McDonald's lays off 70 American accountants from Ohio and gives their jobs to foreign workers as part of cost-cutting exercise


Daily Mail:

**McDonald’s lays off 70 American accountants from Ohio and gives their jobs to foreign workers as part of cost-cutting exercise

McDonald’s has laid off 70 native-born employees from Ohio and filled their positions with contracted workers who entered the country on H-1B visas.A spokesperson for McDonald’s told Breitbart that the company decided to lay off the 70 Americans in order to save costs.
‘To deliver $500 million in savings, the vast majority by the end of 2017, we are restructuring many aspects of our business, including an accounting function,’ the spokesperson, Terri Hickey, said.

What is most striking about the news, is that the fast food chain is outsourcing jobs that are considered ‘mainstream white-collar positions’ like accounting.
The significance of this development is that American companies are increasingly turning to cheaper labor from foreign countries in order to man positions in all corners of the economy, and not just hi-tech and software firms.
‘[This] is not just a Silicon Valley thing anymore, it is happening all over’ the US, Steve Camarota, head of research at the Center for Immigration Studies, told Breitbart.
There are now over 800,000 ‘guest workers’ in the US who have been hired to do ‘white-collar temporary jobs.’ Of them, 650,000 are here on an H-1B multi-year visa.

The Ohio layoffs could bode ill for other sectors of the economy – like accounting, healthcare, and design jobs - since the jobs being outsourced are those that have been filled by Americans who have completed accredited business schools and are professionally trained.
Foreigners, particularly from India, have come to the US and have been hired as professors, lecturers, doctors, therapists, scientists, and researchers.
Since the 1980s, immigrants - both legal and illegal - have found work in blue collar positions that were once occupied by Americans.
Now, companies are sponsoring the arrival of new immigrants in order to perform ‘professional white-collar jobs.’

One reform of H-1B that I’d like to see is that workers lose they visa if their employer fores them. Usually the argument made for H-1B is “we can’t find and Americans to do X in this area.” That may be true as far as getting, say, enough RNs in rural areas. But rather than have the foreign workers tied to a single employer I’d allow them to seek employment within a prescribed area.

Obviously the idea that there is a shortage of accountants in Ohio is risible. In a way I’m glad to see white collar jobs being lost to immigrants, now maybe more will be done. Reminds me of a Ted Cruz ad from the primaries:


It has been a very long time since I was involved in H1B work. But as I recall, losing your job could result in having your visa terminated, or at least not renewed.

Still, this action of MacDonald’s is troubling to me. This, the outsourcing of American jobs to China, Mexico, etc and allowing open borders, is troubling as well. To my knowledge, this is not being done to keep American companies from going bankrupt. It’s to improve the profits of companies that would still make money with American workers.

But I would say the chances of reversing these things are zero unless Trump is elected, and even he is, he’s going to have a tough go of it. Seems America is more and more turning into a plutocracy in which the very rich and powerful don’t mind turning this country into “third world” so long as their own privileges are enhanced. It can be truly sickening to visit some of our large cities, in which it seems the wealthy are enormously wealthy and the poor are really poor, and the not-too-skilled workers are barely hanging on.

Personally, I don’t mind if someone has a nosebleed-high salary. Not at all. But when that’s achieved at the expense of the high-earner’s fellow citizens, I do have a problem with it.

Back to H1B. All of the work I did then was for importation of healthcare workers. I did it back at a time when healthcare workers really were hard to find in rural areas. That’s not as true now as it was then. I’m not sure why, other than perhaps the production of American healthcare workers “caught up” with the population’s need for them, or is at least better. I recently did a closing for a doctor who was moving to western Nebraska. I asked him why he was doing that. The place where he was moving to is really remote. He said it was because he was offered more money to go to work there than here where, he said, the competition for patients was just too tight. And he wasn’t foreign, either.


In theory H1-B are supposed to be offered the same salaries as others in the job and only be when native employees can not be found. In other words, not a financial benefit to the employer.



I hope more will be done as wee see this happening.


Theoretically, yes. But once upon a time I did them and while it’s true that the employer has to pay the state-defined prevailing wage for the foreign workers, sometimes the employer “makes the market”. I remember, for instance, it was next to impossible to recruit health workers from Ireland because the market in Britain was so well-paying, Irish didn’t need to “cross the pond” and, in fact, would lose money if they did. Filipinos, on the other hand, faced a pretty grim future in the Philippines, earnings-wise. American workers were in between those extremes, generally speaking. White South Africans were not hard to recruit because things were getting scary in South Africa for them, depending on where they lived there, and they wanted out.

But another factor was geography. Even at the same pay, you could not draw workers out of places like the west coast, Florida, Colorado, or even large cities because your draw pool was necessarily young and young health workers wanted the sun, sand and amenities elsewhere. Young workers were the pool because long-established workers, no matter where, wouldn’t move, period. And you sure couldn’t scale that pay to the cost of living in a low-cost area like this one.

So, the more foreign workers that came into the state (prevailing wages are calculated by the states, and by county for most things) the lower the prevailing wage got, the fewer Americans would take them if that’s what you advertised, and the more foreign workers you could bring in.

Eventually, in this area at least, locally-produced American-born health workers increased dramatically for most things. At the top, it was a combination of more locally-born physicians plus a surprising number moving from St. Louis. For the latter, my impression was that lower cost of living plus the less hectic family life was largely responsible for that. But for a time, foreign physicians were the answer.


I should perhaps add this. American employers can manipulate H1B if the dominant employers in an area simply refuse to offer wages most Americans will take. I don’t know whether they do that or not. But they could.


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