Category Archives: Outsourcing

April 2, 2016

Where’s the Presidential Debate on GM’s Crony Capitalism?

General Motors paid more taxes to China than to the United States, according to SEC filings. Keep in mind, GM got a $51 billion federal bailout. Are U.S. taxpayers the big losers in this deal?

In the 1950s, General Motors President Charles Wilson famously said: “What was good for our country was good for General Motors, and vice versa.”

You might do a double take on that comment after you venture a look at GM’s current remarkably low tax bill.

A dive into GM’s filings with the Securities & Exchange Commission reveals that while the carmaker makes nearly all of its profits in the U.S., it pays virtually no U.S. federal, state or local taxes. The carmaker paid just $5 million in federal taxes last year, its SEC filings show. For its total federal, state and local bill, all in, it booked zero taxes, the filings show. Meantime, in 2015, GM paid more than $908 million in taxes to China, due to its profits from its joint ventures there, the filings show.


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After Taxpayer Bailout, General Motors Plans Rollout Of Chinese-Built Buicks In America

In 2016, General Motors will roll out for the first time in the United States a new model of Buick built exclusively in China: the Buick Envision.

It’s the first time the iconic American auto manufacturer will sell cars built in China in the United States since receiving a sizable taxpayer-funded bailout at the end of the George W. Bush administration and beginning of the Barack Obama administration.

The Buick Envision–which was available in China for purchase as far back as 2014–will make its official debut in the United States in the summer of 2016.

The Buick Envision bills itself “a luxury crossover designed to turn heads and welcome you in.”

A quick search of “Buick Envision” leads to the Buick Envision’s website where one can explore all the features and design of the vehicle. The website doesn’t appear to make any reference to the fact that the Envision is manufactured in China.

The issue of U.S. auto manufacturers moving production facilities overseas has taken a center stage this presidential election, with the rise of both billionaire Donald Trump in the Republican Party and of Sen. Bernie Sanders of Vermont in the Democratic Party.


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March 29, 2016

The 89% Pay Cut That Brought Trump-Mania to America’s Heartland

Understanding the Republican candidate’s anti-free trade, working-class appeal.

Amid the rugged cattle farms that dot the hills of southern Kentucky, in a clearing just beyond the Smoke Shack BBQ joint and the Faith Baptist Church, lie the remains of the A.O. Smith electric-motor factory.

It’s been eight years since the doors were shuttered. The building’s blue-metal facade has faded to a dull hue, rust is eating away at scaffolding piled up in the back lot and crabgrass is taking over the lawn. At its zenith, the plant employed 1,100 people, an economic juggernaut in the tiny town of Scottsville, population 4,226.

Randall Williams and his wife, Brenda, were two of those workers. For three decades, they helped assemble the hermetically sealed motors that power air conditioners sold all across America. At the end, they were each making $16.10 an hour. That kind of money’s just a dream now: Randall fills orders at a local farm supply store; Brenda works in the high school cafeteria. For a while, he said, their combined income didn’t even add up to one of their old factory wages.

Just as the Williamses were being informed by A.O. Smith that they’d be let go, a young Mexican woman named Zoraida Gonzalez was hired some 1,200 miles away in the hardscrabble town of Acuna, just over the Rio Grande from Texas. To replace its Kentucky output, A.O. Smith was ramping up production in lower-cost Mexico, a move facilitated by the signing a decade earlier of the North American Free Trade Agreement. Gonzalez was brought in to help handle phone calls.


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March 14, 2016

Caterpillar announces production line moves from Joliet to Mexico

“This company has been a mainstay in Joliet. It was a part of how Joliet has grown,” Walsh said Friday. “At one time, it was the largest employer in the county. To kind of just turn their backs on it all for profit … It upsets me.”

Caterpillar Inc. has announced the company will move forward with a plan that includes the loss of 230 jobs from the Joliet plant and the move of two production lines to Mexico, according to a company statement released Friday.

The announcement comes just two months after the company first went public about a possible move from the Joliet area. A decision was expected by this month.

“The company has since completed all analysis and determined to remain cost competitive, it must move forward with the transition,” the statement read.

Under the plan, the company’s production of gear and engine oil pumps and valves will be moved to a sister plant in Monterrey, Mexico. The transition out of Joliet and into Mexico is expected to begin in late 2016 and be complete by mid-2018.

?The International Association of Machinists union represents workers whose union jobs are being eliminated. Caterpillar gave the union a 60-day notice when it first announced the possible move in January.

A call to the offices of Machinists Union District 8 for comment Friday was not returned.


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March 8, 2016

More American Workers Expected To Train Foreign Replacements

Large healthcare firm based in Illinois set to replace 180 IT employees with workers from India.

Seeing the corporate logo with the slogan, “A Promise For Life” every morning as they arrive for work has to sting for many employees now.

Abbott Laboratories, an American health care company based in Illinois, has 73,000 employees and operates in over 150 countries. On February 22, planned layoffs were announced to 180 IT employees in Illinois. Abbott has signed a contract with Wipro, a major IT firm in India. The workers last day will be April 22nd – and they are expected to train their foreign replacements.

They were given 60 days’ notice, and a severance package that includes six weeks of pay, plus a week of pay for each completed year of service. The severance agreement includes a non-disparagement clause that may make it difficult for employees to talk publicly about what happened. It also requires employees not to sue, including any legal action under the Federal Age Discrimination Employment Act.

