Selected comments from readers of this article follow:
"We're not looking back, we're looking ahead. We're continuing to invest in R&D, in strategic acquisitions, in growth initiatives--and most importantly, during these difficult times, in our people. In other words, we will not simply ride out the storm. Rather, we will take a long-term view, and go on offense."
I called it then that this didn't smell right. So here we are IBM... where's your integrity and why aren't you standing behind your "we're on offense" statements?
Some of the jobs are being eliminated because customers have ended contracts or the company has automated tasks. But employees say in many cases, they have been training IBM workers from India to do work that will now be moved overseas.
Selected comments from readers of this article follow:
The source of our economic power used to be our strength in engineering and manufacturing. We were better at it than any other country in the world. Nowhere else in the world could anyone come close to us in the quality and technological advancement of the products we sold. And when you have a better product, you can charge more for it. Simple as that.
But big corporations discovered they could make money by exporting the jobs and technology, in effect, selling off our competitive advantage. You can't sell secrets to the Russians, but you can sell our technology to the Indians! And they did it and they did it without having to pay one extra dime in taxes or anything else to compensate the nation for this national competitive advantage which they took as their own and then sold. That's the problem.
Selected reader comments from the Barron's article follow:
I worked with an India finance team in 2008, all great people. But not up to the enormous workload, with all its complexities, being moved. IBM doesn’t count the unseen cost…they only see the bottom line. The unseen costs are sales/services execs spending more time trying to navigate and interpret reports, lack of data to provide insight into their business, the unending extra long hours those who remain will spend correcting the problems and inaccuracies of the India teams’ outputs.
I’m hopeful there is life after IBM. I understand cost-cutting/re-balancing, but not at a time when our country is experiencing record unemployment. Could not some of these roles be scaled back for US workers, even it if part-time, lower band/salary, etc? There’s a better answer. I’ve enjoyed my IBM career and the great people I’ve worked with, but I’m very disappointed in this approach the way it’s being implemented by local mgmt. I leave very sad and with only memories of what my company used to be to its employees.
I have been screwed out of my pension… screwed out of decent health benefits… and now, screwed out of my loyalty to a company… all because upper management has no creativity in cost cutting - beyond taking US jobs away and giving them to inexperienced low cost countries…
In some ways, I hope I am ‘resourced’ today - at least it will get me out of the miserable day to day depression of wondering whether I will be employed… Its very sad… I have worked very hard right from the start - in 1985 when I thought I was employed for life if I always went above and beyond… now my prize for doing that is simply a severance package and a ‘don't let the door hit you on the way out’
Any job transfers IBM may make to India would occur at a sensitive time, as the recession deepens and as the U.S. unemployment rate climbs. Moreover, the company would be cutting high-skill positions domestically as it and others jockey for new business from the $787 billion stimulus package Congress enacted in February—primarily to help create U.S. jobs.
The news—even without IBM saying anything—provoked criticism from worker groups. "It's all about greed," Conrad said Wednesday. "They're moving work offshore to pay lower wages and lower taxes. IBM shouldn't have their hands on stimulus money if they're offshoring work." Alliance@IBM has been trying to organize IBM employees since 1999. It has 350 dues-paying members at IBM and 5,500 supporters, workers who have registered on the group's Web site but do not pay the $10 monthly dues. ...
Currently, 29% of IBM's workforce is in the U.S., down from 35% in 2006. The fact that IBM has built up large workforces in such low-cost countries as India allows it to shift work abroad more easily, says Ron Hira, assistant professor of public policy at the Rochester Institute of Technology. He says the current economic climate allows IBM to position itself as one of many firms squeezed by the recession and forced into layoffs. IBM "can now blame the layoffs on the economy, masking the reality that it is offshoring high-wage, high-tech jobs to low-cost countries," says Hira. ...
IBM is seeking a share of the $8 billion the U.S. plans to spend on high-speed rail and part of the $20 billion in the stimulus plan to digitize the U.S. health-care system. Palmisano was one of 13 executives who met with President Barack Obama in January in an appearance aimed at pressuring the House of Representatives to pass the economic stimulus bill. He joined the CEOs of Xerox, Motorola, and Google. Kenney says the political climate may make IBM's global restructuring touch raw nerves. Some economists have estimated that taxpayers are paying an average of $225,000 for each job created in the economic stimulus package. Says Kenney: "Taxpayers are saying, 'I don't want to give them money if they're moving jobs offshore.'"
I have worked in this industry for 20+ years and would challenge anyone who says that they get anywhere near the same productivity and ROI once they offshore the jobs. IBM has it figured out though ,it's all about impressions, not what is actually delivered at a price. If the customers really looked back and compared a current year to a few years back before the offshoring, they would easily see that IBM delivers less actually value to the customer after the offshoring than before it.
