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Hertz Had Sheriffs On Hand the Day It Cut IT (computerworld.com)

dcblogs writes: About 300 Hertz IT employees, most located in Oklahoma City, are being impacted [by] a decision to expand its outsourcing to IBM. About 75 will be hired by IBM and those workers [are expected] to receive offers this week while others are facing layoffs. The news was a shock for IT employees. There was "anger, resentment," especially by employees who "sacrificed that work/life balance to keep things going here," said one employee. Hertz took precautions. On the day that IT employees learned that their work was shifting to IBM, employees noticed Oklahoma sheriff patrol vehicles in the building's parking lot. They believed plainclothes officers were inside the building.
"We consider the safety and security of our people whenever there are circumstances or events that could increase the risk of a disturbance or some form of workplace violence," said Bill Masterson, a Hertz spokesman. "Knowing that this was a difficult announcement, we had additional security on hand," said Masterson. "Going forward, Hertz IT resources will be focused on development of future products and services for customers," he said. The majority of services will be cloud-based. According to the Computerworld article, along with severance pay, benefits also include three months of outplacement assistance. IT employees can receive up to $4,000 toward retraining or skill certification, said Masterson. IBM India Private Limited, a IBM subsidiary, has filed paper for H-1B visa workers for Hertz Technology offices.

15 of 301 comments (clear)

  1. Outsource to IBM? by skovnymfe · · Score: 5, Insightful

    Outsource to IBM? They'll regret that decision very soon. Really. Very, very soon.

    1. Re:Outsource to IBM? by Zeio · · Score: 5, Insightful

      Yes. So they fire US workers summarily. Then they outsource to a company which has taken 275,000 US-based jobs in the mid-1980s to having a tiny footprint in the US and ever outsourcing more and more jobs out of country. IBM is gutting US workers. The sad thing is nobody gets an offer for a pay cut to keep the jobs. If its about money and competition at least offer those being summarily shot a way out. This kind of behavior is really discouraging. I also must say that all the free trade and bank deregulation has lead to a severe decrease in standard of living here.

      --
      Legalize the constitution. Think for yourself question authority.
    2. Re:Outsource to IBM? by Anonymous Coward · · Score: 4, Insightful

      Yes, but it has led to an increase in standard of living elsewhere, and really, the disparity was not going to be sustainable in the long haul. It had to start to even out, and we're starting to see that happen now. When you have a tiny fraction few % of the world's population living high on the hog compared to the rest, that isn't going to last. Enjoy it while you had it, but don't think that's how you get to live forever.

    3. Re:Outsource to IBM? by lgw · · Score: 4, Insightful

      Yes, but it has led to an increase in standard of living elsewhere, and really, the disparity was not going to be sustainable in the long haul. It had to start to even out, and we're starting to see that happen now. When you have a tiny fraction few % of the world's population living high on the hog compared to the rest, that isn't going to last. Enjoy it while you had it, but don't think that's how you get to live forever.

      Last time I could find numbers (about 5 years ago), $30k/year put you in the top 1% worldwide. That's probably what US politicians mean when they talk about raising taxes on the 1%. (At least Bernie is honest about his plan to tax basically everyone with a job.)

      Seriously, though, it's not an "even-ing out" because it's not a zero-sum game! Concentration of wealth and income produces less demand over all, and thus a weaker economy overall, than more even distribution (all other things being equal, which they rarely are of course). I don't want to see US standard of living fall either, of course, but if the rate of job flow offshore is low, then new demand from new places helps everyone and we sustain.

      It's the same thing for immigration, H1-B or otherwise: if the rate is controlled, immigration is great. A growing economy and everyone benefits. OTOH, if we just have "open borders", the system gets swamped by immigrants arriving faster then job creation due to new demand from successful immigrants, and everyone suffers.

      There's a rate as which immigration is good. There's a rate at which easily-replaceable jobs moving to lower-cost areas is good. That rate is not 0, and it's not "unbounded" either, but those seem to be the only option politicians discuss.

      --
      Socialism: a lie told by totalitarians and believed by fools.
  2. H-1B? by fluffernutter · · Score: 4, Insightful

    There was a paper filed for H-1B? More domestic employees being replaced by a program that is only supposed to be used if there are no domestic employees available?

    --
    Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
    1. Re:H-1B? by KingBozo · · Score: 4, Insightful

      You really missed the loophole. If they were to directly replace them with H1-B that would be illegal. But they contracted a third party to now do the IT work, so those positions no longer exist, and the company gets away with it. Since Hertz is not hiring for those positions.

      This is the main problem with H1-B is that there is this large loophole they can all run through.

    2. Re:H-1B? by superwiz · · Score: 3, Insightful

      umm... you say "loophole", i say "conspiracy" to commit fraud. if only we had a forum to decide which is which. maybe with someone who knows the law presiding over some folks trying to make sense of what's happening. too bad we don't have anything like that. You know that this is exactly why RICO statutes were created. So that the upper management which coordinates an activity each part of which might be legal, but which is illegal when considered in its entirety would be criminal and would mean jail time for those at the top.

      --
      Any guest worker system is indistinguishable from indentured servitude.
  3. The end of Hertz? by Futurepower(R) · · Score: 4, Insightful

    Maybe use Uber or Lyft instead of renting a Hertz car?

