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3 Years After Taxpayer Bailout, Bank of America Ships Jobs Overseas[Philippines]
Mother Jones ^ | 29 May 2012 | Josh Harkinson

Posted on 05/29/2012 12:26:02 PM PDT by Theoria

Your account information will now be accessible to call center workers in the Philippines.

Bank of America, which last fall announced plans to lay off 30,000 workers, is about to go on a hiring spree—overseas.

America's second-largest bank is relocating its business-support operations to the Philippines, according to a high-ranking Filipino government official recently quoted in the Filipino press. The move, which includes a portion of the bank's customer service unit, comes less than three years after Bank of America received a $45 billion federal bailout.

Roman Romulo, deputy majority leader of the Philippine House of Representatives, bragged to the Manila Standard Today earlier this month that the Philippines "has secured its place as the world's fastest-growing outsourcing hub." Romulo pointed out that BofA is the last of the "big four" US banks to move their business-support network to his island nation, where the average family makes $4,700 a year.

A spokesman for Bank of America, Mark Pipitone, was unable to provide additional information about the bank's offshoring plans on Friday. "We have employees and operations where we can ensure that we best serve our customers and clients," he told me in an email.

The bank's outsourcing comes amid rising concerns about the security of customers' financial data in the hands of foreign contractors. In March, undercover reporters for England's Sunday Times met in India with "IT consultants" who claimed they were call center workers and offered to sell them credit card and medical information for 500,000 Britons—including account holders at major banks such as HSBC.

To prevent similar scandals from rocking the Philippines, Romulo is pushing a law that would require Filipino companies to "protect the integrity and confidentiality of any personal information collected from their clients, in compliance with international privacy standards," according to the Filipino television network ABS/CBN News.

US banks already are operating call centers in the Philippines, "despite the fact that they haven't actually passed this rudimentary legislation," says Shane Larson, legislative director for the Communication Workers of America (CWA), which represents 150,000 American call center workers. The Indian government is ahead of the Philippines in passing data privacy laws, notes the union, but those laws specifically exempt the call center industry. And that could lead to problems: In a 2005 survey by PricewaterhouseCoopers, 85 percent of the Indian outsourcing companies that responded said they had experienced information security breaches in the previous year.

In a 2010 report on the offshoring of technical jobs, New York's Department of Labor concluded that data security in the medical and financial fields is "of critical concern" and that "other nations' legal systems (especially in developing countries such as India) require reform to match that of the US with respect to privacy and computer security."

Needless to say, the outsourcing is bad news for an already hurting US call center industry, which has shed some 500,000 jobs during the past four years—about 10 percent of the total. The CWA hopes to reverse this trend by pushing the US Call Center and Consumer Protection Act, a bill that would make any company that outsources call center jobs ineligible for federal loans and grants.

In recent years, local governments in the deindustrializing Midwest have tried to boost their economies by luring call centers with generous tax breaks and economic incentives. T-Mobile, for instance, accepted more than $61 million in state and local recruitment subsidies to locate call center jobs here. But it recently announced it would close seven American call centers, putting around 2,000 people out of work—even as it continues to operate centers in the Philippines and Honduras. (The CWA called the company out in a recent report titled "Why Shipping Call Center Jobs Overseas Hurts Us Back Home.")

In addition to the "frustrations" of dealing with customer-service workers halfway around the globe, "there is the bigger picture of how opaque the process is, and, as a result, some of the security questions that are raised," says Larson of the CWA. "I think Americans deserve to know to whom they are speaking and to where their information is going."


TOPICS: Business/Economy; Culture/Society
KEYWORDS: bank; bankofamerica; boa; economy; outsourcing; philippines

1 posted on 05/29/2012 12:26:18 PM PDT by Theoria
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To: Theoria

There is an old adage. “Whats good for business is good for America.”Its simply not true. Sure there are plenty of reasons why companies move offshore but that does not make the statement any less false. Whats good for business is good for business and will remain so until we get unions under control and the government less involved in private enterprise.


2 posted on 05/29/2012 12:32:39 PM PDT by wiggen (The teacher card. When the racism card just won't work.)
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To: wiggen

I agree on the Gov’t, but we are experiencing record low union membership. Unions are dying.


