Thursday, June 29, 2006

Apple Abandons it's India Support Center Plan

BusinessWeek reports that Apple has shelved it's plan to build a support center there. Apple's reasons were not clear according to the report. They have laid off several workers there.

Could this be just the tip of the iceberg? Let's hope that others will follow Apple's leadership.

Wednesday, June 28, 2006

The Irony Continues

First, an article in BusinessWeek, IBM calls it's outsourcing "strategic people sourcing". What a nice term. Do you read low wages and lost jobs into the quaint phrase?

When the manafactuing jobs started to leave this country during the Clinton administration, the buzz was this was good for our ecomony, the workers of decent paying jobs would simply be retrained and earn even higher paying service jobs. As even more "free trade" agreements were signed, white collar jobs left our shores for low wage counties such as India. Now your taxes are reveiwed in India, by someone earning $12,000 a year that doesn't eaven pay US taxes.

Even worse, 40 states use offshore call centers for their unemployment compensation. This is so ironical, the government condones and even supports our jobs leaving this country, the displacement of our highly productive workforce and when these people who losst their jobs go to file for unemployment benefits they actaully working with the very people who displaced them. Not only did we lose the tax revenue from our workers, we pay (eaquals higher trde deficet) some cffshore company that does add to our tax coffer thats pays some low paid worker who also pays no taxes to the state. Wouldn't it make more sense to provide a job to a local worker and collect taxes to help relieve the burden to the state?

Sunday, June 25, 2006

Pensions - Hidden Burden

A Wall Street journal article in on Friday's front page discusses how big businesses are complainiing that pensions are making them uncompetitive in the market place. It's a very interesting article, in it they discuss items like GM cuts retirement for 42,000 workers, however the retirment plan for the "rank and file" works is flush with cash, "containing $9 billion more than need to meet thier obligations for years to come." Yes thats a 9 followed by 9 zeros.

Accourding to the article, what's hurting them is the executive pensions. That separate program is burdening GM by $1.4 billion and growing. Here's the most interesting quote of the feature "Even as many reduce, freeze, or eliminate pesions for workers-complaining of the costs- their executives are building up even bigger pensions, causing the companies' financial obligations for them to balloon."

It's an interesting article about how executive pensions are growing while the workers shrink. I highly recommend you read it.

Tuesday, June 20, 2006

Free Trade or Free Labor?

According to the China Labor watch, the average worker in China works 100 hours a week and earns 900 yuan a month, recieves no benefits, job security or a voice in their working conditions. Most are not earning enough to support their families.

How long can this last before the worker stands up and demands a competetive wage? Is this a stable economy in the mid to long term? If China tries to fix it, the foriegn investment will leave for cheaper markets.

In the meantime, Americans are losing thier jobs for what we would consider in our civilized society for near slave labor in China. If the average American realized the working conditions in the Far East, would they really buy goods in Wal*Mart?

You might find this report particularly interesting...

http://www.chinalaborwatch.org/upload/Wal-MartLungcheongReport.pdf

Monday, June 19, 2006

Exporting America

How many communities have been devistated by outsourcing and offshoring? Lou Dobbs does a great job in his book Exporting America describing what happened to towns like Sycruse, NY and Galesburg, IL.

I've created a link to Lou's site, it's worth the read.

Thursday, June 15, 2006

Ford Plans Future Expansion in Mexico

As Ford works hard to convince you it's an American company, the Detroit Free press has learned through a leaked document that outlines how it intends to invest $9.2 Billion into Mexican operations. According to the article that I read this morning in USA today, a plant that was planned to build in the USA could go to Mexico as well as significant other investments south of the border.

The document titled "Way-Forward-Mexico" shows how Ford could save $1.8 billion a year with the plan. A spokes person for Ford acknowledges the document but neither confirms or denies the plan is moving forward.

With the current cut-back in hourly workers and future investments moving to Mexico, whose going to be left that can afford to buy a Ford? Low paid Mexicans or unemployed US workers?

Wednesday, June 14, 2006

So Where do You Begin?

Ever time you make make a purchase you are making a choice. You pick out size, you determine if it's your style and color, how much can you spend. Yet many of us never stop to think where it was made and who made it. Was it made in a factory with proper lighting and saftey procedures? Was it made by an environmentally responsible company? Was it made by adult or child labor? Was it constructed in a sweat shop? We rarely ask ourselves these questions. Free trade is not fair trade.

You can use Google or MSN or any seach engine for "made in America" or "buy American" as a start. You can also take a look at Lou Dobbs site which I posted his link and look at whose exporting our jobs.

When you shop look for where its made and make your choice. The product you buy just might save your job, literally.

Tuesday, June 13, 2006

Michigan Governor Calls on Bush for Fair Trade

I spend a lot of my time in Michigan, so I pay attention to the politics there. I've not heard much that convinces their Governor understands how to attract jobs to the state which i s ranked as one of the worst states in economic development. But the last few days have have turned my head.

In her radio address to the State on June 9th, made a call to the President for fair trade, not free trade. Here's a quote from the State's webpage summarizing her address and actions;

“There is no question that Michigan has the best workers on the planet,” Granholm said. “But our workers and manufacturers need a level playing field. Right now, they’re being asked to play with one arm tied behind their back.”

