IBM Offers To Move Laid Off Workers To India

hugolp

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http://www.informationweek.com/news/management/outsourcing/showArticle.jhtml?articleID=213000389

IBM Offers To Move Laid Off Workers To India

Big Blue wants to help redundant U.S. employees relocate to developing markets, according to an internal document.

By Paul McDougall
InformationWeek
febrer 2, 2009 12:36 PM

The climate is warm, there's no shortage of exotic food, and the cost of living is rock bottom. That's IBM (NYSE: IBM)'s pitch to the laid-off American workers it's offering to place in India. The catch: Wages in the country are pennies-on-the-dollar compared to U.S. salaries.

Under a program called Project Match, IBM will help workers laid off from domestic sites obtain travel and visa assistance for countries in which Big Blue has openings. Mostly that's developing markets like India, China, and Brazil.

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"IBM has established Project Match to help you locate potential job opportunities in growth markets where your skills are in demand," IBM says in an internal notice on the initiative. "Should you accept a position in one of these countries, IBM offers financial assistance to offset moving costs, provides immigration support, such as visa assistance, and other support to help ease the transition of an international move."

The document states that the program is limited to "satisfactory performers who have been notified of separation from IBM U.S. or Canada and are willing to work on local terms and conditions." The latter indicates that workers will be paid according to prevailing norms in the countries to which they relocate. In many cases, that could be substantially less than what they earned in North America.

IBM has laid off more than 4,000 workers in the United States since the beginning of January, according to an employee group. The company has confirmed layoffs but won't comment on specific numbers.

A spokesman for Alliance@IBM, a workers' group that's affiliated with the Communications Workers of America but which does not have official union status at IBM, slammed the program. "IBM is not only offshoring IBM U.S. jobs but they want employees to offshore themselves through Project Match," said the spokesman.

An IBM spokesman said the program shouldn't be seen in that light. "It's more of a vehicle for people who want to expand their life experience by working somewhere else," said the spokesman. "A lot of people want to work in India."

In addition to India, China, and Brazil, IBM is offering to relocate redundant U.S. workers to a number of other developing markets, including Mexico, the Czech Republic, Russia, South Africa, Nigeria, and the United Arab Emirates, according to the notice, which was obtained Monday by InformationWeek.



Hugo
 
Unfortunately, cost of living usually reflects quality of living; however, I am attracted to the idea of Americans imposing on the workforce of other countries... Well, as long as it doesn't detract from our quality of living in the States, which, in theory, it would.

IBM will realize it gets what it pays for. Apparently, Google already knows what's up.
 
Who is going to pay the cost of moving back?? hmm? You probably couldn't even afford a plane ticket on your new IBM-India salary. Clever plan indead...

You're saying that like they have malicious intent. IBM is being gracious enough to allow them an opportunity to work with them in India- they don't have to if they want to stay in the US.
 
This is why our wage laws and regulations cost us all our jobs.

If it is not profitable for a company to employ someone at US regulated wages, they just go overseas. Would you rather be completely unemployed waiting in a bred/soup kitchen line, or work making not as much as you would like?
If the gov didn't steal (30? 40?) percent of your employers earnings in various tax schemes, they could afford to pay more.

Try not to fall into the habit of demonizing the companies. They either turn a profit or go out of business and take all the jobs with them. Don't fault them for it. Some companies suck but big ones like IBM need to be careful or they will get wiped out.
They help progress technology, we need them (all our tech companies not just IBM ofc).

Though I admit considering the prices and quality of MS software I would not mind if they liquidated and restructured.. Windows 7 is coming soon and we still don't have WinFS, which should have replaced NTFS in vista..
 
Yup, are they in for a shock.

No toilet paper, you use a scoop of water to clean yourself. We had a friend that took toilet paper each time she went back to India. And yes you have to stoop to do what you want to do. No toilet seats. For those with artificial knees and hips it is a bugger.

