About Wanderings

Each week I will post my current syndicated newspaper column that focuses upon social issues, the media, pop culture and whatever might be interesting that week. During the week, I'll also post comments (a few words to a few paragraphs) about issues in the news. These are informal postings. Check out http://www.facebook.com/walterbrasch And, please go to http://www.greeleyandstone.com/ to learn about my latest book.



Showing posts with label outsourcing. Show all posts
Showing posts with label outsourcing. Show all posts

Saturday, February 7, 2015

‘Made in America’ Just a Political Slogan to Conservatives




by Walter Brasch

     Conservatives in Congress have once again proven they are un-American and unpatriotic. This time, it’s because of their fierce approval for the construction of the Keystone XL pipeline.
     The pipeline, being built and run by TransCanada, will bring tar sands oil from Alberta to the Gulf Coast. All the oil will be exported. Major beneficiaries, including House Speaker John Boehner, are those who invest in a Canadian company.
     Opponents see the 1,179-mile pipeline as environmentally destructive. They cite innumerable leaks and spills in gas pipelines, and correctly argue that the tar sands oil is far more caustic and destructive than any of the crude oil being mined in the United States. They point out the pipeline would add about 240 billion tons of carbon dioxide to the atmosphere. They also argue that the use of eminent domain by a foreign corporation, in this case a Canadian one, to seize private property goes against the intent of the use of eminent domain. Eminent domain seizure, they also correctly argue, should be used only to benefit the people and not private corporations.
     Proponents claim it will bring jobs to Americans. The U.S. Chamber of Commerce claims the pipeline would create up to 250,000 jobs. However, the Department of State concludes that completion of the pipeline would create only 35 permanent jobs.
    The Republican-led House has voted nine times to force the President to approve completion of the pipeline. In January, with Republicans now in control of the Senate, a bill to support construction of the pipeline passed, 62–36. Congressional actions appear to be nothing more than political gesturing. The decision to approve or reject the pipeline is that of a recommendation by the Department of State and, finally, that of the President.
     However, the conservatives’ hatred of American workers became apparent in an amendment to the Senate bill. That amendment, submitted by Sen. Al Franken (D-Minn.) would require, if the pipeline was approved, all iron, steel, and other materials used must be made in America by American companies. That would, at least, give some work to Americans. That amendment should have had widespread approval in the Senate, especially from the conservative wing that thrusts out its chests and daily proclaim themselves to be patriots of the highest order.
     But when the votes were counted, the Senate, by a 53–46 vote, rejected that amendment. Voting for “Made in America” were 44 Democrats, one independent, and one Republican. Voting against the amendment were 53 Republicans.
     The Republicans’ rejection of the amendment was expected. America’s corporate business leaders, most of them conservatives and registered Republicans, have freely downsized their workforce, outsourced jobs overseas, and proudly proclaimed their actions helped raise profits. Profits, of course, are not usually shared with the workers who make the product and then were terminated so American companies could use and exploit foreign labor, while the executives enjoy seven- and eight-figure salaries, benefits, and “golden parachute” retirement clauses not available to those whose labor built the companies and their profits.
     Corporations have also figured out how to best send their profits to banks outside the United States and, thus, avoid paying their fair share of taxes. Several Fortune 500 corporations, with billions of dollars in assets, pay no federal taxes. For money they keep in U.S. financial institutions, corporations have figured out numerous ways to use loopholes to bring their tax burden to a percentage lower than what the average worker might pay each year.
     Congress is a willing co-conspirator because it has numerous times refused to close loopholes that allow millionaires and the corporations to easily drive through those loopholes, while penalizing lower- and middle-class Americans.
     By their own actions—in business and, most certainly, in how they dealt with the Keystone XL amendment—the nation’s conservatives have proven that “Made in America” and “American Pride” are nothing more than just popular slogans.
     [Dr. Brasch, an award-winning journalist and proud member of several unions, is the author of 20 books. The latest book is Fracking Pennsylvania, an in-depth look at the economic, political, environmental, and health effects of horizontal fracturing in the United States.]



