Category Archives: Outsourcing

October 8, 2015

Toys ‘R’ Us Forces U.S. College Grads To Train Their H-1B Foreign Replacements

She told the Times, “I felt like, ‘Why am I sitting here showing this man how to do my job when they are taking it away from me and sending it to India?’”

Toys “R” Us is the latest in a string of U.S. companies that has been caught forcing their American employees to train foreign college-grads to take the Americans’ jobs, via a process known as “knowledge transfer.”

An expose by the New York Times revealed in detail how the renowned children’s toy-chain brought in eight workers from the global outsourcing company Tata Consultancy Services (TCS). The Indians shadowed employees, mainly in accounting, and produced intricate manuals for TCS workers in India to take over these jobs. By late June, the jobs had been transferred overseas and 67 employees had been laid off from Toys “R” Us, many of whom had reportedly been at the company for over a decade.

One accountant, age 49, who had been with Toys “R” Us in New Jersey for over 15 years, explained how she was shadowed, for four weeks, by a young woman on a temporary visa from India.

“She shadowed me everywhere, even to the ladies’ room,” said the accountant.

“We were asked to cooperate and show them respect and train them to do our individual job functions… If you didn’t cooperate, you would be asked to leave,” said another former company accountant, age 36, who worked there for nearly 12 years.


Complete text linked here.

September 28, 2015

Congress Set to Make it Cheaper for Companies to Replace American Workers

With one of the most innovative and productive workforces in the world, government policies should nurture our homegrown talent, not cut their legs out from under them by allowing companies unfettered access to cheaper foreign workers through the deeply flawed H-1B visa program.

The threat that the H-1B visa poses to American workers has recently received national attention after several high profile instances of companies using the visa to replace American workers. Late last year, Disney laid off 250 IT employees and replaced them with H-1B visa holders from an India-based staffing firm. Just this past February, Southern California Edison also laid off 500 IT employees and replaced them with H-1B visa holders from two more Indian staffing firms. In both of these instances, employees who were later laid off were required to train their cheaper, similarly skilled foreign replacements. Although many members of Congress expressed outrage at the time, they’re now ready to ensure that the H-1B visa is an even cheaper tool for eliminating American jobs.

In 2010, Congress approved a $2,000 fee for every H-1B visa application submitted by firms that have at least 50 percent of their employees on the visa—known as an H-1B dependent employer. The fee raises between $70 million and $80 million annually, and has mostly been paid by the India-based staffing firms that help companies utilize H-1B. Yet the fee is set to expire on October 1, and no one in Congress is making any effort to stop it.


Complete text linked here.

September 12, 2015

Educating Our Adversaries

Why educating foreign STEM students is bad for American workers and national security.

On September 3, 2015 Immigration and Customs Enforcement (ICE) issued an important news release, “SEVP releases quarterly report on international students studying in US: 9 percent increase in international students, 32 percent increase in students from India since 2014.”

Here is an excerpt from that news release:

Based on data extracted from SEVIS July 7, there are more than one million international students, using an F (academic) or M (vocational) visa, enrolled at nearly 9,000 U.S. schools. This marked a nine percent increase when compared to July 2014 data.

Seventy-six percent of all international students were from Asia. The top 10 countries of citizenship for international students included: China, India, South Korea, Saudi Arabia, Canada, Japan, Taiwan, Vietnam, Mexico and Brazil.

India and Vietnam had the greatest percentage increase in students studying in the United States at 31.9 and 25.9 percent, respectively, when compared to statistics extracted from SEVIS July 2014. The University of Southern California, New York University, Columbia University, the University of Illinois and Purdue University ranked one through five among U.S. schools with the most international students.


Complete text linked here.

August 5, 2015

Nabisco Ships 600 Jobs to Mexico. Time To Give Up Oreos

The result: a loss of 600 well-paying and community-sustaining jobs on Chicago’s Southwest Side.

I may have to give up one of my longest-standing indulgences: the dunking of an Oreo cookie in cold milk (whole is preferred). I don’t do this lightly, as I have been dunking those deliciously wicked rounds of chocolate and what I choose to believe is cream since I’ve been three.

Why give them up? Because this week, Irene Rosenfeld, the head of Mondolez (the food conglomerate based in Illinois that has Nabisco in its portfolio), a woman touted for breaking the glass ceiling upon becoming the head of Kraft Foods and then its spin off, announced that rather than invest $130 million in modernizing the plant in Chicago, where Oreos have been lovingly produced for the past 100 years, she will instead move the jobs to a new factory in Mexico.


Complete text linked here.

June 18, 2015

Disney Cancels Plan to Replace Tech Workers with Immigrants

“We were told our jobs were continuing and we should consider it as if nothing had happened until further notice.”

After outrage over a mass firing in January, Disney suddenly–and without explanation–canceled its plan to replace even more American tech workers with immigrants.

In January, Disney informed 250 technology employees that they must train their replacements: immigrants, mostly from India, brought in by a global outsourcing company under the H-1B visa program. Despite widespread pushback in the tech world, Disney announced another set of layoffs in May, this time impacting 35 employees.

Though the training for the immigrant substitutes had already begun, Disney has suddenly reversed course, recently informing employees that they would keep their positions. The NY Times reports:

In late May, about 35 technology employees at Disney/ABC Television in New York and Burbank, Calif., received jarring news. Managers told them that they would all be laid off, and that during their final weeks they would have to train immigrants brought in by an outsourcing company to do their jobs.

The training began, but after a few days it was suspended with no explanation. In New York, the immigrants suddenly stopped coming to the offices. Then on June 11, managers summoned the Disney employees with different news: Their layoffs had been canceled.


Complete text linked here.

