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Bracing for the Blow
The NY Times ^ | 122603 | Bob Herbert

Posted on 12/26/2003 5:27:45 AM PST by Archangelsk

Bracing for the Blow By BOB HERBERT

.B.M. has sent a holiday chill through its American employees with its plans to ship thousands of high-paying white-collar jobs overseas to lower-paid foreign workers.

"People are upset and angry," said Arnie Marchetti, a 37-year-old computer technician at I.B.M.'s Southbury, Conn., office whose wife gave birth to their first child in August.

The company has not made any announcements, and the employees do not know who will be affected, or when. The uncertainty about whose jobs may be sent to India or China, the two main countries in the current plans, has raised workers' anxiety in some cases to an excruciating level.

"I understand that this is a lightning rod issue in the industry," an I.B.M. spokesman told me this week. "It's a lightning rod issue to people in our company, I suppose. But I don't think anybody expects us to issue blanket statements to the work force about projections."

Referring to employees who may be affected by the plans, he said, "We deal with them as they need to know."

"Offshoring" and "outsourcing" are two of the favored euphemisms for shipping work overseas. I.B.M. prefers the term "global sourcing." Whatever you call it, the expansion of this practice from manufacturing to the higher-paying technical and white-collar levels is the latest big threat to employment in the U.S.

Years ago, when concern was being expressed about the shipment of factory jobs to places with slave wages, hideous working conditions and even prison labor, proponents said there was nothing to worry about. Exporting labor-intensive jobs would make U.S. companies more competitive, leading to increased growth and employment, and higher living standards. They advised U.S. workers to adjust, to become better educated and skillful enough to thrive in a new world of employment, where technology and the ability to process information were crucial components.

Well, the workers whose jobs are now threatened at I.B.M. and similar companies across the U.S. are well educated and absolute whizzes at processing information. But they are nevertheless in danger of following the well-trodden path of their factory brethren to lower-wage work, or the unemployment line.

The Wall Street Journal reported last week that I.B.M. had told its managers to plan on moving as many as 4,730 jobs from the U.S. The I.B.M. spokesman told me he was sure that figure was too high, but added that no one had complained to The Journal about the number. He said he didn't know how many American jobs would be lost.

I.B.M. officials are skittish to the point of paranoia on this matter, which has powerful social and political implications. Pulling the plug on factory workers is one thing. A frontal assault on the livelihood of solidly middle-class Americans — some of whom may be required to train the foreign workers who will replace them — is something else.

James Sciales was the first of the company spokesmen to respond to my inquiries this week. He was reluctant to even tell me his name and nervously refused to answer any questions. Another spokesman was willing to talk but asked that I not refer to him by name.

In a recorded conference call reported by The Times last summer, a pair of I.B.M. officials told colleagues around the world that the company needed to accelerate its efforts to move white-collar jobs overseas. They acknowledged the danger of a political backlash, but said it was essential to step up the practice.

"Our competitors are doing it and we have to do it," said Tom Lynch, I.B.M.'s director for global employee relations.

The outsourcing of good jobs has been under way for years, and there is no dispute that the practice is speeding up. "Anything that is not nailed to the floor is being considered for outsourcing," said Thea Lee, the chief international economist for the A.F.L.-C.I.O.

Most of the millions of white-collar workers who could be affected by this phenomenon over the next several years are clueless as to what they can do about it. They do not have organized representation in the workplace. And government policies overwhelmingly favor the corporations. Like the employees at I.B.M. whose holiday cheer has been dampened by uncertainty, these hard-working men and women and their families have little protection against the powerful forces of the global economy.



TOPICS: Business/Economy; Foreign Affairs
KEYWORDS: bigblue; ibm; layoffs; offshore; outsourcing; whitecollar
Although a whine, nobody can dispute the facts. My suggestion is to personally spend the 100K plus to retrain into growth areas (biotechnology comes to mind) before the fall.
1 posted on 12/26/2003 5:27:45 AM PST by Archangelsk
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To: Archangelsk
the livelihood of solidly middle-class Americans — some of whom may be required to train the foreign workers who will replace them — is something else.

Soylent Green is people!!!

2 posted on 12/26/2003 5:37:25 AM PST by Huck (F the terrorists! We are winning!)
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To: Archangelsk
"Our competitors are doing it and we have to do it," said Tom Lynch, I.B.M.'s director for global employee relations.

The outsourcing of good jobs has been under way for years, and there is no dispute that the practice is speeding up. "Anything that is not nailed to the floor is being considered for outsourcing," said Thea Lee, the chief international economist for the A.F.L.-C.I.O.

I should be so lucky!

3 posted on 12/26/2003 5:38:18 AM PST by Huck (F the terrorists! We are winning!)
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To: Archangelsk
Bet TOP management doesn't get outsourced
4 posted on 12/26/2003 5:43:02 AM PST by uncbob
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To: A. Pole; harpseal; RaceBannon
ping
5 posted on 12/26/2003 5:56:15 AM PST by Cacique
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To: All
"It's for the consumers." Hillary Stockholder.
6 posted on 12/26/2003 6:31:23 AM PST by WilliamofCarmichael
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To: Cacique
We have seen the enemy and they are us! First it was just the low level manufacturing jobs that were shipped overseas. Now it is the skilled jobs that are going. The only fly in the ointment is the fact that eventually the economic conditions in this country will eliminate the market that provides the profits for our overseas corps. The overseas corporations will then be forced to rely on the customer base of their poorly paid workers. Then is when the stuff hits the fan.

This is also when our huge government debt that relied on a well paid workforce to pay the bills goes sour. The rest is left to the imagination. This didn't have to happen, it was engineered by a government bought and paid for by corporations interested in short time profits. Examples to rely on are Japan and Argentina. People have to rely on their own ingenuity and self employment to prepare for the future.

7 posted on 12/26/2003 6:37:30 AM PST by meenie (Remember the Alamo! Alamo! One more time. Alamo!!!)
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To: Archangelsk
This article is also posted at DU and believe it or not the DUHers are blaming Clinton for signing NAFTA, GATT, and being too pro WTO. They think Perot must be in poor health because he's not out making noise about all the exported jobs.
8 posted on 12/26/2003 7:05:55 AM PST by NEPA
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To: meenie
RE: "People have to rely on their own ingenuity and self employment to prepare for the future."

Good reminder. Yankee ingenuity has always prevailed.

The only disappointment IMO is the shadenfreude crowd getting off by gawking at American men and women struggling to restructure our economy and build the future for America.

Let the free trade "Hillarys" keep repeating that offshoring is "for the consumers." Let them find their future consumers offshore.

9 posted on 12/26/2003 7:44:16 AM PST by WilliamofCarmichael
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Comment #10 Removed by Moderator

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