Thursday, November 29, 2012

Discounting Lives to Maximize Profits

The fire at Tazreen Fashions


            Imitating Sgt. Schultz of “Hogan’s Heroes,” Walmart executives claimed they knew nothing—NOTHING—about working conditions in a garment factory in Bangladesh where 112 workers died and more than 150 were injured in a fire.
            Tazreen Fashions made Walmart’s Faded Glory brand clothes, as well as clothes for Sears and dozens of other major retailers. Walmart officials told the news media they had previously terminated Tazreen as a direct supplier because of concerns about fire hazards, but that another supplier had subcontracted the work to Tazreen. Walmart refused to identify the supplier. In an official statement, Walmart said that the fire was “extremely troubling to us, and we will continue to work with the apparel industry to improve fire safety education and training in Bangladesh.”

Friday, June 22, 2012

American Patriotism in Hyper-Drive


LEE GREENWOOD  
                                                      
It’s midway between Flag Day and Independence Day.
That means several million copies of full-page flags printed on cheap newsprint, June 14, have been burned, shredded, thrown away, or perhaps recycled. It’s an American tradition.
Flag Day was created by President Wilson in 1916 on the eve of the American entry into World War I. It has since been a day to allow Americans to show how patriotic we have become, and give a running start to celebrating the Revolution by buying banners, fireworks, and charcoal briquettes for the upcoming picnic.
 Within American society is a large class of people who fly flags on 30-foot poles in front of their houses and adorn their cars with flag decals and what they believe are patriotic bumper stickers. They are also quick to let everyone know how patriotic they are, and how much less patriotic the rest of us are. But patriotism is far more than flying flags and shouting about liberty in Tea Party rallies.

