Bfgrn
New member

In a globalized economy, American corporations are rapidly shifting their workforces abroad

An employee in Ford's mexico-based
factory works on a car; The U.S.
automaker's international expansion has
caused a 16 percent drop in it's
American-employed workforce.
SEE ALL 28 PHOTOS
Why aren’t U.S. corporations hiring?
Actually, many of them are. They’re just not hiring Americans. In the two years after the Wall Street meltdown triggered the Great Recession, large American corporations slashed U.S. payrolls by a net of 500,000 jobs. At the same time, they hired 729,000 workers overseas. As globalization transforms the world economy, in fact, many U.S.-based companies are shifting the balance of their workforces overseas. Ford, for example, reported in 1992 that 53 percent of its employees worked in the U.S. and Canada. By 2009, its North American workforce (by then Ford had expanded to Mexico) made up only 37 percent of total payroll. With 53 percent of big U.S. firms implementing offshoring strategies, “there is no job security now,” said Lauren Asplen of the IUE-CWA, an electrical-workers union.
When did offshoring become so prevalent?
The trend began in earnest in the late 1970s at large manufacturers such as General Electric. GE’s then CEO, Jack Welch, who was widely respected by other corporate chieftains, argued that public corporations owe their primary allegiance to stockholders, not employees. Therefore, Welch said, companies should seek to lower costs and maximize profits by moving operations wherever is cheapest. “Ideally,” Welch said, “you’d have every plant you own on a barge to move with currencies and changes in the economy.” Not only did GE offshore much of its manufacturing, so did its parts suppliers, which were instructed at GE-orchestrated “supplier migration seminars” to “migrate or be out of business.”
Is offshoring limited to manufacturing?
It used to be, until the Internet boom of the 1990s made it a white-collar phenomenon, too. As economic globalization gathers speed and technology erases geographic boundaries, firms now have instant access to educated workers all over the planet, allowing enormous service companies and small businesses alike to hire Web designers in Thailand, graphics specialists in India, and seismologists in Pakistan. White-collar workers who once seemed immune to offshoring—lawyers, financial analysts, even local newspaper reporters—are now in peril of seeing their jobs shifted to India, Eastern Europe, or China. In recent years, 13 of every 100 U.S. computer-programming jobs shifted overseas, according to the Bureau of Labor Statistics, making it the most at-risk occupation in America. “Any job you can think of now can be done by someone on the other side of the world for less cost,” said Matt Barrie, CEO of Freelance.com, which matches employers and freelancers around the world.
More
"With all their faults, trade unions have done more for humanity than any other organization of men that ever existed"
Clarence Darrow