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Highlights—June 5 , 2004

In Memoriam—President Ronald
Reagan, 1911-2004
- Washington Post: Actor,
Governor, President, Icon. Excerpt: Even Reagan's critics acknowledge that he
was a masterful political performer. Theodore Roosevelt termed the presidency a "bully
pulpit," and Franklin D. Roosevelt gave this pulpit a new dimension in the radio
age with folksy "fireside chats." Reagan, a former Democrat who had voted
three times for FDR and admired him, adapted the bully pulpit to television. He sometimes
borrowed directly from FDR. A refrain that became a frequent punch line of Reagan's
1980 campaign speeches -- "Are you better off today than you were four years
ago?" -- was a variant of an FDR comment in a 1934 fireside chat.Reagan gave
weekly Saturday radio speeches to the American people, a practice continued by
his successors. He was particularly effective in prepared television speeches delivered
from the Oval Office. Drawing upon skills forged in his earlier careers in radio,
films and television, Reagan set the standard in using television to promote
his presidency.Reagan was nearly 78 when he completed his second term, eight years
older than the next-oldest president, Dwight D. Eisenhower, was when he left office
in 1961. But until he was stricken by Alzheimer's, Reagan's trim, athletic build made
him appear younger than his years, and his amiability and self-deprecating humor softened
the hard edge of his ideological advocacies. Reagan poked fun at his age, his
work habits and his supposed simple-mindedness. He once said that he knew that hard
work never killed anyone, "but I figure, why take the chance?" Much of his
humor was spontaneous. Asked while visiting astronauts in Houston before the successful
launch of the space shuttle Discovery in 1988 whether he would like to go into space,
Reagan quipped, "I've been in space for several years."
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- Workforce Management: In
Just a Year, Cash-Balance Plans Go From Panacea to Pariah.
In the wake of a court ruling and a lack of legislation, companies are bypassing
cash-balance plans, once seen as an answer to traditional pensions. Excerpt: Not
long ago, companies considered cash-balance pension plans ideal for limiting financial
liability and providing a more portable retirement program to today’s mobile
workforce. The plans, a cross between a traditional defined-benefit plan and a
defined-contribution plan, have been adopted by hundreds of major U.S. corporations
since the 1980s, including IBM, Federal Express, Eastman Kodak and Delta, and cover
an estimated 7 million workers. Hundreds more businesses looking to exit traditional
defined-benefit plans were preparing to convert, according to government and industry
experts. But in the space of a year, cash-balance plans turned from panacea to
pariah. The turning point: a federal court’s landmark ruling in July 2003 that
IBM’s
cash-balance plan violated age-discrimination laws, throwing into question the
legality of all such plans. In February, the same judge ordered IBM to pay back
benefits, which plaintiffs in the class-action suit estimate could amount to $6 billion,
a claim the company denies. ... Restructuring pension plans at other companies hasn’t
gone as smoothly. In February, U.S. District Court Judge G. Patrick Murphy, in the
Southern District of Illinois, found IBM liable for retroactive pension benefits.
Translation: IBM may have to recalculate benefits for 140,000 employees and retirees.
The suit is pending, with both sides preparing damage estimates. IBM maintains that
it doesn’t
owe anything and has previously stated that a loss won’t materially affect its operations.
- Janet Krueger
comments in a "must read" posting. Excerpt: The fatal problem with cash-balance
plans is that they are generally
not defined or measured in terms of an age-65 annuity, and the
employees are not earning a 'defined benefit'. When Congress set up
all the tax advantages for defined benefit plans, they clearly wanted
employers to help their employees build a secure retirement by
focusing on the benefit they would earn if they worked until
retirement. Cash balance plans, while masquerading as defined benefit plans,
actually motivate the exact opposite behavior of traditional, legal
defined benefit plans. Traditional pension plans were an incentive
to employees to work until they reached full retirements. Cash
balance plans, on the other hand, are an incentive for older
employees to become more mobile, incenting them to consider leaving
as soon as their cash balance becomes high enough. You see, as long
as the employee stays at the company, he is forced to accept minimal
compound interest on that virtual money account -- he can't move it
to an IRA or 401K, so that it is money in his name and has realistic
investment options -- without quitting. IBM's cash balance plan is
typical in this respect -- you would notice, if you scanned the
company benefits web site, that IBM no longer refers to 'retirement'. IBM's cash
balance plan is just one of their vehicles for
discriminating against older employees -- it is no accident that the
average service time for IBM employees is now less than 5 years! Btw, if IBM
had really wanted to use the cash balance plan as a
vehicle for rewarding younger, more mobile employees, don't you think
they would have reduced the vesting period to less than 5 years?