Sam Palmisano makes my entire annual salary by lunchtime on Jan. 1. The mind reels. Up until today, though, I wasn't convinced that it's a problem for government to address. The executives' obscene salaries and the disgraceful manner in which it treats its employees, while maddening beyond words, is a moral failure of IBM management and an issue for its stockholders.
It'll only be when IBM starts losing money that stockholders will sit up and take notice. However, now that they want TAXPAYER MONEY, it IS a government issue and I intend to make all the noise I can. I hope that IBM collapses under its own weight and greed. They can go to hell.
A reader comment follows:
Mac, a revolution doesn’t mean hippies smoking dope hanging out in some CEO’s office. But I’ve never seen so much anger among the people who do the real work in this country, the ones who show up every day and do their jobs. There’s something fundamentally wrong with our economy when the average CEO is paid about 300 times the average worker (CEOs averaged about 30 times average worker compensation less than 40 years ago). Things are going to change.
The Alliance is the union that represents IBM employees. IBM is notoriously secretive about layoffs when it makes them, and pinning down exact numbers of Research Triangle jobs to be affected will be difficult. Conrad said Wednesday that it's been several months since IBM has hired significantly in the U.S. and Canada. Most of the new IBM job postings are in India, China, the Asian Pacific and Latin America. "It's shocking. It's abrupt. Every U.S. citizen should condemn IBM, for shipping American jobs overseas," Conrad said.
A reader comment follows:
Ball is particularly disturbed by the $45 million Empire State Development Corporation paid IBM on Dec. 15 in return for not cutting jobs in East Fishkill in 2008. Only weeks after cashing the check, IBM slashed hundreds of East Fishkill workers. “If they’re taking New York state taxpayer dollars while it was their intent all along to offshore these jobs, then those dollars need to be returned,” Ball said. “And we need to find every means possible at our disposal to get that money back.” ...
Ball said Big Blue behavior highlights the need for reform. “This is exactly why we should be focusing our energies on supporting small and medium enterprises, small business owners,” he said, “instead of subsidizing large multinational corporations with global reach, especially those with a proactive offshoring plan, like IBM.”
The requirements of the WARN Act, however, forced the company's hand. The last day for employment of the workers included in IBM’s WARN filing will be no earlier than May 26, according to a letter filed with the state by Robert Greenberg, IBM’s senior state executive for North Carolina. Employees are eligible for “a broad range of services and assistance designed to support them through this transition,” according to the letter.
Canadian staff work at various facilities, including a software lab in Markham, Ont., a microelectronics manufacturing plant in Bromont, Que., and other data centres across the country. IBM is shifting labour to lower-cost regions like India to maintain its profits at a time when other technology companies' earnings are tumbling.
The point isn't so much that IBM is having layoffs--what tech company isn't?--the point is that it sure as heck seems as if IBM is intentionally shifting away from presumably more expensive American employees in favor of cheaper labor. It seems a bit un-American, right? Especially while we're in the middle of a recession.
In a CNN report, Lee Conrad, national coordinator for Alliance@IBM, which is a pro-union group that has been fighting IBM's outsourcing for years, is quoted as saying, "We're outraged that jobs cuts are happening in the U.S. and the work is being shifted offshore. This comes at the same time IBM has its hand out for stimulus money. This to us is totally unacceptable."
"In an effort to rebalance skills, eliminate redundancies, and deliver greater economic efficiencies, IBM Global Business Services is announcing a resource action affecting U.S. employees in Application Services," says an IBM document dated March 26 that has been obtained by InformationWeek. The cuts in GBS Application Services alone number 1,674, according to the documents, which show that the redundancies are wide ranging and affect IBM locations across the country.
In addition to the more than 600 IT specialists impacted by the restructuring, the layoffs cover a broad swath of other positions -- from 53 partners in the Security and Privacy Services group to one 58-year-old "teleservices professional." Other jobs axed include those of dozens of IT architects, sales specialists, managing consultants, systems analysts, and financial analysts. Not included in what IBM, which cut more than 4,000 jobs earlier this year, euphemistically calls a "resource action" are the unit's 10 VPs.
"My understanding is that it isn't targeting the people who have skills leaning toward federal or local governments," said Ben Pring, who follows the company for market research firm Gartner. "Outsourcing those jobs doesn't fly in the government context." An IBM spokesman declined to comment.
Ron Hira , an assistant professor of public policy at the Rochester Institute of Technology and author of Outsourcing America, said IBM has spelled out a plan to shift jobs to India and "they are executing on it: Jettison high-cost workers in the U.S. and substitute them for workers in low-cost countries like India." ...
