Opinion: The Obama administration promotes outsourcing

[OhioChick]

(02/04/2009 9:30 AM EST)
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We know from a recent EE Times survey that offshoring is the No. 1 career concern for EEs. The Obama Administration has been in office just a few weeks now, but we already know how it will address the offshoring of engineering jobs.

It will promote it.

EE Times, the Wall Street Journal and InformationWeek all recently published important stories on IBM's layoffs and the company's links to offshoring. IBM is now using the euphemism, "resourced actioned" to describe layoffs. The most remarkable aspect of the story was IBM's ability to take the Fifth Amendment on questions about the geographic distribution of layoffs, and even refusing to publicly state the number of U.S. workers let go.

Here's what the Journal published on Jan 27: "IBM Chairman Samuel Palmisano told workers in an e-mail last week that worldwide employment topped 400,000 at the end of 2008, up from 386,000 at the end of 2007. He didn't break out U.S. employment, and IBM spokesmen declined to do so."

IBM's unwillingness to publicly disclose its massive offshoring operations is no surprise, especially as it lobbies Congress and the Obama Administration for billions in taxpayer handouts as part of the economic stimulus package now being debated by Congress. What is remarkable is that the company is able to get away with it in the current job market with this President and this Congress.

InformationWeek reported on a new initiative by IBM, called Project Match, which is supposed to connect displaced U.S. workers with job openings in low-cost countries like India. But the catch here is, of course, that U.S. workers would be paid Indian salaries. How many U.S. workers can take those jobs and still hope to retire back in the U.S.? The answer is none.

So, where is President Obama, the politician who campaigned against outsourcing? The EE Times story that detailed the stealth layoffs and reactions of IBM workers, appeared on the same day that the President was chumming around with IBM's CEO Palmisano. Here's what President Obama said about why he invited to the White House Palmisano and nine other CEOs who are offshoring jobs:

"They make things, they hire people," the President said of the meeting participants. "They are on the front lines in seeing the enormous problems in the economy right now. Their ideas and their concerns have helped to shape our recovery package in order to get this economy back on track."

Can President Obama really be this naive? Or is it simply that he doesn't believe offshoring matters?

There is clear evidence that the latter is the case. On the very same day he was meeting with "CEOs outsource American jobs"--a phrase he repeatedly and derisively used during his campaign, he named McKinsey's & Co.'s Diana Farrell to his National Economic Council, the inner circle of economic advisors in the White House. Farrell has done more to promote outsourcing than nearly anyone else in America.

More: http://www.eetimes.com/news/latest/showArticle.jhtml?articleID=213001145

[ihavenobias]

1. We're still waiting for any major plans on outsourcing.

It'll be interesting to see how it all plays out.

[HillbillyBob]

2. This needs legs badly. Any company that is outsourcing should get NO bail

Then write to the White House and complain and bitch.
Outsourcing has hit home here a couple of times.
I could go on, but I have better things to do..like write to Obama Admin and an LTE about this, which I have just done.

[OhioChick]

4. Good for you, Bob.

I've been writing for a very long time, to all who will listen.

[HillbillyBob]

6. Thanks. I have been writing and irritatin elected (and unelected such as amBushco

for a long time. I think burr of nc hates me! Hope he does, don't really care.
When I posted a letter to him and to the local papers (forget which NC paper as I write them all and sometimes cc several) about cheney bs on the war on Iraq for oil saying in essence that cheney had no honor and that he was still guilty of lying us into war for oil ..
We also need to be after the DoDs lobbying of congress, if they can spend millions then they can't be hurting for $ and needing bailouts. Remember the Osprey fiasco millions of $ for a plane that still is not safe, now the new F22 costing billions and may never be of any use.
The Pentagon spends billions on super toys, while my family struggles.
I am on disability, SSD due to illness and injuries on the job that I could not even collect for. I have medicaid and medicare and ADAP, its a good thing too because my meds alone cost more than our entire household income, let alone the tests and other regular medical care I need. I am grateful we are hanging in, I know others have it worse. We did have it worse, but we have made a bit of a comeback. We moved to a place out in the woods where we can grow at least part of our own food.
If I even get a part time job a day or two a week I would lose the whole package.
I could possibly work at something for a little while each week, some weeks nothing.
No one would hire me anyway.
We know we are doing pretty well, most of the bills are paid on time. We are so very careful do pay the bills first off, things like food and maybe clothes once in a while are luxuries. I have not bought any new cloths in about 5 6 years, I m gonna be nekid soon!
Why are these companies that outsource or just fail at what they are supposed to be doing getting bailed out?
I sure as hell did not. When I was just starting to have problems with HIV illness I was fired for that from a part time job and that is what my SSD is based on, not the full time jobs I had worked at for years.
President Obama, our local rep and both senators will be hearing from me as long as I can hear thunder and see lightening!
Most folks do not have time to pay attention, I do and will. I see that as my duty to our country.
I volunteer for the Navy. Others may not take that oath seriously, but my partner and I do. He was in the Army two tours.
Democracy is a not a spectator sport.

[OhioChick]

9. Hey Bob..

I'm sorry to hear that you're on disability, as well as chronically ill. :hug:

One of my kids is chronically ill and it's killing me financially....with insurance! (Not to mention my job is now hanging by a thread)

Our country is in a sad state of affairs. So many unemployed and without the basic necessities of life.

Keep up that writing. I sure as hell am. At least we can say that we tried.

[BirminghamExaminer]

3. I had no idea

Thanks for the info.

[antigop]

5. He promised to eliminate tax breaks for outsourcing... we haven't seen it. n/t

[Deja Q]

7. Granted, he's only been in power for less than a month... but if urgent action is needed,

surely that little a thing to do would be a start?

Or are the repubes acting like grown toddlers and are voting in unison against it?

[ChromeFoundry]

8. Engineering as well as Tech Jobs

are a very profitable resource to outsource for C-level execs. This administration will do little to keep them here, based on the likes of choices made for his inner circle. I am hoping to be surprised, but definitely not holding my breath.

[Waiting For Everyman]

10. I can see this wrecking Obama. And us.

The big difference between FDR and Obama... FDR employed Americans in his programs, and built up American industry. We will be doing neither, and it won't work.

(I highly doubt how much the abusive financial practices will change either - if this is any indicator.)

[OhioChick]

11. You're absolutely right.

If this doesn't work.....Obama will never get a second term.