues
- Economic Times (India): Job
scores: India +152,500, US -234,000. Excerpt:
While the US lost 234,000 IT jobs in 2003, for Indian techies 152,000
new jobs were created. Jobs in India's booming software services sector
are estimated to grow 23 per cent in the year to March 2004, as the
sector benefits from outsourcing by global clients, an industry association
said on Wednesday. The showpiece sector, which includes high-end technology
consulting, back-office and call centre work, is expected to employ
some 813,500 people at the end of March, up from 661,000 a year ago,
the National Association of Software and Services Companies said in
its annual strategy report. ...
Giants like IBM Corp, with an Indian headcount of around 10,000, and Accenture Ltd,
which is expected to double staff to that number by 2005, are expanding furiously.
- New York Times: Theory
vs. Reality. Excerpt: Referring to David Ricardo,
the 19th-century British economist whose theory of comparative advantage
became the basis of free trade, Mr. Schumer said: "Ricardo set up a
model that served very, very well for a very long time. But now there
are new facts on the ground." The biggest and most ominous new fact
for American workers is the dreadful employment environment of the
current economic expansion. In terms of job creation, it's the worst
expansion on record. The job growth since the recession officially
ended in November 2001 has been primarily in low-paying sectors. These
are not the upwardly mobile jobs long associated with entry into the American
middle class. And they are not the kinds of jobs that free-trade advocates
were promising in the 1990's, when they were hustling American factory
workers, assuring them that the transfer of their jobs to low-wage countries
overseas was a good thing. Globalization will be wonderful, the advocates
said. There will be more jobs. Better jobs. Higher-paying jobs. The
multinational corporations, which have had by far the biggest say in the
development of America's trade policies, are thriving in the new environment.
Workers are the big losers, and the losses are only beginning. We now know
that offshoring or outsourcing — whatever the term of
the moment is for dumping American workers in favor of cheaper workers
elsewhere — was never going to be limited to factory jobs.
- Reuters: Tech
Companies Focus on Asia to Expand Jobs. Excerpt: Technology companies
are seeing a rebound in business, but top executives this week said
any jobs added to meet growing demand will likely be in countries where
labor is cheaper than the United States. Executives speaking at the
Reuters Technology, Media and Telecommunications Summit in New York
said they see increased hiring in countries like India and China, but
few jobs will be added in the United States.
- Inland Valley (California) Daily-Bulletin: Newest
outsourcing wave: Your tax returns.
Foreign accountants to begin preparing taxes. Excerpt: Twelve-hour
shifts and seven-day work weeks exhausted accountants at Rucci, Bardaro & Barrett.
But most painful for Chris Barrett was the annual "Easter parade" layoffs
of seasonal workers and interns after April 15. So Barrett, a partner
in the Malden, Mass., firm, will send about 150 of his 600 clients'
tax returns this year to India, where recent college graduates will
prepare Americans' 1040s. Barrett won't hire or fire any extra employees,
and the average turnaround time for completing returns is already shrinking. "We're
always looking for ways to reduce the pressure," Barrett
said. "It frees us up to provide financial and estate planning, which
we didn't have time for when we were too busy filling out returns." Tax
experts say Indian chartered accountants the subcontinent's version
of certified professional accountants will prepare 150,000 to 200,000
returns this year, up from about 20,000 in 2003 and only 1,000 in
2002. Critics say outsourcing short-shrifts U.S. accountants and exposes
unwitting Americans to identity theft, which the Federal Trade Commission
ranks as one of the country's fastest-growing crimes.
- MS-NBC: Treasury secretary
defends outsourcing. Firms 'need to do what they need to do' to compete
-- Snow. Excerpt: Treasury Secretary John Snow on Tuesday defended U.S.
corporations' right to send U.S. jobs offshore to cheaper-labor countries,
and said a more productive source for jobs might be found by breaking
down global trade barriers.
Snow was asked on CNBC television whether he would advise U.S.
corporations to reduce the rate at which they are "outsourcing" U.S.
jobs by having them performed in countries like China and India.
"I think American companies need to do what they need to do to be
competitive, and as they're competitive, it's good for their shareholders,
it's good for their consumers and it's good for their employees," Snow
- New York Times: U.S.
Payrolls Change Lives in Bangalore. Excerpt: A social
revolution is under way in India's numerous back offices and call centers.
Many of the employees are barely in their 20's, and just a year or
two ago they were living traditional lives in their parents' homes,
often in smaller towns. Now, caste, religion and other age-old Indian
social divisions are being shaken. Empowered by an ample paycheck,
often from big American companies like American Express and America
Online, some Indian workers are living lavishly on credit cards, and
their open-mindedness is breaking conventions about dating. ... Many
of these young Indians deal with car insurance but may never own a
car; book hotel suites that cost nearly as much as their annual pay;
and chat about pretzels, snow and baseball, which they have never tasted,
seen or experienced. Ms. Murthy, who has never been outside India and
does not even have a passport, said she sometimes envied her callers' lives. "They
have such facilities — 24-hour convenience stores, 365-day power supply," she
said. She said she hoped her job would help her move upward and onward. "I
may be a small-town girl, but there is no way I'm going back to Mysore
after this," she said.