IBM's offshoring could also raise questions about projects funded under the government's massive stimulus plan. "If policymakers want to create jobs with taxpayer dollars, then they ought to ensure this creates jobs in the U.S. and not in India or other countries," said Hira. "IBM is clearly trying to hide the fact that stimulus dollars it receives will actually create jobs overseas rather than here in America."
Here's the story. Most employers and workers don't realize it, but employer matching contributions are often wasted money. In the long term, investment expenses gobble up the employer contributions. Basically, those employer contributions don't go to the employee; they go to the financial services industry as fees for managing the money.
Outsourcing opponents also complain that the high-tech industry is using euphemisms like "rebalancing" to blunt the growing chorus of complaints about layoffs. Said IEEE-USA's Day: "Is 'rebalancing' the new 'downsizing'? We really don't know what that means." Regardless of how companies attempt to soft-pedal layoffs through terms like rebalancing and an another IBM formulation, "resource action," labor groups agree that the upshot is the same: You're out of a job. ...
Among those who have been highly critical of the Obama administration is Ron Hira, an assistant professor of public policy at Rochester Institute of Technology and co-author of Outsourcing America: The True Cost of Shipping Jobs Overseas and What Can Be Done about It. "American workers have no real representation in Washington," Hira wrote in a February column for EE Times. "While unions like Alliance@IBM are doing yeoman's work on labor issues, it's simply not enough; their ranks, and therefore their resources, are too small."
“When you have weak penalties and weak enforcement, that’s a deadly combination for workers,” said Representative George Miller, Democrat of California, who, as chairman of the House Education and Labor Committee, asked the accountability office to do the report. “It’s clear that under the existing system, employers feel they can steal workers’ wages with impunity, and that has to change.” ...
The report said undercover agents recorded Wage and Hour Division officials urging workers who complained to file lawsuits. And on one recording, an investigator appeared to back off quickly on demanding back pay when an undercover agent posing as a wage-violating employer said he was financially stretched. According to the report, the employer said, “Well, you know, like I said, all of our contracts have dried up, we really don’t have anything coming in, so. ... .” The investigator responded, “O.K., so you’re not in a position where you can pay him?” When the employer said no, the investigator seemingly gave up, saying he would let the worker “know that he has a private right of action to pursue the funds.”
The irony is these layoffs came a few days after IBM announced record profits. It was also around this time IBM CEO met with President Obama regarding the creation of future IT jobs within the US. I guess it was a great photo op for Sam Palmisano "IBM CEO" the photo's were splashed all over IBM internal web sites.
To get to the point within IBM there appears to be a disturbing trend. IBM is hiring foreign Post Docs on student visas such as H1B as supplemental workers; the older experienced US employees are asked to train them, after training IBM then layoff the older workers, after a certain amount of time to avoid litigation IBM hires full time the foreign Post Doc. This trend appears to be a way for IBM to get cheap foreign labor, I presume this may be the trend throughout many US companies.
As a NY State Congressman you should take heed and visit IBM Research Division Yorktown Heights NY and take careful note of the vast amount of IBM non US employees at this site, as compared to 5-6 years ago. The numbers are astounding.
A year ago last November an older IBM colleague and personal friend was laid off after IBM hired a foreign Post Doc. The older IBM'er trained the foreign Post Doc, the Post Doc then took over some of his tasks, eventually the IBM'er was informed that he will no longer be required and was laid off, he subsequently accuses his management of firing him in order to open a position for the foreigner, IBM management obviously denies the accusation. Well guess what: he was laid off. IBM after a certain period of time which probably avoids litigation concerns hire the Post Doc as a full time employee at a lower pay rate.
My case is similar, 2 years ago I worked with a excellent summer intern and recommended to my manager to hire this person. Last August he hired this person who is now a Post Doc and foreign national on a student visa working as a supplemental IBM employee. I was asked by my manager to train this person on very high tech specialized equipment. During this period after reflecting on what happened to my friend it crossed my mind that I may be training my replacement. Well guess what , I was right. I have been with IBM for 22 years and had excellent yearly reviews. My colleague was with IBM over 25 years and also had excellent reviews.
The US work force is in dire need of immediate assistance. Not only do you see foreign workers taking US high tech jobs it is the same story throughout all US industry. Last April I spoke with laid off construction workers in San Francisco California who are being replaced by mainly illegal latino's who are taking advantage of the sanctuary city policy and pricing local workers out of the jobs market.