- Do you approve of the job that IBM CEO Sam Palmisano is doing? Vote
now at the Forbes Web site.
- New York Times: Actuaries
Under Scrutiny 0n Pension Fund Pacts. Excerpt: he Department
of Justice has asked several big actuarial firms for information about the terms
of their client agreements, in what appears to be an effort to learn whether certain
provisions violate antitrust laws. Officials of the actuarial firms said they had
received "civil investigative
demands," or written requests for information that fall short of subpoenas, from
the department's antitrust division. The letters seek documents and other information
related to the firms' decisions, about two years ago, to ask their pension fund
clients to sign clauses limiting their ability to sue the firms. The inquiry was
reported this week by Pensions & Investments,
a trade publication. Officials of Towers Perrin, Milliman USA, Watson Wyatt Worldwide
and Hewitt Associates said their firms had received the letters and were complying.
Some of the officials said they believed that other firms had also been asked for
information. The Justice Department did not respond to a call requesting information.
- Houston Chronicle: 460
jobs at Williams Cos. going to IBM. Excerpt: Williams Cos. has agreed to ship about
460 accounting, finance, human resources and information technology jobs to IBM in
a $320 million outsourcing agreement announced Tuesday. Williams' shares hit a 52-week
high. The 7 1/2 -year deal is expected to begin July 1 when roughly 380 Williams employees
in Tulsa, 70 in Houston and 10 in Salt Lake City are offered jobs at IBM. Williams
expects the move to save as much as $10 million a year.
- The American Prospect: Future
Retirees at Risk.
Bush's "ownership society" would replace existing social-insurance systems
with personal savings accounts. His approach threatens to make old age and poverty
synonymous again. Excerpt: Retirement security for middle-class Americans is at risk.
First, the push to privatize Social Security has diverted attention from solving
the program's financing problems. Second, unchecked reliance on 401(k) plans has made
employer-provided pensions less reliable. Third, the president's "ownership society" initiative
has led to policy proposals that undermine pension coverage and splinter the health-care
system. Finally, massive budget deficits have now made it more difficult to fix Medicare
and Social Security.
- Slate: The 4 Percent Solution.
Why you're such a lousy investor. Excerpt: It is a principle of American life—practically
gospel—that you know better than anyone what to do with your money. The idea of
privatizing Social Security is based on the notion that you'll invest your savings
better than the government would. The ascendance of 401(k) plans over guaranteed
employee pensions has the same foundation—that employees will make informed and
prudent decisions when they invest. But what if it's not true? Over the last 20 years,
the stock market has averaged a 12 percent annual return. But according to a study by
Dalbar Financial, individual mutual fund investors earned only about 4 percent. A survey
by Vanguard finds participants in its 401(k) plans earn only about one-half the average—6
percent a year. It is almost impossible to believe, and unpleasant to contemplate,
but practically all individual investors are below average.
- New York Times Editorial: What
Studs Terkel's 'Working' Says About Worker Malaise Today.
Excerpt: The 1970's were a slower age, and much of the workers' pleasure in their
jobs is related to the less-demanding time clock. A hospital billing agent can
take time off from dunning patients to look in on a man whose leg was amputated,
who has no one to care for him. "If he's going to live in a third-floor flat and
he doesn't have anybody home, this bothers me," she says. A stewardess says she
is supposed to spend a half-hour on a Boston to Los Angeles flight socializing
with passengers. Three decades later, we are caught up in what a recent book dubbed "The
New Ruthless Economy." High tech and new management styles put workers on what
the author Simon Head calls "digital assembly lines" with little room for
creativity or independent thought. As much as 4 percent of the work force is now
employed in call centers, reading canned scripts and being supervised with methods
known as "management
by stress." Doctors
defer to managed-care administrators and practice speed medicine: in 1997, they
spent an average of eight minutes talking to a patient, less than half the time
they spent a decade earlier. It is much the same in other fields. There have been
substantial productivity gains. But those gains have not found their way to paychecks.
In a recent two-and-a-half-year period, corporate profits surged 87 percent, while
wages rose just 4.5 percent. Not surprisingly, a study last fall by the Conference
Board found that less than 49 percent of workers were satisfied with their jobs,
down from 59 percent in 1995. If link is broken, view Adobe Acrobat version [PDF--19
KB].