- New York Times: Meet
the Zippies. Excerpt: And as education levels in these overseas homes rise
to U.S. levels, the barriers to shipping white-collar jobs abroad fall
and the incentives rise. At a minimum, some very educated Americans
used to high salaries — people who vote and know how to write op-ed
pieces — will
either lose their jobs, or have to accept lower pay or become part-timers
without health insurance. "The fundamental question we have to ask as
a society is, what do we do about it?" notes Robert Reich, the former
labor secretary and now Brandeis University professor. "For starters,
we're going to have to get serious about some of the things we just
gab about — job
training, life-long learning, wage insurance. And perhaps we need to
welcome more unionization in the personal services area — retail, hotel,
restaurant and hospital jobs which cannot be moved overseas — in order
to stabilize their wages and health care benefits." Maybe,
as a transition measure, adds Mr. Reich, companies shouldn't be allowed to deduct
the full cost of outsourcing, creating a small tax that could be used to help
people adjust. Either way, managing this phenomenon will require a public policy
response — something
more serious than the Bush mantra of let the market sort it out, or the demagoguery
of the Democratic candidates, who seem to want to make outsourcing equal to treason
and punishable by hanging. Time to get real.
on the Alliance@IBM Site:
- Join Us at the IBM Shareholders' Meeting. Lend your voice to protect American
High Tech Jobs. The Alliance@IBM/CWA Local 1701 will join Jobs with
Justice, the Programmers Guild, TORAW and other organizations to hold
a major rally against offshoring of American jobs by U.S. high tech
companies. Read more...
- San Jose Mercury News:
backs IBM in its toxics trial. Excerpt: Santa Clara County jury Thursday found
that two former IBM workers did not suffer systemic chemical poisoning
from their work at the computer giant's San Jose plant, clearing the
company of responsibility for their health problems. Alida Hernandez,
73, and James Moore, 62, blamed chemicals they used to make computer
components between the 1960s and 1980s for causing them to develop
cancer. They sued IBM under a provision of California law that allows workers
to collect punitive damages if they can prove an employer fraudulently concealed
information and exacerbated an injury. After less than two days of
deliberation, the jury unanimously concluded the plaintiffs had failed to
meet their first legal hurdle: proving they had suffered from systemic chemical
poisoning as a result of their jobs.
- Click here for
the Health Focus Survey. Alliance@IBM is offering this due
to the recent interest in lawsuits and health issues related to IBM chemical
- Call to Action!
Join the Rally to
protest Offshoring at the IBM Shareholders' Meeting - April 27 in Providence, RI.
urges IBM workers to fight plan to move jobs offshore.
on the WashTech site:
Propose Retraining Benefits for Jobless IT Workers. Excerpt: Two
Washington state lawmakers plan to introduce a bill this week that will
extend training benefits to information technology workers who have lost
their jobs as a result of offshore outsourcing. "Outsourcing has exploded
on the U.S. economy," said
Rep. Jay Inslee, who added that Congress must act this year to help dislocated
American workers obtain retraining. ...
Inslee said the U.S. tax code must be revised so that there are no disincentives
for companies to keep jobs here."One corporation last year reduced its tax burden by millions of dollars and told
stock market analysts they did so by outsourcing jobs overseas," said Inslee.
- Washington Deemed
'Ground Zero' for Tech Worker Legislation. Excerpt: Baldwin, who holds
a doctorate in Labor Relations from the Massachusetts Institute of
Technology, underscored the nature of the current economic recovery,
which continues to shed jobs even as the nation's businesses earn profits. "(This
is) a job-loss recovery, not a jobless recovery," he
said. Reasons for the shrinking job market during an economic recovery
are increased productivity and offshore outsourcing, Baldwin said.
How much offshore outsourcing is responsible for the loss of jobs in
otherwise good economic times is hard to determine, he said. Part of
the reason so little is known about layoff statistics is the Bush administration's
elimination of the collection of the layoff statistics program, said
Baldwin, although he noted that the program "didn't really
ask many good questions in this area anyway." ... Former Boeing Co. technical
publications illustrator Stephan Gillyard testified he and about 400
other employees learned last June that they we about to lose their
jobs to offshore outsourcing. Gillyard, who worked for McDonald-Douglas
before the aircraft maker merged with Boeing, said he had just moved
to the Seattle area from California a year before to take the job.
He said at the time that he thought he had a bright future with the
the 17 years I spent building my skills with (McDonald Douglas and
Boeing), I always felt that there was a place for me," said
Gillyard. "Outsourcing has changed that." Gillyard, 41, said
the relationship between employees and employers has changed since
he first started working 20 years ago. "We've always had in this
country a compact that we would provide opportunities for talented, skilled,
educated people to participate in the American dream." But now,
Gillyard said, that compact seems to have vanished.