Out Sourcing America: Job Loss and Unemploymentthe writings of Norma Sherry |
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Are American workers at risk of losing their jobs? Damn right they are. Particularly if they pursued what they thought were safe jobs in today's commerce. When American workers lost their blue-collar jobs they stepped up to the plate and educated themselves in the technologies that they were told would assure them security. Sadly, corporate America lied. Not only are American workers losing their coveted jobs, but in unprecedented moves they are being asked to train their replacements. The consequences are mortifying. By now, most of us have experienced calling an organization we have done business with before only to find the overtly sweet voice on the other end of the receiver has a thick, almost unintelligible foreign accent. Well, folks, get used to it. By the thousands jobs are being exported, or the new word, outsourced to India, Hong Kong, The Peoples Republic of China, Panama, Manila, The Philippines; and many other countries where the local citizens speak English. Jobs are moving offshore to any country where the populace is accustomed to working for pennies a day. Any sum above a dollar in many cases, is the beginning to middle-class wealth and a vast change of lifestyle. Are you wondering how to safeguard yourself? It's not very promising, but here's the scoop. All manufacturing careers are going overseas. It's as simple and as appalling as that. Since 1986, 15 million high-paying manufacturing jobs have left the US and American workers. Need a second to take absorb that? It's startling, I know. But the horrifying truth is, sooner than you think, not a single automobile, airplane, or ship will be assembled or manufactured in the land of free, home of the brave. It won't be long thereafter, that all manufacturers wanting to stay competitive will seek to bring their businesses to the millions of workers overseas. After all, they are willing to work for a pittance without the contrivance or interference of nasty unions, health benefits, 401K's, and the multitude of perks the American worker has worked hard to achieve. Be on notice, American workers. If your job can be performed as well elsewhere, you are in grave danger of losing your jobs. If your job relies on computer skills, telephone skills, manufacturing.your days are numbered. Any job that can be performed in another location, preferably outside of the realm of American wages and American work-related laws, are going. If you're a nurse or a physician, a medical technician, a physical therapist, even a nurse's aide, you're safe.at least for the time being. But if you're an x-ray technician, watch out. According to Irwin Kellner, a professor of economics at Hofstra University in New York , already many films are transmitted via the Internet and read abroad. Kellner also says, however, that ''We will manage not only to muddle through but to create jobs to add to our overall well-being,'' He also says he has. ''.faith in the system. Somehow or another, we'll create jobs that can't be exported overseas.'' Other experts in the field are not quite so idealistic. Diane Morello, Research Director and VP at Gartner, Inc., estimates that "based on her preliminary calculations, at least 500,000 jobs will be lost to offshore outsourcing by the end of 2004." Her company report also dimly states, "one out of 10 jobs in the US computer services and software sector could move overseas by the end of next year". Furthermore, the study indicates that "while professionals in the computer industry will be especially hard-hit, IT jobs in other sectors such as banking, health-care, and insurance will also feel the impact, with one in 20 being exported to emerging markets such as Russia, India, or other countries in Southeast Asia. According to the Washington Post, 2.5 million factory jobs have disappeared since 2001. If you're a draftsman, an architect, a computer programmer, a graphic designer, your days are numbered. If you're a plumber, electrician, construction worker, contractor, bricklayer, you're secure for now. A young software executive states, "He's allowed to hire whomever he wants--as long as they live in India or Australia . Another American executive says, "We've got one company that's closing a support facility here to move it to Asia , and another that doesn't even try to fill jobs at home. There's something vaguely unpatriotic about all this. Especially when the jobs are answering the phone to talk to American customers or developing programs to be sold primarily to American companies." Stuart Yasgur and Ernie Nounou wrote in Business Week that, "Common knowledge says that we are in the midst of a 'Jobless Recovery.' After all, while the United States economy recovered statistically from the 'mild' recession in 2001, unemployment has risen from 4% to 6%-- a whopping 50% increase. Urban centers like New York City , which had a January unemployment rate of 8.6%, have been particularly hard hit. What is not commonly known, however, is that jobs have been created during this recovery, just not in places like New York City, San Francisco, or even Flint, Michigan. Jobs have been created in places like India , Jamaica , the Philippines, and even Sri Lanka. The National Association of Software and Service