Friday, May 11, 2012

Mission Impossible: Finding a Minivan Made in America by Union Workers



by Walter Brasch

Last year, not one of the 491,687 new minivans sold in the United States was made in America by unionized workers.
            Some were manufactured overseas by companies owned by non-American manufacturers. The Kia Sedona, with 24,047 sales, was built in South Korea, Russia, and the Philippines. The MAZDA5, with 19,155 sales, was built in China, Japan, and Taiwan.
            Some minivans from Japanese companies were built in the U.S., but by non-unionized workers. Honda sold 107,068 Odysseys built in Alabama. Toyota Siennas, built in Indiana, went to 111,429 persons. The Nissan Quest, built in Ohio, had 12,199 sales.
            Only three minivans were built by unionized workers, but they were made in Canada by members of the Canadian Auto Workers. The Dodge Grand Caravan, with 110,996 sales; Chrysler Town & Country, with 94,320 sales; and the VW Routan, with 12,473 sales, all share the same basic body; most differences are cosmetic. GM and Ford no longer produce minivans.
            The United Auto Workers (UAW) suggests that members who wish to buy minivans buy one of the three Chrysler products because much of the parts are manufactured in the United States by UAW members.
At one time, all cars, trucks, and vans from GM, Ford, and Chrysler were produced by union workers in the U.S. or Canada. The Dodge Avenger and Chrysler 200 Sedan both have about 80 percent of all parts produced in the U.S. For many cars built in the U.S., the number of parts produced in North America may be only 50-75 percent. The Japanese-owned Mitsubishi Eclipse, Spyder, and Galant, and the Mazda6 are produced in the U.S. under UAW contracts; neither company makes minivans. However, the “Big 3” have been building cars in other countries. Ford, which had strong profits the past year, has closed U.S. manufacturing plants, and cut its U.S. workforce by about half in the past five years. Only about 40 percent of its worldwide workforce is now in the U.S. Many of the cars and the F-series pick-up trucks are being built in Mexico. GM is building cars in South Korea and Brazil, with wages nearly comparable to those in the U.S. However, wages are significantly lower for its workers in China, Mexico, India, and Russia. About 300,000 Chryslers and 200,000 Dodge trucks are built in Mexico.
All vehicles produced in the U.S. have the first Vehicle Identification Number (VIN) as a 1, 4, or 5; vehicles produced in Canada have a 2 as the first VIN number.
            Founded in 1935, the UAW quickly established a reputation for creating the first cost-of-living allowances (COLAs) and employer-paid health care programs. It helped pioneer pensions, supplementary unemployment benefits, and paid vacations.
It has been at the forefront of social and economic justice issues; Walter Reuther, its legendary president between 1946 and his death in 1970, marched side-by-side with Martin Luther King Jr. and Cesar Chavez, and helped assure that the UAW was one of the first unions to allow minorities into membership and to integrate the workforce. Bob King, its current president, a lawyer, was arrested for civil disobedience, carrying on the tradition of the social conscience that has identified the union and its leadership.
.           The UAW doesn’t mind that corporations make profits; it does care when some of the profit is at the expense of the worker, for without a competent and secure work force, there would be no profit. When the economy failed under the Bush–Cheney administration, and the auto manufacturers were struggling, the UAW recognized it was necessary for the workers to take pay cuts and make other concessions for the companies to survive.
But not all corporations have the social conscience that the UAW and the “Big 3” auto manufacturers developed. For decades, American corporations have learned that to “maximize profits,” “improve the bottom line,” and “give strength to shareholder stakes” they could downsize their workforce and ship manufacturing throughout the world. Our companies have outsourced almost every form of tech support, as well as credit card assistance, to vendors whose employees speak varying degrees of English, but tell us their names are George, Barry, or Miriam. Clothing, toys, and just about anything bought by Americans could be made overseas by children working in abject conditions; their parents might make a few cents more, and in certain countries would be thrilled to earn less than half the U.S. minimum wage.
Americans go along with this because they think they are getting their products cheaper. What they don’t want to see is the working conditions of those who are employed by companies that are sub-contractors to the mega-conglomerates of American enterprise. These would be the same companies whose executives earn seven and eight-figure salaries and benefits, while millions are unemployed.
But, Americans don’t care. After all, we’re getting less expensive products, even if what we buy is cheaply made because overseas managers, encouraged by American corporate executives, lower the quality of materials and demand even more work from their employees.
            Walk into almost every department store and Big Box store, and it’s a struggle to find clothes, house supplies, and entertainment media made in America. If you do find American-made products, they are probably produced in “right-to-work” states that think unionized labor is a Communist-conspiracy to destroy the free enterprise system of the right to make obscene profits at the expense of the working class.
            We can wave flags and tell everyone how much more patriotic we are than them, but we still can’t buy a minivan made in America by unionized workers—even when the price is lower than that of the non-unionized competition.

            [Sales figures of minivans is from Edmunds.com. Also assisting were Rosemary Brasch and Michael Fox. Walter Brasch’s latest book is the critically-acclaimed novel Before the First Snow, which looks at the mass media, social justice, and the labor movement. The book is available from amazon, local bookstores, and http://www.greeleyandstone.com in both hard copy or an ebook.]

