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Old 01-18-2009, 04:48 PM
 
Location: Pittsburgh N. Hills / Houston-Clear Lake
8,156 posts, read 26,420,381 times
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Quote:
Originally Posted by lhafer View Post
If say a company needs to downsize, and they lay off an engineer, they are not going to replace that engineer with cheaper labor from abroad. that company will restructure itself to deal with the loss.
...

There are plenty of experienced engineers in New Delhi that make $3.00/hr. Shanghai, $8.00/hr. (They're living relatively high on the hog over there, too.) International companies that are already set up abroad with their employees will definitely take advantage of this cheap labor. And depending on the #'s, the company may bring said engineer over here to work for some time, with "uplifts" that amount to beans for you & me, depending on all the laws. I've seen it happen.
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Old 01-18-2009, 05:11 PM
 
2,262 posts, read 5,654,816 times
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Quote:
Originally Posted by tstone View Post
There are plenty of experienced engineers in New Delhi that make $3.00/hr. Shanghai, $8.00/hr. (They're living relatively high on the hog over there, too.) International companies that are already set up abroad with their employees will definitely take advantage of this cheap labor. And depending on the #'s, the company may bring said engineer over here to work for some time, with "uplifts" that amount to beans for you & me, depending on all the laws. I've seen it happen.
Perhaps. One of my best friends is "on loan" abroad right now. He transferred from the company's headquarters here in Houston, to the Europe headquarters in Holland 2 years ago. It is costing the company a fortune to have him over there.

It was an agreement that they wouldn't sell his house (so they would come back), so it's being rented out. The company is paying for lawn service, and maid service in their house. The company is basically paying his mortgage payment here, his rent for the house that he and his family are in over there, plus a monthly stipend on top of that. So moving people abroad, no matter which direction is not cheap.
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Old 01-18-2009, 10:31 PM
 
Location: where nothin ever grows. no rain or rivers flow, TX
2,028 posts, read 7,333,587 times
Reputation: 442
Quote:
Originally Posted by lhafer View Post
And because of this, it will hurt the economy even worse. Because to get rid of those employees is getting rid of experience. Experience that green horns don't have. Young new grads don't have the knowledge set to make some important decisions.

I guess where I am thinking about is my husband's work. He is an superintendent of an oil refinery, with a chemical engineering background. Now, he is paid very decently. More than he would if he went to any other company around, including the big ones like Shell or Exxon, so it would make a lot of sense to replace him with someone who will get paid less. But his experience is what keeps him in his job. If his bosses got rid of him and put in some other person that is younger, and less experienced...then the refinery would be in a world of hurt. He makes decisions every day that affect how well the plant does, how much product they are making, thus how much money they are making. A younger, less experienced person would make incorrect decisions, or decisions that could slow the process down, and in turn loose the company money.

So in the long run, it's better for companies to keep their experienced employees (as long as they are doing their job adequately) than to turn them over for some green young grad who's eager to make pennies on the dollar. If that happens, then it should be the managers who are making those decisions that get laid off!!
if your husband is that important to the business then in good times there should be atleast 2 of him there. in bad times, one is an easy target for laying off and being replaced by a cheap trainee, to be trained the the other guy.
also in bad times, companies end up buying other companies, now you have 2x people you actually need. buying companies is about deals and in my experience most deals only go smoothly and speedily if the people from the company being bought get jobs in the buying company. i've seen real good CTOs and CIOs and their staff get booted/transfered in my IB after deals like these
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Old 01-18-2009, 10:32 PM
 
Location: Wicker Park, Chicago
4,791 posts, read 12,896,137 times
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I interviewed an Engineering contract shop that did work for Caterpiller in Peoria and more than half their engineers were H1Bs for India. Like I hate that Caterpiller doesn't support American Engineers well and they're mostly contractors.
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Old 01-19-2009, 04:36 AM
 
2,262 posts, read 5,654,816 times
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Quote:
Originally Posted by Wysiwyg View Post
also in bad times, companies end up buying other companies, now you have 2x people you actually need. buying companies is about deals and in my experience most deals only go smoothly and speedily if the people from the company being bought get jobs in the buying company.
Know all about that. In the past 4-5 years, his company has changed and/or been bought out 3 different times. That's why they are currently filing Chapter 11. So his company is seeing bad times right now. This last buy out put them in a lot of debt. That debt is currently being restructured.

He didn't loose his job. But he lost 401K matching, lost tuition reimbursement (which is HUGE, considering he is in an $80,000 program - that he joined last year when he was "guaranteed" that work would pay 100%), lost bonuses, etc. He kept his salary and benefits.

So it's not like the company can't do other things besides hiring someone who isn't qualified or experienced. Sacrifices have to made on both end in my opinion.
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Old 01-19-2009, 05:19 PM
 
Location: Houston, TX
17,032 posts, read 26,019,755 times
Reputation: 16166
Quote:
Originally Posted by Jesse69 View Post
I interviewed an Engineering contract shop that did work for Caterpiller in Peoria and more than half their engineers were H1Bs for India. Like I hate that Caterpiller doesn't support American Engineers well and they're mostly contractors.
Unfortunately this is becoming much more common. Many engineering design jobs go to India. Why pay an american $30-$40/hr when you can ship it overseas (with the wonderful invention of email) and they will do it for under $10/hr.
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