In a message dated 7/3/08 4:11:20 A.M. Central Daylight Time, News@JobDestruction.info writes:
<<<<< JOB DESTRUCTION NEWSLETTER No. 1884 -- 7/03/2008 >>>>>
The Nielsen Company received some very generous tax rebates from the city
of Oldsmar, Florida and Pinellas County in order to create high paying
jobs. Unfortunately the knuckleheads that designed the incentive program
never stipulated who Nielsen hires or what their citizenship status must
be. All that is required is that Nielsen create high paying jobs in
Florida.
Nielsen built a technology center in Oldsmar and hired several hundred
workers, which qualified them for the tax refund. Many of those high paying
jobs didn't last very long because soon after the tax rebate program was
signed into law Nielsen instituted layoffs. The jobs didn't disappear
however -- Nielsen merely outsourced them to India and gave the rest of the
jobs to Indian replacements on H-1B or L-1 visas.
Perhaps because of the controversy that has been brewing over the issue the
Oldsmar City Council announced that they will cancel the jobs subsidy. So
far Nielsen has bagged about $3.6 million and it's not clear how much more
money they will receive. Take for instance Mike Meidel, director of
Pinellas County Economic Development, who explained that even with the
layoffs, the company had hired enough employees to continue to qualify for
the tax incentives. It sounds like if Meidel had his way he would keep the
gravy train rolling.
The city and county obviously got snookered by a shell game in which
Nielsen substituted H-1Bs for Floridians. However, that isn't stopping many
of the local politicians from putting a happy face on the situation. Meidel
forgets to mention that the employees he is paying for with taxpayers'
money are Indian nationals that work for Tata.
"The incentive did everything it was intended to do," said Meidel.
"We have more employees here today at higher wages than when the
incentive began."
It would be interesting to see if the unemployed Nielsen employees shared
such high praise of the incentive program, but unfortunately none of them
has dared to go public.
Following the excellent article below are a few excerpts from city and
country documents. Notice that the Oldsmar City Council said that they
would invite a Nielsen representative to explain what is going on during
their May 20th Council meeting. You can read the minutes of the meeting at
the following link:
http://www.ci.oldsmar.fl.us/City_Clerk/clerk.htm
The discussion with Nielsen never took place. Instead there was talk about
planting flowers, art exhibits, and the city library.
To see a picture of the brainchild at Nielsen who made the deal with Tata
and to discover that he was doing the same thing at GE Medical click this
link:
http://www.thehindubusinessline.com/2003/04/03/stories/2003040300470700.htm
TCS, GE Medical set to renew contract
Click this link to find out what he is up to at Nielsen:
http://www.nielsen.com/media/pr_070305.html
Nielsen Names Mitchell Habib Executive Vice President, Global Business
Services
***** INTERESTING COINCIDENCE *****
Thibodeau's article mentioned that Nielsen had to pay its employees $52,000
in order to qualify for the tax rebates. The $52K number is probably based
on a salary for programmers because all that's really required is that they
pay 150% of the prevailing salary for a particular job [see documents
below].
I really didn't think Nielsen would be blatant enough to use that number as
a wage floor on their LCAs but they did. Of course it could be just a
coincidence (LOL!).
Here is an example I found for 2006 at http://www.h1b.info/
Computer Software Engineer 1 $52,000/year 10/01/2005 Oldsmar, FL
There are others just over $52K. Of course some are under that number, but
it would still qualify Nielsen for the lower tier tax rebate.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.computerworld.com/action/article.do?command=viewArticleBasic&ar
ticleId=9105518
Tax break fuels anger over outsourcing-related layoffs in Fla.
Patrick Thibodeau
July 01, 2008 (Computerworld) Nielsen Co., the media company known for
audience measurement, has given up tens of thousands of dollars in local
tax breaks this year after signing an outsourcing deal with an India-based
offshore provider.
The move, which has drawn negative reviews from local officials, came after
the company announced it would lay off 117 workers at its global technology
center Oldsmar, Fla.
Although companies that hire outsourcing firms often try to limit the
release of information about layoffs through employee nondisclosure
agreements tied to severance and public statements, Nielsen was unable to
do so in this case.
