U.S. companies are forcing workers to train their own foreign replacements

Axios ^ | Dec 29, 2019 | Stef W. Kight

[NobleFree]

Opponents of job outsourcing are making a holiday-season appeal to President Trump: Stop U.S. companies from forcing American workers to train the very same cheaper foreign laborers who will soon replace them.

Why it matters: Trump promised voters he'd end abuses of worker visa programs and save U.S. jobs — but as he campaigns for re-election, advocates say he hasn't done enough.

Driving the news: AT&T is poised to send thousands into the new year hunting for new jobs after assigning them to train their own foreign replacements, according to conversations with current and former workers and documents obtained by Axios.

• Many have worked for the company for over a decade. They aren't being offered severance or early retirement, and may not easily find a comparable job elsewhere with similar pay.

What they're saying: Sara Blackwell, a Florida-based lawyer who represents Americans displaced by workers on visas or overseas, told Axios: "American workers are tired of waiting for President Trump to do something on this issue."

• "They’ve gone from great hope in President Trump's administration, to great discouragement."
• She sent letters to Sen. John Cornyn (R-Texas.), Texas Gov. Greg Abbott and Dallas Mayor Eric Johnson, as AT&T is headquartered in Dallas.
• She also met this month to discuss the problem with White House officials.
• The White House did not respond to a request for comment.

Details: Despite receiving a $3 billion tax cut last year, AT&T announced new and expanded alliances with big outsourcing companies to replace workers with foreign or cheaper domestic talent.

• Like many major U.S. companies, AT&T has been shifting jobs for years now — but 2019 was especially noteworthy, as workers claimed that as many as 3,000 finance jobs were being outsourced to Accenture. AT&T denied the 3,000 figure, but declined to provide Axios with its own number.
• AT&T also signed multi-year deals with IBM, Tech Mahindra and Amdocs this year. Accenture, IBM and Tech Mahindra were in the top 10 companies to request H-1B high-skilled worker visas this year.
• "We are continuously working to be more efficient in our operations," AT&T's Jim Kimberly told Axios. When possible, AT&T is "helping employees find other positions within the company,” he said.

Current and former Department of Homeland Security officials who spoke to Axios expressed frustration that more isn't being done to keep foreign worker visa programs from undercutting U.S. workers.

• Lawmakers have signaled bipartisan support for reforms to high-skilled immigrant visas that could help.
• For years now, the Trump administration has talked about policy changes such as ending work authorization for the spouses of certain H-1B visa holders. But the proposal prompted outrage from tech giants, and it has yet to be finalized.

By the numbers: There are few comprehensive studies and little agreement on the scope of the phenomenon, experts told Axios, because contracts and outsourcing processes are typically kept quiet.

• Blackwell said past contracts she's seen lead her to believe that as many as nine in 10 of those impacted by AT&T's outsourcing may end up training foreign replacements.
• It's a common business model that's been used by other U.S. companies, including Disney, Verizon, Bank of America, Toys 'R' Us and Southern California Edison.

What they're saying: Axios spoke with workers who have already transitioned or will switch in January to working for outsourcing companies.

• Three current or recently-fired AT&T employees broke down in tears during telephone interviews.
• Typically, workers are guaranteed 12 months at the outsourcing company, after which they will likely be let go.
• Only a handful are offered severance or early retirement.
• "Folks aren't going on vacation, they're cutting back on their Christmas shopping," one person said. "If you know that you're going to be losing your job, you don't want to spend the money."

How it works: Workers may be assured their job will not change when they are "rebadged" to work for a contractor. "The sad reality is you’ve just been terminated without your severance," said one worker Axios interviewed. "You’re at the mercy of a company that doesn’t really want you."

• Workers described shock and confusion when they were told during a scripted phone call that after a decade or longer at AT&T, they'd have to work for a contractor or resign. Some were told they could not apply for other jobs inside AT&T.
• Some were told they were needed for a "knowledge transfer" — then tapped to train people on work visas or overseas who would replace them.
• A presentation obtained by Axios outlining the knowledge transfer process for AT&T and Accenture includes a slide on how to interact with Indian workers.

