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One Final Insult for Workers


One final insult for workers
By Rachel Konrad Associated Press
Posted 9/28/03
SAN JOSE, Calif. - Scott Kirwin clung to his job at a large investment bank through several rounds of layoffs last year. Friends marveled at the computer programmer's ability to dodge pink slips during the worst technology downturn in a decade.
But it was tough for Kirwin, 36, to relish his final assignment: training a group of programmers from India who would replace him within a year.
"They called it 'knowledge acquisition,'æ" the Wilmington, Del., resident said. "We got paid our normal salaries to train people to do our jobs. The market was so bad we couldn't really do anything about it, so we taught our replacements."
Finally laid off in April, Kirwin sent out 225 resumes before landing a temporary position without benefits at a smaller bank - and swallowing a 20 percent pay cut.
Kirwin is among what appears to be a growing number of American technology workers training their foreign replacements - a humiliating assignment ......

For more: http://www.dailyherald.com/search/main_story.asp?intID=3789219

Why Jobs Are Going Overseas


Why jobs are going overseas
By Karen Lowry Miller Newsweek
Posted 9/28/03

When Jagdish Dalal first got the idea to hire computer programmers in India back in 1983, most people thought he was taking too big a risk.
Sure, the engineers there were smart, and cheap compared with Americans. But as the Indian-born head of management-information systems for a data-storage company in Massachusetts, he had to haul punch cards and printouts back and forth on Air India flights to Mumbai. And indeed the first project was a "colossal failure," he says. The code was unusable.
"At first we accused them of not having the right talent," recalls Dalal, but he quickly recognized that he had failed to communicate exactly what he wanted.
Two decades later, there's hardly a chief technology officer in the developed world who isn't just a bit starry-eyed over wages in China, Russia or (especially) India, which are some 80 percent lower than those earned by IT specialists back home....

For more: http://www.dailyherald.com/search/main_story.asp?intID=3789213

Hidden Malware in Offshore Products Raises Concerns

Hidden malware in offshore products raises concerns

Computerworld Story by Mark Willoughby

SEPTEMBER 15, 2003 ( COMPUTERWORLD ) - "You've go to be a little paranoid to survive in this business." -- Andrew S. Grove, chairman and founder, Intel Corp., circa 1980
The extreme difficulty in discovering back doors hidden deep within a complex application, buried among numerous modules developed offshore in a global software marketplace, is forcing those assigned to protect sensitive national security information to take defensive actions.

For more: http://www.computerworld.com/managementtopics/outsourcing/story/0,10801,84723,00.html

Contracting Out IT Jobs Vexes States

09/15/2003: Contracting Out IT Jobs Vexes States
September 15 - States are wrestling over whether they should contract out or "outsource" their information technology projects to private companies, including those located overseas. While farming out state high-tech work may be cheaper and more efficient, state politicians are leery of the possible voter backlash about losing state jobs to foreign companies, industry and government officials said.
By Pamela M. Prah, Staff Writer, Stateline.org

See http://www.stateline.org/search_action.do

Company brings data back to US

From an online post to a Silicon Valley listerv:
dated 9/15/03

Hi

I was at a meeting recently and was speaking to a gentleman who was
formerly worried about layoffs at his company. He stated that 30% of his
division had been offshored. However, because the data that was being sent
offshore was of a "specific nature", his company had decided to bring all
of the data back to the US and rehire those that had been down-sized.

Because of privacy and data concerns, many companies are taking a closer
look at their off-shoring practices and verifying that laws are not being
broken due to the transfer of data to countries with less then steller data
protection practices.

This has become significantly more important after 9/11 and with the
p[assage of global data protection (privacy) laws.

Saundra Kae Rubel

Reposted to the BizTech blog by permission of the author.

