American Express / IBM outsourcing story!

[Coventina]

I used to work for American Express, but quit about 5 years ago. I'm still friends with some of my co-workers, and here is one of their stories:

This one friend of mine transfered from accounting (where we worked) to technology. After she had transfered, AmEx decided to outsource technology to IBM. So she became an IBM employee. Then, surprise surprise! IBM decided to lay everyone off! So, my friend got the ax, it was about this time last year that she was laid off.

I talked to her on the phone yesterday, and what has happened now is that IBM is willing to hire everyone back as "contractors" for HALF the salary and NO benefits! And a lot of her former co-workers are so desperate, that they are doing it!

Fortunately for my friend, after several months she was able to get a position back in accounting at AmEx.

THIS IS WHY CORPORATE AMERICA NEEDS TO BE TAKEN TO ITS KNEES!

[Nicholas D Wolfwood]

1. Yeah, and IBM had just reported higher than expected profits.

Soulless corporate scum... :grr:

[annabanana]

2. It's been happening all over for quite awhile... What's MOST alarming,

The Admin is doing the exact same thing with the GOVERNMENT. Many many things you assume are being done by American civil servants are actually being done by employees of well connected firms who skimp on salaries and bennies.

[losdiablosgato]

4. I see that more and more in the governement

State, local, federal.

[northzax]

5. all part of the reduction of government

half the people I know work for Federal contractors of one sort or another, for lower pay, fewer benefits and longer hours than the equivalent federal employee.

[Norquist Nemesis]

7. Yes, it's part of the 'ownership society' being foisted

Seriously...by doing this each worker is 'owns' his/her own income (business). They have to pay full boat on taxes (13% of SS), and are responsible for all insurance costs (which will be spun as having a choice to do or not :eyes: ).

Additionally, when the 'contract' ends, the worker is not fired or laid off so there are no reports of IBM cutting its work force. They also don't have to pay UE while the worker seeks other work.

Oh, and a 401K match is also out of the question.

[losdiablosgato]

3. Perma contractors need to be outlawed

I work as a contractor. That said there needs to be a law saying that any position the exsists for more the 6 months a years has to be perm. And set some safe guards against just renaming and making slight changest to to get around it.

[progressivebydesign]

6. I just had a terrible experience with someone in India..

..hired to take a job from an American. Now every credit card I hold has taken jobs to India, and laid off American employees. You cannot function in America, unless you're a luddite, and avoid supporting companies that are screwing us by either hiring only temps, contractors, or offshoring jobs.

I can't believe that so many Americans voted for the party that is destroying our American life. Gay marriage doesn't destroy marriages and families, JOB LOSS and STRESS do!