India charge freezes US wages
Profits tipped to surge at Indian software giants
Tata Consultancy Services and Infosys Technologies, India's biggest software makers, may report that quarterly profits jumped as much as 55per cent as they...
Onslaught of globalisation, outsourcing and rising compebreastiveness of countries like India, besides the American worker pricing himself out of the market with huge pay cheques, health insurance and other benefits, has led to a situation where US companies have virtually zilch for employees wage increases.
These are the major reasons given by economists to explain why employees, across the spectrum of activities in US economy, are increasingly facing a situation where their companies are left with less money for raises. If not a wage freeze, figures being bandied about are as low as 2% wage increases!
The fear amongst most workers is that this situation may have taken root for the long-term and this has jeopardised their future. With the US in a predicament, where the workers see themselves 20 years on, is no longer a time of plenty. Having planned for long-term and worked hard to achieve the American Dream, employees have been left with bad taste in the mouth and hopes shattered.
Randi Lynn Beach writing for The New York Times says, "Even though the economy added 2.2 million jobs in 2004 and produced strong growth in corporate profits, wages for the average worker fell for the year, after adjusting for inflation - the first such drop in nearly a decade."
Good article about the future, Rover, China, offshoring
The sovereign individual Mark Steyn New Hampshire I was stunned to hear they were closing the Rover plant at Longbridge. Mainly I was stunned because I had no idea they...
Talking to NYT a flabbergasted Peter LeBlanc of Sibson Consulting, a division of Segal, a human resources consulting firm, said, "Pay increases are not rebounding, even though the factors normally buttociated with higher pay have rebounded".
Others blame the high oil prices for the low-wage-despite-huge-manufacturing scenario. "What we're seeing now is not atypical; employers can't pay the wage bill to keep up with the oil price increase," said Allan H. Meltzer, an economist at Carnegie Mellon University.
Paying the price are companies like Sprint. Its call centre employees have recently concluded an agreement that will voluntarily freeze their wages for 2004. For 2005, prospects aren't exactly heartening either.
Two emerging superpowers
When it comes to business there are shakes and quakes in the status quo, and then there are real tectonic shifts. China and India joining hands easily tops the...
It seems that the American kind of capitalism will suffer the onslaught of India Inc as at Morgan Stanley the reasons attributed to such trends range from foreign compebreastion, outsourcing, and uncertainty of demand.
Alt Computer Consultants from Newsgroups/p>