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Bracing for the Blow
NY Times ^ | 12/26/03 | Bob Herbert

Posted on 12/25/2003 9:46:24 PM PST by Texas_Dawg

I.B.M. has sent a holiday chill through its American employees with its plans to ship thousands of high-paying white-collar jobs overseas to lower-paid foreign workers.

"People are upset and angry," said Arnie Marchetti, a 37-year-old computer technician at I.B.M.'s Southbury, Conn., office whose wife gave birth to their first child in August.

The company has not made any announcements, and the employees do not know who will be affected, or when. The uncertainty about whose jobs may be sent to India or China, the two main countries in the current plans, has raised workers' anxiety in some cases to an excruciating level.

"I understand that this is a lightning rod issue in the industry," an I.B.M. spokesman told me this week. "It's a lightning rod issue to people in our company, I suppose. But I don't think anybody expects us to issue blanket statements to the work force about projections."

Referring to employees who may be affected by the plans, he said, "We deal with them as they need to know."

"Offshoring" and "outsourcing" are two of the favored euphemisms for shipping work overseas. I.B.M. prefers the term "global sourcing." Whatever you call it, the expansion of this practice from manufacturing to the higher-paying technical and white-collar levels is the latest big threat to employment in the U.S.

Years ago, when concern was being expressed about the shipment of factory jobs to places with slave wages, hideous working conditions and even prison labor, proponents said there was nothing to worry about. Exporting labor-intensive jobs would make U.S. companies more competitive, leading to increased growth and employment, and higher living standards. They advised U.S. workers to adjust, to become better educated and skillful enough to thrive in a new world of employment, where technology and the ability to process information were crucial components.

Well, the workers whose jobs are now threatened at I.B.M. and similar companies across the U.S. are well educated and absolute whizzes at processing information. But they are nevertheless in danger of following the well-trodden path of their factory brethren to lower-wage work, or the unemployment line.

The Wall Street Journal reported last week that I.B.M. had told its managers to plan on moving as many as 4,730 jobs from the U.S. The I.B.M. spokesman told me he was sure that figure was too high, but added that no one had complained to The Journal about the number. He said he didn't know how many American jobs would be lost.

I.B.M. officials are skittish to the point of paranoia on this matter, which has powerful social and political implications. Pulling the plug on factory workers is one thing. A frontal assault on the livelihood of solidly middle-class Americans — some of whom may be required to train the foreign workers who will replace them — is something else.

James Sciales was the first of the company spokesmen to respond to my inquiries this week. He was reluctant to even tell me his name and nervously refused to answer any questions. Another spokesman was willing to talk but asked that I not refer to him by name.

In a recorded conference call reported by The Times last summer, a pair of I.B.M. officials told colleagues around the world that the company needed to accelerate its efforts to move white-collar jobs overseas. They acknowledged the danger of a political backlash, but said it was essential to step up the practice.

"Our competitors are doing it and we have to do it," said Tom Lynch, I.B.M.'s director for global employee relations.

The outsourcing of good jobs has been under way for years, and there is no dispute that the practice is speeding up. "Anything that is not nailed to the floor is being considered for outsourcing," said Thea Lee, the chief international economist for the A.F.L.-C.I.O.

Most of the millions of white-collar workers who could be affected by this phenomenon over the next several years are clueless as to what they can do about it. They do not have organized representation in the workplace. And government policies overwhelmingly favor the corporations. Like the employees at I.B.M. whose holiday cheer has been dampened by uncertainty, these hard-working men and women and their families have little protection against the powerful forces of the global economy.


TOPICS: Business/Economy
KEYWORDS: freetradefetish; h1b; ibm; layoffs; outsourcing
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It's amazing how much Bob Herbert, a fringe leftist columnist at the New York Times, sounds like the paleo fringe at FR. Socialists all the same.
1 posted on 12/25/2003 9:46:24 PM PST by Texas_Dawg
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To: austinTparty; Poohbah; Dane; Coop; ArneFufkin; Jorge; expat_panama; Chancellor Palpatine; mhking; ..
We're all doomed.
2 posted on 12/25/2003 9:47:50 PM PST by Texas_Dawg (Waging war against the American "worker".)
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To: Texas_Dawg
sounds like the paleo fringe at FR. Socialists all the same

Perhaps it is better to be an employed socialist than an unemployed capitalist? Just a thought.

3 posted on 12/25/2003 9:50:47 PM PST by squidly (Although prepared for martyrdom, I prefer that it be postponed.)
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To: Texas_Dawg
What?!
The I.T. industry is laying off and off-shoring the work??!!
This completely takes me by surprise!!!
This is the first I've heard of it!!!
They must have just started doing this, like, FIVE YEARS AGO!!!
4 posted on 12/25/2003 9:51:23 PM PST by baltodog (When you're hanging from a hook, you gotta' get a bigger boat, or something like that.)
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To: squidly
Perhaps it is better to be an employed socialist than an unemployed capitalist? Just a thought.

Just like socialist leaders everywhere say.

