"In a time of universal deceit telling the truth is a revolutionary act." -George Orwell

Posts Tagged ‘U.S. Labor Unions’

Labor Day & The Election Of 2012: It’s The Inequality, Stupid.

In Uncategorized on September 3, 2012 at 6:53 pm

https://i0.wp.com/truth-out.org/images/090312in_.jpgOldspeak:” Seems pretty self-explanatory: “As wealth and income rise to the top, moreover, so does political power. The rich are able to entrench themselves by lowering their taxes, gaining special tax breaks (such as the “carried interest” loophole allowing private equity and hedge fund managers to treat their incomes as capital gains), and ensuring a steady flow of corporate welfare to their businesses (special breaks for oil and gas, big agriculture, big insurance, Big Pharma, and, of course, Wall Street). All of this squeezes public budgets, corrupts government, and undermines our democracy. The issue isn’t the size of our government; it’s who our government is for. It has become less responsive to the needs of most citizens and more to the demands of a comparative few.“-Robert Reich

By Robert Reich @ Robert Reichs Blog:

The most troubling economic trend facing America this Labor Day weekend is the increasing concentration of income, wealth, and political power at the very top – among a handful of extraordinarily wealthy people – and the steady decline of the great American middle class.

Inequality in America is at record levels. The 400 richest Americans now have more wealth than the bottom 150 million of us put together.

Republicans claim the rich are job creators. Nothing could be further from the truth. In order to create jobs, businesses need customers. But the rich spend only a small fraction of what they earn. They park most of it wherever around the world they can get the highest return.

The real job creators are the vast middle class, whose spending drives the economy and creates jobs.

But as the middle class’s share of total income continues to drop, it cannot spend as much as before. Nor can most Americans borrow as they did before the crash of 2008 — borrowing that temporarily masked their declining purchasing power.

As a result, businesses are reluctant to hire. This is the main reason why the recovery has been so anemic.

As wealth and income rise to the top, moreover, so does political power. The rich are able to entrench themselves by lowering their taxes, gaining special tax breaks (such as the “carried interest” loophole allowing private equity and hedge fund managers to treat their incomes as capital gains), and ensuring a steady flow of corporate welfare to their businesses (special breaks for oil and gas, big agriculture, big insurance, Big Pharma, and, of course, Wall Street).

All of this squeezes public budgets, corrupts government, and undermines our democracy. The issue isn’t the size of our government; it’s who our government is for. It has become less responsive to the needs of most citizens and more to the demands of a comparative few.

The Republican response – as we saw dramatically articulated this past week in Tampa – is to further reduce taxes on the rich, defund programs for the poor, fight unions, allow the median wage to continue to fall, and oppose any limits on campaign contributions or spending.

It does not take a great deal of brainpower to understand this strategy will lead to an even more lopsided economy, more entrenched wealth, and more corrupt democracy.

The question of the moment is whether next week President Obama will make a bold and powerful rejoinder. If he and the Democratic Party stand for anything, it must be to reverse this disastrous trend.

Why Major Newspapers & Corporations Run Fake Job Ads To Avoid Hiring American Workers

In Uncategorized on February 3, 2012 at 2:36 pm

Oldspeak: Behold! The fruits of globalization! “Instead of being about talent, H-1B visa is about importing cheap labor. There’s an insidious way that the high-tech industry denies jobs to US citizens. It’s called the H-1B visa, which allows America’s technological firms – and other specialized employers – to bring in foreign employees, frequently at a lower wage package than might be paid to an individual with the same qualifications who is an American citizen. There are many arguments against the program, primarily the allegation that there is generally no actual shortage of US citizens with high-tech skills for the work done by H-1B visa holders. After the H-1B workers are sent back to their native nations, there are reports that they are rehired by US companies abroad to start offshore high-tech offices that move more US jobs overseas. In short, the H-1B visa could be seen as an outsourcing training program at the expense of highly skilled US professionals.” I wonder if Obama’s “Jobs Czar” GM CEO Jeffery Immelt is aware of this stealth job outsourcing sector of the economy. As CEO of a an American multinational corporation that employs 82% of its workforce outside the U.S., I would surmise, probably so. “Ignorance is Strength” “Profit Is Paramount”

Related Video

Immigration Attorneys Teach Corporations How To  Avoid Hiring Qualified Americans.

