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IBM
Jul 19, 2007 23:52:59 GMT -6
Post by redwolf on Jul 19, 2007 23:52:59 GMT -6
I had to give a presentation on the campus of IBM in Charlotte, NC today and I was stunned by the number of Indians (and by that I mean persons from India) that are working there. And I know that IBM sold a large part of their business in Raleigh, NC to Lenovo, a Chinese company. The part of the business they kept is constantly in the paper for layoffs. Then I get home to the news that the Dow closed over 14,000 due in part to an upbeat earnings report from IBM. The news said the economy was stagnant in the US, but foreign investment is paying off. biz.yahoo.com/ap/070719/wall_street.html?.v=42Sometimes things just slap you in the face.
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IBM
Jul 20, 2007 3:22:44 GMT -6
Post by unlawflcombatnt on Jul 20, 2007 3:22:44 GMT -6
It certainly is a slap in the face to American workers, especially those that IBM has laid off. It would appear one of the biggest reasons for IBM's profits was the reduction in labor costs, from replacing higher-paid American workers with lower-paid Indian workers.
I wonder if IBM's total sales increased any over the last year. If they maintain constant total sales revenue, but reduce labor costs by firing American workers, it increases their profits and earnings per share.
It's really a rotten way for a company to increase its profitability. And it's usually a short-term method as well, since reducing their labor force usually compromises maximum productive output.
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IBM
Jul 21, 2007 8:26:03 GMT -6
Post by redwolf on Jul 21, 2007 8:26:03 GMT -6
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IBM
Jul 21, 2007 14:26:52 GMT -6
Post by unlawflcombatnt on Jul 21, 2007 14:26:52 GMT -6
"In addition, I.B.M. has hired aggressively in India to narrow the cost advantage of its offshore rivals in traditional technology services like operating data centers for customers and upgrading and maintaining their software." Thanks for posting this. All I can say is that I'll avoid IBM products as much as possible. If IBM doesn't want to use the American labor force, then they have no right to sell products to the American consumers whose spending is financed by the American labor force. We need tariffs on everything that isn't made in the United States. And as Dennis Kucinich has stated, "we need to cancel NAFTA and the WTO." And we should cancel PNTR with China, Fast-Track, CAFTA, and ever other "free" trade sell-out allowing Corporate America to replace American workers with foreign workers.
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