Earlier this week, Granholm sent a letter urging the Bush Administration to use the new trade negotiations with South Korea to eliminate that country’s unfair trading practices so American and Michigan auto manufacturers have a fair opportunity to sell their products overseas. The Governor said any new trade agreement must lead to open and immediate access to South Korea’s market for domestic auto manufacturers.

Last year, South Korea sent 730,000 vehicles to dealerships across the United States, while the U.S. exported only 4,000 vehicles to South Korea. This is the result of South Korean trade barriers that discriminate against cars, trucks, and SUVs built right here in Michigan. “In a manufacturing state like Michigan, the automotive capital of the world, these issues are so important for our families,” Granholm said. “That’s why I’ll continue to be a strong advocate and a loud voice in favor of trade that’s fair to our products, our businesses, and our workers.”

Here's the link to the page if you wish to read it yourself;
http://www.michigan.gov/som/0,1607,7-192--145097--,00.html

We need more of this from the various states and our elected officials.

Monday, June 12, 2006

Our Auto Market

When I was young, many many years ago, the Japanese had just made significant inroads into the US automobile market. The over-confident Big 3 auto makers were making huge gas guzzling cars. The Japanese car makers were making these small gas efficent cars. The gas crisis hit and guess what cars were selling. Chrysler even required a government bail-out (meaning your tax dollars). BUY AMERICAN bumper stickers were prevailant everywhere.

Three decades later, the Big 3 are back to making even bigger cars and along comes three dollar and more a gallon gas. Foreign car producers are still kicking Ford and GMs butts. (I left Chrysler out as it's now foreign owned). For the most part the American manufacturer lost its competiteve edge and rely on rebates to sell their cars. Both Ford and GM are facing huge losses and the bonds are facing junk status.

With all that doom and gloom, there is still light. Ford and GM still produce some good models that are nearly competitive in the market today. The best thing you can do, if you are a concerned citizen such as myself is to look for American made products including your cars when making your next purchase. Buying American, like the old bumper stickers said, supports your friends and neighbors, reduces our trade deficit, and might even help keep your job here at home.

Friday, June 09, 2006

Alaskan Airlines

Today's my brother's birthday: he turned 57 at the stroke of midnight. So I am posting in his honor today. Last year, his job as a ramp worker for Alaskan Airlines, as all 472 ramp workers were at SeaTac, was eliminated for so called cost savings reasons. He worked for the company nearly 15 years. His job was contracted out to a British Company, who employees people at very low wages and pay virtually no benefits to them for the reason of cutting payroll.

I've been in business all my life, well my adult life, I understand the need for austerity in trying times. It's seems the management of Alaskan Air talks the talk, but doesn't walk the walk. While they were union busting executive compensation increased 15% or $52,000,000 from 2004 to 2005 according their annual report. They bust the union workers, and pay themselves shamelessly more!

As a side note, and not part of the intent of the blog. Seems to me the nation was quite upset about foreign ownership of our ports and the associated security risk. What about our airports? Thank you Alaskan Airlines for upping the risk to our nation.

How do you fight back. Show the airline you won't support such incongruence by flying airlines other than Alaskan.

Happy Birthday Rick!

Thursday, June 08, 2006

Delphi

The major auto parts manufacturer is in bankruptcy. The management team whose strategic thinking lead them into filing in the courts has asked for deep wage cuts from their employees. They've announce that only 6,000 of the 33,000 employees will be able to keep their jobs. Seems they want to offshore all the rest to be competetive, that's 17,000 jobs lost!

For leading the company into huge losses, for cutting the pay of the workers and for eliminating most of thier jobs, and closing factories in the US the compensation committee on the board of directors is paying out $100,000,000 in bonuses to the management team. Sounds like sound management to me.

Where is the corporate governance? What the major investors think of the plan? Who is who who accountable?

Wednesday, June 07, 2006

Choices

So how do you support jobs in this country? It's through choices in your purchases in your daily life. Do you know where that product you just purchased was made? If its made overseas in Asia, you are possibly supporting an American Company but you are also supporting the export of our jobs and your future. Look for products made with pride in our own country, the good ol' US of A. Sure they cost a little more, but that single purchase can protect another job right here in the states. The job you protect may be your own!

I am by no means a protectionist. I am, however, pragmatic and understand the difference between free trade and fair trade. Our labor being exported to countries that don't have the same or similar laws and structures do not constitute fair trade. No environment laws, poor health care and the lack of structured retirement accounts are not fair trade.

So make your choices wisely.

Tuesday, June 06, 2006

IBM to invest nearly $6B in India

I just read a snippet in the Money Section of today's USA Today that IBM "plans to invest $6 billion in India over the next 3 years underscoring the country's growing importance as a global hub for information outsourcing".

According to the article IBM already employs 43,000 in 14 cities. (That's 12% of IBM's employees that have been exported to India). How many more jobs will be lost in the USA for this important hub?

Question of the day: Do we as a society really benefit from the savings of cheap labor rates? Are our costs really lower? If so, by how much? What about the social cost of lost high paying jobs?

Why Did I Create this Blog

As a Concerned Citizen I'm watching manufacturing jobs, IT jobs and middle management jobs, to name a few, leave the USA for destinations across the globe, such as India and China. I'm also watching a deterioration of unskilled labor as millions of illegals find manual labor jobs displacing our citizens because they are willing to take less than a fair wage.

What are businesses doing in the USA that effect employment in the USA? What are our legislators doing that effect your jobs? What can you do as concerned citizens to protect American jobs? These are the critical questions I hope to address in this blog.