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IT Workers Facing Layoffs Jolted By CEO's Message (computerworld.com)

HCSC recently announced layoffs for more than 500 IT workers, and expects them to train their replacements from an India-based contractor. But a few days earlier, CEO Paula Steiner said, "As full-time retiring baby boomers move on to their next chapter, the makeup of our organization will consist more of young and non-traditional workers, such as part-time workers or contractors." dcblogs quotes ComputerWorld: What Steiner didn't say in the employee broadcast is that some of the baby boomers moving "on to the next chapter" are being pushed out the door. "Obviously not all of us are 'retiring' -- a bunch of us are being thrown under the bus," said one older employee.
The insurance provider argues that its members want easier technology solutions that "help keep rising costs in check. Our IT teams are being transformed...focusing on those and other member needs." But Slashdot reader ErichTheRed writes: Having a CEO actually say in public that their company wants to engage in age discrimination and eliminate full-time employment, rather than just carry out the work in secret, is new to me... for those mid- to late-career technical folks, how have you managed to adjust to new realities like this?

28 of 414 comments (clear)

  1. Don't worry guys... by Mashiki · · Score: 5, Funny

    Those H1B's are just there to "temporarily" fill a lack of skilled workers.

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    Om, nomnomnom...
    1. Re:Don't worry guys... by Tailhook · · Score: 5, Insightful

      A 200,000/year H-1B quota is why the tech companies have been writing checks to the Clinton Foundation. The web monkeys and cubicle trolls of Slashdot are about to vote themselves out of their own industry.

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      Maw! Fire up the karma burner!
    2. Re:Don't worry guys... by Maxo-Texas · · Score: 3, Insightful

      You realize trump imported illegal labor to build his buildings and bought foreign steel as well.

      All the politics in the world won't stop the fact that labor at 33% of the price is very attractive. You might stop H1B's (they sort of suck anyway) but then they'll just offshore. Or use L1 visas. Or some other dodge. Or buy a package and just give up a half dozen features they felt were mandatory until they realized they'd have to pay a full time person to support it.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    3. Re:Don't worry guys... by David_Hart · · Score: 4, Informative

      A 200,000/year H-1B quota is why the tech companies have been writing checks to the Clinton Foundation. The web monkeys and cubicle trolls of Slashdot are about to vote themselves out of their own industry.

      Because Clinton and the Democrats have the power to change the quota all on their own.... right? Oh wait, that's congress.... controlled by Republicans... and you think that a Trump presidency would do anything about it?

      I'm not saying that Clinton will either. But if you want change, start with voting in a Congress that will fix it.

    4. Re:Don't worry guys... by Anonymous Coward · · Score: 5, Funny

      A 200,000/year H-1B quota is why the tech companies have been writing checks to the Clinton Foundation.

      Heh, but Trump even outsourced his wife

    5. Re:Don't worry guys... by Mashiki · · Score: 4, Insightful

      So, if your neighbor or brother lost his job, in a similar line of work, it's totally irrational to think you're next? I think this has stopped making sense again.

      Yes, it's irrational. Didn't you listen to what the political pundits who are pro-establishment, and business owners who are eyeing 3rd world shitholes to export your job to said?

      Well, media pundits will say anything, as long as it's stupid and wrong, but the skilled trades have always been going strong. It was manufacturing jobs that people were being steered away from as far as I recall, and that was and remains good advice.

      Yes, and no. Pundits will say a lot of things to hit a lot of bases to give them a good view in the eyes of other pundits. Skilled trades have been hit or miss for the last 30 years, you *might* hit it good if you got in during the 90's when there was a need for electricians or plumbers. And by the 00's, they were being laid off in droves. If you got in early as a mechanic in the 90's and bought out some guys shop ~6-8 years after your apprenticeship ended you were also likely in a good spot. If you didn't it could be very hit or miss depending on the region. Part of the reason there has been a shortage in some trades, is because both government levels(federal and provincial/state), have said "trades are outdated, you don't need do THOSE." Of course trades aren't safe from imported labor either. Here's an example from Canada where skilled tradesman were laid off and replaced with 3rd world labor. And the effects of it.

      Manufacturing were just the first ones hit, and hit hard. But now you can see imported labor and people being laid off. From janitorial staff to machinists, and IT(at any level) to accountants and legal.