Companies (Nasscom), an association of software and IT- enabled services companies, estimates that India's IT-enabled services industry grew by 70% during 2001-2002." So, dear reader, if you find yourself maddened by the inarticulate, difficult to understand techie on the telephone, perhaps it's time we made our voices heard. If you pick up your telephone and dial an out-of-state number and the voice on the other end of the telephone is speaking in an almost unintelligible accent from India or some other foreign country, you can rest assured your phone call was re-directed outside of the United States. Corporate America is sending our jobs and the jobs of our fellow Americans abroad to foreign countries so that the company that is multi-billions of dollars wealthy can save money by farming its work outside of America and far from American workers. I don't know about you, but I'm mad as hell and I don't want to take it anymore. The very companies we made rich by buying their products, their computers, their software, their clothing, their kitchen gadgets, their televisions -- are thanking us by taking the jobs of our citizens and moving them, excuse me, outsourcing them, to countries and a workforce far from our shores. They're doing this for one reason and one reason only: The Almighty Dollar. It's despicable. If we don't do something and do something quick, it's going to be too late. Our lifestyle and our wealth will cease to exist, as we know it. The wealthy few will be the corporate entities that outsourced their workforce. After Shirley Turner, a Democratic state senator from New Jersey discovered that a program from her state, Families First, which provides welfare recipients with grocery debit cards had been outsourced to Mumbai , India , she proposed bill No. 1349. Her bill, which was approved unanimously by the New Jersey Senate in December 2002, would require all state contracts to be performed by either US citizens or foreign citizens who work legally in the United States . Following her lead, Connecticut , Maryland , Missouri , and Wisconsin all have similar bills under consideration. However, folks, this is a very small pebble making tiny ripples. It is time we stepped up to the plate. We need to revolt. We need to get mad as hell and unwilling to take this anymore. Not just because corporate America is a lethal indignity; not just because truth in advertising is a lie; not just because American jobs are being shipped out of the country. We need to realize we are the power, we can make this a better world, a better place in which to raise the next generation. We can start here and now and tell Bill Gates' Microsoft, the McAfee's and Norton's, The Gateway's, the Dell's, our telephone companies, and insurance companies, and our Internet providers that if they want our business, they are going to have to earn it.and they're going to have to keep on earning it. It's time folks to become mad as hell and not take it anymore. We need to boycott products that are outsourced. We need to write letters to our representatives and our local newspapers. We need to make our voices heard. We need to parade in front of corporate offices and hold banners high and shout out loud "We are mad as hell and we are not going to take this anymore!" We need to write to the CEO's and write them again and tell them how we feel. But first and foremost, we need to stop buying their products and their services. Finally, we need to safeguard ourselves by becoming re-educated and prepared for the possibility that we may need to fit into a new workforce. ©Norma Sherry 2003 by permission of the author. Bye, Bye Miss American Pie I'm just going to blurt it out; tell it like it is. In the words of the venerable, Walter Cronkite, "that's the way it is". Here it is folks; outsourcing is tantamount to legalized slave labor. Of course, it's much more than that to the American worker. Ask anyone who is out of work, out of unemployment, on the verge of losing their home and all that they worked for and thought was their American dream come true. Their jobs by the multi-millions have left the shores of the U.S. for greener, cheaper labor. Slave labor. A dollar an hour versus twenty-five or fourteen, or even ten, you figure the math, big business, not-so-big business, even the little businesses are moving in droves to lands faraway. The problem with doing so, however, is multi-dimensional. For the millions of American workers who have lost their jobs, the prospects are very dim. Jody, who has worked as an IT professional for twenty years, lost her job when her company outsourced its workforce to a foreign land and foreign workers. In five months, she hasn't been interviewed even once despite her very marketable skills. When her unemployment runs out, she fears she'll have no recourse but to sell their home. Beverly says, "I completed my graduate degree in engineering and truly thought that I was living the American dream." That is until three years ago when she and her co-workers watched as the jobs dwindled down and were shipped first to Mexico and then elsewhere. All the years of bettering herself, securing her future in the finality were measured in her ability to instruct her replacement to do her job. Humiliation and degradation were her reward. Fern was in healthcare for thirty years. She watched as nursing