There was a gut-wrenching moment in the Senate Subcommittee on Immigration this week as Leo Perrero, former Disney IT worker, broke down in tears as he recounted how the company fired him and his colleagues despite record profits so that the company could give their jobs to cheaper foreign workers. The video is below. The company then ordered them to train their replacements or lose their severance pay. At the same time, Disney CEO Bob Iger sent a letter to the remaining company’s employees, asking for them to donate money to support the company’s lobbyists in Disney’s political action committee, DisneyPAC. Disney has been at the forefront in securing draconian copyright laws and protections from Congress.
Perrero testified that
“During the holiday season of 2014, I was sent a meeting invitation by a prominent Disney executive. With an excellent review in hand along with company announcements of record profits my mind buzzed with thoughts of a promotion or a bonus . . . I walked into a small conference room with about two dozen highly respected fellow IT workers. The Disney executive made a harsh announcement to us all. . . . our jobs have been given over to a foreign workforce . . . In the meantime you will be training your replacements until your jobs are 100 percent transferred over to them and if you don’t cooperate you will not receive any severance pay. . . . The final period of the 90 days was the most disgraceful and demoralizing, as we had to watch the foreign workers completely take over our jobs. And we came to grips that the upcoming Disney jobs promise didn’t exist. Then finally on January 31st of 2015 we were forced to turn in our company badges, laptops and then ushered out the door.”
Perrier broke down as he recounted his experience and how only four of his colleagues were given jobs elsewhere in the company.
For those remaining, they received the letter from Iger who, despite record profits, hit up employees to support the company lobbyists. The 1998 copyright extension has even been dubbed the “Mickey Mouse Protection Act” because of Disney’s insatiable demand for added penalties and powers in preventing others from using words, images, and products deemed company property. Iger heralded the success of its army of lobbyists and lawyers in copyright victories. He added “In the coming year, we expect Congress and the Administration to be active on copyright regime issues, efforts to enact legislation to approve and implement the Trans-Pacific Partnership trade agreement, tax reform, and more proposals to weaken retransmission consent, to name a few.” He is probably right about his predictions of success judging from prior years.
Karen S
Yeah, she’s impossibly gorgeous and, seemingly, ageless. Perfect? Not quite. She just finished divorcing her third husband. What do they say? She’s just getting started? There’s a chink in that armor. The rest of us, normal earthlings, can take some solace in that.
But I do love it when millionaire actresses bemoan how they are underpaid, when it’s the effects people who made that movie a blockbuster, and made them look so gorgeous. Except for Hailey Berry, who apparently looks gorgeous when she wakes up in the morning without a speck of makeup. At any age. Ridiculously unfair to the rest of us ladies.
Bam Bam:
Thanks for the clarification. I was unsure if they were training foreign workers, who were going to return to their home countries, or if these were visa workers.
For instance, I know someone who had to travel to India to train the people who were going to replace his department. His industry, movie industry visual effects, is wildly overworked and underpaid. Movies and their actors keep grossing more and more money, but the effects people who make them look good are chained to their desks, afraid to ask for more because the jobs keep going overseas.
PhillyT:
“If Congress had not been bought and sold a hundred times over, they could fix the job exportation in a week. Stop letting corporations avoid paying taxes on overseas income. Jobs would either come flooding back into the US or companies would flee, in which case I say good riddance you traitorous b@st@rds!”
If companies had more expenditures or taxes, that would create more pressure, not less, to cut costs by exporting jobs. They save quite a bit of money paying people $1/hour to produce something that would cost $50/hour here.
Companies export jobs because labor is cheaper, which helps them lower their prices. That is why everything is now made in China. American made is too expensive for most consumers. Many German and Swedish companies are now having their products made in China or other countries. Sewing machines are a good example. A Swedish name no longer means made in Sweden, and quality declined.
But I do agree with you that the IRS tax code is too tortuous, including in its determination of which activities of multinational companies, American owned or otherwise, relate to US taxes. And it is true that exporting operations has a combined effect of lowering labor costs as well as helping them qualify for offshore income for tax purposes. An example is when companies put most of its R&D expenses as US expenses, more than the actual rate, which offset its US income. And then there’s the common Puerto Rico tax dodge. On the other hand, it makes no sense for a Chinese company to pay US taxes on all its Chinese sales, on top of its Chinese taxes, as well as for all of its US sales.