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      Om, nomnomnom...
    6. Re:Don't worry guys... by Anonymous Coward · · Score: 3, Insightful

      Correction: Trump either knew what was going on, which makes him complicit in the illegal actions of his workers, or was oblivious of their dealings, which makes him shit at managing one company.
      Either way, he's either a criminal or bad an managing.

      Buying foreign steel is not illegal, and so is not employing H1B's, offshoring, L1 visaing people or other things. All of those are things to save money at the cost of domestic interest -- that's why corporations are lobbying it, buying Cllinton to facilitate those aims. And that might not even be illegal.

      As for speaking out against worker offshoring or something else. I try not to be impressed by what a person says, because only actions have a real meaning. That is what the grandparent of this post was trying to tell You: Trump is speaking up against offshoring and touting his entrepeneural abilities, while benefiting (either complicitly or ignorantly) from illegal imported labour. He riles against shitty trade deals while benefiting financially from importing foreign steel -- and hurting domestic manufacturing in the first place.

    7. Re: Don't worry guys... by just___giver · · Score: 5, Interesting

      I was asked to train my replacement from India about one year ago. I gave my manager a list of everything they needed to know. They wanted me to do sessions to train them. I said fine, I need prep time for each session and I'm only doing one a day. They screen recorded each session and it took about a hundred hours over three months. I buried them in minutia. If anyone wants to go through it or search it there's a hundred hours of tedious monotone instruction. It's been eight months since I left, no significant features committed to source control. We were doing major releases every month previously. They are thinking of bringing us back now but it is too late we've all moved on to better work. Company is losing millions a year by not having all of their refineries using this custom system that's been eight years in development. Tens of millions to re write from scratch. I've heard they are considering bringing us back but we have all moved on to better things now.

    8. Re:Don't worry guys... by jrumney · · Score: 3, Insightful

      Sorry but your skills are just out of date. The H1Bs have up to date skills that we need to run modern systems to keep costs down. By the way, we need you to stay on for 6 months to train your replacement.

    9. Re:Don't worry guys... by swb · · Score: 5, Informative

      The problem with bulk immigration, whether legal or illegal, has always been that both parties have a paradoxical alignment.

      Traditionally the Republicans have been OK with it because it served the interests of corporations and big agriculture by pushing down labor costs and helping profitability. The existing system is OK because as long as the immigrants are non-citizens, they can't be a voting threat and their semi-legal to illegal status makes them disposable or willing to submit to hostile working conditions. This is why the Republicans have never done anything about illegal immigration or H1B abuse.

      The Democrats have been in favor of it because it mollifies their progressive constituency's desire for social justice and multiculturalism and they believe it will give them a long term demographic base that will vote Democratic. Democrats also want to cozy up to Silicon Valley, which at least on the corporate side, is in favor of H1Bs, too.

      But this has started to unravel for Republicans -- a non-trivial bloc of voters has seen through their strategy as a jobs replacement program and demanded better border enforcement. This was manageable for Republicans when they had a bottled up Tea Party segment who could scream about illegals but not do anything, but that genie has escaped the bottle and now they have Trump.

      It wouldn't surprise me at all if the Republican establishment would back a Hillary move to expand H1Bs as a way to regain political power and try to evict the Trumpistas.

      What I'm curious about is when immigration policy begins to unravel for Democrats. I'm amazed to this day that Black politicos haven't called the Democrats on immigration. It's worst effect is on African Americans who have seen Mexicans completely take over low-skilled, entry level jobs. And by rotting out the base of technical jobs that don't require professional degrees, Democrats have basically been gutting the kind of employment that allows people to pull themselves into middle class jobs and lifestyles, especially African Americans, who lack the connections and family history to gain entry to these jobs any other way.

      I think the support Bernie Sanders had shows that Clinton globalization economics isn't universally popular, as does her inability to outpoll even Trump by 40 points.

    10. Re:Don't worry guys... by amiga3D · · Score: 3, Insightful

      Why do you think the elite Republican insiders hate Trump? Why do you think they support HRC? Why do you think all the big money Republican donors are giving money to Hilliary? The Republican insiders hate Trump as much if not more than they do Hilliary. They actually don't hate Hilliary, they're just jealous of her because she's the favorite of all the rotten, corrupt bankers and corporate masters. Keep thinking that Democrats are really all that different from Republicans.

    11. Re:Don't worry guys... by CaptainOfSpray · · Score: 3

      "The H1Bs have up to date skills"

      Hahhahha, stop with the jokes already, you're killing me. The foreign body shop companies will send you recent graduates who have absolutely zero real-world experience.