3 posted on 05/29/2012 12:35:11 PM PDT by Theoria (Rush Limbaugh: Ron Paul sounds like an Islamic terrorist)
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To: Theoria

Bank America paid back their TARP they were forced to take- with interest

They are free to do business in the most economical way they can, to benefit their stockholders and customers

There may be fewer BoA bank clerks in the US but there will be more customer and stockholder wealth to spread into other opportunities

Capitalism is a grand thing - if we stop letting obamite liberals poison us to it


4 posted on 05/29/2012 12:37:31 PM PDT by silverleaf (Funny how all the people who are for abortion are already born)
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To: Theoria

I wander how many commies at MoJo buy American?


5 posted on 05/29/2012 12:40:12 PM PDT by Huskrrrr ( the will)
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To: Theoria

Instead of tax incentives for targeted enterprises, how about lower taxes on business (the U.S. currently is the highest in the world) and getting rid of the minimum wage. Boom. Jobs.


6 posted on 05/29/2012 12:40:12 PM PDT by jdsteel (Give me freedom, not more government.)
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To: silverleaf
'Capitalism is a grand thing'

Sure, we should have let them fail. We didn't.

7 posted on 05/29/2012 12:40:30 PM PDT by Theoria (Rush Limbaugh: Ron Paul sounds like an Islamic terrorist)
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To: Theoria
I wonder how many commies at MoJo buy American?
8 posted on 05/29/2012 12:40:57 PM PDT by Huskrrrr ( the will)
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To: Theoria
... we are experiencing record low union membership. Unions are dying.

"In 2011, the union membership rate--the percent of wage and salary workers who were members of a union--was 11.8 percent, essentially unchanged from 11.9 percent in 2010, the U.S. Bureau of Labor Statistics reported today.

The number of wage and salary workers belonging to unions, at 14.8 million, also showed little movement over the year.

In 1983, the first year for which comparable union data are available, the union membership rate was 20.1 percent and there were 17.7 million union workers.

UNION MEMBERS -- 2011

Currently there are ~154,000,000 in the civilian labor force.
9 posted on 05/29/2012 12:47:35 PM PDT by khelus
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To: Theoria

BoA was not failing (even though some of our present stalwart govt officials and their Goldman Sachs etc cronies were among the weasels who bamboozled Ken Lewis into taking on Merrill Lynch)

BoA was among the banks forced to take TARP money to disguise who was REALLY failing

Ken Lewis vowed to raise the funds to pay it back before he was forced out- and he did- despite obstacles the govt used to try and prevent TARP paybacks (obama can’ pwn a bank if if they didn’t owe the money)


10 posted on 05/29/2012 12:50:33 PM PDT by silverleaf (Funny how all the people who are for abortion are already born)
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To: Theoria

Yup. Under capitalism there is no TBTF.


11 posted on 05/29/2012 12:53:20 PM PDT by khelus
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To: Theoria

I will say A: not fast enough and B: too many times one reads an article where unions agree to cuts in labor force to save compensation package. They have helped kill themselves off. Make no mistake the union leaders don’t care how many workers they have only how many vote to keep them at the head of the union.


12 posted on 05/29/2012 12:55:23 PM PDT by wiggen (The teacher card. When the racism card just won't work.)
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To: wiggen
Yep. Unions will be replaced with nationalism.

As the world economies continue to tank. The siren call of protectionism will echo through the crowds.

13 posted on 05/29/2012 12:58:17 PM PDT by Theoria (Rush Limbaugh: Ron Paul sounds like an Islamic terrorist)
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To: Theoria

nothing but Mother Jones predictably pushing Obama to take a populist run at the banks


14 posted on 05/29/2012 1:11:46 PM PDT by Buckeye McFrog
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To: Theoria

“The siren call of protectionism will echo through the crowds.”

The crowds will be thinner; many Americans aren’t breeding as our economy reaches European levels of instability.


15 posted on 05/29/2012 1:42:27 PM PDT by kearnyirish2
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To: silverleaf

“where the average family makes $4,700 a year”

The customers and stockholders are increasingly foreigners as well; the American customers get threatened with $5 MAC card fees to further impoverish them.