A nice, flat tax rate for everyone would help fix all this. The IRS tax code should be simple, and easy for anyone of average intelligence to understand. A fair, flat tax would also make it more difficult, and less rewarding, for tax evasion. Forcing the government to live within its means and stop its addiction to spending, and higher taxes, would also be helpful.
Karen S
Exactly. You get it. Others, on here, obviously, do not.
While you mention, at the end of your last comment, that this is why the EXPORT of jobs is such a serious issue, it’s important to note that Disney, in this instance, didn’t export these IT positions. It merely replaced its domestic employees with foreign workers from overseas, which is also serious. Same outcome–American workers lose their jobs. Sure, these foreign workers pay taxes while they are here and, in a small and barely perceptible degree, support our economy while they are here. Fantastic. The end result is that these imported workers will, eventually, once they have sufficient training, be sent back to their home countries to work for companies, like Disney, where the visa debate becomes a non-issue. The pretense of continuing to support jobs, domestically, by companies such as Disney, when it imports these employees, is simply that–nothing more than a ruse. Once these individuals, imported from places like India and the Philippines, are sufficiently trained, the next, obvious and predictable step is to move the entire IT department overseas, where it will be staffed with and run by these same previously imported workers. Bringing in these workers is not as innocuous as it seems. It’s simply a precursor to the inevitable.
If Congress had not been bought and sold a hundred times over, they could fix the job exportation in a week. Stop letting corporations avoid paying taxes on overseas income. Jobs would either come flooding back into the US or companies would flee, in which case I say good riddance you traitorous b@st@rds! But Congress won’t change this because money is speech and corporations are people and these “people” have given boatloads of “speech” to both parties. Fix the HB-1 Visa? Could be a piece of cake if they had any spine at all, which of course, they do not.
Bam Bam:
“All of you brave and determined souls, who brag on here about boycotting Disney, tell me, are you going to boycott your cell phone company, as well? Hmm? Ever try calling your credit card company at an odd hour? You’ll be connected with some boiler room in a third world country. Are you going to cut up all of your credit cards, in protest? The list goes on and on. Just try to boycott every company that employs labor, either from overseas or actually located offshore–good luck living in that cave.”
You are absolutely right. Most companies do this, whether they are run by Democrats or Republicans. Once one company sources overseas, they all have to, because otherwise they can’t compete with their prices. You would have to throw your own pottery, mix your own glazes from minerals sourced in your yard, raise sheep to spin wool to weave or knit your own clothing, and grow your own food. You would also have to build a cob house using mud and straw you grew yourself, because drywall is sourced from China.
That’s why the problem of the export of jobs is so serious; it’s endemic to all industries.
Bam Bam and Sierra Rose:
Here are the requirements for an H1-B visa:
https://www.uscis.gov/eir/visa-guide/h-1b-specialty-occupation/understanding-h-1b-requirements
It basically requires at least a bachelor’s degree in the field related to the job.
Years ago, I used to work for a company that received thousands of job applications a year. There were visa workers there, and none of them were in jobs that would have been impossible, or even difficult, to fill with citizens. They would complain bitterly how our immigration requirements forced them to return to their home country and renew their visa, which could take months. It was very disruptive to their work and personal lives. Some voiced sharp criticism for those who just crossed the border and refused to follow immigration laws, and then held demonstrations for amnesty. On the plus side, they brought diversity, and certainly had better opportunities here than in their home countries.
There were thousands of domestic, qualified workers vying for the jobs. I do not know if there was a requirement to show they had difficulty filling the job with a citizen. If so, there must have been a way around it.
