Thursday, December 3, 2009

Obama's Jobs Summit: PR Stunt?

Obama's Jobs Summit Recommendations

Washington – President Obama rolled out his jobs summit or possible PR stunt today to review the nation's growing unemployment crisis, where Vice President Joe “Middle Class Czar” Biden addressed an audience of corporate CEOs from General Electric, Boeing, Google, Xerox and others, along with several “prominent” economists and labor leaders. While the government faces mounting pressure from labor unions and professional guilds regarding corporate America's role in kicking millions of educated US citizens to the curb in favor of cheap foreign labor, there is much that corporate America's CEOs could do to make the Obama administration's job a whole lot easier. For an excellent list of action items to create a successful American citizens jobs program, please read our good friend Rob Oak's excellent, laser-focused list of bullet-proof solutions at The Economic Populist here. Some of the mandatory highlights include:

  • Cancel all State and Federal offshore outsourced contracts. Bring those jobs back.

  • Immediate freeze on all guest worker Visas.

  • Mandatory Expansion of Nursing Schools with above market value Professor Salaries. Students must be permanent residents, U.S. citizens.

Let's start with one of the business leaders at the summit, CEO of Xerox, Ursula Burns. Earlier this fall, Xerox announced plans to acquire Dallas-based Affiliated Computer Services, an outsourcing firm for $63 per share -- about 33 percent over market value. Since the acquisition announcement, the Xerox share price has tanked by 12 percent, but this couldn't possibly stop ACS chairman from grinning all the way to the bank, could it? Just last week after a Xerox filing with federal regulators, the ACS chairman can stand to pocket a modest $41.3 million severance package resulting from the takeover deal PLUS $17.4 million more to foot the taxes on the severance deal. But wait – there's more - he'll ALSO  stand to collect a whopping $800 million upon the finalization of the ACS stock sale to Xerox, according to this article. But in order to make the deal pay, will heads at Xerox have to roll to secure “cost savings” of between $300 to $400 million a year? Peter Bendor-Samuel, CEO of the Everest Group Dallas Business Journal explains:

Through the acquisition, Xerox said it will establish annualized cost savings in the range of $300 to $400 million in the first three years after the transaction. The companies did not say anything about potential layoffs.
You have some (job losses) coming from somewhere,” Bendor-Samuel said. “ACS is a very well-run and lean company. There’s not a lot of fat (in ACS).”

Aside from Burns' impressive record of working her way up through the ranks at Xerox to earn the distinction of becoming the company's first black female CEO, she was also appointed by President Obama “to help lead a national program aimed at honing students' skills in science, technology, engineering and math” according to this Daily Record report. I hope more American students will consider the STEM fields, as these kids have watched our government collude with greedy corporate executives to sell off the jobs of their computer scientist and engineering fathers, mothers, brothers, sisters, uncles, aunts and neighbors to the lowest third world bidder under the ruse of a Great Labor Shortage. (h/t David Sirota.)

Leave it to Biden who has a way with words, as he characteristically cuts to the chase with the business and “thought leaders" below:

"Your presence is welcome, but quite frankly it's not as important as your input.  Without you, it will not become a reality. 
Our task together is obviously not an easy one. And while the $787 billion stimulus package had helped kick-start the process, the government's capacity is still somewhat limited." 



Kelly said...

This jobs for "Americans" summit is a cruel joke.What he and Biden really mean is that it a jobs for "Wealthy American Management" summit.Which one is it:Is Obama doing major gatekeeping for these overpaid executives or does he want to see these corporate policies "free up" money to put people here back to work?Although Deason's payout ought to be highlighted at this summit yet won't be, thanks for the link to the superb list of recommendations.
"Lean" ACS is a big global company with over 74,000 people with over a USG contract with Medicaid in 15 states.

You don't think Obama's entrenched friendships with CEOS like Burns and others would have anything to do with his flat refusal to put single payer health care on the table or to ensure a robust public option?Deason's payout explains why U.S. job outsourcing is a dream come true for an "inner circle" and how this summit is a joke on the unemployed from this country.
There is a lot of profit to spread around by keeping the for-profit business model in place propped up with cheap workers.
Another article about ACS says it "manages 24 electronic payment card programs for state and federal clients, disbursing government payments and benefits; processes nearly 570 million Medicaid claims each year totaling more than $50 billion in provider payments; saves state child care programs millions of dollars; and services student loans for more than 11 million borrowers."

2Truthy said...

Kelly, "cruel joke"? Why not? This guy has lied his way into the WH, why stop now? Your comment about keeping Single Payer off the table is interesting, since he does indeed have CEOs from Google, MS and Xerox to lavish much loot and praise upon for keeping this whole sham of a HEALTH CARE REFORM private. He keeps saying "let's get the job done" about everything, and yet the only job he wants done is to see policies made that will allow his paymasters and BFFs like some of these CEOS to cash out at the trough and loot the middle class before his three more years are up.