The author also points out that:

"India is now considering enacting a data protection law because of the proliferation of offshoring accounts already established there. What most people and companies do not understand is that there has been a European convention for fundamental human rights since 1981 (Convention 108) and a the EU Data Protection Directive (law) in the European Union since 1995. The EU Data Directive covers the processing, use and disclosure of data. Articles 25 and 26 of that Directive cover the transfer of data to countries outside of the EU Member Countries. Bottom line is that the EU Member Countries cannot transfer data to third countries who do not have data protection or privacy laws or that have such a law, but it does not meet the terms of adequacy as defined by the EU. And the United States is a third country which has not established adequate laws except under a concept known as safe harbor, model contracts or registering with each one of the individual member country's Data Protection Authorities.

India could rush a piece of legislation through, yet have it go through the extraordinarily long process of adequacy determination by the EU only to fail. This would mean that if a company in an EU Member country does send data to India, they could be fined or worse.

India enacting legislation might matter to the U.S., however we do not have general data protection laws, we only have specific ones such as HIPAA, GLB, US PATRIOT Act, etc. At the state level we do have some laws that pertain to the safeguarding of data, but usually they are ineffective, and in the case of California SB1 which was signed by the Governor last month, likely to be overturned by a more lenient Federal law.

Not only does outsourcing cost Americans jobs, it is also highly dangerous. You just don't pass data to countries willy nilly, there must be some sort of mutual data protection agreement that ensures the data in the other country is protected. The best way to ensure this will happen is to not outsource, period."

Offshoring Protest Coverage

See: Offshore debate
Job export issue pits companies against workers

John Shinal, Chronicle Staff Writer Wednesday, September 17, 2003


"The growing practice of sending technology jobs overseas has fast become the hottest flashpoint for controversy in Silicon Valley."

go to: http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2003/09/17/BUG6Q1OCIQ1.DTL&type=business

Action Alert: Freedom Riders

NWU BizTech supports immigrant workers. This Action Alert was sent to us by
the Working Families E-Activist Network.

Sept. 12, 2003

Working families across America are uniting their voices
for the rights and freedoms immigrant workers--and
you can take part.

Immigrant workers work hard, pay taxes and want a fair
chance at the American Dream, but their rights are
routinely violated. And when one group of workers is
exploited, it hurts all workers.

Beginning Sept. 20, hundreds of immigrant workers will
board buses heading toward New York as part of the
Immigrant Workers Freedom Ride. The Freedom Ride is
modeled after the 1961 Freedom Rides of the U.S. civil
rights movement, which took busloads of student activists
from across the country into the Deep South to challenge
segregation. Today's Freedom Riders are seeking the
same rights and opportunities everyone in this country
deserves.

Please read on to learn more and find out how to get
involved.

The Freedom Riders will depart from 10 major cities
and will converge in Washington, D.C., New Jersey and
New York in early October. They're riding buses to
raise awareness about the plight of immigrant workers
and advocate a clear road to citizenship, family reunification,
workers' freedom to form a union without regard to
immigration status and full civil rights protections.

On their way, they'll stop in dozens of communities
for local rallies. Find out about welcoming the Freedom
Riders to your community by contacting your local labor
council or checking the schedule at: http://www.iwfr.org/

Immigrant workers want good jobs, access to health
care and rights on the job--the same things all workers
want. Immigrant workers make up 12.4 percent of the
U.S. labor force, and pay an estimated $133 billion
in taxes a year. Almost 43 percent of immigrant workers
are paid less than $7.50 an hour, compared with 28
percent among all workers.

Immigrants toil in some of the country's toughest,
lowest paying and most dangerous jobs. They suffer
higher rates of on-the-job injuries, illnesses and
fatalities than other workers.

But when they stand up for their rights on the job,
employers often threaten deportation. Employers regularly
harass and intimidate workers to block their freedom
to form unions--but immigrant workers are especially
vulnerable.

These are outrageous attacks on the rights and freedoms
of immigrant workers, who deserve the fruits of their
contribution to the American economy. And they are
an affront to every person concerned about workplace
and social justice.

Learn more by visiting the Freedom Ride website:
http://www.iwfr.org/

And read the Immigrant Workers Freedom Ride cover story
in the new issue of America@work:
http://www.unionvoice.org/ct/u11OxXE14pay/

Look for upcoming action opportunities to support the
Immigrant Workers Freedom Ride.