      Read about what happened at Royal Bank of Scotland when they sacked 1500 competent locals and hired 750 contract workers from a body shop.

      http://www.rbs.com/content/dam...
      https://en.wikipedia.org/wiki/...

      --
      "Cock Up Your Beaver" does not mean what you think. This sig is intended to clog filters and annoy do-gooders
    12. Re:Don't worry guys... by Anonymous Coward · · Score: 3, Informative

      The first Clinton created the H1B and NAFTA assaults on USA citizens.
      The 2nd Clinton promises far worse.

      Trump, like other business people, used the system. So change the damned system!

    13. Re:Don't worry guys... by Mashiki · · Score: 4, Insightful

      Correction: Trump either knew what was going on, which makes him complicit in the illegal actions of his workers, or was oblivious of their dealings, which makes him shit at managing one company.
      Either way, he's either a criminal or bad an managing.

      Let me ask you, with 500+ businesses do you think he directly manages each and every one? Or do you think that it's more likely that someone down the line from him simply thought "Well, I can do this and show the boss how good of a money saver I am. And he'll give me a bonus for it." If you think the first, you're unimaginably naive. If you're thinking on the second then you probably have some scraping of understanding how how "businesses empires" work. Meaning the person at the top looks at multiple things every day, usually not very closely unless something is going wrong, and leaves it to the people under them.

      Keep in mind that Trump has been consistent since the 1980's on this. The reality is, someone down the line thought it was a good idea. Ran with the idea, and it flew under the radar because he didn't look at it. And the management under him simply saw dollar signs of saving and went with it. So now we're getting into multiple issues where the DOJ didn't care, ICE didn't care, other branches of government didn't care. And now we're seeing something else going on, multiple failures of law enforcement and those who prosecute those laws before the courts either ignoring or simply ignoring it. Now why are they ignoring it? Because it's convenient? Because there's orders on high because everyone is doing it? Because they're incompetent? Or a combination of several things. Keep in mind as well over the last 8 years, that ICE agents have stated that the DOJ and the administration have ordered them NOT to arrest, prosecute, and release illegals. If you're going to run with this line of reasoning though, then I'm sure you're lining up to impeach Obama for what Clinton did, instead of holding Clinton directly responsible for her gigantic fuckup with her email server and lying multiple times including to the investigative committee and to the FBI. And instead of going directly after those that ignored the law/ordered it not to be enforced we're gonna go for the top instead.

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      Om, nomnomnom...
    14. Re: Don't worry guys... by lucm · · Score: 4, Interesting

      Yes this is a common misconception that IT is a commodity that can be easily outsourced like payroll or janitorial services. At first it was all "let s bring IBM in" then when companies realized that vendors don't care and are not effective on the long run, they've turned to cheap labor, thinking that they could replace the pawns without handing things over to a vendor.

      The fun part is that the people who made those decisions cashed in their bonuses and laughed all their way to the bank.

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      lucm, indeed.
    15. Re:Don't worry guys... by swb · · Score: 3, Interesting

      People suddenly voting their self-interest instead of their tribe would change everything.

      The conundrum as I see is that African American self-interest is mostly aligned with their "tribal" (not intended ironically) self interest. Black America will never effectively creep out of poverty so long as vast swaths of it are effectively unemployed and wallowing in a culture of perpetual unemployment.

      For better or for worse, the way out is through a culture of gainful employment, even if the employment is not instant upper middle class prosperity. No subgroup of Americans *ever* waltzed into that, even white ethnic groups. Most faced daunting discrimination and toiled for a couple of generations in low-wage and low-skilled jobs before educational attainment and cultural amalgamation allowed better employment and enabled large chunks of these groups to obtain a better life.

      I would think that Blacks would be *outraged* at Democratic pandering to Hispanic groups over immigration issues. The Democrats are literally giving away the ability of Blacks to bootstrap their way out of poverty to non-citizens, and *nobody* is complaining about it.

      I can only speculate on the reasons, and most are too conspiratorial to believe.

      The one that sinks in the best is that Democrats have already given up on Blacks, and are turning to Hispanics as an all-purpose replacement for both Blacks and white blue-collar workers. White blue collar workers abandoned the Democrats at least as far back as 1980, and sheer intractability of Black poverty and criminality has made them more of a liability than an ally, especially with Hispanic populations surging.

