January 2007 Archives

Making a Profit is Not Enough

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From the Waterloo, Ontario, Canada newspaper today...

The latest local job-cut news came last week with the NCR Corp. announcing plans to slash 450 jobs from its Waterloo manufacturing facility.

Some of the reasons given were the strong Canadian dollar and evolving market conditions.

What it should have read was that this employer, who has been in the community since the early 1970s, decided to move most of its high-paying manufacturing jobs to low-cost contractors.

It seems NCR's profit margin wasn't big enough, and it now wants to shift some of its operations to countries like India where they can make the same product at lower costs.

NCR's move is just the latest example of outsourcing we've seen in the Canadian economy, with Ontario alone losing more than 130,000 manufacturing jobs since the economy peaked in 2002.

Those high-paying jobs are being replaced with more contract and part-time work, making it more difficult for working families to get by.

Waterloo is losing a lot with this latest round of job cuts.

The NCR employees were famous for their charity, and their annual Christmas shopping spree in support of the Food Bank of Waterloo Region has been a highlight of the holiday season.

The concern now is that these job losses, coupled with other closings, such as the 2005 shut-down of the local La-Z-Boy plant, will mean more of those workers will be using the social services they once supported.

And what's the political response been? Little or nothing from the province, and even less from the federal level.

Some people blame the job loss on the workers' productivity.

Instead, they should blame the companies that now say that making a profit is not enough.

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This page is an archive of entries from January 2007 listed from newest to oldest.

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