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Originally Posted by ChrisSlicks Sorry to hear that man, IBM has been cutting jobs left right and center. At least they have decent layoff packages if you have been there
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IBM has been sending jobs overseas for several years now to places like Brazil, India, and China. Now that their labor force in those geos is well established, the workers there have been demanding higher wages that are more on par with those of the U.S. Can't say I blame them. Equal pay for equal work, right? Well, IBM's response strategy is to methodically reclassify the pay grades for the remaining U.S. jobs. Our pay grade has 10 band levels. I'm a band 7. They're taking my job (along with all the others in my area) and moving them to this new delivery center in Dubuque. If I want to keep doing what I'm doing, I'm free to move to Dubuque on my own dime and re-apply for my position. But there's a catch -- my job in Dubuque will be Band 4. So, exact same work, a fraction of my current pay. By doing methodically across the board to their entire U.S. workforce, they pull the rug out from those folks overseas who are demanding wage parity. Essentially, IBM can say to them: "You want wage parity? You got it. See? Now you're making the same money your U.S. counterparts make, because we lowered U.S. salaries to be on par with those in the developing world. There's your wage parity." The irony of all this is that globalization was intended to help end poverty in the developing world by bringing their wages up to developed-world levels. But instead, it's driving developed-world wages down. So the disparity in wealth distribution will go up commensurate to a sharply reduced middle class. Welcome to the new world order.
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