My question is : WHEN and HOW or IF, you and your colleagues in Congress intend to address the sheer undermining of the US work force. Like most US citizens it is my opinion these concerns will fall on deaf ears. The US citizens approval rating for Congress clearly reflects my opinion. Prove me wrong
Pros of working for IBM: If you can start as an executive (VP in IBM speak) you can do no wrong. Mistakes are rewarded, and successes are greatly rewarded. If you are not a VP you will work with some of the smartest, nicest (for the moment) and least appreciated people you can imagine. But that is changing. The IBM US corporate culture used to be a culture of cooperation and working together for the benefit of all, and some of the old-timers still have that attitude lingering around. Try to work with them if you can find them, but their numbers are dwindling because...
Cons of working for IBM: The current IBM US culture is a culture of open competition beneath a veneer of civility. The 'nice guys' get laid off, leaving the schemers and back-stabbers and team leaders who understand that whomever reports the status of a project controls who stays and who goes. Lies are commonplace as no one ever tells bad news. Low level management is swamped, impotent, and powerless. Yearly appraisals are a farce - the ten percent 'fast-trackers' are openly praised and rewarded and everyone else is left alone or fired. There is no 'meritocracy' at IBM. A true meritocracy would know that it is possible for everyone to be meritorious, especially if you have hired the best people there are.
At IBM the appraisal system is more of a lottery where one out of ten is treated as a champion and everyone else, the other 90 percent, are considered not good enough. The 90 percent, the serfs, are expected to fight amongst themselves and compete for the prized top spots. Since the contest for top dog is rigged and secret with no clear metrics, the serfs pretty much ignore the ratings and do what they can. Why work hard when you aren't rewarded? Why work hard when It is easier to play games and surf the web and grab open source stuff and pass problems around. If your job is a game of musical chairs for a year and a mad scramble at the end to pick the loser then why bust your butt? If the stock slumps no matter what you do then why bust your butt? If the company doesn't care about you then why care about the company? Layoffs are kept as secret as possible and happen quarterly.
Actually the IBM management style is mostly secretive. Metrics change. What was good last year is bad this year. You never know where you stand. You may get a bonus 'variable pay' or get laid off. Management, even first line managers, are always 'somewhere else' talking about 'something else' and are hidden as much as possible. As a result fear is commonplace. It is every man for himself and nobody really knows what 'doing a good job' means anymore. Some of the best and brightest are laid off so what exactly does 'doing a great job' mean?
Advice to IBM Senior Management: I don't know if it is a blessing or it is a curse to have the knowledge of how great IBM used to be and how far IBM has fallen. You should be ashamed of yourselves, every one of you. Shame on you. You have taken a great company and turned it into nothing but a 'business case' for enriching yourselves at the expense of the workers, the customers, and the stockholders. You have lost touch with your humanity and you are cowardly hiding behind your layers of PR and huge layers of bureaucracy. During the Great Depression TJ chose to have himself and IBM be a leader. Now, at a time of similar need, you are showing your true nature and vision and it is sadly, sadly lacking. You think Africa is the growth market for IBM? You ignore the big, big changes that are already starting regarding the end of cheap energy and the need for carbon caps and smart grids?! Sadly, the answer is that IBM is nothing anymore, IBM is just another poorly run company with no vision and no leader trying to optimize an outdated and failed business model. -Left IBM 2/28-
There is no value for honesty and hard work in this company. Managers are not taught to respect and appreciate the ones that work hard for their efforts. When a contractor or an employee leaves the company after years of hard work for the project, there is not a single note of appreciation or notification to the team to let everybody know this. It is sad that there is no ethics in this workplace. While they leave behind so many households with no income, these executives celebrate on April 1st at RTP site with pancake breakfast ? What a Shame! -AngryCitizen-
But, like other people have written, ratings, skills, length of service, 60 hr work weeks don't mean anything, when upper mgt says heads have to roll, lower mgt has to roll the dice to see who gets whacked because all depts are at bare bones cream of the crop workers. I will at least have some money coming in from the pension but not a full pension because it is offset from the other company I once worked for. And that pension I can't touch until I'm 59 for partial, and 65 for full. I guess now I'll have time to go back to school and learn the Indian or Polis or Spanish or....... language and setup a company that will translate helpdesk calls. Or maybe I'll just join the circus. A real circus not the IBM one I got canned from. -Happy Man-
Well, now days, I work a nice 8:30 to 5:00 job five days a week about five miles from my house and my stress level is much lower. Each of you may face difficult challenges in getting to that next job or career, but it will come. For those of you that fault IBM management... Worry not, they are indeed unethical, greedy, bas****s that justify their actions by claiming that the company must come first (when what really comes first is their greed). But Sammy (and the rest of the losers) know deep down that they are hated by tens of thousands of current and ex-employees ... just like many of the dictators of our past . -lovinit-
While I feel, after ten years working in several countries under the ibm banner, that my "Resource Actioning" was nothing less personal than being delivered on the phone by someone I've never heard of before, the terms used in explaining the reason for my "RA" insulting even to a most mentally challenged chimpanzee (just tell me you are seeking equally skilled but less costly labor - pouring all over the news anyway - I can handle "the truth", I've been a solid contributor pbc2+over past years I know it can't be performance).
