The overseas outsourcing "problem"

Almighty Colin · 05-08-2004

Money flows down the path of least resistance ...

April 14, 2004

BERLIN, Germany (CNN) -- Twice a day, laundry is sent out for washing from a Berlin hotel -- but the sheets don't stay in Berlin. They go all the way to Poland, to be washed there and returned within 24 hours.

This is to ensure the best price for high quality -- but at the cost of not employing Germans.

When the European Union expands from 15 to 25 countries, it will include Poland -- Germany's eastern neighbor -- something that leaves Germans uneasy.

A recent opinion poll indicated 82 percent of Germans believe labor from Eastern Europe will flood the country, and 68 percent think unemployment and crime will increase.

Berlin bricklayer Rolf Lukas, whose small company is already struggling in the German economic slump, worries cheap labor will flood the market -- even though Poles, Czechs and Slovaks will still need permits to work in Germany.

"They used to need permits but they got around that. They will still find ways and means to avoid them," Lukas says. "And there will be a massive illegal labor market here."

Companies are reacting already. Electronics giant Siemens is threatening to move several thousand jobs eastward if German labor unions don't agree to longer hours with no pay raise.

Ludwig Georg Braun, president of the German Chambers of Industry and Commerce (DIHK), is all for moving labor to Eastern Europe.

He's been called "unpatriotic" by German Chancellor Gerhard Schroeder, who is desperately trying to fight jobs from leaving.

"The fear that people have in this country is a result that they do not know enough about the possibilities of international activity," says Braun.

"They have forgotten that we are all used to an Audi car with a motor that comes from Hungary and they still believe that is a German car."

While German authorities fight illegal labor with police checks on work permits, many Germans remain wary of expanding the EU.

The country with the longest border to the new member states believes opening it will prompt an economic drain.

Winetalk.com · 05-08-2004

hmmm.....and I thought Germans like to share the vast wealth of their country
;_)))

Rolo · 05-08-2004

Lower costs creates lower prices or more profit.

Lower prices is good for the consumers who buys the products, because they now have more money to spend on other things.

More profit is good for the country where the company is located, because the company have more money to invest in new products, expansion in new markets, and they might end up paying more taxes.

The EU is kinda interesting, because now people from the new member countries can work in the old member countries. Since workers from the new EU countries will have a lower salary, then one should think that prices would drop in some sectors. 6-12 months from now it might be much more cheap to build a house in Germany with Polish workers.

Sharpie · 05-08-2004

Overall that all sounds good..... but, if you don't have a job - you ain't buying much.... whatever the price is! Our town just lost a Thomason Plant (RCA) which has been in this town for well over 30 years, and a glass plant last year that has been in this town for 50 years. On shakey ground is a box plant that has been here for 4 generations. Dana has cut back production here about 25% . Thank god for General Motors.. ....

I was thinking of selling my house up here this year and going to Florida full time. But, not sure the demand for housing is going to be very strong for awhile.

Rolo · 05-08-2004

The global economy has exposed those problems which are due to local or national situations. Many warning signals telling us that things would change have been there for years or decades, not acting on those signals are not the people´s fault, but rather politicians on both local and national level, who have been too afraid (or prehaps just without longterm vision) to make real changes to an old system, which is weak in the global economy.

I feel sorry for those areas of the western world, which are loosing jobs due to outsourcing and have no visionary people in power to create new jobs.

Ironic, then some of the only job types which are safe from outsourcing, downsizing and technology advances are in politics... their jobs are secured by their own laws, not because they are needed (well atleast not all of them)

pushpills · 05-08-2004

People towards the bottom are always a tweek away from being at the bottom.

happens everywhere wether you are a german bricklayer or an american graphic designer.

"though shit" is a universal term.

Last edited by pushpills at May 8 2004, 03:39 PM

sarettah · 05-09-2004

Quote:

Originally posted by pushpills@May 8 2004, 04:37 PM
People towards the bottom are always a tweek away from being at the bottom.

When it comes to outsourcing, everyone at the company including the head guys in charge are towards the bottom.

Whatever is good for the stockholders is the rule.

CuriousToyBoy · 05-09-2004

I would outsource my job to someone in a thrid world country..

But even they earn more than I do.