jobs were given to immigrant nurses rather than American graduates. Sadly, she laments observing sweet, dedicated and idealistic young women she trained become hardened and embittered. How did this happen. Where were we? Did we have our heads buried in the sand? Or were we preoccupied with the realities of everyday life? Perhaps that's what our policy makers counted on. But I can tell you one thing for certain. It didn't happen overnight. In fact, it began to surface in the late 70's championed by the very conservative Heritage Foundation. Under the auspices of President Ronald Reagan, free trade "throughout the hemisphere" was borne. But truth be known, the seeds were sown long before Ronald Reagan. Richard Milhous Nixon was the first President given authority in the 1974 Fast Track Bill. It was awarded every president thereafter through 1998. Fast Track gives the President sole authority over trade negotiations. Congress, after the fact, can accept or reject the negotiation, but it cannot amend it in any way whatsoever. In effect, Fast Track effectively removes Congress from the process of world trade negotiations. Ronald Reagan, however, was the first to propose a free trade agreement in his 1980 presidential campaign. Proudly, The Heritage Foundation boasts its role in articulating President Reagan's vision in no less than three dozen reports. The Heritage Foundation predicted that free trade would, "over a fifteen-year time span, create the world's largest market: some 360 million people, with an economic output of more than $6 trillion a year." Moreover, they asserted that NAFTA would guarantee that American workers would remain the most competitive in the world. That American consumers would continue to have access to the world's finest goods and services. They also emphasized that NAFTA would assure Americans cheaper goods while increasing U.S. exports to the rest of the world. Moreover, the American workforce was told NAFTA would stimulate and create an estimated 200,000 jobs annually. Later, The Heritage Foundation wrote, "Economists are virtually unanimous in their conclusion that the NAFTA will have a strongly positive impact on job growth throughout the US , with most estimates in the hundreds of thousands." They also predicted NAFTA would effectively reduce illegal immigration from Mexico, would be instrumental in tackling drug trafficking, would strengthen Mexican democracy and human rights, and above all else, would serve as a model for the rest of the world. It all sounded so cheeky. Lofty predilections. The only aspect that has proven true for Americans is "cheaper goods." Instead of the 200,000 promised new jobs yearly for Americans, the American worker is losing their jobs - to date, conservatively speaking by 2.7 million. The rate of which is growing steadily. As a matter of fact, 200,000 additional jobs were lost to American workers in September alone. However, The Heritage Foundation and the Office of the US Trade Representative (USTR) say the converse is true. The USTR offers, "Too often, bad news grips the imagination, while good news goes unheard. In a dynamic economy such as ours, it is not surprising to hear of some firms closing shop. However, in a typical month, our country gains a net of over 150,000 jobs." My guess is these jobs are akin to a hologram. Sarcasm aside, the numbers simply don't jive. As to the remaining gobbily gook, it doesn't take a rocket scientist to know the dire state of the American economic picture. According to the Congressional Budget Office, the forecast looks very bleak with the national deficit expected to reach $480 billion next year with unemployment continuing to rise. The Bureau of Labor Statistics (BLS) reported, "Long-term unemployment is at its highest in over a decade". The BLS stated, "The last time the share of long-term unemployed surpassed this level was 20 years ago, in September 1983. BLS also reported the startling decline in education employment as the largest one-month loss since July 1982. There are 1.4 million individuals stuck in the quagmire of personal bankruptcy. According to foreclosures.com, foreclosures are at record highs, especially homes in the upper six figures. Bank One in Chicago anticipates a tidal wave of foreclosures in 2004. Bleak, how about downright abject gloom? Perhaps we overlooked the loss of jobs because, well, they were just factory workers, after all-and besides, clothing was never cheaper. Cheaper is the key word, not merely less expensive, but threadbare cheap, made to literally fall apart after a few month's of laundering. Then word started seeping into the American psyche, "child labor", "slave labor" and "abusive, horrendous working conditions". Clothing designers went on the defensive, but they needn't have concerned themselves, the uproar was short-lived. The consumer greed won out. After all, cheap is cheap-and nothing wins like saving money! Then the consumer began to notice that there were fewer and fewer American-made automobiles. Advertising agencies expounded on the consumer concern and began a national advertising campaign to buy, "Made in America " automobiles, etcetera, etcetera. However, despicable as Corporate America is, the truth that nearly no part of an American car or truck, van, or SUV is made in America mattered not. NAFTA has made us partners with the