By Smoke & Mirrors:

Every Sunday, major newspapers, websites and corporations run fake job ads. Why? The goal is to prove that no qualified Americans are available, so that green cards can be secured for H1B workers (“highly-skilled” foreign workers from “high tech” to architects to nurses and Kindergarten teachers).

The claim is H-1B is a remedy for “labor shortages” and as a means of hiring “the best and the brightest” from around the world. The reality is it’s all about cheap labor.

The fundamental reason for the H1B Visa program, created in 1990, is to substitute cheap, imported, supposedly “skilled” (equivalent to American high school degree)  labor for more expensive American labor. The employer, who reaps a ton of tax advantages, doesn’t have to pay medical benefits, overtime, social security, etc., can also force the departing US worker to train their foreign replacement.  The problem is not lack of enforcement or fraud. Instead, the problem is gaping loopholes in the law.

Congress has allowed the expansion of importation under all VISA programs. 125,000 work authorized visas per month. This includes green cards, L-1, H1-b, H2-b etc  and the state hands out about 320K J-1 student work visas yearly.

Body Shops:

According to Civil Defense Attorney James Otto, who poses the question: “Whether the U.S. should allow the replacement of U.S. workers with foreigners imported under the several visa programs and should Government hire foreigners in stead of U.S workers?”, there are eight main body shops which bring in foreign workers to take American jobs. One body shop, Infosys, faces a lawsuit by former employee Jack Palmer over charges that it abused US visa programs. Per the Economic Times of India “The Infosys charges illustrate the growing conflict between the desires of multinational corporations to source cheaply (even if “cheap” has been mismeasured by not not being adjusted for risk) and what actions need to take place at a country level to make sure these very same multinationals have decent market for their goods.”

On December 7, 2011, Secretary of State Hillary Clinton, through the U.S. Embassy in India, announced that the State Department has authorized the U.S embassy to allow the admission of a limitless number of foreign workers into the U.S. to take jobs that millions of unemployed Americans could and would do.

The practical implications of the State Department’s conduct is that every U.S employer can now hire as many foreign workers as they desire to replace all American workers.

So even jobs that require face to face work are not safe from “outsourcing” because of “importing”.

Of course, this is no more the fault of the imported foreign nationals than it is the fault of the workers employed in sweatshops overseas.  The corporations treat them horrendously.  While displacing American workers, the goal is to reduce the salary level to a point where they can get qualified professional American workers at the same cheap price. Just one more government policy that result in We the People suffering in order that corporate profits soar.

Hi-Tech US Corporations Deny Skilled American Workers Jobs Through Abuse of Visa Loophole

By Mark Karlin @ BuzzFlash:

A short time ago, BuzzFlash at Truthout ran a commentary on how US global corporations don’t give a hoot about increasing jobs in America.

In it, we included a section about how Silicon Valley high-tech companies, particularly Apple, use overseas contractors to manufacture their latest technological consumer products. It has been documented that some of these contractors create such harsh conditions and pay such low wages that workers have been driven to suicide, as The New York Times and other publications have detailed.

 

In a two-part Times expose, an Apple executive claimed: “We [Apple] don’t have an obligation to solve America’s problems.” That was in response to Apple shipping so many potential US jobs overseas to these slave-wage sweatshops; e.g., “90 percent of the parts of an iPhone are made outside the U.S.”

But there’s another insidious way that the high-tech industry denies jobs to US citizens. It’s called the H-1B visa, which allows America’s technological firms – and other specialized employers – to bring in foreign employees, frequently at a lower wage package than might be paid to an individual with the same qualifications who is an American citizen. There are many arguments against the program, primarily the allegation that there is generally no actual shortage of US citizens with high-tech skills for the work done by H-1B visa holders.

President Obama appeared blindsided by a question on a Google Plus interactive town hall the other day from a woman whose husband had been laid off by Texas Instruments:

Jennifer Wedel was the second to question Obama, and the four-minute exchange was among the most memorable of the 50-minute online event.

“My question to you is to why does the government continue to issue and extend H-1B visas when there are tons of Americans just like my husband with no job?” she asked.

Obama offered that industry leaders have told him that there aren’t enough of certain kinds of high-tech engineers in America to meet their needs. Jennifer Wedel interrupted him to explain that that answer didn’t match what her husband is seeing out in the real world.