My wife and my sister-in-law would not even use the toilets that have no doors. They waited until they got back on the air boat. You are on public display in the restrooms. Picture all looking at you as you go into their male and female one room toilets.

Most Americans have no idea on how good they really have it here.

Go for it gang. Listen to your boss on how great it will be in your new job.

If you can adapt to that scene you will be OK, most likely.

Don't even ask how they serve the food. Get ready to eat with you fingers and the sanitation will make you wonder.

They served me hot soy milk on the air boat and this older kid spit it out. The rest said if he will not drink it, we will not.

Great if you want to accumulate some 24 K gold, otherwise, I am happy here.
 
Yup, are they in for a shock.

No toilet paper, you use a scoop of water to clean yourself. We had a friend that took toilet paper each time she went back to India. And yes you have to stoop to do what you want to do. No toilet seats. For those with artificial knees and hips it is a bugger.

My wife and my sister-in-law would not even use the toilets that have no doors. They waited until they got back on the air boat. You are on public display in the restrooms. Picture all looking at you as you go into their male and female one room toilets.

Most Americans have no idea on how good they really have it here.

Go for it gang. Listen to your boss on how great it will be in your new job.

If you can adapt to that scene you will be OK, most likely.

Don't even ask how they serve the food. Get ready to eat with you fingers and the sanitation will make you wonder.

They served me hot soy milk on the air boat and this older kid spit it out. The rest said if he will not drink it, we will not.

Great if you want to accumulate some 24 K gold, otherwise, I am happy here.

Ya, I have been there. Unless you have good income with these jobs, it will be rough. This Indian gal I was with said only drink soda from cans, the bottles are many times just refills by the local vendor/store.
 
Thank you for the confirmation.

It is not a cake walk if the employees take the offer to go there.
 
Ya, that's what India needs. More people.


Although India occupies only 2.4% of the world's land area, it supports over 15% of the world's population.
 
Thats funny. Fire people at one cost then offer to rehire them at a much cheaper rate. Labor costs is all big corps like IBM care about. Globalism at its finest.
 
Thats funny. Fire people at one cost then offer to rehire them at a much cheaper rate. Labor costs is all big corps like IBM care about. Globalism at its finest.

A company should do what its in its best interest. If india can produce it cheaper... india should produce it. that is how a free market works.
It is our fed reserve and our government regulations who have made this place unfavorable for productive jobs.
 
A company should do what its in its best interest. If india can produce it cheaper... india should produce it. that is how a free market works.
It is our fed reserve and our government regulations who have made this place unfavorable for productive jobs.

But thats the thing. They aren't saying "India could produce it cheaper". IBM is offering to rehire the people (Americans) they just fired if they work for pennies on the dollar by moving to India. I understand the free market but this just rubs me the wrong way. Unethical at least.
 
But thats the thing. They aren't saying "India could produce it cheaper". IBM is offering to rehire the people (Americans) they just fired if they work for pennies on the dollar by moving to India. I understand the free market but this just rubs me the wrong way. Unethical at least.

IBM wouldn't be moving jobs there if it was producing at a cheaper cost.
That is why you get a pay cut. your cost of living goes down.
If you own government lowered out cost of living... no more taxes, no more inflation, no more big government programs...no more welfare... then we could have a competitive edge... see our money would be worth more... so the amount we are paid will be less numeroous in digits.
In a time in america, when you could do see a movie for nickle... how much did people make weekly?
 
Nice! Now we can get the source code and specs for all the copyright/patented products, copy them and redisribute them freely, or a least cheap!
 
Thank you for the confirmation.

It is not a cake walk if the employees take the offer to go there.

Yeas, one of the many places my husband used to work sent their young executives to India for 2 year stints. A lot of them quit before the 2 years were up. All of them came back saying it was a stinking cess pool. A couple of them refused the chance to go back.

But if we fill the place up with Westerners, it is only a matter of time before things improve.
 
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