Anyone who thought outsourcing to Third World countries would help the US in the long run is delusional. At least the call centers are closer to where B of A will actually have customers (Red China), while Americans are scrounging for wheat pennies and such to buy groceries.

We have built Asia while destroying ourselves.


16 posted on 05/29/2012 1:46:53 PM PDT by kearnyirish2
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To: silverleaf

They are free to do business in the most economical way they can, to benefit their stockholders and customers

There may be fewer BoA bank clerks in the US but there will be more customer and stockholder wealth to spread into other opportunities

Capitalism is a grand thing - if we stop letting obamite liberals poison us to it


I agree with what you’ve said. But if the high paying jobs all leave the U.S. then there will not be the money here to buy these companies products. You could say that would be an example of poor long-range business planning.

In the end it leaves a much poorer world economy. You can’t bring everyone up to a high standard of living by knocking down the ones that already are there.


17 posted on 05/29/2012 5:38:05 PM PDT by The Working Man
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To: The Working Man
What makes you think the BoA jobs migrating to the PI are the high paying ones? Call centers? What a shame, Susie won't aspire to a career goal of working in a BoA call center. Maybe she'll have to consider another career choice.

Jobs overseas create wealth for America.

They create wealth that enables people overseas to buy American goods and services...that boosts the value of our companies and their stock.

Of course we have to compete globally with China, India, South Korea and the like.
So..?

Protectionism is a failed idea. Ask the former American steel workers.

Do you think many US investors and pension funds own stock in BoA? If this boosts BoA bottom line it boosts every owner and investor. If not, then they vote out the BoA management or pull their money and invest elsewhere.

18 posted on 05/30/2012 6:07:48 AM PDT by silverleaf (Funny how all the people who are for abortion are already born)
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To: wiggen

To what union do BoA employees belong?


19 posted on 05/30/2012 6:12:48 AM PDT by Sirius Lee (When we cease to be good we'll cease to be great. Be for Goode.)
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To: silverleaf
So..?

American taxpayers are on the hook for providing a navy to protect those foreign assets. Shouldn't China or the Philippines float their own navies and fly their own airforces to protect BoA operations in Manilla?

Since Japan, China, Taiwan, the Philippines, Vietnam and S. Korea are our friends, we don't need both the 5th and 7th fleets there anymore. We can send the 5th home and park the 7th in the Sea of Japan off the nork coast.

Come to think of it, exactly what are we "defending" in the M.E.? Is it private property. Are taxpayer dollars being used to defend private property on foreign soil? Shouldn't the free market mavens who enjoy the profits gained on foreign soil just let the local governments protect them?

The day I don't have to spend one nickel to protect a privately own ship at an overseas port from pirates you can talk about "protectionism" but right now the argument falls flat. Right now we're subsidizing foreign operations.

20 posted on 05/30/2012 6:37:19 AM PDT by Sirius Lee (When we cease to be good we'll cease to be great. Be for Goode.)
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To: Theoria
Sure, we should have let them fail.

Why would you say that? Tens of thousands of people would have lost their jobs.

Bank of America was forced into that Merrill Lynch deal. When the head of the bank, under oath, admitted they were forced by the Obama administration the White House went into orbit and vowed revenge. Who's side are you on?

21 posted on 05/30/2012 6:44:12 AM PDT by ladyjane
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To: ladyjane
'Tens of thousands of people would have lost their jobs.'

It's not 'their' job. No one is entitled to a job. It's the companies.

As for BoA, they issued credit cards to illegals, they gave out mortgages like candy, they purchased ML[That deal was under Bush, not Obama], they are insolvent.

The market would have finished off their inefficiency, now they are larger and have more contagions. You and I will end up paying for their demise.

I'm on the side of free markets and against regulatory capture and crony capitalism. The Gov't 'picked' them as a winner and have 'loaned' out money to them, without any Constitutional authority. They have favored banks, while letting other businesses fail.

22 posted on 05/30/2012 7:02:23 AM PDT by Theoria (Rush Limbaugh: Ron Paul sounds like an Islamic terrorist)
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To: silverleaf

What makes you think the BoA jobs migrating to the PI are the high paying ones? Call centers? What a shame, Susie won’t aspire to a career goal of working in a BoA call center. Maybe she’ll have to consider another career choice.

Jobs overseas create wealth for America.