“Jennifer, can I ask what kind of engineer your husband is?”

“He’s a semiconductor engineer,” she told the president, who seemed genuinely surprised.

“If you send me your husband’s resume, I’d be interested in finding out exactly what’s happening right there,” he told her. “The word we’re getting is somebody in that high-tech field, that kind of engineer, should be able to find something right away. And the H-1B should be reserved only for those companies who say they cannot find somebody in that particular field.”

Of course, the high-tech companies are telling the White House and Congress that they can’t find US citizens for the H-1B jobs, but many critics argue that many high-tech companies hire H-1B workers without even offering the positions to Americans. On top of that, after the H-1B workers are sent back to their native nations, there are reports that they are rehired by US companies abroad to start offshore high-tech offices that move more US jobs overseas. In short, the H-1B visa could be seen as an outsourcing training program at the expense of highly skilled US professionals.

It was nice of the president of the United States to offer his personal job placement services to Jennifer Wedel’s husband, but it’s a bit disturbing that the White House appears to have fallen for the Silicon Valley canard.

When it comes to the H-1B visa, it’s the same old story: follow the profits.

This Labor Day We Need Protest Marches Rather Than Parades

In Uncategorized on September 5, 2011 at 1:09 pm

Oldspeak:”Like many other American holidays, Labor Day has been commercialized and divorced from its original ideals, morphing into a spectacle of consumption the oligarchs are proud of. It’s been the worst decade for American workers in a century. That hardly calls for a celebration. ‘Labor Day, the first Monday in September, is a creation of the labor movement and is dedicated to the social and economic achievements of American workers. It constitutes a yearly national tribute to the contributions workers have made to the strength, prosperity, and well-being of our country.’ ‘It’s been the worst decade for American workers in a century… American workers should march in protest. They’re getting the worst deal they’ve had since before Labor Day was invented – and the economy is suffering as a result.”-Robert Reich

By Robert Reich @ The Christian Science Monitor

Labor Day is traditionally a time for picnics and parades. But this year is no picnic for American workers, and a protest march would be more appropriate than a parade.

Not only are 25 million unemployed or underemployed, but American companies continue to cut wages and benefits. The median wage is still dropping, adjusted for inflation. High unemployment has given employers extra bargaining leverage to wring out wage concessions.

All told, it’s been the worst decade for American workers in a century. According to Commerce Department data, private-sector wage gains over the last decade have even lagged behind wage gains during the decade of the Great Depression (4 percent over the last ten years, adjusted for inflation, versus 5 percent from 1929 to 1939).

Big American corporations are making more money, and creating more jobs, outside the United States than in it. If corporations are people, as the Supreme Court’s twisted logic now insists, most of the big ones headquartered here are rapidly losing their American identity.

CEO pay, meanwhile, has soared. The median value of salaries, bonuses and long-term incentive awards for CEOs at 350 big American companies surged 11 percent last year to $9.3 million (according to a study of proxy statements conducted for The Wall Street Journal by the management consultancy Hay Group.). Bonuses have surged 19.7 percent.

This doesn’t even include all those stock options rewarded to CEOs at rock-bottom prices in 2008 and 2009. Stock prices have ballooned since then, the current downdraft notwithstanding. In March, 2009, for example, Ford CEO Alan Mulallyreceived a grant of options and restricted shares worth an estimated $16 million at the time. But Ford is now showing large profits – in part because the UAW agreed to allow Ford to give its new hires roughly half the wages of older Ford workers – and its share prices have responded. Mulally’s 2009 grant is now worth over $200 million.

The ratio of corporate profits to wages is now higher than at any time since just before the Great Depression.

Meanwhile, the American economy has all but stopped growing – in large part because consumers (whose spending is 70 percent of GDP) are also workers whose jobs and wages are under assault.

Perhaps there would still be something to celebrate on Labor Day if government was coming to the rescue. But Washington is paralyzed, the President seems unwilling or unable to take on labor-bashing Republicans, and several Republican governors are mounting direct assaults on organized labor (see IndianaOhio,Maine, and Wisconsin, for example).

So let’s bag the picnics and parades this Labor Day. American workers should march in protest. They’re getting the worst deal they’ve had since before Labor Day was invented – and the economy is suffering as a result.

The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers’ own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. This post originally ran on www.robertreich.org.