I still think that this is the capitalist, free market world that Americans have seemingly fought to create. Why do people assume that capitalism has to have a moral component? It is profit driven and hence amoral. I was not surprised. I've been a losing asset this year with bench time. Sadly there is no room for humanity in this system and I can't agree more with the insights of another commentator that IBM is taking advantage of the recession to execute pre-meditated plans since these are permanently lost not temporarily lost positions (but otherwise being filled in India). Similarly, the reason for the severance package is probably more for risk mitigation, and demoralized employees are less profitable. Either work on changing the system to be more human, "socialist" or accept the consequences of the current system when times are not rosy. It seems that in all cases exploitation always seems to find a way in. -Z-
People in the know actually plan to shuffle the deck to project them selves. I had a director friend in CHQ tell me how and why. There are groups of senior employees/managers that have realized that an old mission is always a target for a resource action and a new mission looks “new” and important. When enough time passes or they hear rumors, they simply re-organize from a vertical coverage model to a horizontal coverage model (or vice versa) shuffle managers and high band employees.
He said there is a reason you saw a bunch of band 10 job openings posted at the beginning of this year for a minimal horizon that were very specific (they were created for a specific person and a defense against RA actions). After all it’s tough to RA a person in a new job (perfect match) who is part of a new organization with a new mission. He said people with real operational jobs and clients can reorganize this way. -Anonymous-
|20 to 24||8|
|25 to 29||35|
|30 to 34||117|
|35 to 39||198|
|40 to 44||192|
|45 to 49||300|
|50 to 54||366|
|55 to 59||275|
|60 to 64||154|
|65 to 69||26|
|70 and up||5|
Are people filing with EEOC? http://www.eeoc.gov/types/age.html -Think-
It sickens me that Sam Palmisano stood next to President Obama and lied. He knew then that this was going to happen and he didn't care who it happened to because it didn't happen to him. Even if he were to be let go for any reason, he would get a severance package that would set him and his family up pretty for the rest of their lives.
I am just an employee number like the thousands of others in this situation,. They are offering access to “Project Match” calls – where you can work for IBM in other countries. However, it is at the local rate and is best suited for unmarried with no mortgages. It’s IBM’s sorry half-hearted attempt at trying to appear human and as far as I’m concerned, they have failed miserably. They don’t want to call it “layoffs” so they are calling it a “resource action”. If it looks like a duck and walks like a duck….. I want to know if there is a class-action lawsuit in the works, what everyone else is doing about this, and where I can sign up. -Anonymous-
There are a small number of people who do get internal job transfers during that time. In every case I know of (and I know a fair number) they have been hired by a management chain they previously worked with, and the VP has been prepared to make the case to HR for the transfer. And believe me, managers, and even VPs, have a very small number of chits they can or are willing to use, these days.
To give you an example. About 5 years ago - when things were much easier than now - we had a resource with a key skill set and valuable industry contacts who was stupidly caught in an RA. We found another 2nd line manager who needed that skill and those contacts, and had headcount and budget. But when that manager put through the personnel transfer, it was rejected ... turned out the person had been transferred to a department that did not exist, and so they could not be transferred out of that department. And then the manager was told to drop it, by the powers-that-be. We've sold nothing since in that industry in that geo. -- True story. --
Advice? 1. Don't waste your time looking inside. Unless you have pictures on someone. 2. If you still want to look - send an email to the manager asking them if they have intent and authority to hire and transfer within the next 30 days. If you don't get an answer (i.e., if you don't get an answer at all) saying "yes, absolutely, please apply" -- see #1. -Band-10-with-sources-
As someone else pointed out here earlier: Contact ALL the media orgs you can, and let them know that IBM jobs being offshored are NOT "low-skilled" or "low pay". How can between $40,000 and $100,000 be low pay? How can they be "low-skilled"?? Most people affected have college educations beyond 2 years... Rush Limbaugh never said anything good about unions or labor. I challenge the "ditto-heads" to come up with some radio clips of him doing so.... Yeah more than one! Geezuz this pisses me off! -I'mFuming!-
Well, MY retirement after 25 years is $532 per month.... Being single and without a surviving spouse, I took my cash vested interest of $100K when I left so if I died my kid would have something. But think of it--$100K for twenty-five years, exceptional employee, lots of rewards--I guess that comes out to about $4000 per year plus the measly $532 that we get monthly.
