Texas techies watch their jobs migrate overseas

Date: Tuesday, July 08, 2003 1:18 AM

JOB DESTRUCTION NEWSLETTER

www.ZaZona.com

The most ironic part of this article is towards the end. That's because
unemployed Texans that were displaced by H-1Bs are being trained for
jobs that are being sent overseas.

Short link:
http://makeashorterlink.com/?W5ED22F25

http://www.statesman.com/business/content/auto/epaper/editions/today/business_f3506251b21821010092.html

Central Texas tech workers watch their jobs migrate overseas

By Claudia Grisales

AMERICAN-STATESMAN STAFF

Sunday, July 6, 2003

For years, Ronnie and Danielle Horn were riding high.

A 13-year veteran at Motorola Inc., Ronnie was bringing home $76,000 a
year as a technician, while Danielle worked as a line operator for
telecom equipment manufacturer Tellabs Inc. They lived in a
four-bedroom, 2,400-square-foot house in Pflugerville.

But within a three month period, both were hit head-on with one of the
harsh realities of the global economy. In November, Tellabs said it was
shutting down its 435-employee Round Rock plant and shifting some of
its product lines to factories in Shannon, Ireland.

In January, Motorola laid Ronnie off as part of major cuts to its BAT 1
assembly and test operation in East Austin. The assembly and test
operations of the BAT 1 plant were moved to Kuala Lumpur, Malaysia. "It
happened so fast, it was a shock," said Ronnie Horn, 32. "I guess after
reality set in, it felt like I was thrown back to start all over again.
Like the 13 years (at Motorola) were erased and I have to start all
over again."

The Horns aren't the only ones watching their jobs move overseas. For
years, U.S. employers have cut costs by hiring cheaper labor abroad.
But the trend has taken off in the high-tech industry, as companies try
to fight flat demand by finding cheaper labor overseas.

Central Texas, which once prospered with the high-tech industry, is
hearing the new message now.

"If you still need human beings, other countries can do it cheaper,"
said Jon Hockenyos, a local economist. "In the United States, if you
can substitute technology for people, (companies) will."

During the past 2 1/2 years, more than 336,000 high-tech jobs have been
eliminated nationwide, with more than 20,000 of those layoffs occurring
in Central Texas. Meanwhile, local employers are expanding overseas.

Dell Computer Corp., Intel Corp. and Computer Sciences Corp. are among
the companies that have eliminated jobs by the thousands in the United
States, while expanding in India, Russia and China. And they're not
just bottom-rung jobs: Dell does some software development in India,
for example, as well as having customer service operations there.

Two weeks ago, Cirrus Logic Inc. said it would lay off 120 employees as
part of an agreement to sell its chip testing business to a partner who
plans to move the operation to China.

"While they are laying off people here, they may be increasing capacity
overseas or in Mexico," said Bruce Davis, a business assistance
specialist for nonprofit group WorkSource. "So when product demand
comes back, the jobs will not be coming back here."

Tech workers who lose their jobs to foreign competition are eligible
for federal retraining benefits under the Trade Adjustment Assistance
program. The Travis County program had only a single worker in its
program during the past two years. In the past two months, enrollment
has swelled to 300, including the Horns.

Once admitted into the program, workers can get federal money to pay
for retraining and financial help to interview for jobs in other cities
and relocate. If they find a company willing to train them for a new
job, the government will reimburse the company for half of the worker's
salary for the first six months.

Both of the Horns plan to switch to the health care field, which is
hungry for skilled workers.

Danielle is already taking night classes at Austin Community College's
Highland Business Center to become a medical insurance coder. Ronnie is
just getting started on his retraining, looking at medical stenography
or radiology.

He hasn't had much luck in the job market with his skills. Before
Motorola, Ronnie, who has an associate's degree in electronics, only
had one other job, at an H.E.B. grocery store during high school.

In April, he began working at the new Lowe's home improvement store on
Interstate 35 North near Howard Lane. His new salary: $30,000 a year.

"It's put me in a pinch," Ronnie said.

In January 2002, Mary Lowrance was laid off from her job of seven years
as a wafer fab technician for Advanced Micro Devices Inc. Lowrance had
won awards at AMD for setting production records and helping devise
ways for the company to save money.

"I expected to retire from them. It was devastating," Lowrance said.

Determined, Lowrance printed out a list from the Internet of all the
semiconductor manufacturing companies in the United States and began
mailing risumis. Her count is up to 510 risumis.

"My job has gone away," she said. "I sent risumis all over the
United States, and I have sent hundreds and hundreds, and there are
just no jobs to be had."

Lowrance is now taking classes through the Community Technology and
Training Center at Travis High School and is considering a move into
the medical field. In the meantime, she and her husband rely on his
salary as a driver for Capital Metro.

In March, WorkSource, a local work force board that helps laid-off
workers with retraining and locating jobs, removed information
technology from its list of target jobs.

"We are seeing true globalization. It's the new economy," Davis said.
"If people believe it's going to go back to the way it was, they are
dreaming. We are in a radical new economy."

cgrisales@statesman.com; 912-5933

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