Category Archives: Outsourcing

August 23, 2016

Cisco Will Lay off 5,500 American Workers While Pushing for More Foreign Workers

The Cisco company has a history of laying off employees at the end of the fiscal year. They laid off 6,000 workers in 2014, 4,000 in 2013, and 6,500 in 2011. Yet, the company continues to apply for more H-1B visa workers and Cisco executive chairman and former CEO, John Chambers, has been a major backer of the tech industry efforts to persuade Congress to increase the national quota of H-1B visas.

Cisco Systems, Inc., a giant tech company, plans on laying off 5,500 employees or about 7% of its global workforce starting in the next few weeks. The Cisco company has been a champion for increasing H-1B visas and is currently the 28th biggest user of H-1Bs in the U.S.

The Cisco layoffs are just the newest in a growing national trend by many technology companies, such as Disney and Abbot Laboratories, to use visas like the H-1B visa to import cheaper labor instead of hiring American workers. In some cases, the employees were forced to train their replacements in order to receive their severance pay.

A 2011 study by the U.S. Government Accountability Office exposed how the H-1B visa was being exploited and showed that there was very little oversight of the program. According to the report the government doesn’t even know how many workers are actually in the U.S. on H-1B visas at any given time.


Complete text linked here.

July 1, 2016

Trump Brings Man Up On Stage Who Was Forced To Train His Foreign Replacement (Video)

The presumptive Republican nominee explained, “I want to introduce though a man that’s worked here for many years, Mike. And Mike actually had the distinct lack of honor of training people from Mexico to take his job.”

Near the beginning of his town hall event in New Hampshire on Thursday, Donald Trump brought up a man, named Mike, who said he trained his replacement when the factory closed down and moved to Mexico.

Speaking at the former Osram Sylvania Building, Trump said that the plant was closed and “139 workers went to Mexico, they also went to China.”


The real estate developer turned politician said that he met Mike when he asked for a photo. Trump said that Mike had a job for 29 years and “he took a large group of people, he trained them, they’re right now down in Mexico, the company moved to Mexico, he trained the people that took his job.”

When given the opportunity to have the microphone, Mike said, “I just like to say that I back Donald Trump 100 percent. America can be great again if we just give it that one good try.”


Complete text and video linked here.

June 14, 2016

Silenced Laid-Off Employees Growing Bold, Speaking Out

In February of this year, Abbott Laboratories, a global health care corporation, informed 150 technology employees at the headquarters office near Chicago, that they were being replaced – their work was being turned over to a company out of India – Wipro – but before they leave, they must train their foreign replacements.

Two months later, after transferring all their knowledge and instruction to their Indian H1B visa-holder replacements, the 150 American citizen technology workers turned in their badges and computer passwords and walked away – with a severance package guaranteed to keep them silent.

Mark Peña refused to sign it, choosing to forfeit the $10,000 severance package in exchange for the right to speak his mind about a job he had loved, and lost. He had worked for Abbot for 12 years, and said he didn’t feel right about signing the non-disparagement clause, as it would erode his rights.

Other workers are afraid to speak out, fearful the company will retaliate and sue them. One former manager, who had worked for Abbot for 13 years, had to take the package due to family medical expenses, said, “These visas were meant to fill gaps for resources that are hard to find. This time the company actually asked me to transfer my knowledge to somebody else. That changes the equation.”


Complete text linked here.

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.


Complete text linked here.

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.


Complete text linked here.

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.


Complete text linked here.

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.


Complete text and video linked here.

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.


Complete text linked here.