5 posted on 12/25/2003 9:54:25 PM PST by Texas_Dawg (Waging war against the American "worker".)
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To: squidly
apytly said, as those displaced workers turned angry voters pull the lever for Hillary in 2008, or even Dean in 2004 if he can craft a message on this.
6 posted on 12/25/2003 9:54:39 PM PST by oceanview
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To: Texas_Dawg
Obviously it is better still to be an employed capitalist, but if the first two categories from my above post are the choices, who chooses the latter?
7 posted on 12/25/2003 9:58:16 PM PST by squidly (Although prepared for martyrdom, I prefer that it be postponed.)
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To: All
I guess the NYT has forgotten that IBM's going to hire 10,000 (Oct 15th) people this year.
8 posted on 12/25/2003 10:20:30 PM PST by lelio
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To: oceanview
apytly said, as those displaced workers turned angry voters pull the lever for Hillary in 2008, or even Dean in 2004 if he can craft a message on this.
-----

Thus far, none of the Democrats have shown a real interest in tackling this problem by enacting the one tool that will solve the problem: A widespread tariff on all goods and services that enter the United States.

In fact, Pat Buchanan is the only presidential candidate in my memory to take this threat seriously and propose doing something about it.

If Dean - or even Hillary takes a stand as a protectionist, I will vote for them - party affiliation be damned.
9 posted on 12/25/2003 10:22:57 PM PST by applemac_g4
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To: applemac_g4
actually, it doesn't have to be that widespread. we don't want the xmas tree light business back from china. but we don't want to send the entire semiconductor and auto manufacturing industries their, and all of IT to india.
10 posted on 12/25/2003 10:26:02 PM PST by oceanview
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To: lelio
well, the 4730 people in India moved to the head of that line I guess.
11 posted on 12/25/2003 10:28:27 PM PST by oceanview
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To: lelio
"I guess the NYT has forgotten that IBM's going to hire 10,000 (Oct 15th) people this year."

How many of these new hires will be Indian and Chinese citizens. Look folks. This does not just apply to IT workers. Anyone who works with data, like accountants and any telephone type workers are gone! Middle management is Gone! If you don't have to be there in person, YOU ARE GONE! Third world, here we come!

12 posted on 12/25/2003 11:18:53 PM PST by Desron13
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Comment #13 Removed by Moderator

To: Texas_Dawg
Yes we are.
14 posted on 12/25/2003 11:40:59 PM PST by Penner
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To: Texas_Dawg
And as part of your severance package, du-ude, You're gettin' a Dell!

But seriously, I recall reading that the outsourcing thing was not working so well, especially with technical support. If you think a mushmouthed ebonic accent dificult to understand, try Poona....

I read that Dell was moving away from this, so the sales guys must have found a new contract for the phone banks.

I also detect an undercurrent of 'unionize all the white collar jobs so the DNC can steal from their employees', too.

15 posted on 12/25/2003 11:43:31 PM PST by Smokin' Joe (This tagline manufactured in the U.S.A.)
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To: Texas_Dawg
And as part of your severance package, du-ude, You're gettin' a Dell!

But seriously, I recall reading that the outsourcing thing was not working so well, especially with technical support. If you think a mushmouthed ebonic accent dificult to understand, try Poona....

I read that Dell was moving away from this, so the sales guys must have found a new contract for the phone banks.

I also detect an undercurrent of 'unionize all the white collar jobs so the DNC can steal from their employees', too.

16 posted on 12/25/2003 11:43:35 PM PST by Smokin' Joe (This tagline manufactured in the U.S.A.)
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To: Smokin' Joe
New 'puter, new mouse. Memo to self, keep thumb off touchpad, one click only.
17 posted on 12/25/2003 11:45:59 PM PST by Smokin' Joe (This tagline manufactured in the U.S.A.)
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To: Desron13
How many of these new hires will be Indian and Chinese citizens.

-------------------

Don't worry about it. The only important thing is we captured Saddam Hussein. Nothing else counts.

18 posted on 12/26/2003 12:15:00 AM PST by RLK
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To: squidly; Texas_Dawg
Obviously it is better still to be an employed capitalist, but if the first two categories from my above post are the choices, who chooses the latter?

So now we got  unemployment down, the BLS reporting employment is higher than ever (even manufacturing improving)-- the nay Sayers are giving up on trying to say that lowering import taxes will kill us. 

But for pitty sakes lets not call for establishing a socialist state!!  Honesty from the dems/Buchanaites is refreshing, but it's time for another reality check:  under socialism the workers pretend to work, and the government pretends to pay. Higher taxes and big government do not make jobs.

Duh!

19 posted on 12/26/2003 3:53:36 AM PST by expat_panama
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To: applemac_g4
Thus far, none of the Democrats have shown a real interest in tackling this problem by enacting the one tool that will solve the problem: A widespread tariff on all goods and services that enter the United States.

You can't possibly think it works that way, can you? Man, that's scary.

20 posted on 12/26/2003 4:05:37 AM PST by Texas_Dawg (Waging war against the American "worker".)
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