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Tag Archives: job loss

How “Outsourcing” Has Killed the Middle Class

The twin demons destroying the American Middle Class are Offshoring, and “Outsourcing”. They call it the “Gig economy”, and to be honest it is pretty f’cked up for the employees.

Offshoring is responsible for the massive growth of the Chinese economy. Back during Clinton and Bushit American companies off shored all of the computer chip Foundries. This resulted in a massive growth in the Chinese economy, and left America without a foundry on American soil capable of producing the high density chips used in everything from TVs to our most advanced weapons systems. No wonder the Chinese Military has been able to upgrade their weapons systems and  launch Astronauts into space. We gave them the technology, all because of Wall Street greed and corporate avarice.

People work at SITEL, an outsourcing call center provider, in Managua, Nicaragua on July 3, 2012. [AFP]

A sweatshop call center in Nicaragua.

Worse was the loss of American jobs, manufacturing through the movement of factories off shore, and high tech through a combination of H1b Visas enabling companies to bring cheap workers over from India and other countries to displace American Graduates, and second “Outsourcing” where either American jobs were shipped overseas, or to sweat shops on American soil. This is the driver behind Trump, and Sanders, Unfortunately in Trump’s supporter’s case they would rather cling to their racism and blame minorities – than blame who is actually screwing them. Stupid is and Stupid does.

Surge in outsourcing wipes out middle-class jobs

For nearly 20 years Alfredo Molena made a middle-class living repairing bank ATMs in Los Angeles, despite being a high school dropout and immigrant from El Salvador.

By 2000 he was earning about $45,000 a year, enough to support his wife and two children in a spacious apartment and take periodic vacations to El Salvador and Hawaii. He had health insurance, a matching 401(k) plan, and a company-supplied cellphone and vehicle. But it all unraveled in 2005 after his employer, Bank of America, subcontracted the work to Diebold Inc., a firm specializing in servicing ATMs.

Today Molena drives a truck long-haul for about $30,000 a year, putting him in the bottom third of household incomes. He has no medical insurance. “I cannot afford it,” he snapped.

Globalization and the offshoring of U.S. manufacturing jobs to China and other cheap-labor countries are commonly blamed for driving down the wages and living standards of ordinary American workers, but there is another, less-known factor behind the shrinking middle class: domestic outsourcing.

Many jobs have been farmed out by employers over the years. No one knows their total numbers, but rough estimates based on the growth of temporary-help and other business and professional service payrolls suggest that one in six jobs today are subcontracted, or almost 20 million positions, said Lynn Reaser, economist at Point Loma Nazarene University in San Diego.

Separate Labor Department data show that some of these occupations have seen a significant decline in inflation-adjusted, or real, wages over the last decade.

In 2005, there were 138,210 workers nationwide who repaired ATMs, computers and other office machines, earning a mean annual salary of $37,640.

Ten years later, the number of such jobs had shrunk to 106,100, with most of them subcontracted at annual pay of $38,990. But after accounting for inflation, that’s a drop of about 15 percent from 2005.

By contrast, real wages for all occupations rose 1.3 percent between 2005 and 2015 � itself a tiny gain over the last decade, but still significantly more than those hit by domestic outsourcing.

“If a firm wants to save labor costs, outsourcing is just a way of resetting wages and expectations,” said Susan Houseman, a senior economist at the W.E. Upjohn Institute for Employment Research in Kalamazoo, Mich.

Unlike the effect of offshoring, with its relocation of jobs and plants abroad, economists know relatively little about the extent and effects of decades of subcontracting production and services to third parties in the U.S. But what research has been done suggests the practice has played a significant role in the nation’s troubling trends of stagnating wages and rising inequality.

Rosemary Batt and other researchers at Cornell University found that large employers at subcontracted call centers, for instance, paid their workers about 40 percent less than comparable workers employed in-house at large firms, not including the value of health and retirement benefits…Read the Rest Here

 
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Posted by on July 2, 2016 in American Genocide, American Greed

 

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Paypal Leaves North Carolina Over Anti-LGBT Law

Making bigotry (and stupidity) expensive…North Carolina just lost 400 jobs.

Now if Big Blue or some of the majors will pull out…

Now – if companies are willing to do this for LBGT people…Why not in states where minorities are persecuted? I mean…There are places I wouldn’t consider working because of economic or quality of life considerations. Quality of life also means the level of racism in a city. That impacts businesses ability to recruit and retain qualified and senior staff.

PayPal pulls plug on North Carolina unit to protest anti-gay law

Two weeks after unveiling plans to open a global operations center in Charlotte, North Carolina, that would employ more than 400 people, PayPal says it will instead look elsewhere due to a new state law that blocks anti-discrimination rules for gay and transgender people.

The legislation enacted by the state “invalidates protections of the rights of lesbian, gay, bisexual, and transgender citizens and denies these members of our community equal rights under the law,” PayPal said in a statement on Tuesday. “Becoming an employer in North Carolina, where members of our teams will not have equal rights under the law, is simply untenable.”

The law, approved by the state’s Republican-controlled legislature and Gov. Pat McCrory, came in response to a Charlotte City Council ordinance approved in February that would have extended protections to gays and lesbians, as well as bisexual and transgender people, at hotels, restaurants and stores. Charlotte also would have allowed transgender people to use restrooms aligned with their gender identity.

The law blocked Charlotte’s rules and prevented other local governments from approving similar ordinances.

The online payments company is joining a growing list of companies that oppose the law, with Apple (AAPL), Google (GOOGL), American Airlines (AAL) and Bank of America (BAC), as well as the state’s professional basketball team, among those calling for a repeal.

Atlanta’s mayor has reportedly banned taxpayer-funded travel to North Carolina over the law, following similar actions by officials in states including New York, Connecticut, Minnesota and Washington.

 

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Winter In America – the Recession’s Impact on Minorities

This is a discussion of how the “recession” has impacted the Minority communities.

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Posted by on August 28, 2009 in The Post-Racial Life

 

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