Thursday, February 16, 2006

Article regarding husband's company relocating

This was in today's St. Pete Times (my comments below):

TAMPA - A call center in east Tampa that handles inquiries from customers of
financially struggling General Motors will close by year's end, leaving about
400 employees without jobs.

International Business Machines Corp., which took over a contract to run the
center for GM Jan. 1, told workers Wednesday that their jobs would be gradually
phased out until the facility closes in December. Two other GM call centers run
by IBM face job cuts.

The work in Tampa - handling calls and e-mails from GM vehicle owners, dealers
and prospective customers - will go to other centers in the "global network" of
IBM and subcontractor Convergys, which employs the workers, said IBM spokeswoman
Jenny Galitz.

Galitz and a GM spokeswoman declined to say whether the jobs will be moved
outside the United States.

In Web site postings and e-mails to newspapers, some Convergys employees wrote
that they expected work will be handled at centers in Canada, the Philippines
and Argentina.

GM is carrying out dramatic plans to cut costs amid monumental challenges to
the auto industry. Losing U.S. market share to Asian competitors, the company
posted a $8.6-billion loss in 2005, in part because of high costs for pension,
employee health care, materials and labor. GM plans to eliminate 30,000 hourly
jobs and shutter 12 facilities by 2008.

Sitel Corp., based in Omaha, Neb., opened the Tampa call center in 1999 under a
five-year contract with GM to run centers in Tampa; Austin, Texas; and Portland,
Ore.

The plan was to consolidate eight GM-operated centers in southeast Michigan
into three outsourced centers. GM extended the deal, but last fall awarded IBM a
five-year contract to run the three centers.

At the time, the companies said most of the 519 Tampa workers would be hired
when IBM took over.

About 120 left and were not replaced, said Galitz. The companies kept their
word by keeping the others past Jan. 1 but didn't guarantee long-term
employment, said GM spokeswoman Ryndee Carney."The world doesn't stay the same,"
she said. "Things do change."

IBM will close the GM call center it operates with Convergys in Portland, which
employs about 620 people, by the middle of 2007. The Austin center, run by a
different subcontractor, will lose an unspecified number of employees through
mid 2007, Galitz said.

The word started leaking out this month on an employee independent Web site. On
Feb. 2, a site member reported rumors that the company would tell employees this
week that Tampa and Portland customer assistance centers would be shuttered,
with the work heading to Canada.

The decision to move call center work out of Tampa was made by IBM, said GM
spokeswoman Carney. "It's IBM's responsibility to figure out the best way to
meet our needs as a client," she said.

The move is a blow to NetPark, an office complex created from the old East Lake
Square Mall in east Tampa.

GM leases 100,000 square feet of space there. NetPark is also home to the
information technology division of CP Ships. The container shipping company is
cutting about 700 Tampa jobs, including the information technology department,
by 2007 as part of its acquisition by Hapag-Lloyd of Germany.
*************************************************************************

Regarding the information in bold above, an employee happens to have recorded
the meeting on an MP3 player and they were advised that the company is outsourcing
to the countries mentioned above. They were told that GM is a "Global Company".
Someone responded back that GMs new motto should then be "Global Revolution" instead
of "American Revolution". I couldn't agree more.

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