      Hispanics have less invested in white collar America, allowing Democrats to pander to Wall Street's willingness to gut middle class jobs for profit and re-tool their traditional labor message to an increasingly Hispanic blue collar labor force. To the extent that white blue collar workers already abandoned the Democrats and many managerial class whites are essentially for sale, such a change in orientation costs the Democrats nothing and gains them everything.

      There is also an educational and cultural gap between middle class whites in rural and less urban America and urban whites. The Democrats can appeal to the urban whites while conspiring with Wall Street against the last bastion of traditional American middle classes.

      It has been an epic failure of Republicans to tack into this headwind. Republicans years ago should have pursued their own demographic strategy, such as steering the many Black military vets into law enforcement -- putting a Black face on urban law enforcement may have actually made a difference in so many ways. They also should have vigorously pitted Black voters against Hispanics, asking them why the party they have so long supported is giving away their opportunity to foreigners. At worst, this could have disrupted Democratic political discipline, at best it could have split the Democratic party and exposed its divide and conquer agenda.

    16. Re:Don't worry guys... by Tesen · · Score: 4, Informative

      The first Clinton created the H1B and NAFTA assaults on USA citizens.
      The 2nd Clinton promises far worse.

      Trump, like other business people, used the system. So change the damned system!

      Yeah, thinking is not one of your skill sets is it? The first Clinton NEVER created NAFTA. The first Clinton signed NAFTA in to law after the congress had voted for it (also they had a veto override capacity too). H1B's came in to existence in the 101st congress (democrat majority - also a long time before Bill Clinton).

  2. I'm a bit confused by 93+Escort+Wagon · · Score: 4, Interesting

    This is not the first time we've read about laid-off employees being expected to train H-1B replacements. But I've also seen numerous statements that it's illegal to do that. I realize many companies like to play fast and loose with laws, but - why aren't we seeing lawsuits from people in that position? I know some people will be scared they might lose their retirement or severance... but I can't imagine every single person affected would be too scared to sue.

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    #DeleteChrome
    1. Re:I'm a bit confused by buss_error · · Score: 4, Interesting

      I'm not sure myself, and unfortunately, it is starting to look like it's something I'll need to know for myself.

      However - retirement: If you have a 401K or such, there really isn't any way for a company to "reach in" and take it. If it's a company run plan, or if it is company stock, there is a possibility of loosing it.

      As for training replacements: Yeah. Right. I may teach them something, but I don't promise it'll be useful in the current role. And it's really a shame how much older folks start to "forget".

      I don't understand what drives C level officers to H1B folks. It almost never, ever turns out well. Look what happened when IBM off shored, or how some other well known companies experimented and dropped it like a hot rock.

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      Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.
    2. Re:I'm a bit confused by Tablizer · · Score: 4, Insightful

      why aren't we seeing lawsuits from people in that position?

      The visa workers are usually hired by the firm the main company is outsourcing too. Thus, the hiring practices subject to legal review are not by the main firm. They tell the judge or jurors, "Hey, we are just outsourcing the work, we don't do actual hiring of the workers. The outsourcing company selects workers for a project."

      And the shenanigans used to justify visa workers are fairly well known, such writing the job "requirements" that happen to better fit a known visa applicant. Inspectors are often clueless dolts who don't know Javascript from Flux Capacitors: pump them full of mumbo jumbo and they glaze over. Or they don't have time to dig deeper to find the real requirements of the job, versus the claimed requirements. The outsource companies have a lot of practice writing around the law.

    3. Re: I'm a bit confused by Z00L00K · · Score: 4, Insightful

      Even better - just write useless comments in your code since there are tools that may punish you if you have no comments but there's no penalty for useless comments.

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      If builders built buildings the way programmers wrote programs, then the first woodpecker would destroy civilization.
  3. I saved hard from age 30, retired. by Maxo-Texas · · Score: 5, Insightful

    I saw 50 year olds being laid off when in 1980 when I was entering the field. And that's when we had stronger age discrimination protection (pre 2009 gutting by SCOTUS) and no H1B's.

    If you are lucky or a genius (top 1% in your field), you'll be fine. otherwise, count on being dumped on the street without warning at about 45 to 54 years old. If we can get the ACA correctly in place, it would reduce some of the incentive ( "self" insuring corporations realize that older people cost a lot more for insurance starting about age 45 and want to dump them unless they have critical skills).