Friday, January 20, 2012

Outsourcing America’s Health Care



by Walter Brasch

“Ola, Amigo! Pack your bags, we’re going to Mexico!” bubbled Dr. Franklin Peterson Comstock III, faux physician and money-maker.
“Yeah, I could use a decent vacation,” I replied, figuring he’d pay for both of us since he had just set the world record for the most nose jobs in a 24-hour period.
“What vacation?” he said. “I’m setting up practice.”
“And give up catering to rich people with inflated bank accounts and deflated ethics?”
“Don’t have a choice. I’m getting laid off.”
Comstock had been a rainmaker for the Megabucks Happy Health Care Medical Center for the past decade. There was only one reason I could think of why he’d be laid off. “Megabucks tired of paying your malpractice insurance?” I asked.
“Not just me,” he said. “Hospital’s laying off most of the staff, making the rest work overtime, and hiring outside contractors. They said it was hard to survive when the profit was down to only 20 or so million a year.”
“I didn’t realize it was that serious,” I said. “You planning to set up private practice to help the poor in Mexico?” I asked admiringly.
“Not a chance! Gonna get rich working for Megabucks!”
“You just said you were laid off.”
“Been laid off in the U.S.,” said Comstock while putting a frozen burrito into the microwave. “Megabucks/Mexico just hired me. There’s cheaper labor down there.”
“You crazy?” I asked. “You’re the cheaper labor.”
            “Obviously you don’t know American business,” said Comstock haughtily.
“Megabucks/U.S. closes its auxiliary operations, and then contracts with Mexican companies for a fifth of the cost in the U.S. They do the work, ship it back to the U.S., and Megabucks bills Blue Cross the full rate as if it was done locally.”
            “So where do you fit in?” I asked.
            “Just as before. Nose jobs. Breast augmentations. Tummy tucks. All the important medical procedures. But this time, I do it in Cancun.”
            “To rich Mexicans,” I said disgusted.
            “To rich Americans!” said Comstock. “If they want the best care, they’ll take their private jets to Mexico and then deduct the trip as a necessary business expense.”
            “And what about the impoverished and middle-class Americans?”
            “If they can sneak across the border, they can also get medical care.”
            “What about prescriptions?”
            “Megabucks contracted with some of the best drug dealers—I mean pharmacists and chemists—in Mexico. Quality is just as good and it’ll only be four or five times production costs. Unlike the U.S. there’s no TV advertising and six-figure MBAs and lawyers that require drugs to be 30 or 40 times production costs.”
            “With prices that low, how do you know there won’t be mass rushes by Americans to grab everything they can?”
            “Because there’s security! Every hospital and pharmacy has armed guards with the best automatic weapons smuggled through the God-fearing 2nd Amendment patriotic Southern states.”
            “Is Megabucks outsourcing all its operations?”
            “Keeping the ER. After tummy tucks and butt lifts, that’s the hospital’s ‘cash cow.’”
            “So, then, it’ll have to keep some services like X-Ray and the lab,” I said. “Maybe even a doctor or two.”
            “Too expensive,” said Comstock. “Megabucks will hire more residents and foreign-educated doctors, and work them 18 hours a day. More work, less time to complain. Residents will do anything to get experience to pass their boards. May even hire a couple of hospitalists. You know, the ones who graduated at the bottom of their class and can’t even get work in a Free Clinic.”
            “I suppose they’ll also do the lab work?” I asked.
            “Do you know some of those lab techs are making as much as $30,000 a year! Made sense to lay them off, too.”
            “So how will the ER know a victim’s blood chemistry, or if there’s internal injuries?”
            “Technology,” said Comstock. “They scan the blood here, and send digital X-Rays to Mexico. Mexican lab technicians—you know, the ones that don’t know about unions and will work for only a few bucks a day—will analyze everything, then text the results back to the U.S.”
            “This sounds like it’s not only a way to maximize profits, but also a way to avoid dealing with the President’s health care reform program.”
            “Obamacare!” spit out Comstock. “Nothing but socialized medicine.”
            “Most countries have forms of socialized medicine,” I countered, “and they not only have good health care but affordable prices to their citizens.”
            Comstock put his hands to his ears and began chanting, “We’re Number 1, We’re Number 1.”
            “Number 37,” I corrected him. “The World Health Organization ranked the U.S. just below Costa Rico.”
            “They’re all Commies,” replied Comstock. “Besides, that study is a decade old.”
            “Last year, the independent Commonwealth Fund compared the nations of the United Kingdom against the U.S., and the U.S. ranked seventh of the seven.”
            “Yeah, like Americans will go to Canada? It’s covered by snow and run by a queen who can’t even speak English.”
            “You and Megabucks are crazy!”
            “Possibly,” said Marshbaum, “but outsourcing is the American way. By the way, do you put ketchup or mustard on a burrito?”
            [Dr. Walter Brasch isn’t licensed to practice medicine, but he goes to some excellent physicians who are—and they’re just as frustrated with the costs, corporate greed and incompetence, insurance companies and myriad forms as anyone else. His current book is the critically-acclaimed mystery novel, Before the First Snow]