The IBM management is disgusting, and that's putting it mildly. They should be so ashamed. Liars, liars, liars--but I bet they bring up their kids to be 'good citizens.' What a joke! However, I feel good every night because I spend at least a few minutes writing to President Obama and my Congressmen and Senators and the message is simple--DO NOT GIVE IBM ONE CENT OUT OF THE STIMULUS PACKAGE--because if you do, then you'll be looking for a job just like everyone else you are reading about on this board is. Do NOT give these greedy fat pigs one penny!!! -Out in 2005 and happy-
The minute they can find someone to do your job for less in India or some other third world country, you can kiss your job goodbye. Even if the person doesn’t have your skills or expertise, it doesn’t matter. If the work they produce is crap, or is late, IBM will just tell the customer “Oh, well, you know how these complex technical projects go.” Then they will find someone else to clean up the mess. The customer will not be happy, but IBM will still get their money and Sam will still get his bonus. You, on the other hand, will get the boot. It’s just business. And more money for Sam. -Just Business-
You tell me - which of these companies has produced the most innovative products over the last decade? By the way - unlike the other three, Apple doesn't offshore their product development - it's all done in Cupertino, Ca. Also, when you call their tech support, you'll reliably get connected with someone who speaks English.So Americans aren't smart enough, or hard-working enough, or innovative enough? Ha! While I managed to dodge the bullet this time, I'm under no illusion that my luck will hold out forever. In the meantime, I'll be working hard getting my certs for supporting Apple products. Do I really want to continue making a living supporting products from companies that have profited by kicking Americans in the crotch at every opportunity? Nope, I'm going to be loyally pushing product from companies who have been loyal to us.When the inevitable occurs, I'm quite literally going to go peddle my Apples elsewhere. ;-) -Anti-American Business Machines-
Alliance if you are now hearing of this, then IBM must be enforcing their original rules once again. EVeryone else: Take this as a sign we are getting thru to IBM and they don't like it!!!!!!!! To the poor people affected by the RAs, please know that you can still voice your opinion anonymously. write on blogs, come here and vent. Also know, that if you talk to the news, they will keep your identity a secret. It probably wouldn't be smart to get your face on TV, but as long as you are anonymous, keep talking. It's the only way we will draw attention to this matter. IBM is all about FUD - fear, uncertainty and doubt. As long as they can keep everyone in the blue cloud, its in their best interest. We all know, ibm only does what's best for them, so do what's best for you!!! -miss understanding-
Alliance reply: Yes we have heard of this happening before. In fact we remember IBM telling workers they couldn't even say "offshoring"! We hope to get this up front and into the media again. Webmaster edit: Here's the email link to the MSNBC show Count Down. Try this.
President Bush let corporations do what they wanted because he wanted the "free market" to prevail. Now that the "free market" has run amuck and derailed the dreams of millions of Americans, it's time to get back on track to make sure Americans are getting the same priority as India and China. President Obama seems more open to dealing with this outsourcing nonsense than his predecessor. Contact your Congressman and get their attention.
For those of you still left in IBM, you need to get on board with the Alliance and give them the voice to act of your behalf. IBM told new managers years ago that Lee Conrad and the Alliance were to be ignored because a union wasn't needed within IBM. Now, with the constant layoffs and outsourcing, rank and file employees have no voice outside of the Alliance. I was RA'd in 2006 just 2 weeks after turning 50. If you don't think age discrimination is not part of the decision to lay people off, think again. It's not a performance issue. Wake up and come to your senses. And if you think it won't happen to you, you've got your head in the sand. -Been There-
All of the folks that have been screwed... and I mean that term wholeheartedly, will remember our treatment when we take on new roles. A good friend of mine just recently kiboshed a outsourcing deal with the company he joined. IBM is biting the hand that feeds them.. plain and simple.
For those of you that have been hit, DONT TAKE IT PERSONALLY...Your an IBM'er and still valued in the job market. The reputation is still not too bad out there, but its declining fast.
