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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.

29 of 301 comments (clear)

  1. Bad dum tish by pierced2x · · Score: 5, Funny

    At only 300 Hertz this doesn't seem to be happening with high frequency.

    1. Re:Bad dum tish by dcblogs · · Score: 3

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

    2. Re:Bad dum tish by mykepredko · · Score: 5, Funny

      pierced2x,

      You're joke didn't resonate with this crowd.

    3. 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.

  2. 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 Anonymous Coward · · Score: 4, Interesting

      Why do you think that profitable businesses do this? It isn't to spread the wealth and any spread is incidental to ensuring that the shareholders make more per share. The goal of these moves is to make the shareholder richer and increase the gap between rich and poor. The US is working hard to move back to the age of the robber barons. Look it up if you don't know what that was...make sure you look up the concept of the "company store" while you're at it numbnuts.

    4. Re:Outsource to IBM? by Anonymous Coward · · Score: 5, Interesting

      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.

      Is IBM in business to increase the standard of living elsewhere? No. Is it US government policy to increase the standard of living elsewhere, while lowering it here? No. This is being done to increase the standard of living of the few at the top of the organizational food chain. But don't worry, it will self-correct. Eventually, when most Americans can no longer afford to purchase goods and services from these American companies, they will go out of business. Of course, by then, the US won't be a leader in anything other than poverty.

    5. 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.
    6. Re:Outsource to IBM? by Anonymous Coward · · Score: 3, Interesting

      "Eventually, when most Americans can no longer afford to purchase goods and services from these American companies, they will go out of business."

      No they won't. They'll sell products to Chinese and Indian Middle Class... What's that?
      "No middle class in India?"/"The Chinese won't allow a foreign corporation a level playing field with domestic/stated owned corporations?"

      Ok: you win. They WILL go out of business, but not before being cannibalized for the personal profit of shareholders.

      The formula is simple:
      Step 1) build a business establishing brand recognition/equity while creating jobs
      Step 2) take the company public
      Step 3) shareholders gut the company like a fish for short term profits, then sell their position to the next greatest sucker(retail investors) who fall prey to the fallacy(read: deadly investing sin) of extrapolating past performance to predict future returns.
      Step 4) Wealthy insiders realize they've bought a dry milk cow. They elect a conman CEO to bail them out.
      Step 5) Conman CEO realizes the company is insolvent and being sustained by inertia. Lacking remaining value to loot, they take out loans from lenders whose ability to set interest rates is controlled by the government(graft via proxy). This temporarily improves balance sheet performance at the expense of future profitability. This is the last call to insiders to GTFO before the titanic hits the iceberg. Executives give themselves a pay increase to embezzle the borrowed money in Salary/Bonuses(Golden Parachute is their compensation for volunteering to take the credibility blow of being at the helm when the ship sinks).
      Step 6) Product/service prices go up while value-proposition to customers has officially jumped the shark. Brand reputation has been looted, customers leave for new love affair with different band.(Outsourcing is the means to this end)
      Step 7) Corporation declares bankruptcy/is acquired by competitor at fire-sale prices to dissolve/absorb remaining assets.
      Step 8) CEO of consumer's new love interest takes company public
      Step 9) Rinse/repeat.

    7. Re:Outsource to IBM? by sjames · · Score: 3, Informative

      Obama? A man so powerful he took office in 2009 but reached back through time to bail the banks out in 2008?

  3. 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.
  4. 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.

    1. Re:The end of Hertz? by Solandri · · Score: 4, Interesting

      IT suffers from the same problem as engineering. When you do your job right, nothing happens. When you do your job wrong, the world implodes and costs your company millions, and the fault can be traced back directly to you.

      Contrast this with, say, sales. When you do your job right, a new contract is signed and the company gets millions in additional revenue which can be attributed directly to you. When you do your job wrong, nothing happens.

      I've been trying to come up with some sort of algorithm which corrects for this, and correctly quantifies a worker's contribution regardless of how easy or difficult it is to see. Without such a correction, you tend to see the former type of employees as less productive than they really are, and the latter type as more productive than they really are. (I leave management out because that's mostly take credit when those under you do stuff right, blame those under you when they do stuff wrong. To correct that, you need to get feedback from the people they're managing.)

      (Another more complicated example is HR. While it seems like their good or bad hiring decisions can be attributed back to them, that's not actually true. Only half of their decisions can be attributed back to them. If they fail to hire a great applicant or decline to hire a terrible applicant, nothing happens and they get no blame/credit for it. Your "stellar" hiring manager who's hired some of your best employees may in fact be costing you money because he's using irrelevant criteria to thin out the applicant stack to reduce his workload, resulting in him turning away other skilled applicants who might've been even better employees.)

  5. 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 Billly+Gates · · Score: 4, Informative

      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.

      Donald Trump supports a 40% tax on all H1B1 jobs and is a Republican. Just giving a heads up as he is the only one I see who actually cares?! His other stuff ... sigh. Yeah that is a problem. But in his plan for a doctor or senior consulting architect the corps still get them from India. But as a cost cutting measure? Hertz would fine it cheaper to keep their employees. True some could still be managed in India but you need physical people there still

    2. 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.
    3. Re:Too big to jail. Once again. by BradleyUffner · · Score: 3, Informative

      Not ALL of them. We have the chance, this year, to elect what may be the one honest politician of our lifetimes. Don't let that opportunity go to waste.

  6. 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.
  7. Choices have consequences by Anonymous Coward · · Score: 4, Interesting

    As a result of this move I have begun the process of severing our business relationship with Hertz. We do over $300,000 of business annually with them, or at least we did. I will make it very clear why we are terminating our relationship. Hopefully other companies will do the same.

  8. 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.

  9. 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.

  10. The Law's changed by rsilvergun · · Score: 3, Interesting

    they no longer need to show there are no qualified Americans. The law was very quietly changed to allow them to replace American workers. Vote Left. Bernie Sanders, hell Trump if you have to (better than Cruz/Rubio, at least he talks about the issue). Join a Union if you can find one. If you think they're not coming for you your wrong. Only a matter of time.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
  11. 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.
  12. [are expected] by wonkey_monkey · · Score: 3, Informative

    About 75 will be hired by IBM and those workers [are expected] to receive offers this week while others are facing layoffs

    What's with the angle brackets? The whole sentence has been rewritten from the article (which says "IBM is hiring about 75 and those workers are expecting to receive offers today"), and in any case those words are attributed to the submitter, so why have two words been picked out for this special treatment?

    Sometimes I think Slashdot just does things like this at random because it's seen the grown-up newspapers do it, but isn't quite sure why.

    --
    systemd is Roko's Basilisk.
  13. Re:In B4 the union blaming by Second_Derivative · · Score: 4, Informative

    At-will. The law you're looking for is at-will, and that's the one the vast majority of states in the union have on the books. Far fewer states are right-to-work states.

    Right-to-work means you cannot be required to join a union as a condition of employment.

    At-will employment means that the employer or employee can terminate the employment relationship at any time for any reason.