Employees are distraught, depressed, angry and worried about losing homes and paying medical expenses. “All the big companies are sending jobs to India — how are we going to find a job at another company?” said the IT worker. “It’s going on everywhere. Nobody is stopping it.”


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March 1, 2016

Video: Disney Workers Assail Rubio in Front of Thousands

At Donald Trump’s Sunday rally at Madison City Stadium, two of Sen. Marco Rubio’s own constituents–former Disney workers Leo Perrero and Dena Moore–detailed on camera and to the entire crowd why they are endorsing Donald Trump for President.

Moore and Perrero were laid off by Disney and replaced by foreign guest workers brought into the country on the wage-depressing H-1B visa. Before they were let go, however, they were informed that they’d have to suffer the humiliation of training their lesser-skilled foreign replacements in a process known as “knowledge transfer.”

While Donald Trump has called on Disney to hire back every one of its workers and has pledged to stop H-1B American job theft as president, Marco Rubio has pushed to expand the controversial program. As recently as last year, Rubio introduced a bill– endorsed by Disney’s CEO Bob Iger via his immigration lobbying firm– which would triple the issuances of H-1B visas. Disney is one of Sen. Rubio’s top financial backers.

At Sunday’s rally Trump slammed Rubio for prioritizing the interests of his donors at the expense of his own constituents:

You can ask the Disney folks, you can ask the people who came up [on stage] who were just killed at Disney– killed– with their being replaced. They have to change jobs. They have to train people. And you heard the story– you know who was in charge of that and the biggest proponent of doing that is? Little Marco Rubio. I mean this guy is bad news.


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February 29, 2016

Displaced Disney Workers: Shame on You Marco Rubio; We Stand With Trump

The Disney workers were introduced at the rally by their attorney who is representing them in their discrimination lawsuit against Disney, Sara Blackwell. In her introductory remarks Blackwell explained, “The thing about Trump that’s different than anybody else is that he can’t be bought. We have a chance to stop this problem in America. It’s got to be by a president and politician where they won’t be bought by Disney’s Bob Iger or by Mark Zuckerberg of Facebook, by all these billionaires who benefit from firing our American workers.”

At Donald Trump’s Sunday rally at Madison City Stadium, Sen. Marco Rubio’s own constituents—two displaced Disney workers—publicly denounced Rubio for prioritizing the interests of his big business donors over the interests of his own constituents. The two endorsed GOP frontrunner Donald Trump for President.

Dena Moore and Leo Perrero were two Disney workers who were informed that they were going to be laid off during the holiday season of 2014. They—along with scores of their colleagues—were told that before they were let go, they’d be forced to train their low-skilled foreign replacements brought in on H-1B visas. Earlier this week, Perrero testified before the Senate Judiciary Committee about the humiliation he was forced to endure by training his foreign replacement. While Donald Trump has called on Disney to hire back all of these workers and has pledged to end H-1B job theft as President, Sen. Marco Rubio has pushed to expand the controversial H-1B program—he has introduced two bills that would dramatically boost the issuances of H-1Bs. As recently as last year, Rubio introduced a bill—endorsed by Disney’s CEO Bob Iger via his immigration lobbying firm—that would triple the issuances of H-1Bs. Disney is one of Sen. Rubio’s top financial backers—having donated more that $2 million according to Open Secrets.


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February 27, 2016

Displaced Florida, Disney worker details humiliation of training foreign replacement (Video)

Disney displaced American workers and forced them to train their foreign replacements, many of whom were flown in specifically to take their job.

February 26, 2016

Laid Off Disney Worker Will Tell Congress: ‘Disney Is Not An Anomaly’

“I started to think what kind of American was I becoming?” Perrero says in his testimony. “Was I going to become part of ruining our country by taking severance pay in exchange for training my foreign replacement? How many other American families would be affected by the same foreign worker that I trained? Sadly, I choose the money over America.”

One of the workers Disney fired and forced to train his foreign replacement is scheduled to testify before Congress Thursday, when he will share his story and plead with lawmakers to recognize it as part of a nationwide problem with the H-1b visa program.

“This situation at Disney is not an anomaly,” Leo Perrero says in prepared testimony obtained by The Daily Caller News Foundation. “This same abuse of the H1B program is happening nationwide.”

Perrero was laid off just ahead of the holidays in 2014 and then forced to train his foreign replacement on an H-1b visa, before he and hundreds of other IT workers at Disney in Florida left their job. He had been at Disney for more than 10 years and received outstanding performance reviews, and actually thought he was being called in for a pat on the back when his boss laid him off.


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February 22, 2016

QVC Laying Off 220, Shipping Jobs to Poland

Some had been with the company since the 1980s, a source said.

QVC is laying off 220 people as it ships parts of its HR, IT, finance and legal departments to Krakow, Poland. Approximately 100 people at the company’s West Chester, Pa. campus are expected to lose their jobs. There are also 40 layoffs in the U.K., 70 in Germany and 10 in Italy.

QVC CFO Ted Jastrzebski broke the news to Pennsylvania workers on Wednesday, leading some long-time employees to get emotional, according to a source familiar with the situation. Some of the terminated employees had been with the company since its very first years in the late 1980s, the source said.

The layoffs are expected to begin no earlier than January 2017 and will be a gradual process.

A QVC representative said in a statement that the company is “always evaluating the structure and scale” of the organization and now plans to establish a “global business services organization” in Poland.

“The global business services model is part of QVC’s long-term strategy to continue modernizing how we operate as a global entity,” the statement said. “It will provide more efficient and streamlined business services in order for QVC to stay competitive and continue expanding globally.”


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