That's because it received property tax breaks in 2001 to build a $100
million global technology center in Oldsmar. The tax breaks were pegged to
the number of high-wage jobs -- those that paid at least $52,000 -- the
company created. That forced Nielsen to disclose hiring details at that
facility, effectively putting the employee count of the facility on the
local political radar.
In April, when the layoffs were reported locally, Oldsmar city council
members responded angrily to the move, according to the minutes of one
meeting (download PDF). One council member accused the company, its largest
employer, of "making a joke of the tax incentive program," and another
charged that Nielsen "had abdicated their responsibility as a corporate
citizen." Adding fuel to the fire were local media reports, which
publicized the layoffs and the council's reaction.
Nielsen had about 1,200 workers at the facility when the incentive
agreement was reached, an employee count that gradually grew to 1,700. But
last October, Nielsen announced a 10-year outsourcing agreement valued at
$1.2 billion with Tata Consultancy Services in Mumbai. The move was
designed to allow Nielsen to integrate and centralize IT systems.
That deal was followed this year with the news that 117 employees would be
laid off. Although 50 of those workers have been hired by Tata, Nielsen
last week announced it was cutting anotherr 170 jobs -- and some of those
affected are training Tata employees to do their work. The company expects
to have about 1,300 employees by year end at its facility, with the
addition of another 250 or so contract workers.
Gary Holmes, a spokesman for Nielsen, said the decision to pull out of the
incentive program followed the Oldsmar city council's "second thoughts
about the agreement" and the impact of all the attention on the layoffs.
"It became kind of an emotional issue," Holmes said.
Nielsen's layoffs also drew attention from CNN's Lou Dobbs, who has railed
against the H-1B program. India offshore providers are major users of the
H-1B visa, with Tata getting 797 of the visas in 2007. Opponents cite the
visa's use in outsourcing to counter tech industry claims by Bill Gates and
others that the visa is used to hire "the best and the brightest" foreign
graduates of U.S. universities. Congress is currently struggling to find a
middle ground through legislative efforts to give a Green Card, or
permanent residency, to foreign nationals who receive advanced degrees from
U.S. universities.
Under the original 2001 agreements, Nielsen has received some $3.1 million
in tax incentives for its Oldsmar facility, which includes $1.7 million in
breaks from the state and $1.4 million from Oldsmar and Pinellas county.
The local incentives run to 2016 and will depend on how many high-paying
jobs remain in place during each year of the agreement.
Holmes said Tata is helping the company move away from proprietary systems
toward an infrastructure that integrates a variety of reports and data on
one platform. No additional layoffs are planned this year, he said.
Whether the issue of tax incentives is a closed matter, remains to be seen.
After being asked about the issue, Oldsmar Mayor Jim Ronecker said in an
e-mail that there are "continuing discussions' with Nielsen. He declined
further comment.
Despite the recent layoffs, local officials said the incentive program had
done its job. Nielsen could have built its technology center somewhere
else, said Mike Meidel, director of Pinellas County Economic Development.
And even with the layoffs, the company had hired enough employees to
continue to qualify for the tax incentives.
"The incentive did everything it was intended to do," said Meidel. "We have
more employees here today at higher wages than when the incentive began."
Greg Rublee, an Oldsmar council member, said that Nielsen, by ending the
tax incentive agreement, has "prevented anyone from looking over their
shoulder."
He criticized the H-1B visa program, saying it was never meant to be used
as a way to replace U.S. workers. While the Tata employees are supposed to
be paid prevailing wages, that pay doesn't account for retirement and other
benefits that U.S.-based employees receive. "IT people all over the country
should be fearful of this," he said.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.ci.oldsmar.fl.us/City_Clerk/PDFs/Minutes_2008/04_15_08_minutes.pd
f
CITY COUNCIL MINUTES
Oldsmar Council Chambers
100 State Street West
Oldsmar, Florida
Date: Tuesday, April 15, 2008
17. Comments by Council Members:
Vale -- stated she heard the City Team did well for the Relay for Life.
Vale stated she is very upset
about the article in the St. Petersburg Times about Nielsen Media Research.
This company has received
a lot of money from the City, County and State that they should be made to
pay back. They are bringing
in people from overseas and laying-off American citizens. She is very angry
about this and stated Nielsen
is making a joke out of the Tax Incentive program. Seidel asked if it is
known that the article is factual
because he heard that Jerry Custin’s comments were taken out of context.
