Honeywell's Census Adjustment - Part 2
Honeywell's Census Adjustment - Part 2
Date: Friday, June 17, 2005 10:06 PM
JOB DESTRUCTION NEWSLETTER
by Rob Sanchez
June 17, 2005 No. 1277
In a recent newsletter I wrote about a new corporate plan by Honeywell
that some of their executives called a "Census Adjustment". Their
cutsie corporate terminology is just another way of describing their
new policy of replacing U.S. labor with cheaper foreign labor. I
equated Honeywell's "census adjustment" to a corporate policy of
"ethnic cleansing".
Since that newsletter was published I have received credible
information about several of the specifics of the Honeywell plan. The
following information may seem like a spoof, but I assure you that it's
no joke and nobody at Honeywell will be laughing as of July 1st.
DISCLAIMER: Although this information contained in this newsletter is
from a credible source, there may be some factual errors. I have no way
of independently verifying any of these factoids below.
***** Dictionary of terms used by Honeywell corporate executives
Learning the dialects used by the corporatists can help us understand
how they view the world. These are a few terms that I learned by
studying information from Honeywell.
Census Adjustment: mass replacement of higher priced American employees
with lower cost foreign employees. They don't make a distinction
between foreign workers that come to the U.S. on H-1B/L-1 visas and
workers that are in offshore positions. In most cases the foreign
workers are high-tech workers from India or Eastern Europe. This term
is going out-of-favor among Honeywell executives because so many
employees made derisive comments and jokes about it.
Globalization: the use of workers as a global commodity to lower cost.
This term can be used interchangeably with "census adjustment".
Globalized engineers: usually used when referring to foreign engineers
that come to the U.S. by using H-1B and L-1 visas, but it can also be
used to describe overseas engineers that work for Honeywell (the exact
meaning depends on the context). The phrase is a clever code-word that
corporate execs and HR lap-dogs use for "Cheap engineers".
Infill - the process of filling job positions with workers. There is no
distinction made between the hiring of new workers or the transferring
of workers from one Honeywell location to another. "Infill" is a trendy
term that is very popular with borks and HR departments.
----- Honeywell's Plan for Census Adjustment by Globalization -----
Honeywell executives have decided that revenue spent for engineering
must go below 15% of their total expenditures. In order to cut costs
they will "globalize" their engineering departments. This globalization
process will focus on cutting the cost of labor by using the following
methods:
* Replacing current Honeywell workers with L-1 visa holders. These L-1
visa holders will come mostly from Russia, Czech Republic, and India.
* Whenever possible all positions in engineering and its support
functions will be outsourced to overseas locations.
* All new IT jobs will be required to be outsourced offshore.
* No external hiring will be allowed, and transfers of employees within
Honeywell will be discouraged until the job terminations are complete.
* Open job positions will be "backfilled with globalized engineers at a
lower cost." Managers that refuse to go along with this process will be
replaced with more cooperative ones.
* American subcontractors are currently being eliminated and replaced
with foreign companies.
The following factoids pertain specifically about Honeywell's Component
Engineering in their Commercial Electronic Systems (CES) on Deer Valley
Road in Phoenix, Arizona and Aerospace (AES). Similar tactics will be
used at other Honeywell locations.
>> Honeywell CEO, Dave Cote, has ordered Roman Jamragowiecz, VP of
Engineering, to globalize 25% of AES engineering. It is generally
understood that Roman will lose his job if he doesn't meet this goal.
>> Honeywell understands that workers will be extremely angry when they
see their jobs being filled by foreign workers. There is a fear that
some employees may go postal when they are forced to train their
replacements. On June 9th at the Deer Valley and Bell Road plant,
managers were given training on workplace violence. Managers were
counseled that they had to report all threats or "going postal" type
comments. Extra security will be hired during the mass terminations.
>> Whenever possible work will be "co-sourced" to Indian companies such
as Wipro, Keane, Caritor.
>> No Indians are to lose their jobs during the job cuts in the U.S.
>> Engineering layoffs will begin on July 1st and will be far more than
17% across the board cuts that were announced to the press. The
undercount occurs because Honeywell isn't eliminating their globalized
labor force - ONLY U.S. JOBS ARE AFFECTED, BUT ALL HONEYWELL WORKERS
ARE COUNTED!
>> The 17% reduction is actually an undercount because each department
must count its globalized staff in their headcount - the 17% number
does not apply to the globalized staff, only U.S. staff!
As an example: If a department is composed of a total of 100 persons,
with 60 in the United States and 40 in Bangalore, the total number of
job losses in the U.S. is 17, not the 10 that would be calculated by
the U.S. headcount (100*.17 = 17). None of workers in Bangalore will
lose their jobs so the 17 will come out of the 60 U.S. employees.
American contractors have already been eliminated so only the employees
left standing will be counted for the job cuts. Without counting the
contractors this department in this example will axe 28% of its
employees - almost twice as much as Honeywell admits through their
press releases.
>> Layoffs will continue until engineering is less than 15% of the
budget.
>> Honeywell at Deer Valley will be replacing American workers with
Indian and Czechs. The foreign workers will be marched into the
buildings on July 28th and 29th at the rate of 250-300 per day.
>> All U.S. citizens or Green card holders that quit will not be
counted in the layoff statistics even though many of them will be
forced to retire. There will also be an additional 2000 layoffs in
aerospace that will not be counted in the total job loss statistics
that will be released to the press.
>> Honeywell doesn't seem very concerned with diversity. They have
already terminated employment of several African American women senior
engineers. The Indians L-1s being brought in are 99% male and almost
all of them are very young.
>> All employees that question the hiring of Indian L-1s are subject to
bad performance reviews, and of course any black mark on their records
could be used as a reason for dismissal.
>> There are approximately 31 Component Engineers in CES. The number
will come down and will be backfilled with globalized engineers at a
lower cost.
>> The Redmond, Washington location is considered short-handed. Despite
the need for more engineers at Redmond, no engineers from other
locations will be allowed to relocate to Redmond even if they are
facing job termination.
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