Thanks for all you do.
--------------------------------------------------

Visit the web address below to tell your friends, family
and co-workers about this.

http://www.unionvoice.org/join-forward.html?domain=wfean&r=a11OxXE13dqS

If you received this message from a friend, you can
sign up for Working Families e-Activist Network at:

http://www.unionvoice.org/wfean/join.html?r=a11OxXE13dqSE

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

If you would like to unsubscribe from the e-Activist
Network, visit your subscription management page at:

http://www.unionvoice.org/wfean/smp.tcl?nkey=83w78bzr53tt

***********************************************
Click on the link below for more information
from your union, online activism and benefits.
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A CEO on Offshoring

Here's what Sun Microsystems CEO Scott McNealy had to say to the SF Chronicle. Published Sunday, September 14, 2003.

Excerpted from the interview with the Chronicle's editors:

Q: I'm wondering who's going to employ all the American workers.

A: You sound like a piano player in the old days when there were 35,000 piano players playing in the front of every movie theater when they had silent movies. You're saying, "Who's going to employ all of us now that they have sound embedded in the films?"

Gang, we've got brains. There'll be lots to do.

Q: You're talking about the logic of productivity gains. I see companies running overseas for cheaper labor as a bigger issue.

A: What, like Indian companies?

Q: American companies going to India or China or anyplace else.

A: What's an American company? We do half our business internationally. Does that make us an international company or a U.S. company?

Q: A global company, I would vote.

A: Yes. So global companies grow globally. Shouldn't India be a little upset that we have most of their software programmers here? Who's making the value judgments here?

I don't get it. I don't understand it. What's your beef?

We pay way more here in the U.S. as a percentage of our total tax bill than we do internationally even though we do half of our business internationally.

That's the beauty of our market economy. Here we are trying to protect against job losses.

You know, we could have kept all those piano players. Does anybody think that would have been a step forward? The worst thing that can happen now is if we don't redeploy to these new environments and new architectures."


http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2003/09/14/BU141353.DTL

Monster Job Board Goes Offshore

Take a look! Jobs currently being posted include many in India, Singapore and Vietnam.

http://jobsearch.monster.com/jobsearch.asp?re=5&pg=1&co=xrafflesinx&ah=http%3A%2F%2Fcompany%2Emonster%2Ecom%2Frafflesin&aj=Raffles+Software+Pvt%2E+Ltd

Introducing the BizTech Campaign on Offshoring

WELCOME TO THE NATIONAL WRITERS UNION BIZTECH DIVISION OFFSHORING CAMPAIGN WEBSITE

What’s BizTech?
BizTech is the National Writers Union (www.nwu.org) technical and business writers’ division (formerly known as BITE). Our geographical base is Silicon Valley, American home of technical innovation. Our members live all across the United States. Many of us speak several languages, have lived abroad, and understand the value of improving the lives of all workers, even as we try to affect our own circumstances locally. One of our primary concerns is the future of work.

Why an Offshoring Campaign?
It has been estimated that there are now 3 million fewer jobs in the U.S. than there were in September 2001. As unemployment continues to increase during this unprecedented “jobless recovery” we are seeing that the dotcom bust, the tech downturn and the erosion of a variety of industries’ ability to employ people stems from complex issues.

One of BizTech’s mandates is to help our members find and keep jobs. So, we have decided to home in on one issue affecting our ability to work and support our families – now and in the future: offshoring.

BizTech’s leaders have read about the issue, discussed it with our members, and reached out to other organizations and unions who share our concerns about workers and the future of jobs. We have concluded that the move to offshore jobs is here to stay, as it is led by corporations’ ongoing need to maximize profits, an accelerating global trend. In the history of industry and modernization, efficiency, cost control and investor profits have always led the way. But never before have they led with the speed, secrecy, and enormous impact on the educated worker as the offshoring trend.

From Our Shores to Bangalore’s
According to a Forrester Reseach, Inc. report from November 2002, 3.3 million U.S. jobs are expected to be lost to countries overseas within the next 15 years. It’s not the number of jobs that concerns BizTech, it's the type of jobs: software development, technical writing, customer service, accounting, back-office support, product development and other white collar work. This follows the trend of offshoring manufacturing work, which we have observed accelerating in the last few decades.

