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Purposely displace? Yes.... companies aren't hiring foreign workers by accident. It's done on purpose and the result is an American worker is now out of a job at the company.
Are you saying that Lowes is hiring foreign contractor's to purposefully displace American workers? An contractor that is a citizen of the USA is the same as a contractor that is from another country. They get paid the same. Companies use contractors so that they do not have to pay benefits, manage the contractor, and they can also get rid of the contractor whenever they want and for whatever reason they want. I see nothing wrong with that.
You don't see the problem with companies here hiring employees off shore as opposed to here in the US?? You have no problems with that?
Originally Posted by Redd Jedd
I am sorry for your tough times. This is no joke to the people that have to go through it.
On the other hand, the $180/hr figure doesn't seem to add up. For a full time position, that works out to be ~$360K per year (2000 hours x $180). Times thousands? It would seem that one could hire 3 people at $80 to $100K per year plus benefits for that amount. That's not how it works. The "contractor" is actually an emoployee of the contractor/employer (e.g. Acme IT Contractors LLP employs Rajesh Sundra for $120,000/yr. and they bill Lowe's $180/hour for Rajesh's services.)
What are these contractors doing for the company that Lowes pays so much for their services? 2 main things: 1)From the example above, Acme IT Contractors LLP is providing recruiting/interviewing/drug screeing, etc. HR functions essentially, for Lowe's, who would otherwise have a difficult time finding foreigners to diplace Americans, and 2) Acme is providing FLEXIBILITY. When they need the people, they get them A.S.A.P. When they are done with them, the can get rid of them A.S.A.P. Again, it doesn't make sense that Lowes would outsource the operations of the whole corporate headquarters (if this is what you are inferring) for a rate that exceeds what they could pay 3 local workers. If this is the case, I would think stock holders would be up in arms and analysts would have already reported this. Sounds crazy, but it is easier to "manage" a contractor that manages 100 employees, than it is to "mange" the 100 employees yourself. And you don't have to worry about pensions/layoffs and all those other 'antiquated' employment practices. This is how the behemoth corporations operate now. I live it every day.
I see. Is the net effect a savings? Trying to work out if example Rajesh Sundra is working a full year or only when needed. With the numbers we are throwing around, if Rajesh is working a full year, Lowes is being billed $360K. Unless the numbers are actually scaled back - example Rajesh is only working 500 or so hours as needed - then he only costs ~$90K.
So, then I take it you don't comprehend the problems that it causes for our nation and its people?
I do know what problems outsourcing can cause. I also know the reason why a company will outsource. A public/private company does not have to have an allegiance to a nation or it's people. The only allegiance it should have is to it's owners. Some companies will "do the right thing" and never outsource and other companies will not. If you do not like the fact that a company outsources then you should take your business somewhere else.
I see. Is the net effect a savings? Trying to work out if example Rajesh Sundra is working a full year or only when needed. With the numbers we are throwing around, if Rajesh is working a full year, Lowes is being billed $360K. Unless the numbers are actually scaled back - example Rajesh is only working 500 or so hours as needed - then he only costs ~$90K.
The savings is in less HR staff and less benefits. But they are at the same time paying a premium for flexibilty and also a finder's fee for bringing in foreign workers and handling the immigration issues. Nobody knows which direction the economy will go next, so flexibility is important. I don't make this s*** up - it's what my company specializes in. This is also a way for some large companies to subvert a hiring freeze.
Last edited by goindownsouth2011; 02-15-2012 at 01:11 PM..
So, then I take it you don't comprehend the problems that it causes for our nation and its people?
An anecdotal argument, but one I'm sure many can relate to:
I went to see my accountant last year. When I opened the door to what was his office, the secretary pointed me to the office next door.
It turned out that in the past year, their partnership of four split in half. While one half of the business retained their workforce, what was the other half, got much of their labor imported, courtesy of H1B work visas.
My accountant is married with 5 kids. Up until recently, his practice was profitable - but now he has to compete with his former partner, who flies in and pays Indian accountants $5-$6 an hour. They work 12 hour days, and after tax season, they're flown back to India.
Indians are happy with the arrangement, yet this accomplished and educated man is competing with people who work for near minimum wage - which has put the squeeze on him. He's staying alive by diversifying his business, but this is great, isn't it?
Lots of people in his upper middle class area have been squeezed too; some have defaulted on their loans, stopped paying taxes, so his top rated school district is stressed. Some programs have been cut, of course, but no matter, right?
I do know what problems outsourcing can cause. I also know the reason why a company will outsource. A public/private company does not have to have an allegiance to a nation or it's people. The only allegiance it should have is to it's owners. Some companies will "do the right thing" and never outsource and other companies will not. If you do not like the fact that a company outsources then you should take your business somewhere else.
First, do you understand the definitions of both outsourcing and offshoring?
If companies continue to offshore and in some cases outsource, they are putting NOTHING back into the backbone of this country, all while reaping the benefits. Do you also understand and know your history that a country that produces nothing IS destined to fail?
It is the arrogance as displayed in your post that has this country in the race to the bottom and sadly winning.
^^^Exactly. Not to mention, what is in the shareholders best short term interests, is not the same as what is in the shareholders best long term interests.
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