You misunderstand me, I didn’t say these were high paying American Style jobs. But they ARE/WERE jobs that were being done by Americans. Considering the dearth of jobs available for they former BofA workers to apply for then the likelihood is that they will not be working for some time to come and may end up on Welfare.

Also my own cousin who was a Manager for BofA had to train her Indian replacement before being shown the door and she wasn’t running a call center either. Her odds of getting a job with comparable pay is nil. Especially since she too is in her 50’s.

As she told me “Someday these jobs might come back. But the pay being offered will be nowhere near what they are getting now. And they will have takers for those jobs because hungry people will work for peanuts if that is a an improvement over their current situation.

Now don’t get me wrong, these are prudent business decisions. But they are SHORT TERM business decisions and will help the short term bottom line. But Americans for too long have been looked upon as the cash-cow of the world. Once the GOOD/average paying jobs are GONE then whose citizens overseas is going to be the cash-cow? Who here in America is going to buy the products made overseas? Welfare recipients using government dollars borrowed from other countries at soon to be exorbitant interest rates? What happens when those borrowed dollars aren’t available either? Few or perhaps no Jobs and no Welfare dollars, that makes a bad combination if you ask me.

If businesses and government don’t start looking at the LONG-TERM effects of their decisions then when those effects slam them in the face, they should not be surprised that short-term fixes won’t work anymore either.


23 posted on 05/30/2012 7:10:56 AM PDT by The Working Man
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To: Sirius Lee

My statement upon further perusal did not state the BOA employees belonged to any union.


24 posted on 05/30/2012 10:54:41 AM PDT by wiggen (The teacher card. When the racism card just won't work.)
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To: The Working Man

I wish your cousin well.
Maybe this is not a life loss for her, but a life opportunity.

Juliette Gordon Low, broken hearted, started Girl Scouts when she was 52,

Clara Barton started the American Red Cross when she was in her 50’s.

I, broken hearted, started a new family with 2 adopted kids.

Tell your cousin we all start over again every day
Too many of us are sleep walking through a mindless routine until we get a wake up call. .
Dont sleep-walk through another 40 years. Follow her heart. It will lead her.

and for the rest of it, read Harry Dent “The Great Crash Ahead” for what his demographic research suggests for the future of the world and US economy and society.

Bad times for many, opportunity for others. he may not be right about everything he predicts but... demography is destiny.

The growth in the population and wealth of the former 3rd world does not have to be a loss for America. Just another opportunity for those willing to take a shot at it.

How many buggy whip makers committed suicide when Henry Ford invented the first mass produced auto?
How many steam ship lines went belly up when Pan Am begin to fly passengers across oceans?
Who misses them?

Mother Thersa began hee missionary work at age 38
Jesus Christ began his at age 30 and died at about age 32

If your cousin looks around, there are kids in her neighborhood who cannot read or do math. She could help.
There are missions that need helpers. Yes it starts for free, but then where does it go? To a new purpose for her life? What is that worth?


25 posted on 05/30/2012 11:47:04 AM PDT by silverleaf (Funny how all the people who are for abortion are already born)
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To: The Working Man

I wish your cousin well.
Maybe this is not a life loss for her, but a life opportunity.

Juliette Gordon Low, broken hearted, started Girl Scouts when she was 52,

Clara Barton started the American Red Cross when she was in her 50’s.

I, broken hearted, started a new family with 2 adopted kids.

Tell your cousin we all start over again every day
Too many of us are sleep walking through a mindless routine until we get a wake up call. .
Dont sleep-walk through another 40 years. Follow her heart. It will lead her.

and for the rest of it, read Harry Dent “The Great Crash Ahead” for what his demographic research suggests for the future of the world and US economy and society.

Bad times for many, opportunity for others. he may not be right about everything he predicts but... demography is destiny.

The growth in the population and wealth of the former 3rd world does not have to be a loss for America. Just another opportunity for those willing to take a shot at it.

How many buggy whip makers committed suicide when Henry Ford invented the first mass produced auto?
How many steam ship lines went belly up when Pan Am begin to fly passengers across oceans?
Who misses them?

