BlogWood: MT Archives

Why does the Tampa Tribune hate American workers?

And why don't major newspapers have a Labor section to balance their Business sections? Just wondering.

From the fawning tone of this article, it sounds like the Tribune is strongly in favor of moving high paying white collar jobs overseas. To be fair, this trend seems to have created at least 2 jobs in this area, so perhaps I’m being a little harsh?

...... a Siberian company has opened a Tampa office in the hope that the Russian region can find a niche in the multibillion-dollar market for outsourced computer programming and other information technology work.

Enterra Inc. opened its first U.S. office in Tampa this fall, with an eye on landing contracts with American companies for outsourced information technology work. Enterra says it employs 90 IT professionals at its offices in Siberia.
......

Today, Enterra is hoping to capitalize on the offshore outsourcing revolution sweeping across American industry.

Last year Forrester Research estimated that as many as 3.3 million U.S. jobs would move offshore by 2018. Of those, nearly 1.7 million will be office jobs and 472,000 will be computer-related jobs, Forrester reported.

Many of Enterra's projects for clients involve Web-based applications. For example, Enterra has been talking with a Denver-area company called Starkey International Institute for Household Management. Starkey trains butlers and ``household managers,'' to run estates for a wealthy clientele.

Enterra's computer program will aid household managers to record how homeowners want their food prepared or shirts laundered, Swengler said.
......

Like other offshore outsourcing firms, Enterra is offering cheaper labor than American programmers might provide. For example, its programmer fees run between $20 and $35 an hour, including all benefits. In comparison, an American programmer might charge $35 to $60 an hour, Swengler said. Still, he acknowledged Enterra's rate is significantly higher than many Indian programmers earn for simple computer coding projects.

Yeah, but when you consider the implications of an improperly starched shirt, you quickly come to realize that these Russians are more than worth the extra cost.Here’s Bob Herbert with a little reality check:

I.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.
......

"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.

But W and the mainstream press say the economy is in the midst of a strong recovery. Surely, there will be plenty of good jobs for those who want them, right? Uh, no:

It was a merry Christmas for Sharper Image and Neiman Marcus, which reported big sales increases over last year's holiday season. It was considerably less cheery at Wal-Mart and other low-priced chains. We don't know the final sales figures yet, but it's clear that high-end stores did very well, while stores catering to middle- and low-income families achieved only modest gains.

Based on these reports, you may be tempted to speculate that the economic recovery is an exclusive party, and most people weren't invited. You'd be right.

Commerce Department figures reveal a startling disconnect between overall economic growth, which has been impressive since last spring, and the incomes of a great majority of Americans. In the third quarter of 2003, as everyone knows, real G.D.P. rose at an annual rate of 8.2 percent. But wage and salary income, adjusted for inflation, rose at an annual rate of only 0.8 percent. More recent data don't change the picture: in the six months that ended in November, income from wages rose only 0.65 percent after inflation.

Why aren't workers sharing in the so-called boom? Start with jobs.

Payroll employment began rising in August, but the pace of job growth remains modest, averaging less than 90,000 per month. That's well short of the 225,000 jobs added per month during the Clinton years; it's even below the roughly 150,000 jobs needed to keep up with a growing working-age population.

But if the number of jobs isn't rising much, aren't workers at least earning more? You may have thought so. After all, companies have been able to increase output without hiring more workers, thanks to the rapidly rising output per worker. (Yes, that's a tautology.) Historically, higher productivity has translated into rising wages. But not this time: thanks to a weak labor market, employers have felt no pressure to share productivity gains. Calculations by the Economic Policy Institute show real wages for most workers flat or falling even as the economy expands.

An aside: how weak is the labor market? The measured unemployment rate of 5.9 percent isn't that high by historical standards, but there's something funny about that number. An unusually large number of people have given up looking for work, so they are no longer counted as unemployed, and many of those who say they have jobs seem to be only marginally employed. Such measures as the length of time it takes laid-off workers to get new jobs continue to indicate the worst job market in 20 years.

So if jobs are scarce and wages are flat, who's benefiting from the economy's expansion? The direct gains are going largely to corporate profits, which rose at an annual rate of more than 40 percent in the third quarter. Indirectly, that means that gains are going to stockholders, who are the ultimate owners of corporate profits. (That is, if the gains don't go to self-dealing executives, but let's save that topic for another day.)
......

The bottom line, then, is that for most Americans, current economic growth is a form of reality TV, something interesting that is, however, happening to other people. This may change if serious job creation ever kicks in, but it hasn't so far.

Herbert again, from a different column:

A couple of million factory positions have disappeared in the short time since we raised our glasses to toast the incoming century. And now the white-collar jobs are following the blue-collar jobs overseas.

Americans are working harder and have become ever more productive — astonishingly productive — but are not sharing in the benefits of their increased effort. If you think in terms of wages, benefits and the creation of good jobs, the employment landscape is grim.

The economy is going great guns, we're told, but nearly nine million Americans are officially unemployed, and the real tally of the jobless is much higher. Even as the Bush administration and the media celebrate the blossoming of statistics that supposedly show how well we're doing, the lines at food banks and soup kitchens are lengthening. They're swollen in many cases by the children of men and women who are working but not making enough to house and feed their families.
......

An executive at Microsoft, the ultimate American success story, told his department heads last year to "Think India," and to "pick something to move offshore today."
......

"If you take this to its logical extreme, the implications for the entire middle-class wage structure in the United States are terrifying," said Thea Lee, an economist with the A.F.L.-C.I.O. "Now is the time to start thinking about policy solutions."

But that's exactly what we're not thinking about. Government policy at the moment is focused primarily on what's best for the corporations. From that perspective, job destruction and wage compression are good things — as long as they don't get too much high-profile attention.
......

Globalization may be a fact of life. But that does not mean that its destructive impact on American families can't be mitigated. The best thing workers can do, including white-collar and professional workers, is to organize. At the same time, the exportation of jobs and the effect that is having on the standard of living here should be relentlessly monitored by the government, the civic sector and the media. The public has a right to know what's really going on.

Trade agreements and tax policies should be examined and updated to encourage the creation of employment that enhances the quality of life here at home. Corporate leaders may not feel an obligation to contribute to the long-term well-being of local communities or the nation as a whole, but that shouldn't be the case with the rest of us.

AFL-CIO

Communications Workers of America

Industrial Workers of the World