More Jobs Lost to Outsourcing 500+

[JCMach1]

Sykes to lay off Palatka center workers

by Jennifer Thomas
The Palatka Daily News


Sykes Enterprises Inc. announced Wednesday it will lay off employees at its Palatka call center, which it built in 2000.
A company spokeswoman at Sykes headquarters in Tampa cited client needs and the market as reasons for the layoffs.
"In response to client needs and changing market conditions, Sykes has decided to consolidate locations. This will result in a workforce reduction at the Palatka site," spokeswoman Andrea Burnett said.
Burnett said the company was not answering any further questions about the layoffs, including how many employees are affected... In 2000, the Putnam County Board of County Commissioners lured Sykes to come to Palatka with a $4 million incentive package. That included a $3 million cash incentive, a 22-acre parcel of land in the county Business Park, five years of tax credits and other considerations... In 2003, Sykes closed a call center in Hazard, Ky., laying off 393 employees following call center closures in Bismarck, N.D.; Greeley, Colo.; Scottsbluff, Neb.; and Eveleth, Minn.
The closures also occurred at a time when Sykes was expanding its operations into places such as India, Costa Rica and the Philippines...
http://palatkadailynews.com/pages/02052004/sykes.html

--------------------------------------------------------------

On an editorial note, I worked for this company as a Summer job in 2003 for their MSN account.

They treated their workers like shite. Their was anti-union propaganda everywhere.

Companies are doing this all across the country... taking advantage of local incentives to bring in jobs and then bailing.

Despite being a crappy job, this was one of the community's largest employers and ONE of the FEW that offered affordable health insurance.

[cornermouse]

1. This doesn't include companies that are sending jobs

overseas several hundred at a time on a periodic basis instead of shutting down and sending all of them at once.

These companies get initial news coverage of their plans, but then drop off the radar. Meanwhile, their employees are living in fear of who will be next to be permanently laid off as their jobs continue to go in India, China, or wherever.

A minimum of nasty news coverage and reaction from Americans, such as boycotts. A silent and unnoticed job attrition by the media and the public.

[izzie]

2. First we need govt. health care.

Do not say it is bad, as for 40 years I had care under the Navy and it was as good as anyone buying it on the out side. Next can any one tell me a site I can read to figure out what this Republican party is doing to the USA? Just how are people going to buy any thing is they have no jobs and then just how are they going to buy even from India or China? Then how are India and China going to have jobs if no one can buy? This looks like Catch22.What are the Republicans in Congress doing, they can not be a numb as the President to go along with what is going on, or can they?I am beside myself trying to figure this all out. If we could only cage Bush and Co some place so as to save the country. My one hope is even Free Republic is starting to question him and his plans. That is new in this last year on that site.

[JCMach1]

5. They want to create a 2-class society and eliminate the

minimum wage....

Basically a modern version of serfdom.

[Nay]

3. So, is this company going to return the $3 million cash incentive

it received from the town?? I certainly hope the town can get it back, even if it takes a lawsuit. These people broke the contract.

[JCMach1]

4. I doubt it... they will wind down operations through 2005

and then sell off the assets.

[Nobody]

6. Read a commentary about a week ago by a guy who approves of this crap

He is in an industry that isn't likely to be outsourced. How do you outsource real estate sales? He wrote about how this outsourcing is good for India and how India will have a much higher standard of living and how people in India will be able to buy what is produced.

Never mind how you're going to sell houses to Americans who can't afford a one room apartment.

Never mind how you're going to FIND a starter home in an area where the new housing is exclusively in the 250K and up range.

His main points were how wonderful this was for India and how industries change and we must change with it. No comparison. Automating assembly lines created jobs for those that built the automation and kept the machines running. But today's outsourcing replaced the jobs with nothing at all.

Our government had better address this and quickly.

[JCMach1]

7. The Service sector was supposed to be the industry of the future

Unfortunately, we are not geared or priced to play in that market.

I don't see any real solution but some draconian protectionist measures.

[JCMach1]

8. Even better, how about a corporate tax on companies that outsource

and then sell in the U.S.

If they don't pay their foreign workers wages and benefits that are at least 80% what Americans in the same industry make then charge them the difference.

It is not just outsourcing... they are exploiting foreign workers...

There are plenty of people right here in the good old U S of A to exploit.

[salin]

9. This has been going on for a long time

back in 1992 GM closed a plant in Ypsilant Michigan - after setting off a bidding war between two cities (Ypsi and Arlington Texas) where there were plants... one was going to close - depending on the tax incentive offers made. In the end - regardless of the offers - GM moved to Arlington... the son of the President had interest in that city (the Tx Rangers) and it was seen to be politically advantageous.

But the thing is - just a few years earlier Ypsi had given earlier tax breaks/incentives based on promises of jobs in the area. I moved otu of the area when the city was attempting to sue GM for the tax breaks given that GM didn't live up the their end of the bargain.

My guess is that companies won't enter a contractual arrangement anymore (eg we get the breaks... but we stay for at least x years). But cities shouldn't just give the huge breaks (shifting more tax burden to other businesses and citizens) to companies without some promises as to the expected size of the operation and projected employment numbers (with caveats of course... ) and THAT THE COMPANY will stay for a specified period of time.