Mother Thersa began hee missionary work at age 38
Jesus Christ began his at age 30 and died at about age 32

If your cousin looks around, there are kids in her neighborhood who cannot read or do math. She could help.
There are missions that need helpers. Yes it starts for free, but then where does it go? To a new purpose for her life? What is that worth?


26 posted on 05/30/2012 11:47:28 AM PDT by silverleaf (Funny how all the people who are for abortion are already born)
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To: wiggen
My statement upon further perusal did not state the BOA employees belonged to any union.

Because unions have nothing to do with BoA offshoring the work that was up to now being done by Americans. You know that, right?

27 posted on 05/30/2012 2:22:47 PM PDT by Sirius Lee (When we cease to be good we'll cease to be great. Be for Goode.)
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To: khelus
Highlights from the 2011 data:

--Public-sector workers had a union membership rate (37.0 percent) more than five times higher than that of private-sector workers (6.9 percent). (See table 3.)

Private sector membership is less than 7%. You fail.

Freepers the union participation rate for the private sector is less than 7%. Commit it to memory.

28 posted on 05/30/2012 2:30:09 PM PDT by central_va ( I won't be reconstructed and I do not give a damn.)
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To: Theoria

Mother Jones is not a good source for facts let alone truth. They are a bunch of “long-haired, dope-smoking, maggot-infested, good time rock ‘n’ roll plastic banana FM types.” and proud of it.


29 posted on 05/30/2012 2:38:23 PM PDT by ThomasThomas (Entropy isn't what it used to be)
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To: central_va

Cool, you actually read the link.

Despite the globalist propaganda, union membership is not what is driving public sector work off-shore. It’s the lure of CHEAP labor. Marx would be delighted at ‘free traders’ speeding up the destruction of national boundaries and the onset of global communism by pursuing the unfettered movement of capital, freed from all political, national and religious shackles.


30 posted on 05/30/2012 3:17:58 PM PDT by khelus
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To: khelus
When private sector union membership disappears altogether the free traitors will need to find a new canard.

ca·nard   [kuh-nahrd; Fr. ka-nar]  Show IPA
noun, plural ca·nards  [-nahrdz; Fr. -nar]  Show IPA.
1.a false or baseless, usually derogatory story, report, or rumor.
2.Cookery . a duck intended or used for food.
3.Aeronautics .
   a. an airplane that has its horizontal stabilizer and elevators located forward of the wing.
   b. Also called canard wing . one of two small lifting wings located in front of the main wings.
  c.an early airplane having a pusher engine with the rudder and elevator assembly in front of the wings.

31 posted on 05/30/2012 3:24:55 PM PDT by central_va ( I won't be reconstructed and I do not give a damn.)
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To: wiggen
what would you want?....its not like call center workers make a mint of money and I'll bet most of them are not union.....I mean we are talking $15 bucks/hr....

so we can't even keep low paying jobs here in America now...

32 posted on 05/30/2012 9:38:26 PM PDT by cherry
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To: khelus

union membership of govt workers is ever increasing, since govt “work” is ever increasing....


33 posted on 05/30/2012 9:43:11 PM PDT by cherry
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To: Theoria
there will be no getting rid of govt unions....if we're lucky, the military won't go union, but the leftists are aiming just for that....

private unions may be going, but the public ones are getting stronger and bolder...

34 posted on 05/30/2012 9:46:18 PM PDT by cherry
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To: central_va
Otherwise known as:


35 posted on 05/31/2012 5:36:47 AM PDT by khelus
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To: cherry
What many who believe they are 'conservative' do not seem to realize is that the enemy within has been very successful in creating a story for the ‘left’ about economic, social, educational, and environmental ‘justice’, 'sustainability', 'concensus' and a story for the ‘right’ about ‘free trade’, 'comparative advantage', free movement of goods and natural persons, and 'profits uber alles' with no reference to patriotism or morality. Both stories lead to the same place - destruction of the American economy, security, traditional culture, values and its pesky middle class under the tyranny of global communism.

The 'left' call themselves progressives and put a D after their names; the 'right' call themselves conservatices/compassionate conservatives and put an R after their names. In reality the left and the right are one and the same. Only the window dressing is different. The right will do behind your back what the left does in your face. Neither side wants a strong sovereign United States.
36 posted on 05/31/2012 5:43:10 AM PDT by khelus
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