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When Techies Consider Unions
A technology workers¹ labor union takes root in Portland
By Aliza Earnshaw
THE BUSINESS JOURNAL OF PORTLAND
PORTLAND, Ore., Oct. 27

The very notion of a labor union for software developers and other information-technology workers may strike some as paradoxical, or even ridiculous. After all, techies are thought of as well-compensated, highly skilled workers. So the beginnings of a techie labor union here in the Portland area, called ORTech, may come as a surprise to many who work with or are themselves high-tech workers.

"If employers are not open to listening to workers, protecting their interests and working with them, they¹ll resort to outside means."
DIANE WILLIAMS
VP human resources, Merant
"THEY [TECHIES] THINK of themselves as highly skilled individuals who are valued for what they are," said Ilya Ratner, a programmer with years of experience working in Portland companies, and a co-founder of ORTech. "They don¹t understand their place in the food chain," failing to comprehend that despite their skills, executives are looking for every possible way to get" two heads for the price of one," whether through overseas outsourcing, applying for foreign-worker visas, or keeping labor costs low by using contractors, Ratner said.
But large companies are unlikely to embrace the infant tech labor movement. Intel Corp., Oregon¹s largest tech employer, would "prefer to continue to operate in a non-union environment," said Bill MacKenzie, spokesman for Intel Oregon. Intel needs the"flexibility to move quickly, and respond to changing market conditions."
Intel makes extensive use of both the foreign worker H-1B visa program and its own offshore development and manufacturing facilities in its efforts to maintain a strong bottom line. The company¹s constant emphasis on cost controls through all facets of its operations pays off: Intel has been steadily profitable for at least a dozen years.
Workers form unions, said MacKenzie, when ³they don¹t think they¹re being treated fairly, don¹t think they¹re being communicated with, don¹t think a company is being consistent in its policies, and don¹t think a company is responsive to their concerns. I don¹t think any of these apply to Intel.²

But some workers at Intel differ. The company demands long hours, say those who have worked there recently, and supervisors do not shrink from telling workers that if they fail to come up to scratch, their jobs could be filled by workers in other parts of the world. Intel has brought in employees from places like Malaysia, say ex-Intel workers, to be trained by local workers. Once enough training has taken place, functions are moved offshore to be performed at lower cost, and local workers are laid off.
Asked about such practices, MacKenzie said that the traditionally strong emphasis on productivity at Intel is increasing. "It¹s a competitive marketplace. We need to hold and grow our market position," he said.
Local software company Merant has a slightly different take on the infant tech union movement. "It¹s a wake-up call for corporations," said Diane Williams, vice president of human resources. Labor unions were formed in the early 20th century, she said, "because of the conditions of the workers. If employers are not open to listening to workers, protecting their interests and working with them, they¹ll resort to outside means" to protect their interests.

"I wouldn¹t be surprised to see some form of organizing soon, unless, of course, Congress does something to correct the current outflow of jobs" from the United States.
RICK CRESON
President, Meridian Technology Group

Merant has itself outsourced some of its labor to India, Williams confirmed, but she said that she felt employees who see the need for labor unions are probably reacting to their working conditions and hours, more than to the issue of outsourcing.
In fact, the two most dominant factors driving ORTech members¹ interest in organizing are first, overseas outsourcing and companies¹ importation of foreign workers holding H-1B or L-1 visas, and second, long hours at work. Another commonly raised issue is the fee structures used by U.S. outsource agencies; techies say foreign workers receive about half what outsource agencies charge for their labor, and often get few benefits.
While a number of unemployed techies blame the visa programs for the difficulty in finding jobs, ORTech founders Ratner and Mitch Besser stress that U.S. tech workers and foreign workers alike have common issues, and should organize together. For example, some say that employers prefer H-1B workers because they will put in longer hours than U.S. citizens, because they fear being deported. ³I do not think anyone should have the fear of deportation used as a stick to make them work harder,² said Besser, a sporadically employed programmer with nearly 20 years¹ experience.
"One of the things I really like about ORTech is that they are trying not to have an Œus against H-1B¹ attitude," said one member. "They¹ve been very clear on that from the beginning."
Still, other members feel strongly that a tech union can play a role in lobbying, balancing the efforts of tech companies and industry associations that want to keep the H-1B and other visa programs in place.
One local employer agreed that techies¹ efforts to organize are a natural response to overseas outsourcing and the presence of visa-holding workers in the marketplace. "I wouldn¹t be surprised to see some form of organizing soon, unless, of course, Congress does something to correct the current outflow of jobs" from the United States, said Rick Creson, president of Meridian Technology Group.
Indeed, Congress recently pushed back the H-1B visa limit to 65,000 from 195,000, but many techies believe that lower limit is still too high.
"When you look at the big companies such as Intel, HP, Siemens and others and how they are sending their projects offshore, as they do so they are eliminating positions in this country," he said.
Meridian is itself a domestic outsource agency, and Creson feels that overseas outsourcing and importation of foreign workers make it more difficult for his company to compete, as overseas IT wages are much lower than U.S. wage levels.
Creson also suspects that some employers are abusing the H-1B program. ORTech members feel that their young group, even with just over 30 members, can play a role in countering such abuses. Besser has, in fact, been investigating local companies that he says misrepresent their reliance on H-1B workers to the U.S. Department of Labor.
ORTech¹s founders hope the group will one day become a union with the power to bargain on employees¹ behalf in large companies. But even its older sibling organization, WashTech, has not yet reached that point.
WashTech has its roots in the "permatemps"² lawsuit that a group of contractors filed against Microsoft Corp. in 1992. The software giant had employed many contractors for years on end, and the class-action suit was intended to gain for these workers the same back benefits that had been paid Microsoft employees over the years.
Today, WashTech has 350 members, an e-mail list of 16,000 and bargaining agreements with two small companies. Both of these companies provide IT services to unions. WashTech is affiliated with the Communications Workers of America (CWA), which in its turn is affiliated with the AFL-CIO.
While WashTech is certainly further along in its development than ORTech, it remains to be seen how far this new labor union will go. So far, the only large company that has a tech union is IBM, where another CWA-affiliated union, Alliance@IBM, represents not only direct employees but also contractors employed by Manpower.

Copyright 2003 American City Business Journals Inc.


 

 

 

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