- New York Times editorial by Paul Krugman, courtesy of Common Dreams: The
Wastrel Son.
Excerpt: He was a stock character in 19th-century fiction: the wastrel son who runs
up gambling debts in the belief that his wealthy family, concerned for its prestige,
will have no choice but to pay off his creditors. In the novels such characters
always come to a bad end. Either they bring ruin to their families, or they eventually
find themselves disowned.
- The Newspaper Guild: Lonely
at the top-but plush, too. Excerpt: One group of wage earners that has proven impervious
to economic ups and downs comprises top corporate executives, who last year pumped up
their pay by an average 16%. The median base salary and bonuses paid to chief executives
grew to $2,029,500 from $1,750,000 in 2002, according to a Reuters study of 345 of the
Standard & Poor's 500 companies. One source of that largesse, it turns out, was Uncle
Sam: According to a Wall Street Journal analysis of General Accounting Office documents,
60% of U.S. corporations didn't pay a penny in federal taxes during the boom years of
1996-2000. And by 2003, GAO records show corporate tax receipts had fallen to just 7.4%
of all federal revenue, the second lowest level since the mid-depression year 1934.
- The Newspaper Guild: Class
war deplored by one of its big winners. Excerpts: One of the most successful investors
in the U.S., Warren Buffet, is warning that the U.S. already is embroiled in a class
war-and that everyone will be worse off because of it. Opening the CWA's legislative
conference in Washington, D.C. on March 28, Executive Vice President Larry Cohen quoted
Buffet as saying: “There is class war in the
United States, and my class is winning.” Buffett, owner of Berkshire Hathaway,
is worth more than $15 billion. Buffet wasn't bragging, Cohen noted, but was speaking
out of concern about the impact of a class war. “The White House and their allies
will try to persuade us that we are safer and stronger and that social issues, not
economic issues, are the real ones that divide us,” Cohen warned the union's
legislative and political activists.
“We should not need Warren Buffet to remind us of our own interests. But if
U.S. politics have become so extreme that he is joining with us, concerned about
longer term consequences of the politics of greed, this should remind us of how
much work we have to do,” Cohen declared. Conference delegates lobbied on several
key issues, including offshoring of telecommunications, computer and-now-newspaper
jobs, enhancing collective bargaining rights and fighting “contracting
out” of services. “Not only do we lose jobs when services are contracted
out, but more often than not it is the end of any real rights for workers, as the contracting
begins a downward spiral that ends either in the U.S. or Asia with workers that have
no real organizing rights and a fraction of the pay and benefits,” Cohen said.
- Benefits Blog: Tenth
Circuit Issues Opinion in Millsap v. McDonnell Douglas Corporation.
Excerpt: I was surprised not to find anything in the news about this appellate decision--Millsap
et al. v. McDonnell Douglas Corporation (issued May 21, 2004) after there was so
much publicity around the lower court decision last year. The case is
notable due to the fact that it represents one of the few ERISA section 510 plant
closing cases where employees have prevailed. The 510 claims were brought by former
employees in a class action suit against their employer, alleging that the employer closed
one of its plants for purposes of preventing employees from attaining eligibility
for benefits under their pension and health care plans.
- BenefitNews.com: Pension
expert advocates reform of flawed 401(k). Excerpt: Theoretically,
economists say, 401(k) plans are fabulous wealth-generating vehicles, surpassing
traditional defined benefit plans' power to secure a comfortable retirement for employees.
But in the pages of their new book, Coming Up Short: The Challenge of 401(k) Plans,
pension experts Alicia Munnell and Annika Sunden tell a tale of unfulfilled promise.
Data appear to lend the authors credence: Many workers nearing retirement today find
the assets in their 401(k)s and individual retirement accounts will pay only a few hundred
dollars per month during their golden years. In 2001, the authors show, the typical household
approaching retirement had amassed just $55,000 in 401(k)/IRA holdings - hardly much
of a supplement to Social Security.
- Miami Herald: Goodyear
rewards CEO; workers can sue over age discrimination claims.
Excerpt: Financially struggling Goodyear Tire & Rubber Co. rewarded its chief executive
officer with $1.5 million in salary and bonus last year, according to documents filed
with the U.S. Security and Exchange Commission. The Akron tire company said Robert
J. Keegan deserved the pay because he has helped Goodyear make progress in turning
around its finances, improving relations with independent tire dealers and signing
a new labor agreement with the United Steelworkers of America, among other things.
