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CWA Goes on Strike at Verizon

At least one of he major issues between the Communications Workers of America Union and Verizon is the company’s shipping of call center jobs to India.

Lowell McAdam, CEO at Verizon has come under fire from Bernie Sanders for corporate responsibility, As McAdam points out – the company, unlike others does pay taxes, and does invest in America –

His first accusation – that Verizon doesn’t pay its fair share of taxes – is just plain wrong. As our financial statements clearly show, we’ve paid more than $15.6 billion in taxes over the last two years – that’s a 35% tax rate in 2015, for anyone who’s counting. We’ve laid out the facts repeatedly and did so again yesterday (see “Sen. Sanders needs to get his facts straight” at Verizon.com/about/news). The senator has started to fudge his language – talking of taxes not paid in some unspecified “given year” – but that doesn’t make his contention any less false.

Sen. Sanders also claims that Verizon doesn’t use its profits to benefit America. Again, a look at the facts says otherwise. In the last two years, Verizon has invested some $35 billion in infrastructure — virtually all of it in the U.S. — and paid out more than $16 billion in dividends to the millions of average Americans who invest in our stock. In Sanders’s home state of Vermont alone, Verizon has invested more than $16 million in plant and equipment and pays close to $42 million a year to vendors and suppliers, many of them small and medium-sized businesses. Just yesterday, we announced a $300 million investment to bring fiber to the city of Boston, which will make it one of the most technologically advanced cities in the nation and expand broadband access for its residents. Boston’s Mayor Walsh is partnering with us on this initiative, calling it crucial for providing the foundation for future technology growth. We’re making significant investments in New York City, Philadelphia and other metro areas throughout our wireline footprint.

Verizon is one of the top 3 capital investors in all corporate America.

True. But missing the fact that the reassembly of “Ma Bell” into a three headed monopoly on both wired and wireless services hasn’t done the county much good in terms of stimulating development of new technologies and specifically in the area of development of new businesses. That isn’t all Verizon’s doing. They have had a lot of help with that from techno-ignorant clowns on the Hill, and a compliant FCC.

Despite the worst efforts of the conservative Reich  – at least one union still survives in the US.

And yes, BTx3 is a former member.

Bernie shakes hands with the Picket Line

Tens Of Thousands Of Verizon Workers Go On Strike

Nearly 40,000 workers at Verizon have gone on strike, objecting to, among other things, outsourcing and temporary location transfers.

The two unions representing Verizon workers say their employees have been without a contract since August. They call the walkout, which began at 6 a.m. ET Wednesday, “by far the largest work stoppage in the country in recent years.”

NPR’s Joel Rose tells our Newscast unit:

“The striking employees mostly work in Verizon’s wireline business — landline phone, video and Internet — on the East Coast.

“The company says it’s offering a 6 percent raise, but needs to make what it calls ‘critical changes to its legacy contracts’ to reduce health care costs and retirement benefits.”

The unions — the Communications Workers of America and the International Brotherhood of Electrical Workers — say Verizon has made billions in profits, while still looking to spend less on employee benefits, Joel says.

Other objections from the union include offshoring of jobs, increasing use of contract workers and Verizon’s request for the ability to give workers two-month assignments that would require relocating — what the unions call “family-busting transfers.”

Verizon, which accuses union leaders of “ignoring today’s digital realities,” said Wednesday that it had indicated a willingness to enter into mediation if the unions extended their strike deadline, but that the unions refused.

The telecom giant says it is ready to serve customers during the walkout; a strike readiness team has been preparing for more than a year, the company said in a statement.

Thousands of nonunion employees have been trained as fill-ins, and they will be reassigning employees from elsewhere in the U.S. and other units in the company.

 
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Posted by on April 13, 2016 in American Greed

 

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Revenge of the Rust Belt

So now that US Industries have woken up – and finally started realizing that producing many products is cheaper in America…

Where are the new factories going?

Turns out, a majority of them are moving right back where they came from…

The Rust Belt.

During the 80’s and 90’s a lot of American business followed the cattle herd mentality in migrating manufacturing to China – or the next “best” onshore location – the American South. Now I don’t know if it was because at the time, Wall Street was sucking up all the smart MBAs with promises of making millions – or a failure in groupthink…

But a whole bunch of somebodies forgot to put the ancillary costs of offshoring into the equation. From lead laced toys damaging babies, to diaphanous intellectual property protections, to drywall which killed people because of the use of cheaper – poisonous chemicals… The real cost of manufacturing in China is much higher than the wage level would indicate. Thank goodness some folks finally got a clue.

