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All hail!  All sing praises of glory, raise ye voices in jubilation!
Some of those millions of jobs offshore outsourced to India are returning!!!!

From Fortune, India Conglomerate TATA is bringing jobs to Ohio.

Reno, Ohio, as the type of place that would be hit hardest by outsourcing - a small American town losing out to the invisible hand shifting jobs to places like Bangalore and Guangzhou. Instead, outsourcing is bringing the jobs to Reno

O Rly?  Is that REALLY what TATA is doing?

According to the Enquirer

Gov. Ted Strickland met with local officials a couple weeks ago to brief them on the project, which would include transferring 300 jobs here and creating 700 new jobs

Ok, transferring jobs means a L-1 guest worker Visa, imported cheap labor, transfered from abroad.  Note, creation of 700 new jobs does not say American jobs at all!  One can create 700 new jobs but for H-1B, H-2B Visa holders or L-1 guest worker holders almost exclusively!

It gets worse.  We have a bold faced lie in that they are trying to put quite the spin on the term insourcing.

From the same Fortune article:

The phenomenon has a name: "insourcing," the term experts are starting to use when foreign multinationals open offices on U.S. soil and hire Americans, at a higher price, to do the very jobs they once lured overseas

No, I don't think so!  

Insourcing does not mean that U.S. citizens or out of work people of Ohio will get those jobs.

Insourcing is defined as bringing over via guest worker Visas cheaper labor to displace Americans.  Insourcing is used to reduce the costs of production, in other words wages, labor,  within the domestic economy where the client company resides.  

The most discouraging thing is that Ohio Gov Ted Strickland is a Democrat, yet a labor arbitrage business model company, TATA,  with the below track record, Governor Strickland apparently met with these outsourcers and offered them a financial relocation package.

The ITAA, which is the U.S. NASSCOM counterpart,  claims on Page 5:

Expand visa programs for skilled knowledge workers so that IT employers can more easily hire highly educated, foreigners to offset domestic talent shortages.  Such workers have proven to be significant long-term contributors to the US economy

See!  They are lying about domestic sourcing, the real agenda is to bring in controllable, cheaper labor via guest worker Visas!  

What a ride they are giving the American people with these lies and spin!  They offshore outsource good jobs from Ohio and now these very labor arbitrage businesses which cost Americans their financial livelihoods are coming into the very regions these corporations just decimated with their own imported work force!  And it looks like our government is going to help them!

Gets worse!

After losing our jobs to offshore outsourcing, we now have Indian companies buying up U.S. assets:

Indian companies while looking to turn around sick global entities, are also looking at prospects who are willing to sell off their units voluntarily as was the case with the US $ 8 billion auto parts maker, Dana Corp. Indian companies have in the past acquired several units in the US that had filed for bankruptcy

These profits are made from pure labor arbitrage.  Don't believe me?  

Straight from the Horse's mouth:

Tata Consultancy Services (TCS) vice president Phiroz Vandrevala even admitted that his company enjoys a competitive advantage because of its extensive use of foreign workers in the United States on H-1B and L-1 visas, according to the study by IEEE-USA, a unit of the Institute of Electrical and Electronics Engineers, Inc.

Our wage per employee is 20-25 per cent less than US wages for a similar employee, Vandrevala said

And look, you know whose money they have?  Our old salaries and now they are buying U.S. assets with it.  Look at the title of the above article, Indian Outsourcers Likely To Acquire More U.S. Firms, Analyst Suggests among the drivers for these deals is the United States' cap on H-1B visas, which isn't likely to be raised from the current ceiling of 65,000 anytime soon.

By buying up defunct U.S. firms,  they can now use the L-1 guest worker Visa intra company transfer which has no caps, regulations or even a faux pas prevailing wage.  

We even have a former White House official now representing NASSCOM as a lobbyist.  That's right, not an American interest, a foreign interest.  When referring to their lobbying activities, the chairman of NASSCOM, an Indian offshore outsourcing trade group said:

"The moment Nasscom says something, it is a vested interest," said Lakshmi Narayanan, the chairman of Nasscom, a trade group that represents the Indian outsourcing industry. "In the last few months," he said, Nasscom decided "to provide the data, work behind the scenes, but really to be fronted by the local organizations

Let's emphasize that last statement be fronted by the local organizations.  So since offshore outsourcing and H-1B visas are not so popular, we have India and Indian companies using U.S. organizations to represent foreign interests in our domestic policy.