Under Keegan, Goodyear went through one of its most turbulent years, restructuring
more than $3 billion in loans to avoid a liquidity crunch, slashing 6,000 jobs and
closing or scaling back factories around the world. ... Meanwhile, an Ohio appeals
court on Wednesday allowed two longtime Goodyear salaried workers to sue the company.
They lost their jobs after receiving low marks on their evaluations and are alleging
age discrimination. The 9th District Court of Appeals overturned a Summit County
Common Pleas judge's ruling last year that the workers had waited too long to bring
a claim against Goodyear. "It's great and long overdue," said Paul W. Jones
Jr., 60, of Norton, a senior engineer who lost his job in January 2003 after 35 years
of service. The other plaintiff, Jack McGilvrey, who worked as a senior compounder,
died in March 2003 of cancer, but his estate will continue with the claim, said Steven
Bell, an attorney for Jones and McGilvrey. The two former employees will be allowed
to join four others who also sued Goodyear alleging age discrimination after receiving
low marks. Bell said he plans to seek class-action status and expects as many as
400 other former Goodyear workers in Ohio to join the lawsuit. The lawsuit grew out
of Goodyear's A-B-C grading system. Managers were required to hand out low marks
to roughly the bottom 10 percent of their departments. Those workers were denied
raises, and some were fired or demoted. Goodyear said it instituted the grading system
to reward high performers and force low performers to improve or leave the company.
The system was scrapped in 2002.
- Christian Science Monitor: Debut
of drug cards greeted with a shrug. The new Medicare
benefit leaves seniors puzzled. Excerpt: The people at AARP are still surprised.
After sending out 26,000 enrollment kits for the new Medicare prescription-drug
discount card, only 400 people had signed up as of last Friday. That's right,
400. That's not a typo. Starting this week, more than 7 million seniors could begin
using the much-ballyhooed cards, which the Centers for Medicare and Medicaid Services
(CMS) contends can save them up to 18 percent on brand-name drugs. But with more than
70 options to choose from, an Internet-based system for comparison shopping, and glitches
galore, millions of eligible seniors like Mary Telsa remain cardless. "I haven't
signed up ... because I don't understand how to get enrolled," says the Hollywood,
Fla., senior.
- Jim Hightower: Push for
Real Corporate Reform. Excerpt: Perhaps you remember that
only a couple of years ago, George W was in a public tizzy over the multibillion-dollar
financial scandals pouring out of the executive suites of Wall Street and America's
largest corporations. Ripped-off investors were howling for blood and the stories
of corporate corruption were on the front page – so George "Reformerman" Bush
lept to the rescue. He loudly demanded tough new rules to govern greedy CEOs, and
he handpicked William Donaldson to serve as the new top cop on the Wall Street
beat. Two years later... Where's Reformerman? There he is – behind the scenes
at the SEC. But he's taken off his reformer cape. He's now quietly trying to undercut
his top cop and to water down those tough new governance rules he once demanded!
Donaldson naively thought that Bush really wanted to crack down on corporate finagling.
So he has proposed several new rules, including one that would allow shareholders
to choose a few independent board members, rather than having all of a corporation's
board handpicked by the CEO. Oh, the shrieks of horror that this caused among CEOs.
Hence, the Business Roundtable – the
lobbying front for CEOs of America's largest corporations – has swarmed the
SEC. It's lobbyists are demanding a substitute rule that guts Donaldson's reform,
turning the shareholders' vote for independent board members into a sham.
- New York Times: Grumpy
Old Drug Smugglers. Excerpt: Stahl's public emergence as
a hell raiser came in July, when Gil Gutknecht, a Republican congressman from Minnesota,
seized on her as a political godsend and invited her to Washington for a news conference
announcing his sponsorship of a bill to legalize drug re-importation. It was Stahl's
first visit to the nation's capital, and in the blinding light of the flashbulbs,
on a trip she called ''the adventure of a lifetime,'' she realized that being a bony,
shrinking, widowed old lady, far from a liability, is in fact a great strength. Seniors
are the fastest-growing voter bloc in the United States, expected to double by 2030,
when 1 in 5 Americans will be 65 or older. Politicians who don't respond to those
kinds of demographics don't stay politicians. Stahl, whose total income consists of
Social Security and her deceased husband's pension of $51.74 a month, counts herself
among the many Midwestern widows, ex-stockbrokers, retired schoolteachers -- people
with time on their hands and dwindling savings -- who have found a galvanizing political
cause in the high cost of prescription drugs. Like the Vietnam War to so many college
students in the 60's and 70's and nuclear proliferation to mothers in the 80's, the
issue is so personal, so deeply tied to life, death and a sense of justice, that it
is driving otherwise private and conservative citizens into the first activism of
their lives.