When I was interviewing.. I actually had folks state that they were sorry I worked there... called it a body shop as well as a sweat shop. Hold you head proud... your journey is just beginning. Get your resume updated, focus on core skills. If you had a hobby that you were interested in, see of you can develop it into a new career. Be forewarned that the IT market is tougher, but there are jobs. The recent economic crisis and the massive influx of H1B's and L1's has driven down the wages. Hate to be honest, but I need to be truthful. That doesn't mean you will take a pay cut.. there are some decent gigs out there. IBM was stagnant on their wages for a while, so you may end up with more money. Best wishes everyone...remember what sam has done to you when you get IBm knocking on your door at the new position. -sore sphincter-
I'm glad IBM doesn't do surgery - I'd hate to have people doing something so critical who haven't kept up to date. Sure, they may have the education and the degree, but their practicing on real people and real systems. I want to join the union, but I fear the money I have in my account may be needed to stretch out food for my family for a couple years. Actually, we would die after just a few months. Raises haven't kept up with cost of living so I find my money thrown at things that break and my grocery shopping has been for necessities only. The new political administration would probably think I was wealthy though - but unlike them, I've paid my taxes. -Nervous and Anonymous-
Mr. Schreiner is what’s known in the health care world as a “medical tourist.” No longer covered under his former employer’s insurance and too young to qualify for Medicare, Mr. Schreiner has a private health insurance policy with a steep $10,000 deductible. Not wanting to spend all of that on the $14,000 his operation would have cost stateside, he paid only $3,900 in hospital and doctor’s bills in Costa Rica. ...
At the moment, however, the bulk of medical tourism candidates are uninsured and underinsured people paying their own bills and looking for low-cost alternatives to American care. Medical tourism advocates argue that the quality of care overseas is often equal to or better than that in the United States. Many countries have high success rates, American-trained English-speaking doctors and the newest facilities, often built specifically to attract foreign patients.
Medicare Part D, the prescription benefit that went into effect three years ago, was supposed to let the elderly get their medicines more cheaply by creating competition between private insurers. Yes, the program has undeniably improved access to prescriptions. But the cost to taxpayers has been 3.5 times the market value of those prescriptions, according to a study in the journal Health Affairs.
Part of the problem was that insurance analysts saw a chance to double the size of the managed care industry. Drug companies stood to collect $30 billion in windfalls over the coming decade. So legislation was pushed, paid for and effectively drafted by thousands of lobbyists. Proposals requiring the government to use the buying power of 40 million Medicare patients to negotiate prescription prices were defeated. Pharmaceutical lobbyists fought for direct federal subsidy of drug benefits, knowing plans would be reimbursed no matter how much prices were inflated. Lobbyists also prevented identical but less expensive drugs from Canada and other countries from coming here. After arm-twisting that reduced at least one member of the House of Representatives to tears, the bill to expand Medicare passed at 5:53 a.m. on a November morning in 2003.
When the program went live in 2006, a fragmented market of 80 insurers — with 1,400 prescription drug plans — lacked the purchasing power to negotiate drug prices. Nor did those insurers have much reason to bargain, since Part D subsidized the most costly patients at 80 percent. So prices under Medicare private insurance plans for the top 10 medications shot up, and in 2006 the five largest drug firms notched a 45 percent spike in profits over the previous year. After insurers rushed to sign as many retirees as possible at attractive rates, they raised premiums 13 percent. Medicare patients in private plans cost taxpayers about 15 percent more than those covered under traditional government programs. ...
This year, total Medicare and Medicaid spending will probably account for nearly a quarter of all federal spending, and by 2016 it could rise to almost a third. Enlisting real competition will be crucial to containing costs. So before offering a new universal benefit for the millions of Americans who lack health insurance, Congress should put an end to manipulative profiteering in Medicare. As challenging as the program’s problems may be, they do not prove that a market-based approach can’t work.
About 20.7 million workers were uninsured in the mid-1990s. A decade later, it was 26.9 million, an increase of about 6 million, the study found. In the 1990s, there were eight states with 20 percent or more of the working-age population uninsured. Now there are 14: Alaska, Arizona, Arkansas, California, Florida, Georgia, Louisiana, Mississippi, New Mexico, North Carolina, Oklahoma, Oregon, South Carolina and Texas.
The Census survey counts people as uninsured if they were without health coverage for the whole calendar year. But many people are uninsured for several months, although not the whole year. Someone might even be uninsured from, say, March, 2007 to October, 2008, or a year and a half - but wouldn't count as uninsured in the Census numbers for either 2007 or 2008, since they had coverage for part of each year.
If you counted everyone who was without coverage for a month or more over 2007 and 2008, you'd get 86.7 million - or one American in three, according to the Families USA study, which draws on the same Census survey and two other federal government data sets. Of those, three-quarters went without coverage for six months or more. ...
There are so many uninsured, the report said, because "job-based health insurance is becoming increasingly scarce" as employers cut back, because rising premiums mean "more and more working families are being priced out of job-based insurance" and because safety-net programs don't cover all the people who need coverage.