05-08-2004	#1
Almighty Colin Members Want to see your own Advertising Here! Join Date: Oct 2002 Posts: 8,059	Money flows down the path of least resistance ... April 14, 2004 BERLIN, Germany (CNN) -- Twice a day, laundry is sent out for washing from a Berlin hotel -- but the sheets don't stay in Berlin. They go all the way to Poland, to be washed there and returned within 24 hours. This is to ensure the best price for high quality -- but at the cost of not employing Germans. When the European Union expands from 15 to 25 countries, it will include Poland -- Germany's eastern neighbor -- something that leaves Germans uneasy. A recent opinion poll indicated 82 percent of Germans believe labor from Eastern Europe will flood the country, and 68 percent think unemployment and crime will increase. Berlin bricklayer Rolf Lukas, whose small company is already struggling in the German economic slump, worries cheap labor will flood the market -- even though Poles, Czechs and Slovaks will still need permits to work in Germany. "They used to need permits but they got around that. They will still find ways and means to avoid them," Lukas says. "And there will be a massive illegal labor market here." Companies are reacting already. Electronics giant Siemens is threatening to move several thousand jobs eastward if German labor unions don't agree to longer hours with no pay raise. Ludwig Georg Braun, president of the German Chambers of Industry and Commerce (DIHK), is all for moving labor to Eastern Europe. He's been called "unpatriotic" by German Chancellor Gerhard Schroeder, who is desperately trying to fight jobs from leaving. "The fear that people have in this country is a result that they do not know enough about the possibilities of international activity," says Braun. "They have forgotten that we are all used to an Audi car with a motor that comes from Hungary and they still believe that is a German car." While German authorities fight illegal labor with police checks on work permits, many Germans remain wary of expanding the EU. The country with the longest border to the new member states believes opening it will prompt an economic drain. __________________ Almighty Content. Your one stop for live content. Secret Friends, LATINA Secret Friends , My Cam Friends

05-08-2004	#2
Winetalk.com Prostate Examiner I quoff fine wine at corkd.com Join Date: Oct 2002 Location: good 'ole USA Posts: 21,018	hmmm.....and I thought Germans like to share the vast wealth of their country ;_))) __________________ why dogs sniff each other butts?

05-08-2004	#3
Rolo Members Join Date: Dec 2002 Location: Six Feet Under Posts: 2,150	Lower costs creates lower prices or more profit. Lower prices is good for the consumers who buys the products, because they now have more money to spend on other things. More profit is good for the country where the company is located, because the company have more money to invest in new products, expansion in new markets, and they might end up paying more taxes. The EU is kinda interesting, because now people from the new member countries can work in the old member countries. Since workers from the new EU countries will have a lower salary, then one should think that prices would drop in some sectors. 6-12 months from now it might be much more cheap to build a house in Germany with Polish workers. __________________ "Chaos is the law of nature, order is the dream of man." ~Henry B. Adams (Historian) 1838-1918

05-08-2004	#5
Rolo Members Join Date: Dec 2002 Location: Six Feet Under Posts: 2,150	The global economy has exposed those problems which are due to local or national situations. Many warning signals telling us that things would change have been there for years or decades, not acting on those signals are not the people´s fault, but rather politicians on both local and national level, who have been too afraid (or prehaps just without longterm vision) to make real changes to an old system, which is weak in the global economy. I feel sorry for those areas of the western world, which are loosing jobs due to outsourcing and have no visionary people in power to create new jobs. Ironic, then some of the only job types which are safe from outsourcing, downsizing and technology advances are in politics... their jobs are secured by their own laws, not because they are needed (well atleast not all of them) __________________ "Chaos is the law of nature, order is the dream of man." ~Henry B. Adams (Historian) 1838-1918

05-08-2004	#6
pushpills ¯¯¯¯¯¯¯¯¯¯¯ The global leader in pay-per-view AEBN Join Date: Jan 2004 Location: chicago Posts: 3,460	People towards the bottom are always a tweek away from being at the bottom. happens everywhere wether you are a german bricklayer or an american graphic designer. "though shit" is a universal term. Last edited by pushpills at May 8 2004, 03:39 PM __________________ ...Almighty Content - Free feeds for your members area!... The internet is a great way to get on the net. -Bob Dole ...Remote Thumbs - Make your TGP work for you!...

05-08-2004	#4
Sharpie Members Join Date: Oct 2002 Posts: 747	Overall that all sounds good..... but, if you don't have a job - you ain't buying much.... whatever the price is! Our town just lost a Thomason Plant (RCA) which has been in this town for well over 30 years, and a glass plant last year that has been in this town for 50 years. On shakey ground is a box plant that has been here for 4 generations. Dana has cut back production here about 25% . Thank god for General Motors.. .... I was thinking of selling my house up here this year and going to Florida full time. But, not sure the demand for housing is going to be very strong for awhile.

05-09-2004	#8
CuriousToyBoy Members Join Date: May 2004 Location: The Great Southern Land Posts: 986	I would outsource my job to someone in a thrid world country.. But even they earn more than I do. __________________ CuriousCash - 100% Exclusive Twink Sites Since 1999 <===> EuroSexFeed - 25 Niche DVD Content For Less Than $1 Gb Adult Who's Who ==> Ambush Interview ==> ICQ 293 070 684 ==> lindsay AT sbmgt DOT com