Seidel also stated this
practice is not good for our citizens, but, aside from the tax incentives,
he doesn’t feel it is the Council’s
place to tell a company how to run their business. He would like to know if
the question about the tax
incentive dollars is correct or not. Ronecker stated they will get to the
bottom of that because Nielsen
has to live up to their obligations. Vale stated that when they were
awarded this money, it was to
provide decent paying jobs to U.S. citizens. They are now bringing in
foreign workers and Oldsmar
residents are being laid off. Rublee stated that if what has been reported
turns out to be true, Nielsen
has abdicated their responsibility as a corporate citizen. The human factor
does matter. Miller stated
she has been told that Nielsen is very proud of the fact they received the
money again this year by
adding their contract workers in to bring the numbers up. She was told they
will be getting rid of an
additional 200-400 jobs and bringing in workers from India at $28.50 per
hour, flat rate. Miller quoted
the following governmental contributions: City of Oldsmar $554,000;
Pinellas County $700,000; State
of Florida $1.8 million. Seidel suggested the Council invite a Nielsen
representative to come and speak.
The Council agreed to invite a representative to the May 20th Council
meeting.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.ci.oldsmar.fl.us/City_Clerk/PDFs/Minutes_2004/01_06_04_minutes.pd
f
CITY COUNCIL MINUTES
Oldsmar Council Chambers
100 State Street West
Oldsmar, Florida
Date: Tuesday, January 6, 2004
6. Approve Nielsen Media Research job creation incentive grant agreement --
Haddock
stated the City adopted Resolution 2002-08 on March 13, 2002, creating this
program. The grant pays
$500 per new job created that pays at least 150% of the average Pinellas
County wage, and $1,000 per
new job created that pays at least 200% of the average Pinellas County
wage. The maximum value of
the grant cannot exceed 50% of the net new real estate taxes paid annually
to the City. Miller made a
motion seconded by Caruso, to approve the Nielsen Media Research job
creation incentive
grant agreement. ALL IN FAVOR? MOTION CARRIED 5:0 VOTE. Dan Johnson, Vice-
President of Finance, Nielsen Media Research -- announced that Nielsen has
received corporate
approval to proceed with Phase 2 which will add $25-28 million to complete
the campus.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.tampachamber.com/ed_incentives.asp
Tampa Chamber of Commerce
Qualified Target Industry Tax Refund (QTI)
The Qualified Target Industry Tax Refund incentive is available for
companies that create high wage jobs in targeted high value-added
industries. This incentive includes refunds on corporate income, sales, ad
valorem, intangible personal property, insurance premium, and certain other
taxes. Pre-approved applicants who create jobs in Florida receive tax
refunds of $3,000 per net new Florida full-time equivalent job created;
$6,000 in an Enterprise Zone or rural county. For businesses paying 150
percent of the average annual wage, add $1,000 per job; for businesses
paying 200 percent of the average annual salary, add $2,000 per job. The
local community where the company locates contributes 20 percent of the
total tax refund. There is a cap of $5 million per single qualified
applicant in all years, and no more than 25 percent of the total refund
approved may be taken in any single fiscal year. New or expanding
businesses in selected targeted industries or corporate headquarters are
eligible.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.pced.org/expansion_relocation/financial_services.asp
Pinellas County
Qualified Target Industry Tax Refund Program (QTI)
This investment tool is available for companies that create high wage jobs
in targeted, high value-added industries. This incentive returns a portion
of taxes paid by the business after the company meets its job creation and
wage commitments. Pre-qualified businesses receive tax refunds of $3,000
per net new-to-Florida job. Additional "per job" bonuses are available for
businesses paying 150 or 200 percent or more, of the average annual wage,
or locating in enterprise zones or Brownfield areas.
Job Creation Incentive Grant (JCIG)
This investment tool is available for companies that create jobs paying at
least 150% of the average county wage in targeted, high-value added
industries, with a capital investment of at least $50 million in Pinellas
County. The grant award is equal to $500 per new job created for jobs
paying 150% of the average county wage and $1,000 per new job created for
jobs paying 200% of the average county wage.
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