DUN WORKERS FEAR LAYOFFS
Byline: BY DOUGLASS CROUSE
June 3, 2000
Daily Record (New Jersey)

    PARSIPPANY -- The subject line reads ``offshore development.''

    Yet for some people at Dun & Bradstreet's high-tech division, the gist of
the e-mail memo is unambiguously local: Prepare for layoffs.

    Executive Vice President Elahe Hessamfar sent the memo to her Global
Technology Organization (GTO) employees in late March describing an
outsourcing plan still in the works.

    The aim, the memo says, is to reduce the computer programming
department's cost by eliminating an undetermined number of current positions
and shifting workers' duties to two consulting firms that hire foreign-born
visa holders. Dun & Bradstreet is a global provider of business and
financial services based in Murray Hill. The cuts would come as Congress
considers increasing the number of H-1B work visas, which go to foreign-born
workers in specialty fields. The count stands at 115,000 per year, but would
rise to 200,000 for the next three years under the leading bill.

    ``Replacing American workers is so institutionalized now that it can be
discussed in company memos,'' Rob Sanz, a member of a national network
opposed to H-1B increases, said.

    For years the high-tech industry has argued that a shortage of U.S.
computer programmers and software analysts necessitates hiring foreigners
through the H-1B program. Many large companies, including IBM, Lucent
Technologies and AT&T, have turned to outsourcing as a means of financial
belt-tightening.

    The Department of Labor, however, has found no evidence supporting
high-tech's labor shortage argument. Other critics, buttressed by published
reports and worker testimony, complain that because visa holders must remain
for several years at their sponsoring company while they wait for permanent
residency approval, employers are able to take advantage of those workers by
overworking and underpaying them. As part of the ``people elements'' of the
Dun & Bradstreet agreement, a program leader will take charge of
``transitioning work from employees to off-shore consultants in cases where
that makes business sense.

    ``I assure you that these decisions will not be made lightly,'' Hessamfar
wrote. The memo said those who do not find work elsewhere within the company
will receive severance packages.

    'Planning stages'

    Dun & Bradstreet spokesman Bill Summers said GTO is ``among the larger
functions in Parsippany'' but could not say how many workers it employs
there or at the company's other five New Jersey sites. He also declined to
estimate how many workers would lose their jobs.

    ``We're still in the planning stages of this initiative, so it's too
early to say how our associates in New Jersey might be affected,'' he said.

    A second spokesman did not return calls seeking the outsourcing plan's
projected cost savings. Dun & Bradstreet employs 1,400 statewide, Summers
said. The memo, which has been posted and has attracted commentary on job
market and H-1B-related Web sites, goes on to say: ``In the future, project
teams will be composed of a mix of D&B resources, on-shore resources from
these firms, as well as off-shore resources in India.''

    Linda Kilcrease, a Dover resident who lost her job at insurance giant AIG
to an H-1B worker in 1994, noted that contracting with firms that employ
H-1B visa holders has become commonplace.

    ``I find it just stunning that they lecture their employees in the letter
to `consider them as team members and give them your full cooperation,' and
that `your continued commitment and dedication are necessary to ensure a
smooth transition,''' she said. ``This, as they prepare to take the jobs
away from these people.''

    Several workers, when contacted for this story, declined to speak on the
record for fear their comments would cost them their jobs.

    Dun & Bradstreet lists Wipro Infotech and Cognizant Technology Solutions
as the two outsourcing partners. Both have plants and training centers in
India and have a history of hiring H-1B visa holders.

    Wipro reported 63 H-1B hires to the Immigration and Naturalization
Service in 1998. Cognizant had 81. An INS spokeswoman said the agency plans
to release updated figures for the top 50 or 100 employers of H-1B visa
holders early next week.

    Cognizant lists a Teaneck headquarters address and phone number on its
Web site, as well as a national, toll-free number. When dialed, both phone
lines disconnected automatically. Wipro lists no address or phone contact
information on its site, which boasts the company can make ``Your Software
Outsourcing Dreams Come True.''

    Edward Atorino, an analyst who follows Dun & Bradstreet for Wasserstein
Perella Securities in New York, said more money-saving initiatives are
likely as the company prepares to divide into Dun & Bradstreet Operating Co.
and Moody's Investors Service. The split is scheduled for September.

    ``With this split-up, they're going to have to make some adjustments,''
he said. ``And until (newly appointed Chief Executive Allan Z. Loren) gets
into the job and takes control, I don't think they'll be talking much.''

    DOUGLASS CROUSE can be reached at (973) 428-6652 or
dcrouse@morristo.gannett.com.