Nes Pa?

Here is more background on TATA below.  As you can see the legal action is just racking up.

Offshoring giant (TATA) tries spiffing up its Image

TATA employment hiring criteria (1997) alleged to be discriminatory,
Appeals Court ( 58 Cal. App. 4th 273 ) finds that TATA employee contracts " appear to address certain unenforceable [labor] contract provisions which may be severed from a contract. There is merit to Tata's claim that section 17200 "does not give the courts a general license to review the fairness of contracts but rather has been used to enjoin deceptive or sharp practices.

Lieff Cabraser Heimann & Bernstein, LLP Announces Filing of
Nationwide Class Action Lawsuit Against Tata America International Corporation For Requiring Workers to Hand Over Federal and State Tax Refunds

County sues over software, Tax platform full of errors, suit charges

Clinton woos the outsourcers feared by U.S. workers

Senators say Offshore Outsourcing Firms biggest Guest Visa users

From Network World

An Indian employee of Tata America International Tuesday filed a lawsuit in a U.S. court, charging that Tata has unjustly enriched itself by requiring all of its employees in the U.S. who are not U.S. citizens to endorse and sign over their federal and state tax refund checks to Tata

The employee's law firm, Lieff Cabraser Heimann & Bernstein, announced that Gopi Vedachalam filed a nationwide class action lawsuit in U.S. District Court in San Francisco against Tata America International, and its parent corporations Tata Consultancy Services, and Tata Sons

cross posted at NoSlaves

Originally posted to BobOak on Sat Aug 18, 2007 at 05:56 PM PDT.

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Comment Preferences

    •  Netflix? (2+ / 0-)
      Recommended by:
      BobOak, Thomas Twinnings

      Have you heard anything about Netflix basing their customer service call center in (IIRC) Portland Oregon?

      •  adsf (4+ / 0-)

        No I haven't but if they are and keeping those jobs stateside I'd like to know.    It's really tough, if you are shopping to stay "American" and keep your dollars going to American workers, in the domestic economy, to find services and products that do so...but that said, I've found some of the best online banking, all in the US and with the best interest rates, services I can find.  I mean they beat hands down BoA, CapitalOne, Etrade and so forth on every level and all of their employees are Americans.  

        I don't know what Blockbuster does (but they sure do suck badly in terms of customer service).

        I didn't mention the other problems of having your personal data and accounts outside of U.S. jurisdiction of the law...but that's another problem going on with offshore outsourcing (there are many including industrial espionage outright).

        by BobOak on Sat Aug 18, 2007 at 07:29:13 PM PDT

        [ Parent ]

      •  snark, right? n/t (0+ / 0-)

        Peace is a family value.

        by Thomas Twinnings on Sat Aug 18, 2007 at 07:37:45 PM PDT

        [ Parent ]

      •  u right! (3+ / 0-)
        Recommended by:
        chuckvw, Unbozo, Hens Teeth


        Netflix set up shop here a year ago, shunning other lower-cost places in the United States and overseas, because it thought that Oregonians would present a friendlier voice to its customers. Then in July, Netflix took an unusual step for a Web-based company: it eliminated e-mail-based customer service inquiries. Now all questions, complaints and suggestions go to the Hillsboro call center, which is open 24 hours a day. The company’s toll-free number, previously buried on the Web site, is now prominently displayed.

        Netflix is bucking several trends in customer service. Booz Allen Hamilton, a management consulting firm, and Duke University studied 600 companies last year and found a continued increase not just in outsourcing, but also offshoring, in which call centers are moved overseas

        Ah, I'll have to switch back because Blockbuster is a rude joke!

        Good for Netflix!

        by BobOak on Sat Aug 18, 2007 at 07:44:12 PM PDT

        [ Parent ]

  •  Indian wages increasing (3+ / 0-)
    Recommended by:
    Duke1676, BobOak, numen

    Indian wages increased by 11% last year (source: The Economist).  At that rate, sending jobs offshore to India will soon lose it's financial advantage, and thus it's attractiveness.  Ironically, India's success as an "offshoring" location has led to higher wage expectations which could in turn negate the very success that spawned those higher wages.

    Ouch.  My brain hurts.

    Not that we shouldn't be vigilant.  Obviously we should.  But as the cost of doing business overseas increases, the problem may become quite a bit less serious.

