A Piece of the Action
As of Monday, January 16, 2005 my mom was employed in a financial division of a large, multi-national company. This large company is, according to Wikipedia, the world's largest corporation in terms of market capitalization. Whatever that means exactly. I just know they're big.
Founded by Thomas Alva Edison in 1890, they now make plastic for Nokia phone bodies, appliances, submarine stuff, train stuff, light bulbs… They own NBC, Universal Studios, part of the Sci Fi channel, Court TV, A&E, Telemundo, TiVo and who knows what all…
Yes… GE.
General Electric
To be more specific my mother worked, for 'GE Money Home Loans'. Betcha didn't realize GE does home loans? They do credit cards, too, for various places. Look for 'GE Consumer Finance' next time you're filling out an application at, say, JC Penny for a credit card.
GE's employee benefits are one of the best, if not the best, in the country. 10 or 11 floating holidays, 10 vacation days per year, generous amount of sick days, 100% tuition reimbursement, low-interest loans for family members to attend college, employee discounts all over the place, ability to earn FREE airfare and hotel rooms for vacations, etc. etc. etc.
They gave out CRUISES and leases on luxury vehicles, among other things, for bonuses.
My mom made about $10k (before taxes) as a bonus in November at this job. What was left after taxes went to pay off various bills (thank goodness my mom paid off her car then!) with some left over for Christmas money.
We were looking forward to her earning $100k this year. We were saving money so we could move to a large house, large yard. I was going to get a car, finally, as was my brother. College this year was a done deal, with their generous school loans (somewhere between $5-9k at 5% interest, per year). We even discussed a trip to Europe happening in a couple years.
After years of being poor, then middle class, we were finally going to be well off.
Then, on Tuesday, with my mom still home sick, she got a call from Human Resources saying that everyone at the office had been laid off. All across the country, nearly everyone in GE Money Home Loans (around 99%) had been laid off. The few people that are left are in the process of finishing up loans and clearing things out. There were about 50 people in the office here in AZ, which had JUST (within the past 2 months) been remodeled and expanded. Across the country, my mom says there were around 300 or so employees in this division.
Many people my mom worked with had just bought new houses, new cars, were having babies solely because they were making fantastic money and they figured that GE wasn't going anywhere. It's GENERAL ELECTRIC. It's been around for 110+ years. It's not going anywhere. Alas… it has.
The one story about GE Money Home Loans that my mom found online said that they were doing this due to outsourcing. Outsourcing to where? To India? If it was the US, I would guess that they would've simply transfered people to whatever the new division was instead of firing them.
How many people are going to get a home loan from someone in India? I admire Indians (people from India, not Native Americans) for trying to better themselves in the global market by learning English and taking jobs like tech support and the like.
But, let's face it, a majority of them are not taught by a native English speaker. They end up with heavy accents, bad grammar and are barely understandable. When you're in the home loan business, you need a firm grasp of English because people will ask questions that simply could not be put into a 'FAQ' script to be read. People have to be convinced, believe it or not, to refinance their house so that they'll save $1000/month in mortgage payments and credit card bills (as an exmpale, many people will happily go on paying for, say, a $1500/month mortgage + $100/month on their credit card bills when they could refinance instead, get mortgage payments of $1100 and use the refinance money to pay off their credit card bills… what would you do with an extra $500 month? Kinda unbelieveable that people have to be convinced to do this sort of thing).
How many people will stay on the phone with a heavily accented person long enough to be convinced that they want to refinance?
Not many, I'm guessing.
If they had paid my mom $100k this year (and it wasn't too uncommon for some people to have made 2-3x that on ocassion), that would've meant she'd done something like $10mil, maybe more (I don't have the sheets here with me), in business for General Electric.
If they pay an Indian, say, $10k (a generous sum, for India) and they've barely do $1mil, if that, in business… Can anyone else see how very WRONG this is?
If they fired (excuse me, 'laid off') 300 people, not counting management, they'd have to hire at least 3000, plus management, from India to make up for it, if not more people.
So very, very wrong. Stupidest business decision I've heard of.
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So now plans must, most likely, be put on hold for another year. No large house now. No car in a couple months. No college this fall. No trips anywhere. All money has to be carefully saved until my mom can get another job. GE will be paying her 2 months salary + 1 week severance pay + 10 days vacation, but that's not much. All together, it works out to only about $3000.
Even after she gets another job (which will never have the same wonderful benefits package as GE), my mom has said she won't be buying anything until she's got a good deal of money saved in the bank.
I just wanted to be able to go to college this year.
Next year, I guess.