More than half of America’s Fortune 500 has moved jobs offshore. Some of the companies heavily investing in offshoring include AOL (with a significant presence in India), American Express, British Airways (both hiring in India), Charles Schwab (has moved some of its information technology division to a contractor in Bangalore), Dell, HSBC, IBM, J.P. Morgan Chase, Hewlett-Packard, Microsoft (plans to invest approximately $400 million in India), Novartis, Oracle (planning to double its workforce in India), and Texas Instruments (currently employs more than 1,000 engineers in Bangalore, India, and plans an increased presence in the near future).

Unintended Consequences
1. Economics
A little reflection on the potential impact of offshoring on the U.S. leads down many paths. Obviously, first and foremost, there’s the economic hit – the lives disrupted, the families worn down by financial strains, the well-educated middle-aged worker who must find new ways to secure a steady income, hang on to the mortgage, and pay the kids’ tuition, and the college student whose educational choices may have to shift to prepare for an unknowable employment future.

Without American jobs for the educated professional -- the workers on the long-touted information superhighway -- who will be left to buy the products sold in the U.S., even if they are available at the cheapest possible prices by the ever-efficient and profitable Wal-Mart? Without jobs, who will be left to pay the taxes that keep our cities, towns and states afloat? Without jobs, how many more unhappy lives will foreshadow psychological breakdown, drug dependency, erratic behavior, and other signs of social malaise?

2. Privacy
A second impact of offshoring is beginning to be recognized by our guardians of privacy. By now we have all heard about identity theft. In this scam, either individuals or groups of accomplices steal personal identity by gaining access to individuals’ private information such as drivers’ licenses, social security numbers, credit card numbers, bank account numbers, etc., thereby taking over their victims’ identity, and access to credit or cash. A recent story in the Washington Post by a victim of identity theft posits that his identity was stolen by a worker in a hospital he had recently checked into. Recently we heard about a corporation that outsourced their customer support worker’s jobs to India, along with the names of the U.S. workers who had previously done the jobs that would be taken over by the new workers offshore. That’s right: the U.S. workers would be replaced by workers of comparable skill in India. The company, wanting to help the new hires sound as much like their American counterparts as possible, so as not to scare away their U.S. customers, with whom they would deal by telephone, not only grilled them in voice and speech characteristics typical of Americans, they also gave them the actual names of the people whose jobs they had replaced. “First they took my job, and then they took my name,” said one of the workers, incredulous upon hearing this story.

This “name game” may have begun innocently enough, but, what if? What if a rogue employee decided to take this further, gaining not only the name of the worker, but his or her identity as well?

3. National security and the back door
A recent email we received illustrates the potential for trouble when it comes to the offshoring of high-tech work:

“I’m a former documentation manager and technical writer, and I reside in New Hampshire. (My group was outsourced in January.)

I’m concerned about software being developed in countries that are not friendly with the United States and the possibility of back doors being programmed into the code that allows these governments or individuals access to medical, financial, or strategic information. I recently read on CNN that the Bush administration believes the Nimda virus was created by the Information Warfare branch of the Chinese military. If this is the case, what’s to prevent them from putting a few well-placed programmers in companies that are doing the offshore programming? We could literally be giving away the keys to the kingdom. Since many QA positions are being outsourced and it’s not too tough to add last-minute code to an application, who’s going to test all these applications for back doors? The remaining QA folks will likely have only enough staff to make sure the application works as planned, not to test for national security concerns.

I’d appreciate any comments you have regarding this. If you feel that my statements are valid, I’d be happy to work with you to spread the word. Companies won’t stop sending jobs overseas because they’re concerned about our loss of employment, but they might if it’s a valid national security concern and we can raise the issue loudly enough….”

So, what’s a back door, you may ask? Sometimes, a software developer will build back doors into software, because they know the clients might lock themselves out of their own administrative tools (forget the password, create situations where they couldn't make changes, etc.). So they build back doors with passwords in order to be able to give the client another option. The potential for back door software to impact the security of databases, should it fall into the wrong hands offshore, is not hard to imagine.