[hoosierham]

Damn autocorrect.

I said crapping and I meant it.

[NobleFree]

who has said conservatives shouldn’t support Trump?

How about telling us who to vote for? Maybe no one else, just stay home?

Off your meds again?

[NobleFree]

attacking Trump

Have a hankie, snowflake.

[BobL]

It’s an ELECTION YEAR...so who’s your candidate?

...or do you just want us to think Trump is a failure and that we should just stay home.

Interesting that you started posting (under your present name), JUST AFTER the 2016 election.

[Dartoid]

Think again. Know for a fact

[HereInTheHeartland]

Well$ Fargo does a huge amount of mortgage loan processing work in India. Workers in India are are indexing and calculating mortgage loan applicants income from tax returns and W2’s that the applicants submit.
India is also now ordering the appraisals and ordering insurance binders.

[hoosierham]

Sometimes you choose the candidates that share some of your values rather than letting a candidate who despises everything you value. Trump was and is better than any others who want to be President at this time.

[jurroppi1]

If they aren’t offering severance or anything in return, what keeps people there other than laziness or fear of the unknown? If they took my benefits, rebadged me and asked me to train my replacement I’d tell them to eff themselves. Where is the incentive to do anything else?

[NobleFree]

do you just want us to think Trump is a failure

Me, 5 days ago (https://www.freerepublic.com/focus/news/3803199/posts?page=13#13):

“Unlike prior Republican presidents who nominated some judges that were judicial activists, President Trump has consistently nominated people who are committed to originalism. Judges who interpret the law according to the Constitution are critical for maintaining the rule of law and the proper balance of the three branches of government. President Trump is already creating a legacy that will last for decades.”

More winning!

When you've wiped that egg off your face: Have anything to say about the subject of the thread?

[T. P. Pole]

Re: token compensation -

Actually, the whole thing is kind of goofy. Thankfully my division was not directly involved, but a group we work closely with was. They sent letters to the “lucky” selected. Included in the letter was an insistence of non-disclosure of the terms. But the terms leaked anyways.

We used to have a rather generous severance package for RIFs. My understanding is the “bonus” for training your replacement was significantly less than the previous severance package. Like 5-10k verses a week or two per year of service.

Since these guys were generally over 60 and had 20+ years of service (some approaching 40 years), severance would have been many times that number.

One thing to mention - we as a company have been concerned about our aging staff. There clearly is a need to train a “rising generation” to replace these guys, who would be retiring naturally in the next 5-10 years anyways. But the way this is being done is rather tone-deaf.

[jurroppi1]

Let them lay you off (RIF), take the unemployment benefits and retire afterward if you are able - force their hand. I’ve seen tons of people do it and I’ve only seen a few that asked to be included in a RIF be denied.

[NobleFree]

Sometimes you choose the candidates

This is a thread about immigration policy, not choosing candidates ... whatever you've seen from a certain snowflake.

[BobL]

So you cover your Trump-bashing posts, that still doesn’t negate them.

[NobleFree]

A hankie would cover your tears, snowflake. I've never "bashed" Trump as a real man understands the term.

[BobL]

I think there’s an effort on the part of the NeverTrumpers to get Trump supporters disillusioned with him and not show up in November, rather than to outright tell us who’s better, since there isn’t anyone better (as shown here).

As we get closer to the election, we all need to call out these people, rather than let them and their tactics go unchallenged.

[Nifster]

It’s Axios. Most of what they are reporting here is years old news

[goodnesswins]

Microsoft did that to a friend of ours (and his co-workers) in about 2008

[steve8714]

Work visas are not transferable, are they?

[impimp]

Never protect anyone’s job is my motto. As long as America has that principle we will thrive.

You sound like the people who were upset at farm machinery taking people’s jobs 100 years ago.

[steve8714]

Many IT people work contract for good money; quit and go with one of the many agencies who do that. Often they may even work remote.