    "We must move forward, not backward, upward not forward, and always twirling, twirling, twirling towards freedom." - Kodos

    by Jon Stafford on Sat Aug 18, 2007 at 06:01:18 PM PDT

  •  God forbid there be worker rights in the US (10+ / 0-)

    SIGH. it's the war on the American worker once again isn't it?  And instead of actually doing something about that, my local politicians are whipping up the masses into a fury of bash the Latinos.

  •  It's times like these... (3+ / 0-)
    Recommended by:
    chuckvw, BobOak, MarketTrustee

    ...when I am almost thankful that the cost of doing business in my region (upstate NY) is so awful.  I don't think TATA would touch us with a ten-foot pole.

    Weird sentiment I suppose, but there it is.

  •  There's always the lowest common denominator (8+ / 0-)

    If wages go up in country A, then move to country B.  I've seen U.S. business owners who closed down their plants in the U.S. praise China for its "favorable labor conditions."  I'm convinced the government in China will do whatever it takes to suppress unions and keep working conditions miserable.

    I personally know one U.S. mid-level government official (career not a Bush appointee) who was given a tour of a Chinese textile factory. The factory covers nearly a square mile and has many buildings and tens of thousands of workers putting in 12 hour days.  She was there for lunch.  The lunch whistle blew.  All the males went to one side of the factory room, the females to the other.  They lined up two by two, holding hands, and marched to the mess hall in perfect step, singing a song that praised the factory and its benevolent managers.

    This is what American workers are competing against.  These are the "favorable labor conditions" so attractive to American CEO's.

    "Great men do not commit murder. Great nations do not start wars." William Jennings Bryan

    by Navy Vet Terp on Sat Aug 18, 2007 at 06:11:21 PM PDT

  •  Sure. It will all even out in the end (2+ / 0-)
    Recommended by:
    rick, BobOak

    in a nice, neoliberal way... about a hundred years from now... maybe.  But, of course, in the meantime, a very few will have got very much richer.  Perhaps by then the rest of us will have grown accustomed to our peonage. - Kicking against the pricks since '98!

    by chuckvw on Sat Aug 18, 2007 at 06:17:31 PM PDT

  •  When I read this in the Cincy Enquirer... (6+ / 0-)

    I'll admit I was deceived. I actually thought we were getting jobs back... this is why I hate the MSM. Thank you, BobOak, for enlightening me. I'm glad both of us didn't take this at face value, I'm glad you saw the truth.

    On the bright side, at least we have one more company paying state taxes.

  •  Great diary, Bob. Here's a link you might (7+ / 0-)


    So we have HR Clinton, the spouse of Mr. NAFTA and Ted Strickland both claiming to be the champions of labor while stabbing us in the back?

    Sounds like business as usual. Matters little if any at all which party is in office.

    Get the urge to purge!

    by 0hio on Sat Aug 18, 2007 at 06:35:56 PM PDT

  •  OK, whats the difference between (1+ / 0-)
    Recommended by:

    the various guest worker classifications?  They can bring over an  unlimited number  of workers?  They're not bound  by U.S. labor laws?  

    •  yes (5+ / 0-)

      L-1s have no limits, they are intra-company transfer, so by having a "company" in house in the U.S. that gets them around the fact we successfully stopped the notorious H-1B cap increase.  The H-1B is called the "outsourcing Visa" because it is used not only to labor arbitrage, but to also technology transfer out of the country.

      H-1B is for professionals
      H-2B is for unskilled but immigration attorneys play games constantly and there is cross over use of these Visas.

      by BobOak on Sat Aug 18, 2007 at 06:43:16 PM PDT

      [ Parent ]

    •  Hlb,L1 (5+ / 0-)

      H1b visas are currently capped at 65k a year. In the past few years, given the number of applicants, the gov. runs out of visas within a day or two of the issueing date. They are supposed to go only to workers with specialized training and education who are in demand. In actuality they are abused by employers that file thousands of applications, often to be used as a means of dispacing higher paid US workers.

      L1's are another story. These visas are uncapped and intended to be used by international companies to transfer foriegn workers to their US offices on a temporary basis. Instead these are now being used as a means to get around the H1b visa caps and used to bring in replacement workers also.

      This is why many on all sides of the immigration debate view the guest worker programs with such disdain. Immigration reform advocates see them as exploitive to both foreign and US workers and those wishing to limit immigration see them as a business loophole used to circumvent immigration regulation.