- New York Times editorial by Paul Krugman: Dooh
Nibor Economics. Excerpt: Last week
The Washington Post got hold of an Office of Management and Budget memo that directed
federal agencies to prepare for post-election cuts in programs that George Bush
has been touting on the campaign trail. These include nutrition for women, infants
and children; Head Start; and homeland security. The numbers match those on a computer
printout leaked earlier this year — one that administration officials claimed
did not reflect policy. Beyond the routine mendacity, the case of the leaked memo
points us to a larger truth: whatever they may say in public, administration officials
know that sustaining Mr. Bush's tax cuts will require large cuts in popular government
programs. And for the vast majority of Americans, the losses from these cuts will
outweigh any gains from lower taxes. It has long been clear that the Bush administration's
claim that it can simultaneously pursue war, large tax cuts and a "compassionate" agenda
doesn't add up. Now we have direct confirmation that the White House is engaged
in bait and switch, that it intends to pursue a not at all compassionate agenda
after this year's election. That agenda is to impose Dooh Nibor economics — Robin
Hood in reverse. The end result of current policies will be a large-scale transfer
of income from the middle class to the very affluent, in which about 80 percent
of the population will lose and the bulk of the gains will go to people with incomes
of more than $200,000 per year.
Coverage on H1-B and L1 Visa and Off-Shoring
Issues
- The Newspaper Guild: 'In-sourcing'
no cure for losses. Excerpt: With the growing
loss of jobs to overseas markets producing a political backlash, “free trade” advocates
have started responding with claims that offshoring losses must be balanced
against the gains caused by “in-sourcing.” In this view, foreign investment
in the U.S. creates jobs which offset the jobs shipped to other countries paying
lower wages. But such claims, while superficially plausible, don't appear substantiated
by actual job numbers. According to an analysis by the Economic Policy Institute,
U.S. companies owned by foreign multinationals in 1991 employed 4.74 million
workers. Over the next decade, the foreign multinationals acquired additional
U.S. companies employing 4.1 million workers. They also established U.S.-based
companies employing another 274,000 workers. If no jobs had been lost, the
number of U.S. jobs in foreign-owned companies in 2001 would have been 9.15 million.
Instead, 2001 employment at foreign-owned companies was 6.37 million, indicating a
net loss of 2.78 million U.S, jobs through import displacement, sales losses, productivity
increases or divestiture. “Foreign-owned companies are indeed employing millions
of Americans,” the
EPI analysis observes, “but the evidence suggests that they have destroyed
more jobs than they created in recent years.”
- British Columbia Government and Service Employees' Union (BCEU): Pending
inquiry, government should halt its plan to give private information to U.S.
firms.
Excerpt: The provincial government should immediately halt plans that would
put private information on every British Columbians into the hands of U.S. firms,
pending a full inquiry by B.C.’s privacy commissioner, the B.C. Government
and Service Employees’ Union
said today. “I welcome the announcement that B.C.’s Privacy Commissioner,
David Loukidelis, will conduct an inquiry into whether our private information
will be secure in the hands of American companies,” said George Heyman, President
of the BCGEU. “The government is proceeding with outsourcing plans despite
warnings that the privacy of British Columbians could be compromised,” he
said. ... The union has already initiated a court challenge on the privatization
of the Medical Services Plan, and called on the privacy commissioner to look
at four additional contracts: ... A proposed contract with IBM or Electronic
Data Systems (EDS) for helpdesk services that would give the company complete
access to all private data held by the provincial government, as well as all access
codes held by government staff.
- RescueAmericanJobs is taking a survey that you can participate in. The Rescue American
Jobs website was started one year ago, and our
online community quickly evolved into a rallying point for activists
working to save America's middle class. Since then, they have worked
to build an organization to support and coordinate efforts across 46
states and more than 100 cities. Coming up on their first year anniversary,
they are reflecting on the
last year's activities, and they'd like to hear from you. They want
to know where you see the progress of the movement, what they can do
to better support your efforts, and how you envision the future
direction of the organization over the next year. Please take a moment to fill
out the survey, and tell them your
concerns, your vision, and your needs: http://www.rescueamericanjobs.org/surveys.
Please feel free to forward this to your friends, e-mail groups, websites, family,
etc. They would like to get input from as many concerned citizens as possible.