Double Whammy: Visa Reform and the U.S. Worker

The situation of H-1B and L-1 visa holders can sometimes clash with the interests of U.S. workers. At a time of high national unemployment and with more and more jobs being sent abroad, this double-whammy is now being witnessed by workers across the country. Recently we heard from a technical writer in Texas whose employer plans to have him and his colleagues train L-1 visa holders from India to do his job. In a typical scenario, the foreign workers are brought into the United States on L-1 visas, paid wages comparable to those they receive in India (undermining wage gains of workers in the U.S.), and trained by American workers in how to do their specific jobs. Eventually, the foreign workers are sent back to India and employed offshore at low cost by the company. Meanwhile, the U. S. worker, having trained his replacement, is laid off or fired.

See below for excerpts from a recent article on this issue in ComputerWorld.

Jobless push for visa reform

A Connecticut activist group is behind several H-1B and L-1 visa bills in Congress
In a recent story by Patrick Thidobeau in Computerworld (see. www.computerworld of 8/11/03)
a group of activists in Connecticut, laid-off IT workers, are described as taking on the controversial L-1 and H-1B visas.

"Of the five bills that have been introduced this year to reform the two visa programs, three were written by Connecticut lawmakers," says the article.

EXCERPTS: ...."We've heard quite a bit from constituents in our district concerned about losing their jobs," said Lesley Sillaman, a spokeswoman for Rep. Rosa DeLauro (D-Conn.), who is seeking restrictions on L-1 visa use.....The group DeLauro has been working with, the Organization for the Rights of American Workers (TORAW) in Meriden, Conn., was formed less than a year ago...
Among other activities, TORAW attended an open forum meeting that Rep. Nancy Johnson held in her....
On July 28, Johnson, a Republican, joined Democratic Sen. Christopher J. Dodd of Connecticut in sponsoring the USA Jobs Protection Act to reform the visa laws....
In a hearing late last month on the L-1 visa, Dodd said that from 1997 to 2000, some 3.4 million H-1B and L-1 visas were approved, 70,000 in Connecticut alone. Dodd said a growing body of anecdotal evidence suggests abuse.....
The L-1 allows companies to transfer foreign employees with specialized skills into the U.S. But critics contend the program brings in foreign replacements who will be trained to take over IT jobs held by U.S. citizens.
The H-1B, a visa that lets firms bring skilled workers into the U.S. for up to six years, is also a hot issue. But its cap will shrink from 195,000 to 65,000 in October; the L-1 has no cap, though DeLauro's bill would impose a 35,000 limit.
One day after Dodd and Johnson introduced their bills, the Information Technology Association of America released a memorandum suggesting L-1 program reforms, including the visa's requirement that employees have some "specialized knowledge." The ITAA wants a more restrictive definition of what specialized knowledge entails.... (continues).

The BizTech Vision
You don’t need a crystal ball to see how tough it’s going to get for tech writers and others in the educated masses in the coming years. Rather than bemoan our fate or yours we have a vision of how to counter the offshoring trend.

1. Beginning in Silicon Valley, where we know how things work, we will try to protect as many technical writing jobs as possible. This will take research, initiative, and outreach to workers’ groups, management, unions and legislators who may defend our cause. From this base of support, we will outreach to other workers’ groups, unions and legislators across the country.

2. We will seek ways to re-educate technical writers towards the jobs that will likely remain in the U.S. These include information architecture, publications management, technical editing and other categories. We will work with universities to create curriculums that match workers’ needs.

3. We will encourage foreign workers who are retraining for offshored American jobs to join our struggle by improving their own compensation as they learn new skills.

Want to help? To begin, please join our campaign by posting your comments to this weblog. Let us know if you are interested in working with us:

1. To gather stories about technical writers whose jobs have been offshored
2. On legislative initiatives
3. On publicity campaigns
4. On education and retraining
5. In general

Please take a look at the rest of the posts on this site to get up to date on the issues involving offshoring and how it is impacting workers nationwide and abroad. Your additional posts on offshoring are welcome!

NWU BizTech Division