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Dell: Downsizing, or Decapitating?

"While reductions in head count are always difficult for a company, we know these actions are critical to our ability to deliver unprecedented value to our customers now and in the future," said Dell in a statement.

Reductions in head count?? Sounds like decapitation. How about calling the 8,000 dedicated men and women who just helped your profit rise by nearly 10 percent in the last quarter as workers? Isn’t downsizing what CEOs do when company profits dip?

The days of workers wages rising along with company profits are over – nowadays what’s good for GM (or Home Depot, Circuit City, Citicorp, or Dell) is BAD for America….Corporate America is running amok in the 21st century.

Small wonder that a recent poll conducted by Change to Win, the Working American Dream Agenda, revealed rising anxiety and anger over corporate behavior – and the government inaction that fuels this greed in the global economy. Nearly 80 percent of workers said they believe multinational corporations have become too powerful and have driven down wages, eliminated health care and retirement security, and disregarded labor laws... All the things of the American Dream. Nearly 70 percent feel that government doesn’t take action to rein in greedy and unethical behavior by corporations and CEOs. (Imagine how the numbers would spike even higher after the news broke on Circuit City.)

Workers are also demanding a change in corporate behavior, and want government to hold Corporate America accountable so that workers can share in the profits they help generate for their companies:

  • Nearly 80 percent want to hold multinational corporations accountable to pay their fair share for the problems they create in the world, like low wages and environmental pollution.
  • Seventy-five percent want government to remove tax breaks for corporations who send jobs overseas
  • Over 80 percent want government to ensure employers keep their promises to workers, including protecting health care and retirement benefits

The good news is that workers still have hope, and are remarkably united in their ideas and solutions for the future on the critical issues of the workplace, a consensus that remains intact regardless of age, gender, geography, ethnicity, country of origin, and education. In fact, nearly nine out of 10 workers also see joining together in unions as a vehicle to help win a paycheck that supports a family, quality, affordable health care, and a secure retirement – the same goals they cite as vital to reaching the American Dream.

Now it’s up to the government to act, to support trade that’s fair, and the freedom to choose a voice on the job. Isn’t it time that workers, not just corporations and CEOs, shared in the prosperity of today’s global economy?

[Ed. Note: Speaking of Circuit City, they announced today that they're laying off 800 more workers: 200 from their headquarters staff and one in each of their 654 U.S. stores. That's on top of the 3,400 they let go in March. -- Jason]

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