    The next 20 years are going to be bad. A glut of older workers with no savings willing to work at anything to keep from starving. Meanwhile fields like Trucking with 3 million employees may practically vanish over 5 years and the new jobs will only be open to 20 year olds trained in the new technologies (and they may not find enough jobs either- the 30 year olds I know are all about 8 years behind my generation to reach their first cars, first homes, etc.) and I was about 8 years behind my parents generation.

    When your skills are hot, save half what you make until you have enough to live until age 80 if you lose your job. If your job is stable, buy a house because that will fix your monthly payments. The house payment stays about $1200 a month while the apartment rent goes from $1200 to $1800 over a decade. Sure there are repairs but get home owners insurance and learn to change a washer and patch sheetrock (EASY for IT types).

    Management is good money for 4-8 years but a dead end (layoffs). Getting some critical, complex skill that can't easily be outsources is good. And as long as indian language skills suck, business analysts are going to be safe for a while.

    Over time- packages are going to become more common. You purchase them and configure them but you don't code them. Problem is they can be replaced with a new hot package you don't get trained in without warning.

    --
    She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
  4. "... CEO Paula Steiner said..." by Futurepower(R) · · Score: 4, Insightful
    A guess: CEO Paula Steiner has no technical knowledge, or almost none. A skilled salesman hired by the company in India sold her on what he claimed were big advantages of having the company in India do the IT work.

    Quote from her biography on the HCSC web site (last paragraph):

    Steiner serves on the boards of the Blue Cross and Blue Shield Association, America's Health Insurance Plans and the National Institute for Health Care Management. She is also a member of the board of directors of World Business Chicago. She holds a B.A. in economics from Johns Hopkins University and an MBA from the Wharton School.

    That quote says she is involved with the management of 5 other organizations.

    "... MBA from the Wharton School." Not a background of someone who understands computer technology.

    I'm guessing that people who work there will call to have a computer problem fixed and will talk to someone who doesn't speak English well and who has very little knowledge of computer technology. That has happened to me numerous times involving several companies.

  5. Labor union should help you by Anonymous Coward · · Score: 5, Insightful

    Walk out together without training any replacements. This is what labor unions are for.

    Force your employer into a situation it cannot handle by itself. It needs its workers and will stop functioning if enough workers walk out.

  6. WORKERS OF THE WORLD! FUCK OFF! by mad7777 · · Score: 5, Insightful

    Yes, competition sucks. Welcome to the global economy.

    That cushy job you call "yours" actually belongs to your employer. You are paid at the owners' discretion.

    OK, having said all that, I can tell you that, in all probability, the idiots in charge will be furiously back-pedaling in a few years, once they realize that you get what you pay for. I've been through this. Upper management has strictly no clue what IT even does, but they understand the bottom line. If some Indian IT consulting company offers services at bargain basement prices, they don't ask too many questions. To them, IT services are fungible.

    If you were good at your job, you might be able to get it back at that point. Of course, if you were good, you probably found something better in the meantime. In that case, you will be thanking your current employer for giving you the kick in the ass you needed to get on with your life.

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    Might makes right irrelevant.
  7. And we wonder why by golgotha007 · · Score: 4, Insightful

    more and more data thefts are occurring. These out-sourced outfits taking over entire IT departments are largely maintainers, not designers. They have no chance of keeping up with today's hackers.

  8. Re:As the next US president said....... by Calydor · · Score: 4, Funny

    Wait, are you putting sound bites in CONTEXT? That's not how mindless outrage works!

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  9. Re:This is where accounting has failed by hey! · · Score: 3, Insightful

    Well, I've seen H-1Bs across the spectrum, from utter incompetents to people I'd hire in a heartbeat. Just like anyone else.

    The real problem is that the people behind this don't see IT as a profession, like a being a lawyer or a doctor; they see IT expertise as a commodity, like pig iron. You go with the lowest price supplier, and tough luck to the higher priced ones.

    But even pig iron comes in different grades, and if all you do is go with the lowest price thing called "pig iron" chances are you won't be getting a bargain if your requirements are high -- which they should be in the case of something like IT, given how deeply IT is entwined with every aspect of how a modern enterprise runs. And given that level of involvement it makes sense to cultivate a long term workforce rather than a transient one.

    If you go for the lowest price you can get you're going to create a problem, whether that is with domestic or immigrant labor. In reality you want to go for the best people you can get, and retain them for as long as you can because they only perform better with experience.

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