Disney IT Workers Prepare To Sue Over Foreign Replacements (computerworld.com)

JustAnotherOldGuy writes: At least 23 former Disney IT workers have filed complaints with the federal Equal Employment Opportunity Commission (EEOC) over the loss of their jobs to foreign replacements. This federal filing is a first step to filing a lawsuit alleging discrimination. These employees are arguing that they are victims of national origin discrimination, a complaint increasingly raised by U.S. workers who have lost their jobs to foreign workers on H-1B and other temporary visas. Disney's layoff last January followed agreements with IT services contractors that use foreign labor, mostly from India. Some former Disney workers have begun to go public (video) over the displacement process

Comments

Why would Disney do this?

[DirkDaring]

THE WALT DISNEY COMPANY REPORTS FOURTH QUARTER AND FULL YEAR EARNINGS FOR FISCAL 2015
  Revenues for the year increased 7% to a record $52.5 billion.
  Net income for the year increased 12% to a record $8.4 billion.
  EPS for the year increased 15% to a record $4.90.

So why try to save a few bucks outsourcing? I don't get it, the money saved is literally insignificant to them.

Re:Why would Disney do this?

[MickyTheIdiot]

This makes corporate-centric people on stashdot explode every time I say it, but the corporation is (at least supposed to be) a creature of the state. One of the reason that corporations act the way they do is because of case law. The legislature can change the law which will contradict that case law.

The parent of this post doesn't do this, but a lot of people like to pretend that somehow the idea of "maximizing profits" comes down from God. It doesn't. It's the outcome of years of evolution and with national law. It is changeable if the political will is there.

Having said that, the political will is not there because all intents and purposes the corporate class control the government.

Re:Why would Disney do this?

[MickyTheIdiot]

Is it a desirable quality for the success of a society, however?

There isn't a requirement for a government to kowtow to every "need" a business puts forth. Multinationals aren't paying taxes and, as this story shows, they aren't really providing that many new American jobs either.

Re:Um, no

[Anonymous Coward]

If that's the case then Disney should have offered US workers to keep their jobs by accepting a 75% salary reduction. Disney didn't bother to make that offer, so their criterion must be nationality and not pay.

OCP owns the police

[Anonymous Coward]

Does it bother anyone else that these laid off employees gave an interview to Disney owned ABC? The news story really spun the story towards how STEM degrees are worthless rather than suggest any regulations on outsourcing jobs.

It's the IT service providers that need fixing

[ErichTheRed]

I've been working in IT for 20 years now and have been through a couple of these outsourcing/offshoring exercises. The truth is this - there is no way to convince executives that IT is a strategic investment opportunity unless the company's only business is IT. Therefore, outsourcing will happen in most big companies the first time the MBA's spreadsheets show a big enough paper cost savings. And in Disney's case, it's not the money -- I have 2 little kids. Disney could fill several of Scrooge McDuck's money bins with just the daily cash flow from their parks. They must carry all the cash out of Disney World in dump trucks. So, there's proof that they're not doing it for cost savings.

The thing that needs to be attacked is the IT service providers' use of H-1B and offshore labor for inappropriate tasks. Go after Cognizant, Tata Consulting Services, Accenture, IBM, HP, Infosys, Tech Mahindra, Xerox, etc. for bringing in H-1B labor for purposes that don't meet the original intention of the program. H-1B was designed to import specific high-end skill sets for a limited time to fill in actual gaps in education/experience. These service companies use the H-1B to bring in "job shadowers" who train the offshore teams, and low-level DBAs, developers and other roles that could easily be had locally without the communications or quality issues. The problem is that this will never get popular support until the vast majority of white collar workers are out of a job or underemployed. IT is still seen as a hot field, and we are all still considered well paid, so we don't get any political attention.

Do I think outsourcing is a good idea? No, I think companies need to have some FTEs who at least have a connection to the company. When you go down the service provider route, the provider has to make money at the rate they bill you. The only way they can do this is reduce labor costs and reduce service levels to the absolute minimum to keep you from invoking breach of contract clauses.

I have no idea how it will work out for Disney, but I've worked on both sides of the outsourcing fence. In the company doing the outsourcing, the FTEs left behind are stuck in a stagnant IT department behind a wall of change management process, 2 AM conference calls and incompetent newbie offshore guys that keep rotating. The outsourcing company is forced to cut so many corners that being an on-site employee of the company is not a fun job -- you get to tell people why they can't have things, why projects are late, etc.

Re:McDonald's menu has become more diverse

[Joe_Dragon]

In accordance with Brazilian law, employers have to provide a “healthy and varied” lunch for their workers. This is commonly accomplished through distribution of meal tickets that can be redeemed at restaurants and grocery stores, giving employees the optionof bringing their own lunch or eating out. Last year a state labor court in Pernambuco ordered the company to pay $15 million in damages to employees who were not allowed to bring their own lunch to work and were obligated to eat McDonald’s. In São Paulo a pregnant employee who was ordered by her doctor to stop eating McDonald’s food filed charges when her employer refused to cooperate.