countries of the world with whom we do business. It has made us culpable to the abuses and horrifying conditions workers of the world work under. And we know it. Our legislators know it. Corporate America knows it-and yet, we allow it to continue. A famous film company reportedly pays Bangladesh workers between eight and nineteen cents an hour toiling in deplorable, sub-human conditions for 14 to 15 hours a day. Corporate America knows it, so do our legislators, and yet we still buy their products. CorporateAmerica rushes to their shore anxiously bringing their contracts and opening their factories. The World Trade Organization (WTO) protects corporations but abashedly, blatantly ignores the torturous existence of laborers. Burma, ruled by a military dictatorship since 1962 is a very poor, yet resource rich country. It is also a haven for sweatshops and many American corporations. Until 2000 and adverse publicity, Anheuser-Busch, Apple, Estee Lauder, Hewlett-Packard, Macy's, Ralph Lauren, Oshkosh B'Gosh, Levi-Strauss, Liz Claiborne, and many more did business with Burma. Colgate, General Electric, Ford, Halliburton, Gillette, Jordache, Lockheed, Nautica, Adidas, Chase Manhattan Corp, Proctor and Gamble, and Perry Ellis are among the businesses that continued to do business with Burma after 2000. In Burma , Unocal was named in a human rights lawsuit in the course of building its pipeline. The suit charged Unocal knowingly used forced labor. Hundreds of eyewitnesses testified that the government's military provided Unocal with unpaid labor by forcing thousands of villagers to work at gunpoint. Reportedly, women who refused to work were raped or murdered. In 2000, a California Federal Court found Unocal blameless because they did not have direct participation in the wrongful acts. The case and the appeals are stalemated. In 2003, the Bush Administration filed a brief on behalf of Unocal arguing that allowing the case to go to trial could interfere with US foreign policy and even disrupt the war on terrorism. When I called my Dell Computer Support Department eight months ago to register my new laptop, my phone call was routed to India . The helpful young man on the phone and I became chatty. He was very excited about his new job, although he still had to live at home with his parents and couldn't afford to marry. He was 34 years old. He was on his twelfth hour of a fourteen-hour day. He earned $9 a day! A day-and he was happy. Before Dell, he earned less than a dollar a day. When I hung up the telephone, I cried. Yet, in India, a country that Corporate America is actively outsourcing American jobs to in record-breaking numbers is a country that purportedly exploits and abuses children as laborers. Working conditions are often filthy and many bosses are worse than inhumane. NAFTA and WTO turn a blind eye; so do our rich and super-rich corporations. Rajesh is a partner in an executive search firm. He is well educated, from the Indian Institute of Management - Ahmedabad, as are many of his counter-parts. Rajesh refers to his alma mater as "The Harvard of the East". He also bemoans regrettably, that so many of his brethren with MBA's are applying for call center jobs. A waste of their impeccable and hard-earned degrees. But until America actively sought employees from India , opportunity was dismal. Rajesh's firm offers accent trainers to teach Indians to speak like a Yankee; there are soft skill trainers teaching how to approach an American client. He has an event manager that updates and teaches about American events and festivals and he says they have doctors on the premises and on call because working odd hours, Rajesh says, "has its consequences. Health is definitely a concern". Obviously, Rajesh is not one of the employers that disregard his employees. In fact, he is a man of great sensitivity and grace. He struggles with the concerns of Americans and he worries about their anger about their jobs going abroad. "So much money has been invested. So much controversy. Such uncertainties." The sole winner for outsourcing is Corporate America. Everyone else loses. After 9/11, President Bush announced to the world "that if any country harbored, fed, housed, or protected terrorists, then they would be as guilty as the terrorists." Does the same not hold true for us if we do business with countries that abuse workers; that enslave women and children? Does it not count because we have the entitlement of NAFTA and WTO? Are we not breaking the greater laws of human dignity? Now our President wants to Fast Track NAFTA and WTO and open free trade to all of Latin America . Considering the supreme success NAFTA has been to the American worker, his motivation is very clear indeed. Money talks. Pointing fingers and assessing blame is a favorite pastime of the left and the right, the democrats and the republicans. It would appear that there is plenty of blame on both sides of the fence. Richard Nixon may have grandfathered the concept that begot NAFTA. It may have been Ronald Reagan that first introduced it and George Bush, Sr., who endorsed it, and Bill Clinton who signed it momentously into law. But of all the candidates running for the office of President of the United States, only one promises to repeal NAFTA the day after he is sworn into office. Perhaps it is time for the electorate to put our elected