Thread regarding Wells Fargo & Co. layoffs

The noose is tightening - new SEC disclosure rules coming. Offshoring will finally be exposed.

Companies push jobs offshore because companies are not required to disclose where in the world employees are physically located and the cost savings to the company are incredible.

A corporation will do ANYTHING - even highly if its questionable and highly unethical unpatriotic behavior - to "win". Labor in particular recently has bore the brunt of these terrible anti-labor corporate behaviours.

Here is what they been doing (and its not just Wells Fargo):

If a corporation fires 1000 American workers and hires 1500 workers who are physically located in India, on the annual corporate disclosure reports the corporation can report they added 500 jobs. They are not currently under any mandate to admit that 500 jobs were actually created in India.

And its why in Teamworks the total employees does not seem to change much - chainsaw is nearly 1:1 replacing you and your American colleagues with Indian nationals in India. This also includes managers - managers are also being transitioned.
Fire 1 American hire 1 Indian, Teamworks would show a net change of zero, the total count of employes would be steady and unchanged.

USA has labor laws on the books to help protect American workers - getting a green card or H1B visa is a tightly regulated highly coveted process. American salaries are so high when compared globally that immigrants flood America's southern border with hopes that even working illegally they would make far more being an illegal immigrant doing nasty jobs in usa than they would make in their home country.

But - "technological advances" for office jobs have created a conundrum for regulators. Today, a corporation can hire an Indian sitting in India to work a job that would have gone to an American through the use of technology - in specific VDI's and remote desktop - that makes the work experience in India near equal to those employees who sit in America.

Why do companies do this?

Simple - cost. The average salary at the bank is about $65,000 per year + expensive health care benefits + social security tax + unemployment tax + expensive realestate office + state tax. Total cost of 1 American worker easily exceeds $80,000 per year.

And in India?

A lot less - the average income in India is around $20,000 per year. Health care is so cheap the bank offers the employee FREE health care not only to the employee, but the employees children, spouse AND the employees parents. Total cost to employ one Indian? Less than $30,000.

That means for every American employee the bank displaces SAVES the bank over $50,000 per year - now you understand why chainsaw is so eager to cut Americans and hire Indians.

If the bank cuts 5000 American employees per month (and they are), the net savings to Wells Fargo is over $250,000,000 per year. Multiply that by 12 months its over $3,000,000,000 per year in REOCCURING annual savings.

But - there is a new sheriff in town:
https://www.cnbc.com/2021/08/20/the-sec-wants-to-know-how-well-companies-are-treating-their-workers.html

At the Federal SEC level:
"Investors want to better understand one of the most critical assets of a company: its people. I’ve asked staff to propose recommendations for the Commission’s consideration on human capital disclosure. This could include a number of metrics, such as workforce turnover, skills and development training, compensation, benefits, workforce demographics including diversity, and health and safety."

And that is not all - currently, Wells Fargo is based in California. A new bill has just been proposed to "induce" employers to disclose more worker information, including where in the world all these employees are located:

"The California State Controller is working with the Drucker Institute on worker metrics and currently has a bill in front of the California legislature to require companies with more than 1,000 employees to disclose human capital metrics."
https://leginfo.legislature.ca.gov/faces/billCompareClient.xhtml?bill_id=202120220AB1192&showamends=false

So what does this all mean?

The tide is shifting. Corporate bad behaviour against labor is soon coming to an end.

Cheating labor is about to get exposed and corporations are ill-prepared for the harsh political backlash that is coming.

Game over chainsaw.

You got your money, I fully expect for you and your ilk to move on before these rules become law.

Good riddance.

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| 3597 views | | 19 replies (last August 25, 2021) | Reply
Post ID: @OP+1crZdtM0

19 replies (most recent on top)

Post ID: @4lao+1crZdtM0

You nailed it and they have been doing so for 20 years.

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Post ID: @4coe+1crZdtM0

Make America great again...what a joke. The very politicians who support and encourage this slogan are the ones who are selling out the American worker and by extension the country.

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Post ID: @4lao+1crZdtM0

Not quite 1:1, but there is a definite steady decline of US workers and expansion of overseas workers - and not just India.

The problem is Deloitte et al are also outsourcing, and these large firms are the ones advising us and the feds. Everyone is doing it. A Republican will never do away with it, and The moderates are also unlikely. There are too few Bernie Sanders leftists to stand up to the PACS and lobbyists- including our own PAC.

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Post ID: @3ror+1crZdtM0

This has been going on for 29 years and no one stopped it. They like their corporate cash too much. I’ll be shocked if it stops now, but it would be like closing the barn door after all the horses already escaped the farm.

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Post ID: @2ixr+1crZdtM0

Even if true the corporations will just lobby to have it changed. Gub'ment doesn't care about us, they only care about corporations that fill their wallets. People keep thinking otherwise and even let the government divide us.

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Post ID: @2mni+1crZdtM0

OP - wishful thinking. Chuckie Cheese isn't going anywhere. Not until HE decides it is time.

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Post ID: @1bip+1crZdtM0

There is no way we are laying off 5K people a month. Displacements have been almost every month for a year now, you think we cut over 1/5 of the company since then? Even if replacing with offshore as you state, our HR function is far from that efficient, pretty sure it would be impossible.

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Post ID: @1ptf+1crZdtM0

Math doesn’t add up OP… 250,000,000 annually is calculated again by multiplying by 12? Why?

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Post ID: @eod+1crZdtM0

there are already rules and disclosure requirements for displacing US employees.

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Post ID: @lwu+1crZdtM0

A most welcome requirement! I look forward to seeing those numbers, and watching what happens when a light is shone upon a very dishonest practice!!

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Post ID: @glj+1crZdtM0

OP - wishful thinking. Some politician will be bought off and nothing will happen. Both sides of the aisle. DC disgusts me

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Post ID: @tuz+1crZdtM0

Quality, security and privacy comes at a cost. If you are selling products and services to a certain market, factor in necessary cost. There are no excuses. Outsourcing doesn’t relieve from liability for the outsourced services either. So there’s a cost and headache of oversight.

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Post ID: @bjd+1crZdtM0

Companies outsource because local, state, and fed governments do everything in their power to make it more expensive to do business. You can resist it as a business owner but when all your competition does it, you'll be priced out of business.

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Post ID: @iff+1crZdtM0

I hope there’s going to be more scrutiny towards foreign vendors as well. Because it’s apparent they’ll attempt to hide true numbers behind vendor contacts and through invoices for services.

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Post ID: @mia+1crZdtM0

Well overdue and very welcome change. Looking forward to greater accountability and transparency of executive decisions for publicly owned companies.

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Post ID: @ayo+1crZdtM0

Where does that bill state you must report on foreign headcount? I read through it, but may have missed where it said foereign employees.

On or before March 31, 2023, and annually on or before March 31 each year thereafter, an employer shall submit to the agency the following worker-related statistics covering the size of the employer’s workforce for the prior calendar year, including:

(1) Full-time workers in the United States.
(2) Part-time workers in the United States.
(3) Hourly workers in the United States.
(4) Salaried workers in the United States.
(5) Number of workers in California.

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Post ID: @krm+1crZdtM0

Our EGS counterparts are culturally far different. They work their shift and go home even if an issue is currently ongoing.

Many times I have been on a call overnight into the following morning after working the previous day. EGS folks work their schedule and hand off to others when their shift ends while those of us state side continue working.

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Post ID: @bbn+1crZdtM0

Kick these leaders out of the country they so willingly betray.

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Post ID: @dbx+1crZdtM0

I cannot love this enough.

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Post ID: @muu+1crZdtM0

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