    I'm guessing that the CEO of Hertz has no technical knowledge, and no interest in knowing anything about technology. So, to him, someone who supports Hertz technology is just a rent-a-car, just an appliance. Don't think! Get the cheapest!

    I doubt he understands the long-term social and technical effects. It seems that his actions make Hertz a place of hurts.

  4. Too big to jail. Once again. by 140Mandak262Jamuna · · Score: 4, Insightful
    It has always been like this. Steal 100$ from a grocery store, you get 10 years in jail. They bank steals 100K from the grocery store by collusion with ATM networks to convert 25 cent transaction fee debit cards to 2% transaction fee creditcards, they walk away scot free!

    Company A fires one IT worker and hire a H1B, it is illegal. And the company can be prosecuted. Company fires *all* its workers and outsources the department to Company B, it is legal business decision.

    Corporations are people! But all it takes is some 100$ filing fee and you have a brand new people with all the rights and privileges from freedom of thought, expression and religion. It is nearly impossible for an real Indian people to get work permit to work in the USA. All that H1B lottery and paper work, and work permits... But it takes no effort for a corporate Indian people to work in the USA!

    So company A creates a not-really-companyA in India and brings real Indian people employed by corporate Indian people to serve corporate American people. Real American people get royally screwed. Real Indian people get some bones. Corporate Indian people get a huge slice of the pie because the profits are parked abroad to skirt taxes. Corporate American people get a slice just big enough to pay the CEOs and the cronies large bonuses and pay.

    OK, OK go ahead and vote for more tax cuts for the rich, to vote for more abortion restrictions, vote for unlimited mining on public lands, vote to relax envrionmental laws, and then sit in a corner and wonder why the American government always screws you.

    --
    sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
    1. Re:Too big to jail. Once again. by fluffernutter · · Score: 3, Insightful

      Trump is a businessman through and through. Right now he is saying whatever America wants to hear because winning is good for his business. Once elected, he will continue to do what is good for business, which means forgetting he made a lot of these promises in the first place. As incredible as it sounds, personal integrity still means a bit more in politics than it does in business.

      --
      Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
  5. Re:If they actually cared about the safety by Locke2005 · · Score: 4, Insightful

    No, if you're going to screw IT workers, you cut off their computer access suddenly and without warning, then have them escorted out of the building before they can damage or release any of the data they have access to, or even worse, change the admin passwords. Yes, real dickish behavior, but if you had a fiduciary responsibility to protect the shareholders, not the employees, you'd do the same thing.

    --
    I've abandoned my search for truth; now I'm just looking for some useful delusions.
  6. Re:Outsourcing danger by orasio · · Score: 3, Insightful

    I do work for an outsourcing company, won't say which, but your I don't think you comments about dangers of outsourcing quality are accurate right now.

    Not IBM, but some outsourcing companies have learned to provide very good quality services, and do anything, from providing more staff, to taking over all IT from a company.

    I wouldn't outsource my core business IT if I were a CIO/CEO, but I know why old fashioned companies would do it. You may pay less, but you can at the same time get way better results. Outsourcing companies scale up and down a lot more easily, they bring experience from other industries, you get some free consulting, and you even get to "fire" employees for any reason, no question asked, no sheriffs to call.

  7. Routine except for the one thing... by rbrander · · Score: 5, Insightful

    ...that comment about "work/life balance" sacrificed. There was a great article recently about how one-sided the employee/corporate relationship really is. One side of the relationship has emotions; the other's basically a machine, a mechanism devised by stockholders to increase their investment - when it screws up and has an emotion because one of the parts (your boss) has one, that is corrected ASAP. So it's this relationship between human and machine that *cannot* give anything back, emotionally.
    On the human side, people have the emotion of pride; virtually everybody is proud of their "work ethic" and most people describe themselves as "giving 100%" or "giving 110%", that extra ten percent coming out of your personal life, the time you owe to family, friends, and yourself. You have emotions where people become attached to "the team" and don't want to "let down the side" and again, make personal sacrifices not compensated for by pay, because it "just feels good" to help out a team member with a sick kid or de-stress your boss at "crunch time".
    NONE of this spirit of teamwork and sacrifice applies to the other side of the relationship. All those emotional, devoted-to-work, sacrificing employees are sacrificed for in turn when their utility falls below zero.
    It all represents an ongoing wage theft, in effect: employers routinely profit from the emotional investment, pride, and devotion of employees but don't return it, the way that somebody sacrificing for a primitive tribe would be taken care of in turn by that tribe if they fell sick. Smaller businesses run by owners can react like a normal human group, with a two-way emotional bond. But a modern corporation with absentee owners and professional managers is just a machine that automatically wins these situations because it is never there for the employees that were there for it.

  8. Work life balance by Dunbal · · Score: 4, Insightful

    especially by employees who "sacrificed that work/life balance to keep things going here,"

    That's why you never, ever do that - especially not for a salary. Let some other sucker work there and ruin his life.

    --
    Seven puppies were harmed during the making of this post.
  9. Re:Bad dum tish by Applehu+Akbar · · Score: 5, Insightful

    The 300 includes IT layoffs in other locations nationally. The 230 was for Okla. Hertz increased the number.

    In case anyone was wondering where all those Trump voters are coming from, it's from scenes like this.