- Wall Street Journal: India
to Increase Software Exports
Via Outsourcing. Excerpt: The software-outsourcing sector in India is poised for a year of
robust exports, as savings for U.S. companies outweigh a political backlash
there against shipping jobs overseas, an industry body said Thursday. ... The
U.S. remains the biggest market for Indian software companies, generating 70%
of their revenue. The U.K. is second, with a 15% share of India's software
exports. To maintain the headstart India has over its rivals like the Philippines,
South Africa and Ireland, Nasscom urged the government to set the agenda for
services trading in negotiations at the World Trade Organization. "India has
a natural advantage in services and we need to press that home. India will
be a disproportionate beneficiary of WTO negotiations if we are able to set
the agenda," Mr.
Rao said, referring to guidelines on crossborder trade in services. In the
past, Western companies have questioned India's record on data safety and its
legal protections on intellectual-property rights. But Nasscom member companies now
are moving to put in place stricter regulations on data transference to keep their
Western customers plugged into India's outsourcing boom. More than one million Indians
are expected to be employed in call-center, back-office and software jobs by 2008,
making the sector the country's biggest foreign-exchange earner, with expected annual
revenue of $50 billion.
- Axis of Logic: Economic
Miasma. Excerpt: In various articles and letters (mainly to Businessweek International)
I have endeavoured to focus the US mindset on certain inescapable realities:
without much success. Presently, to those with a more open mind in the United
Kingdom, your economy mimics the worst aspects of the British economy, set, during
the appalling Thatcher years. A core focus on financial services, has taken effort,
reward, vision, purpose and understanding away from the simple tenets of Wealth
Creation. Worse, it has confused personal wealth gathering, with wealth creation,
per se. Like Great Britain, the USA was founded, economically, upon the central
premise of simplistic self-improvement: if one took labour, added raw material
plus a certain level of skill and/or innovation, one became successful. Originally,
in both countries such success was agronomic: as engineering superseded an agrarian
basis, however, parts of the core dynamic underwent a paradigm shift. ... Today,
the tail wags the dog and all too often industry leaders decide their corporate
strategy and day-to-day policies purely on the market reaction. The true stakeholders – the
investors and equally important, the workforce – are very much the poor relation
in these cynical dynamics. Consider this: General Electric now achieves more
revenue and profit from Financial Services, than it does from making things and
selling them! Frightening? You bet! More and more Americans are working either
part-time or on short contracts, with little or no compensation when their job
is lost. Not the same for the boys at the top, with their greedy pension schemes,
Golden Parachutes and director’s
contracts, however! Year-on-year, the relationship between pay scales of Joe
Average and Directors of corporations widens, inexorably. As more and more jobs
are lost to outsourcing, as the level of imports (of consumer durables and semi-durables)
increases, as more and more “McJobs” are
hailed as the economic answer, how will the USA sustain its society?
- Janet
Krueger comments on the future of jobs in the United States given the reality of
off-shoring. Full excerpt: It is important to note that there are literally
*NO* industries
that aren't seeing middle class jobs moved off shore. In the biosciences, more
and more work is being done overseas -- it
is not uncommon, if you take the time to ask, to find that your
medical tests are being done overseas. Radiologists are being laid
off as HMOs discover they can ship X-rays and scans overseas for
interpretation. Wall Street firms are looking overseas for more and
more financial analysis. Westlaw just moved the jobs of 200 lawyers
who were interpreting court cases and building head notes overseas.
As fast as someone with a masters or a doctorate can get retrained,
that same job can be moved off shore.
It isn't just manufacturing jobs. It isn't just call center jobs. It isn't just
the hourly programming jobs. More and more, it is jobs that require masters
degrees and
doctorates. If you're not scared about whether your children and grandchildren
will ever be able to hold down middle class jobs with full benefits,
you should be!
And by the way, I'm not asserting the solution is to become a social
welfare state... We need middle class workers who are able to pay
taxes. What we need is a complete overhaul in US government and tax
policies with respect to American and foreign corporations. And one
place we need to start is with an analysis of the unjust trade
policies the current administration has been pushing through...
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Now
on the Alliance@IBM Site:
- Think
Twice for June/July 2004 [PDF]. Feature articles in this issue
include:
- IBM Stockholders Meeting Report
- Speech to IBM Stockholders’ Meeting by Jimmy Leas
- Tally of Alliance shareholder resolutions
- Life of a SSR Gets Tougher Every Quarter
- IBM Offshoring Hits Australia
- Contractors face new pay
cuts and lack of respect
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