June 10, 2015

Disney ‘blacklisted displaced American employees’ (Video)

After tech workers forced to train foreign replacements.

The American tech workers Disney laid off in January after forcing them to train their foreign replacements were put on a “black list” that disqualified them from hire by any contractor that works with Disney, emails obtained by The Daily Caller News Foundation between one of the laid off workers and a recruiting firm show.

The worker, who asked to remain anonymous because he is waiting on legal advice, learned of the black list when he sent his resume and performance review to a local IT recruiting firm that wanted to place him with a company contracting with Disney.

He had plenty of past experience doing similar work for Disney contractors, and had received the highest possible rating on his performance review, so he thought he would be a top candidate for the job.


Complete text linked here.

June 4, 2015

NYT: Laid Off Disney Employees Made to Train Foreign Replacements

“The Most Magical Place On Earth” has been a dark setting for the Disney employees who were laid off and forced to train their foreign worker replacements.

In a fresh account of a story heard with ever more frequency — that of foreigners on temporary visas replacing American workers — The New York Times offers details on last year’s layoffs of some 250 Disney employees and their replacement by immigrants on H-1B visas.

Many of the laid off employees were subsequently required to train their replacements.

“I just couldn’t believe they could fly people in to sit at our desks and take over our jobs exactly,” one former worker, an American in his 40s, told The Times. “It was so humiliating to train somebody else to take over your job. I still can’t grasp it.”

H-1B visas have been at the center of an ongoing immigration debate, with tech companies champing at the bit to expand the availability of these high skilled visas, while critics argue they are serving to displace American workers with cheaper, foreign replacements.

The Times’ report highlights a few recent examples of large firms giving American employees the boot and then turning to foreign labor contractors to fill their slots, including Southern California Edison, Fossil, Northeast Utilities, and now Disney.


Complete text linked here.

May 10, 2015

Congress prepares to outsource itself

Curtis Ellis cites powers turned over to supranational commission under TPP.

Congress is getting ready to outsource itself.

Outsourcing has long been a dire threat to Americans who work for a living outside the Beltway. It hit blue-collar workers when companies took plants in Baltimore and moved them to Bangladesh. Countless thousands of white-collar Americans were kicked to the curb when tech companies brought in “temporary workers” from overseas.

Congress helped the process along with so-called free trade deals that are good for corporate campaign donors even as American workers “take it in the backside,” as Mike Huckabee so eloquently put it.

Now the chickens are coming home to roost, and Congress is next in line for outsourcing. Like the tech worker forced to train his cheaper foreign-born replacement, Congress is preparing to outsource itself.

The instrument Congress will use to destroy itself is the Trans-Pacific Partnership, a sweeping regulatory agreement involving 12 countries on three continents. It is, as Sen. Jeff Sessions correctly describes, one of the largest international compacts in the history of the United States. Its rules impact immigration, energy, environment, property rights and states rights.


Complete text linked here.

May 5, 2015

Senators scheme to import more foreign workers

Top CEOs, mayors in secret meeting to push Rubio’s ‘job-crushing’ legislation.

A group of business leaders and progressive mayors is hosting a closed-door meeting in Washington today, pushing for a big increase in the number of foreign “guest workers” allowed into the United States to fill skilled positions.

The lobbying group, Partnership for a New American Economy, includes CEOs from Disney, Microsoft, Hewlett Packard and Marriott International among others, along with liberal mayors and former mayors like Julian Castro of San Antonio, Rahm Emanuel of Chicago, Annise Parker of Houston and Michael Bloomberg of New York City.

A complete roster of PNAE’s membership rolls can be viewed on its website.

The main issue to be discussed at the secret meeting is how to gain passage of the I-Squared bill sitting in the U.S. Senate, co-sponsored by Sens. Marco Rubio, R-Fla., Orin Hatch, R-Utah, Jeff Flake, R-Ariz., Chris Coons, D-Del., Amy Klobuchar, D-Minn., and Richard Blumenthal, D-Conn.

The I-Squared bill would more than double the number of H-1B work visas handed out to foreigners with a bachelor’s degree or higher in a STEM field. The U.S. currently allows 65,000 of these visas per year but the corporate lobby is pushing Congress to up that number to at least 115,000 and possibly as high as 200,000, claiming there is a shortage of American tech workers with STEM degrees (science, technology, engineering and math).


Complete text linked here.

March 26, 2015

Obama to Expand Visa Program Allowing Foreign Workers to Displace Americans for Third-World Wages

President Barack Obama vowed to expand an obscure visa program on Monday which would allow employers to circumvent prohibitions on using cheap foreign labor to replace American workers.

“My administration is going to reform the L-1B visa category, which allows corporations to temporarily move workers from a foreign office to a U.S. office in a faster, simpler way. And this could benefit hundreds of thousands of nonimmigrant workers and their employers; that, in turn, will benefit our entire economy and spur additional investment,” Obama told an applauding audience at the Gaylord National Convention Center in National Harbor, Maryland.

Companies may hire college-educated aliens through either the H-1B program or L-1 visas. While the H-1B visa program was capped by law after 2003 to 65,000 admitted applicants per year, not counting generous exemptions for nonprofit “research,” the L-1B program is essentially limitless. There is no law demanding companies pay their new L-1B labor force prevailing wages. Foreigners from countries such as India may work in the U.S. for as many as seven years for wages that would insult American workers who completed several years of debt-financed education.

Back in 2003, Bloomberg Business ran an expose on the collaboration between India’s largest IT consulting firm and the engineering corporation, Siemens USA. Stymied by H-1B strictures, the company decided to lay off American, taxpaying workers for more docile and less expensive foreign labor using L-1B visas.


Complete text linked here.