I absolutely support the use of work visas, because we are importing educated people who will be productive in society, and it gives people a chance at success they wouldn’t have at home. The problem is the numbers. We can’t keep exporting skilled jobs to other countries, importing skilled workers, as well as the lion’s share of immigration being unskilled workers vying for entry level jobs. We cannot keep immigration numbers too high. As an environmentalist and conservationist, I well remember population growth models and how they can impact the environment, pollution, and open space. We are removing job opportunities, but importing more workers to compete for what’s left. The main problem is the export of jobs overseas. If that trend continues, we will no longer be the land of opportunity. We will be the Land of Physics PhD Burger Flippers.
CONGRESS IS 100% TO BLAME FOR THIS! This ALL occurred with Obamacare! I couldn’t believe it, as a small employer, that they were going to reward me for hiring foreigners, instead of Americans when I read the bill. I was already fuming over the higher costs that I knew was coming when they issued this “JOBS” bill that rewarded employers for hiring foreigners, and reward them for not using E-verify! Get ready for more if Rubio gets his way! All of these idiots say one thing, and do another! Until we kick them all out, nothing will change!
Just a few months ago, when they just pushed out another carrot to dangle $12k in front of large employers that can suffer thru the learning gaps of hiring foreigners, then this is what you get! It doesn’t take a small employer much to figure that bill was written by Apple, Disney, IBM, etc! Than all of the Senators that approved that 2010 “Jobs” bill!
Wernher von Braun was the textbook example of “there is no one in the USA who can replace him”. He did not come here on an H1 visa. He probably came here on a direct order by President Truman via his Attorney General.
and/or
Disney is far from the only company engaging in this conduct. That doesn’t make these business practices any more palatable, but it does allow one to view this one, particular episode with a modicum of perspective. I read comments about people vowing to boycott Disney and or promises to vote with one’s pocketbook. Right. Good luck with that. The fact of the matter is that these practices are so widespread and common that it’s delusional to believe that Disney is engaging in business practices unique to them, alone. Try calling tech support for your cell phone company and see who and what you get on the other end of the telephone. Most of the time, you’ll be connected to an individual located in the Philippines or India, with an accent so thick and indecipherable that you will spend the entire length of the conversation struggling to comprehend what is being said. All of you brave and determined souls, who brag on here about boycotting Disney, tell me, are you going to boycott your cell phone company, as well? Hmm? Ever try calling your credit card company at an odd hour? You’ll be connected with some boiler room in a third world country. Are you going to cut up all of your credit cards, in protest? The list goes on and on. Just try to boycott every company that employs labor, either from overseas or actually located offshore–good luck living in that cave.
Its time for Americans to divest themselves from Disney, there is no other way
@jim22
Yeah, but you gotta admit that there is just something wrong if you go to Disney World and encounter something like this, because of all the foreigners working there:
https://www.youtube.com/watch?v=bnG6OrETgVk
Squeeky Fromm
Girl Reporter
jackW,
I worked for a great place doing very high end engineering. But it became apparent that they weren’t going to be stable enough to make me want to stay, so I moved on to another place. I didn’t need the govt. to help me or hold my hand. I have no sympothy for people who are unwilling to see the reality that is in front of them and instead act like a stick in the mud and refuse to help themselves i.e. people living in Detroit. Yes, it sounds harsh, but a company owes you nothing and you owe them nothing. It is at best a symbiotic relationship. I vote against Disney with my dollars that do not go their way. Hopefully they get enough bad press from moves like this that they change their way, if not, oh well.
I think Trump is onto something with increasing fees ( and other requirements) for H1B visas, but he allegedly has abused the H2B visas for his property Mar E Lago in Florida. See the NY Times or Narional Review for the article.
@MHB
Hmmm. Maybe instead, “whistle while you draw your unemployment check….”
Squeeky Fromm
Girl Reporter
Jim22: Move on? Excuse me? Are you not in the work force? Sounds heartless to me. Along with not partaking of their products, popular opinion (like the kind that made smoking less welcome) needs to keep building up against the “outsoucing/importing” sweetheart deal for corporations. How bankrupt and enslaved must we get? We cannot compete with Thai, Mexican, Indonesian workers whose cost of living is less and whose wages are less. A not original observation: we are evolving toward 3rd world wages and a developed world cost of living. How does this work for US workers–it doesn’t. Move on? To where?
“Whistle while you work.”
Reblogged this on Scoop Feed.