IBM slashes more jobs in RTP

Submitted by scharrison on Tue, 03/02/2010 - 10:31am

And the offshoring beat goes on:

Local workers at IBM, one of the area's biggest employers, got hit by another wave of layoffs Monday. The extent of the damage from this round is not clear, but those notified will swell the ranks of the jobless already well-represented by castoffs from Sony-Ericsson, Nortel Networks, Lenovo and others. The cuts affected IBM operations across the nation, according to a labor union trying to organize IBM's workers.

"It's clear IBM is moving work offshore at a record rate," said Lee Conrad, national field coordinator ofAlliance@IBM. The union reported that IBM had cut more than 1,200 jobs in the U.S. and Canada as of Monday afternoon. Conrad said the total is likely to increase as more information is collected.

Those who have watched IBM's movements over the last few decades couldn't help but notice Big Blue's shameless dedication to offshoring American jobs, but their love for the practice is so strong they tried to patent a method for offshoring the maximum number of jobs while still qualifying for government handouts:

As IBM was firing thousands of American workers last week, the U.S. Patent and Trademark Office published Big Blue's application to copyright a computerized system that calculates how to offshore jobs while maximizing government tax breaks.

In their application to patent a "method and system for strategic global resource sourcing," five Hudson Valley IBMers describe how it weighs such plans as "50 percent of resources in China by 2010," against such factors as labor costs, infrastructure and the "minimum head count to qualify for incentives."

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Elaine Marshall has spoken to this

Submitted by Foxtrot on Tue, 03/02/2010 - 12:20pm.

One part of Elaine Marshall's economic/jobs plan speaks directly to what you have presented here about IBM shifting jobs overseas. Her suggestion may seem radical to some, and even though I have questions about giving tax credits in an effort to sway employers to hire new employees, to me I think she hits the nail squarely on the head. Quote below from another thread here on BlueNC on this issue about Elaine's proposal:

End Tax Credits for Sending Jobs Overseas — For too long, we have rewarded companies that send jobs overseas. We need to close these tax loopholes and instead reward companies that create jobs here. The word “offshore company” should refer to rogue companies who are damaging the American economy.

Stop Unfair Trade Agreements — We need to put an end to trade deals like NAFTA and CAFTA that destroy American jobs but reward shareholders. Trade deals need to take into consideration safety, workforce and environmental standards and trading partners that don’t enforce such regulations should be penalized.

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“Discussion is an exchange of knowledge; argument is an exchange of ignorance" __ Robert Quillen

As an IBM retiree I care deeply about IBM's continuing ability

Submitted by Stan on Tue, 03/02/2010 - 4:21pm.

to fund the commitments it made to it's workers. Back in the day when corporations offered retirement plans and continuing medical insurance assistance after retirement as part of the compensation plan, IBM made substantial commitments...which it has honored admirably.

While I dislike shifting jobs overseas, IBM has to compete in it's market and it's market and competitors are all (assumedly) working within the laws and limits established by our feckless Congress. I strongly doubt IBM lobbied for such things.

IBM had, and I assume still has, a strong presence in many countries because it is an International Corporation. It makes sense to hire people in places where you are also selling your products and services.

I'm sure IBM has it's faults. To my knowledge those faults have never included knowingly tolerating or sponsoring unethical behavior. I 'm reasonably confident IBM doesn't want to be unionized. In the past...and I can't speak to it currently...IBM's pay and benefits and fairness to employees (Open Door Policy, etc.) met or exceeded those of unionized companies. Employees didn't want a union.

Stan Bozarth

Don't take this the wrong way,

Submitted by scharrison on Tue, 03/02/2010 - 6:42pm.

but how about if you weren't a retiree, Stan? How about if you'd worked for IBM for ten or more years, then they had you "transfer knowledge" (train) your replacement from Mumbai or Buenos Aires, and then gave you your walking papers?

Not your IBM anymore

Submitted by BigBlueNoMore on Tue, 03/09/2010 - 9:49am.

Stan - This is no longer the IBM you worked for. The IBM culture has completely changed in the past 5 years. Workers with 25 to 30 years at IBM are feeling lost & disoriented because the culture is now one of win at any cost. Ethics, morality and IBM spirit of the past be damned. This not your father's IBM, this isn't even your IBM. This is an IBM that will cut your pension as soon as it is legally possible while making record revenues & record profits at the same time.

My advice to you is; Don't defend something you no longer understand.

OK...I can understand that.

Submitted by Stan on Tue, 03/09/2010 - 6:18pm.

I experienced some of the "win at any cost" during my time there and it wasn't pretty.

Stan Bozarth

That's sorta like asking Congress how they'd like it if all the

Submitted by Stan on Tue, 03/02/2010 - 7:07pm.

shit they legislate actually affected them in some way. Of course I wouldn't be happy. No one would be happy about losing a needed job...or having to train their replacement.

IF the laws of the land were properly constructed, this wouldn't be happening. It's like fair trade vs free trade. Our f....ing Congress did this. Let's not forget who the real assholes are.

Stan Bozarth

I agree

Submitted by scharrison on Tue, 03/02/2010 - 10:26pm.

Congress has spouted a lot of bullshit about protecting American jobs, but when you analyze the actual steps they've taken, a whole different picture emerges.

I couldn't agree more

Submitted by BigBlueNoMore on Tue, 03/09/2010 - 10:38am.

US Corporations are using the laws to their best advantage for generating profits,not jobs. And Congress is who created those laws (and loopholes) that corporations are using.