      I'm sure my esteemed colleague from the opposition, Mr. Oak, can elaborate further.

  •  Where does it say that they are (2+ / 0-)
    Recommended by:
    markw, Dianna

    in fact brining over the 700 workers through the H1-B or any other program, or are you just making an undocumented sensationalist claim?  Also, have you ever heard of a job multiplier?  You see the funny thing is that whenever jobs are created, they lead to other jobs in other various support industries (from health care, to transportation, to retail, to agriculture to etc).  The way I look at it is any job coming to Ohio is a good thing and will help our overall economy in the long run.  Go Tribe!!

  •  But think of all the (5+ / 0-)
    Recommended by:
    chuckvw, BobOak, lemming22, ilex, numen

    low-paying service jobs that Americans will be able to get, all those qualified American engineers who'll end up slinging burgers for the engineers who were imported so that TATA et al. wouldn't have to pay true engineer salaries. Way to protect the homeland, folks!

  •  It may be rude to say so, but if you (2+ / 0-)
    Recommended by:
    chuckvw, Dianna

    have ever worked with technical help contracted from overseas, they are almost always very compliant in every way.  Perfect employees in fact.  And then when they are no-longer needed, they are easily discontinued.  From a business standpoint, what is there not to like?  From my standpoint, it is unfair competition.  Of course we know who wins that argument.

    Peace is a family value.

    by Thomas Twinnings on Sat Aug 18, 2007 at 07:36:57 PM PDT

    •  are you sure? (7+ / 0-)

      Because I have actually and the work is horrific but one gets smiles, promises, sure sure, piece of cake while things slip and fail.  I believe I saw offshore outsourcing failure rates up to 67% on one report.  For another diary but while they say things are great, down in the bowels of lower management, they are not most often but to say so is to say the "Emperor has no Clothes".  

      Quality issues and so forth are not the topic of this story though, this is simply about U.S. jobs for U.S. workers from U.S. corporations.

      by BobOak on Sat Aug 18, 2007 at 07:40:03 PM PDT

      [ Parent ]

      •  My son-in-law agrees with (2+ / 0-)
        Recommended by:
        BobOak, Hens Teeth

        you on this point.  At the same time, they get tutoring from the few U.S. resident engineers, plus the work experience.  And for every position filled by visa engineers, an American engineering graduate is not getting this work training and experience.  This is, I think, a double loss.

  •  Bush's push on an immigration bill makes sense (3+ / 0-)
    Recommended by:
    chuckvw, BobOak, MarketTrustee

    I never believed for one second Bush cared about the welfare of
    illegal immigrants. I knew something would rear it's ugly head sooner or later.
    Bush really needs an immigration bill for the SPP deal. When Canadian and Mexican companies start buying US companies, they won't have to pay minimum wage.

  •  Thanks for this expose (1+ / 0-)
    Recommended by:

    and the graphics - something I haven't figured out.

    •  adsf (1+ / 0-)
      Recommended by:

      graphics on kos are nasty and they are not following XHTML either or are they compatible with wordpress.

      I hand do them and find:

      width, height - work
      title - does not work
      alt - does not seem to work
      align - works sometimes
      XHMTL tag close with the /> does not work

      You can "view source" on other's diaries and see what they did but it almost always gives me an error when I try to post.  

      but just the img tag with the link nothing else should be ok.  That unfortunately might give huge images, depending on their original size.

      I feel your pain here and images, especially on economics diaries with a lot of statistics are critical.  Hope this helps.

      by BobOak on Sun Aug 26, 2007 at 11:31:47 AM PDT

      [ Parent ]

      •  What you have there is so far (1+ / 0-)
        Recommended by:

        above my technical knowledge, it's pathetic. I would like to be able to import images at times, usually on unbossed. But I can't get it to work. em dash sent me instsructions, which I could not get to work. My daughter sneered: so what's your problem - this is so clear . . .

        So I'll just stick to using words.

        •  email me (0+ / 0-)

          I'll be glad to help.  it's roak and the domain hopefully is obvious.  ;)

          or on the site there is a "contact" button too.

          You are using Nucleus, which has it's own problems (they all do) here is some stuff with images specific to your blog software.  

          by BobOak on Sun Aug 26, 2007 at 01:27:10 PM PDT

          [ Parent ]

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