Saturday, August 6, 2011

The Debt Ceiling Crisis: Let’s Get Personal

  

by Walter Brasch


        You have a credit card with a $25,000 limit.
         Because you have a good job, you only have $6,000 on the card, and routinely pay the monthly statement and a little extra on the principal.
            But then you decide you need a 52-inch high-def LCD TV screen to go into your “man cave,” and your family rightfully decides they need a vacation. So, you add a few thousand to the credit card. But, it’s all OK since you just got a promotion at work.
            A couple of months later, your 2008 Honda begins puffing smoke. By the time repairs are done, it’s another thousand on the card.
            And then your boss calls you into her office. Your work has been excellent, she tells you. You have made numerous contributions to the company, she says. But her boss has figured out he can make even more money for himself and the nebulous apparitions known as stockholders, so he is sending much of the company’s manufacturing needs overseas, where labor (and often workmanship) is much less of a financial burden. Besides, he won’t have to deal with unions overseas. Oh, yeah, says your boss, you’ve been replaced by some guy in Pakistan who’ll work for a tenth of your salary.
            But there’s good news, says your boss. Because of your long and dedicated service, you’ll get four whole weeks salary—and health care benefits for two full months. You’ll surely find work in that time, you believe.
            Three months later, you’re still unemployed. The mortgage is due. Bills pile up. But, you’re optimistic. You have a good work record. You’ll find another job. Besides, your wife (who had quit her job to spend full-time taking care of the home and raising the three children) just got a job at $7.80 an hour as a clerk at a big-box department store to help out. It’s only temporary, the two of you believe. You’ll get a job soon; she’ll be able to quit her job. A few more months go by, and both of you are now working—she as a near-minimum-wage clerk; you as a part-time customer service representative for a hardware store at two bucks over minimum wage. That’s all you could find. You don’t have health benefits; hers, which cover the family, are significantly less than what you once had.
            You’re depressed, but there’s no money for social workers or psychologists. You and your family are a bit testy, snapping out for no apparent reason; there’s no money for marital counseling.
            The bills pile up. There’s unreimbursed medical costs, a couple of unexpected veterinary bills for your two dogs, clothes for the kids, gas for the cars so you can get to your jobs. And then that variable interest mortgage hits a new high. You put a few more necessities onto the credit card and are now are at $24,950 of your $25,000 debt limit.
            So, you go to the bank—the one that sold you the house, and which gladly gave you a mortgage when times were good and it could make a lot of money—and ask for a raise in the credit limit.
            But times aren’t that good right now, and the bank refuses to raise your credit limit. After all, says the banker, there’s no way you could make monthly payments.
            You plead that if the bank doesn’t raise the credit card limit, you won’t be able to survive, that you’ll have to default. That means you’ll lose your house and, probably, your cars. Your credit rating, once among the best, will plummet even further. Too bad, says the banker. Get another job, he says. One that pays better. Or, maybe work two jobs. Of course, there’s no jobs at the bank, or anywhere else. But that’s not his problem.
            You again plead for help, but the banker isn’t interested. It’s your fault you’re in this mess, he tells you. You spent too much, he coldly explains. Cut spending, and you’ll be able to meet your minimum monthly payment—you know, the one with the 13.5 percent interest that goes to the bank—and, well, figure out something. He has no compassion and won’t help.
            But there may be hope. Another banker comes into the office, hears your story, and wants to raise your debt limit, but the other banker has taken a stand. With you in the office, the two of them talk, argue, and shout loud enough so the other bankers and customers can hear them. It’s now 3:55 p.m., and the bank closes in five minutes, at which time the credit card, because of steadily rising interest, will be maxed out.
            Finally, the two bankers agree to provide a miniscule amount of help. They will temporarily raise your credit limit, but will now dictate exactly what you can spend, and how you’ll spend it.
            Since you like hunting, and they like hunting, they’ll let you buy all the guns and ammunition you want. But, they can’t help you on your health bills, or even lower the insurance premiums and co-pays. And, they can’t do much for that inflated mortgage payment. Or to help you find another job.
            You will have to wear old clothes, used clothes, or lower your clothing expenses, they say, but there’s a solution. They give you a catalogue of very nice clothes—men’s, women’s, children’s. The pictures of the clothes, in full color on glossy paper, is just what you need to reduce your costs so you look presentable at the next job interview. And no one notices that the clothes the banker wants you to buy are all made in Pakistan.