effects of outsourcing

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More American jobs going to foreign countries, this time Honeywell Aerospace jobs
by Mike Crane

The saga of American jobs being re-located, outsourced, off-shored or what ever term you want to use continues. This time a plan of Honeywell International is documented. Immediately after the election outsourcing companies in India were gloating and laughing at Americans. One quote is turning out to be very correct:

"As Vivek Paul, Wipro VC, said after the Presidential poll, "The elections are over and so is the rhetoric; it will be easier for American corporations to step out with their outsourcing plans."

This certainly describes the plans of Honeywell International. Honeywell is secretly stepping out with their outsourcing plans! From the Honeywell plan:

"outsourcing selected manufacturing, reducing high-cost staff and increasing the use of technical capabilities at international locations based in Mexico, India and the Czech Republic."

But these are not telephone center jobs, these are not bank transactions processing jobs these are avionics jobs from their aerospace division:

"Honeywell International Inc. is planning to move 5,000 aerospace division jobs offshore over the next five years, according to internal documents that outline the company’s global development strategy."

You are being told that this is "good for us" by the Bush Administration. you are being told that this is "good for our country."

"In November, the Morristown, New Jersey-based company said it would hire 1,000 software programmers and invest $10 million in India over the next 12 months, according to the Associated Press ."

You are being told that it "good for us" that Honeywell will invest $10,000,000 and hire 1,000 software programmers in India. According to President Bush hiring these 1,000 programmers in India will create more jobs here in our country.

But in reality, neither is "good for us," nor our country. In economic reports month after month, the Administration (and for that matter the Democrats) rocket scientists scratch their heads and wonder why job creation is too low.  Duh!

The Honeywell Plan is just the tip of the iceberg:

"Hank Wolf, a manager at Smith West Inc. in Tempe, Arizona, told Arizona Central that his company would lose work if they didn’t send jobs to Mexico at the behest of GE and Honeywell."

Now our American corporations are even pressuring their suppliers to move jobs to foreign countries. Corporate extortion? But President Bush is telling us that this is "good for us" moving these suppliers jobs to foreign countries will create more jobs here. But in economic reports month after month, the Administration (and for that matter the Democrats) rocket scientists scratch their heads and wonder why job creation is too low.  Duh!

We apologize if this is being to sound like a broken record. But the Song Remains the Same. Of course the folks in India recognized this:

"A recent study of A T Kearney shows that nine out of 10 chief executives wanted to outsource to India. 25 % of the respondents wanted IT and auto component work to be given to India, 15 % favoured China and 13 % Mexico. "

But in economic reports month after month, the Administration (and for that matter the Democrats) rocket scientists scratch their heads and wonder why job creation is too low.  Duh!

At some point it will become obvious that you are being lied to! This is not "good for us" nor our country. But it is supported by both the Republican and Democrats and is not going to change until you, the citizens demand that it be changed. Only you can decide when you have had enough!

Thought that you might find the following article interesting. The links are also very informative.

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Honeywell’s Secret Five Year Globalization Plan Exposed

By Jeff Nachtigal

Honeywell International Inc. is planning to move 5,000 aerospace division jobs offshore over the next five years, according to internal documents that outline the company’s global development strategy.

The documents, titled, "Strategies In-Place to Enable 5-Year Plan," detail key Honeywell priorities, including establishing avionics manufacturing in Brno, Czech Republic, outsourcing selected manufacturing, reducing high-cost staff and increasing the use of technical capabilities at international locations based in Mexico, India and the Czech Republic.

In the five-year-plan projection, Honeywell will increase the total number jobs in emerging markets by over 5,000. Emerging markets are defined as Mexico, Eastern Europe, Asia, South America and Africa, but not "high-cost" countries such as Japan, Australia or the U.S. Over the past year, Honeywell has increased its workforce in the Czech Republic by 30 percent.

"I was surprised at the numbers, at how big it was," said a Honeywell avionics employee, who agreed to discuss the plans on condition of anonymity. "The numbers are two to three times bigger than I expected."

The documents, obtained by Washtech News, show a long-term strategy of Honeywell jobs being offshored to "emerging markets" that offer a lower-cost workforce. Although Honeywell has not discussed its long-term outsourcing plans or what effect they may have on workers in its U.S. locations, its plans mirror hundreds of companies that are now increasingly moving both low- and high-cost job, positions overseas.

Honeywell’s reasons for offshoring are clear. As emerging markets shoulder the job load and the United States continues with a nearly flat rate of job growth, Honeywell can increase its "revenue per head" by $76,000, meaning that by paying individual workers less in offshore markets, the company stands to increase profits. The documents state that Honeywell’s presence in emerging markets will put "pressure" on high-cost jobs …quot; indicating the company is aware that its offshore moves may cause high-cost jobs, perhaps in this country, to be dropped.

One document touts the movement of jobs to emerging markets around the globe as a "significant step on accelerated path to globalization."

Honeywell spokespersons declined to discuss the company’s global hiring plans when reached for comment.

Ronil Hira, an assistant professor of public policy at the Rochester Institute of Technology said that it is important to dispel the myth that it is only low-paying jobs that are sent overseas these days.

"The policy prescription you hear from people again and again as the response to the global competition of outsourcing is for Americans to move to high-end work," Hira told The New York Times.

"What is not clear,"

Honeywell categorizes high-cost jobs as "addressable” …quot; jobs eligible to be moved offshore) and "non-addressable” …quot; jobs that are military-related and cannot move out of the United States).

But according to one employee, who has worked for the company for several years as an electrical engineer, Honeywell is doing everything in its power to convert those non-addressable jobs to the more offshore-friendly "addressable jobs.”

"We have almost exclusively been looking at India for our talent, but with the export and technical restrictions for them, now (Honeywell) found a site in the Czech Republic that does not have the same controls and restrictions," said the employee, who found the internal planning documents.

In November, the Morristown, New Jersey-based company said it would hire 1,000 software programmers and invest $10 million in India over the next 12 months, according to the Associated Press .

Honeywell’s aerospace division , based in Phoenix, took in $9 billion in sales last year. Honeywell International Inc. employs approximately 100,000 people worldwide with revenues approaching $20 billion in 2003.

According to the Communications Workers of America (CWA) research department, as of 2001, five different unions represented approximately 4,000 industrial Honeywell employees.

While Honeywell is looking offshore to save on labor cost, local parts suppliers for the company’s aeronautics division are feeling pressure to outsource work from Phoenix to Mexico.

Hank Wolf, a manager at Smith West Inc. in Tempe, Arizona, told Arizona Central that his company would lose work if they didn’t send jobs to Mexico at the behest of GE and Honeywell.

Pressure to find work for employees at international locations has been building for several years, according to the employee.

What may be good for the company doesn’t sit well with employees, who are aware of the general trend of jobs being relocated overseas. Few are willing to discuss the issue out loud at Honeywell, according to the employee. Instead, U.S.-based employees keep their heads down in hopes that their jobs will remain safe.

"I understand the business case for it, I totally support capitalism, but to some extent the United States has to look out for itself and protect its engineering abilities, its technical abilities, protect the good paying jobs. The people that spend a lot of time getting four-year degrees or more don’t want to go into another field. They plan on doing this for the rest of their lives."

See Honeywell's Secret Documents.

Source: http://www.techsunite.org/news/041207_honeywell.cfm

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Also see the impact of outsourcing on our economic recovery:

American Jobs and Economy still on decline

And how outsourcing contributes to our record breaking Trade Deficits:

Trade Deficit - even Greenspan recognizes the failed policies ...

 

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