The issue in the South is productivity. American productivity far surpasses that of any other country – and is significantly higher than Chinas. So while the payroll part of manufacturing in China is cheaper – the cost per completed piece is actually higher. Same issue in the South. When you start looking at where your educated workforce is…

It isn’t by and large …There. Meaning productivity is again higher in those old tried and true rust belt states. Further is the cost of conservatives. That is – as long as southern conservatives are dedicated to fighting the Civil War – the number of discrimination lawsuits, and level of employee friction is going to be through the roof, hampering full productivity. Lastly – as recent laws introduced and passed by conservative red state legislatures – such as the anti-immigrant legislation in Georgia where the state’s agricultural workforce was decimated…

You don’t know what stupid, business killing thing they are going to come up with next. Like declaring war on your largest foreign customer.

It’s early – but the “Rust Belt” right about now is looking pretty damn good.

The Revenge of the Rust Belt: How the Midwest Got Its Groove Back

We’re not used to thinking of the old industrial Midwest as a beacon of good news. Just the opposite. It’s Exhibit A in the story of America’s economic decline — a land of hollowed-out factory towns and shrinking cities. There’s an entire genre of photography dedicated to Detroit’s decaying cityscape alone.

Yet, it may be time to rethink that view. Because there are signs that the heart of the rust belt may be finally shaking off its rust.

For the past thirty years or so, there have been two great running narratives about American manufacturing, both of which have been disastrous for the Midwest’s economy. The first has been about the disappearing factory worker — how by shipping some jobs abroad and replacing others with machines, companies have figured out ways to produce more goods with millions of fewer employees on their assembly lines. The second narrative has been about migration — the decision by companies to move production away from once-booming industrial centers of the north, to southern states with weaker unions and lower wages.

Both of those trends, it appears, may have drawn to an end.  Read the rest of this entry »

 
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Posted by on May 27, 2012 in News

 

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Rising Like a Phoenix? US Economy…

World power swings back to AmericaThis may well just continue to work and turn the US economy around…

As long as conservatives don’t get elected to screw it up.

The fact is, it has now become cheaper to manufacture many products in the US than in China. Those companies who haven’t made plans to “inshore” yet may well be holding losing cards. This could have a net impact on the US economy of over 3 million new jobs in 3 years. Foreign based companies have figured it out, with both Asian and European companies flocking to build plants in America. You add that to the two major “bleeding edge” chip foundries being built right here in America – and there are some fundamental economic changes afoot.

No small contributor to this shift is that energy independence thing. The US isn’t very far from being able to be self-sufficient. There are humongous reserves of Natural Gas in the Midwest, and oil reserves beggaring those in the Middle East in the Gulf of Mexico. This should mean stabilized energy costs, no longer at the whim of some crackpot oil-can Dictator.

China’s counterfeiting and Intellectual theft issues are huge for tech industries, it is also impacting firm’s brand names. I for one, have never been convinced it was ultimately profitable to move any high tech or leading edge product production to China because of the theft issue. It really doesn’t matter if you can make a big screen TV 15 cents cheaper – if the manufacturer is making knockoffs, using your logo, and selling them $100.00 cheaper. I think it’s time to cut the George Bush (pick one) support system for China. They have a huge internal market, and there is no reason their economy should not be strong once the necessary changes are made in how their government works, and business is conducted are made.

World power swings back to America

The American phoenix is slowly rising again. Within five years or so, the US will be well on its way to self-sufficiency in fuel and energy. Manufacturing will have closed the labour gap with China in a clutch of key industries. The current account might even be in surplus.

Assumptions that the Great Republic must inevitably spiral into economic and strategic decline – so like the chatter of the late 1980s, when Japan was in vogue – will seem wildly off the mark by then.

Telegraph readers already know about the “shale gas revolution” that has turned America into the world’s number one producer of natural gas, ahead of Russia.

Less known is that the technology of hydraulic fracturing – breaking rocks with jets of water – will also bring a quantum leap in shale oil supply, mostly from the Bakken fields in North Dakota, Eagle Ford in Texas, and other reserves across the Mid-West.

“The US was the single largest contributor to global oil supply growth last year, with a net 395,000 barrels per day (b/d),” said Francisco Blanch from Bank of America, comparing the Dakota fields to a new North Sea.

Total US shale output is “set to expand dramatically” as fresh sources come on stream, possibly reaching 5.5m b/d by mid-decade. This is a tenfold rise since 2009.

The US already meets 72pc of its own oil needs, up from around 50pc a decade ago. Read the rest of this entry »

 

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