But the insurance industry and others wary of too much government intervention vehemently oppose the idea. They say the heavy hand of the government will eventually push out the private insurers, leaving the government option as the only option. That is why the industry seems unwilling to give ground on the issue, even while making other concessions to national health reform — like the industry’s announcement on Tuesday that it might be willing to stop charging sick people higher rates than healthy customers. ...
But supporters of a public plan say that its low price would impose greater discipline on insurers by forcing them to keep costs in check and make their policies affordable — something they say commercial insurers have seemed especially unable to do in providing coverage to small businesses and individuals. “It would transform the market for private insurance,” said Karen Davis, the president of the Commonwealth Fund, a health policy research group. She estimates the average premium for a family of four would run around $9,000 a year under a public plan, in contrast to nearly $11,000 for a typical private alternative. The savings to the nation’s health care bill over the next decade could run into the trillions of dollars, she said.
"But dependency on government has never been bad for the rich. The pretense of the laissez-faire people is that only the poor are dependent on government, while the rich take care of themselves. This argument manages to ignore all of modern history, which shows a consistent record of laissez-faire for the poor, but enormous government intervention for the rich." From Economic Justice: The American Class System, from the book Declarations of Independence by Howard Zinn.
President Obama and others have asked that we act responsibly and reward those who work hard and achieve success. But that rule appears to have been turned on its head as far as the oligarchy on Wall Street. What the White House doesn't appear to understand is that you can't have one standard for 99% of America -- sacrifice, work hard, do your job right -- and another for the "Masters of the Universe" who run our financial system -- be greedy, screw up, and receive millions of dollars in "compensation" from the taxpayers. ...
...on Wall Street -- and the oligarchy -- a different standard applies: wreck our economic system to the brink of a total implosion out of greed, and not only will we keep you in your job, we will make the case (i.e., the White House and Geithner) that your "expertise" is essential to saving our economic system from disaster, although you are the ones that created the catastrophe.
But one particular aspect of it hasn’t received enough attention, and it really rubs me raw. It’s the rationalization that was made by AIG’s CEO, and then docilely accepted as truth by Obama’s top economic team. Their claim is that, since the bonuses were part of the employment contracts of the executives, everyone must now bow down and meekly pay up. Treasury Secretary Tim Geithner says he’ll prevent future AIG bonuses, but, alas, he shrugged, the sanctity of the existing contracts must be honored. “It would be legally difficult to prevent these contractually mandated payments,” he whimpered.
Come on, there are amoebas with more backbone than this! There is nothing sacred about a corporate contract – just ask union members and other workers. CEOs routinely abrogate legal contracts on wages, health care, and pensions for working folks. In fact, just last December, Washington demanded that car companies simply tear up their contracts with the United Auto Workers. Yet, suddenly we’re to believe that AIG’s contracts with these rich, incompetent investment bankers are so sacrosanct that even the President of the United States must stand impotently aside while they rob our public treasury?
Vault's IBM Business Consulting Services message board is a popular hangout for IBM BCS employees, including many employees acquired from PwC. Some sample posts follow:
A total of over 4,000 folks being let go. Here are the groups that will be hit hard:
The one group that may not be hit hard will be the BI group within CRM. They have a solid pipeline.
On many accounts and the internal account, US staff is preventing these failures from occurring. They need to allow the GR failures to occur regardless of impact to the clients and their business. IBM must be allowed to suffer the consequences of the shortsighted, "cut costs regardless of the impact" decisions the executives have made. Failure must be an option.
As if the horrifically language challenged H1-B resources were not enough, we had several offshore development resources. Not only were the time differences impossible to work with, these people were so utterly clueless about business process and even technology fundamentals such as UNIT testing reports that every single thing they sent us was utter garbage. I ended up spending countless hours on the phone (calling india on the client's time)/ email/ testing reports (yes as the PM) that the true cost of these offshore resources was nowhere near what was reported. When the client PM asked what I thought worked/ didn't work on the project, I told him he should ask for a true accounting of offshore efforts, not just the time they spend coding, but all the cleaning up of their S&IT afterwards. Would be very interesting.
Partners/associate partners who sell the projects would never tell the truth about true costs.
If I were in a client position, I would NEVER accept the offshoring model, knowing what truly goes on.
It goes so far beyond the shortsightedness of money grubbing executive decisions. As in many instances in the pig and other firms, they sell the shit projects and don't have to deal with the fallout. What ever happened to the concept of leading from the front? No wonder we can't as Americans win any wars, as a culture (business, professionally, personally) we just create crappy situations and let other people deal with the, ahem, opportunities we leave in their wakes.
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