Senator Sends Letter to Governor Demanding Accountability in $400 Million Deal to Prevent Off-shoring NY Jobs
Yorktown Heights, N.Y. – (10/06/11) – Senator Greg Ball (R, C – Patterson) is demanding answers after Governor Andrew M. Cuomo announced plans to give $400 million in taxpayer incentives to a host of corporate giants with a track record of outsourcing American jobs. Letter to Governor Cuomo
In 2009, then-Assemblyman Greg Ball fought to launch an investigation into IBM’s offshore practices after they received a windfall totaling over $100 million from New York. In December of 2008, IBM accepted $45 million from the Empire State Development Corporation in return for not cutting jobs at its East Fishkill facility. Just two weeks later, the company laid off 274 workers. Ball immediately called for an investigation into the deal. Shortly after, he authored legislation to end tax incentives for companies that offshore jobs.
Senator Ball, who has a history of standing up against corporate welfare, is not only concerned about the promise of nearly 7,000 jobs, but also the cloud of secrecy in which the deal was made.
“I want to know who was at the table and what concessions were secured as New York decided to give $400 million to a group of companies that are known for off shoring jobs,” said Senator Ball. “Not even a few years back, we found IBM cashing checks from taxpayers while simultaneously patenting a new technology specifically designed to outsource New York jobs. Now, as small businesses everywhere are shutting their doors, we’re rewarding these global giants with an even larger giveaway. All I am asking for is that we absolutely ensure that these projected jobs are real, they are permanent and they are not undermined by larger off shoring efforts currently afoot,” added Ball.
Senator Ball has written a letter to the Governor demanding that these companies that are receiving taxpayer dollars or incentives sign an agreement with New York State that includes the following provisions:
Companies accepting taxpayer incentives agree to make jobs permanent (5 year minimum).
Companies accepting taxpayer incentives agree to not contemporaneously offshore New York jobs.
Companies accepting taxpayer incentives agree to real, New York State based employment; physically locate jobs in New York, instead of overseas or out-of-state telecommuting.
Companies accepting taxpayer incentives agree to full transparency in the reporting of worldwide employee population.
Below is a timeline of events detailing IBM’s track record in New York, information on IBM off shoring New York jobs, as well as the company’s most recent financial situation.
Timeline of Events:
December 15, 2008 – IBM accepts $140 million in state grants promising to invest $1.5 billion to create 1,000 new jobs in nanotechnology. The agreement included $45 million in provisions to help IBM retain jobs at its East Fishkill facility in Dutchess County.
March 25, 2009 – IBM laid off more than 3,000 employees nationwide, including 274 at its East Fishkill facility.
March 26, 2009 – Then-Assemblyman Greg Ball, ranking member of the Assembly Committee on Corporations, Authorities and Commissions, called on Chairman Richard Brodsky to hold a hearing into the agreement between IBM and the Empire State Development Corporation (ESDC).
February 2010 – Chairman Brodsky announces plans to investigate deal between IBM and ESDC, but fails to make good on the promise.
2010 – Then-Assemblyman Greg Ball is removed as ranking member of Committee on Corporations, Authority and Commission.
IBM Off Shoring Practices:
In 2005, IBM reported having 329,000 employees worldwide.
134,000 of those workers were located in the United States.
In 2009, IBM reported having 400,000 employees worldwide.
105,000 of those workers were located in the United States.
IBM is reported to be the second largest employer in India with 130,000 employees.
The movement of IBM jobs overseas is difficult to track due to the company’s focus on secrecy in this area.
Currently, IBM employs 398,455 employees worldwide with 115,000 of those workers located in the United States.
IBM Financial Data:
In 2010, IBM generated $99 billion in gross revenue.
In 2010, IBM generated $14.8 billion in net profit.
In 2010, IBM had $10.6 billion cash in the bank.
For more information or to speak with Senator Ball, please contact Ali Skinner: (845) 200-9716.