officials on notice. Perhaps it is time that we found our voice and expressed our displeasure in the only way they seem capable of hearing. Perhaps we should write our legislators and let them know that we are adamantly opposed to The Thomas Bill, HR 3005, because it will catapult the further decline of the American worker. NAFTA and WTO and President Bush's new Fast Track are designed to destroy the American worker and to further demoralize and destroy the countries on faraway shores and keep everyone beholding to Corporate America. It's time to just say, No! Dear American Worker: I apologize for my ignorance and that of many of my fellow Americans. I apologize, too, for my shortsighted eagerness to get the best buy I could, and for my silly desire to save a few extra pennies, or a few more dollars. In my ignorance and naiveté, I thought I was buying wisely, saving money. When indeed, what I was doing was hurting my friends and my neighbors, and citizens I don't know; because what I didn't know, or what I refused to acknowledge, was that by doing so I was robbing someone of their job. I apologize for buying my JVC VHS/DVD Recorder that was made in China. I apologize for buying my SONY flat screen television that was made in Japan. I apologize, dear American worker, for buying my PANASONIC telephone that was actually made in Japan. I apologize for buying our FORD vehicle that was actually built, part by part in ports unknown. I apologize for buying a GATEWAY desktop computer that was made somewhere else and is supported by technicians in Guam and India and who knows where else. I apologize for buying NORTON Anti-Virus to protect my GATEWAY computer that is written and packaged and supported in lands far from American shores. I apologize, dear American out-of-work worker, for buying my DELL laptop that was built and is supported primarily by workers in India. I apologize for buying the MCAFEE Anti-virus support that came with my DELL laptop that was written, packaged, and serviced by technicians in India. I apologize, dear worker for banking at CHASE MANHATTAN, CITICORP, BANK OF AMERICA, SUNTRUST or nearly any other American bank because they, too are outsourcing at least one aspect of their banking-and if they are not yet, they will be very soon. I apologize for flying on DELTA AIRLINES, wearing my NIKEs, or were they my ADIDAS sneakers, paying for both with my VISA card, eating my airline prepared food from SKYCHEFS, sipping on a COCA COLA from COKE, reading the current best-seller by SIMON & SCHUSTER, as I intermittently, fired up my DELL laptop to search EBAY for a good buy on the newest PLAY STATION wearing my RADIO SHACK headphones, dreaming of my comfy bed at the MARRIOTT and munching on something gooey from SARA LEE. Dear American worker, it is with the deepest, most profound regret that I apologize for all these transgressions. I actually thought Nike and Adidas and Delta and Sara Lee, not to mention the others, were American companies run by American employees. I admit I was mixed-up and confused. I actually thought American products were American products. In my foolishness, I thought when I boarded an American airline or purchased an American labeled product I was helping to keep my fellow-Americans working. But, nay. In fact, today and for well over ten years if it needed to be manufactured, built, assembled, sewn, appliquéd, wired, electrified, glued, bound, boxed, or hung, you can bet your bottom dollar that it was done so by hands other than American. Little by little, tiny step by tiny step, quietly at first, businesses moved their labor to shores far beyond our borders. It was hardly noticed when inexpensive clothing manufacturers moved. It became a little more obvious when the designers went abroad. Not to artisans, not because the fabrics were finer, or the threads more silky, no, they went, almost tripping over one another in their glee. A garment that may have cost them tens of dollars to create would now only be pennies. The incentive, greed, was almost too much to contain. But not just for the designer or the clothing manufacturer, but also to us, the customer. The savings, not nearly as gargantuan were stunning enough to make us jump for joy, as well. We gave little thought to the consequences. That is until our neighbors lost their jobs, needed food stamps, and began losing their homes. It wasn't long after that the telephone companies lost their monopolies and free trade became the free-willy to the American consumer. Phone calls became cheaper and in some cases, downright affordable. By the tens of thousands, we left the phone companies of our youth and sought the best buys we could find. To compete and pile more multi-millions in the till, AT&T, BellSouth and all the little MaBell's learned a new concept: Outsourcing. New businesses opened that made the deals, taught the concepts, and low and behold, businesses dismantled their American structures, fired their employees, and moved without a modicum of regret or allegiance to shores beyond our borders leaving behind the wrecked lives of 2.7 million workers. And more and more of our working middle-class were becoming poorer and poorer with each new day. Jobs? There weren't any. Not even flipping hamburgers was a choice anymore-- their kids had those jobs. Data processing? Gone. Internet Technicians? Hasta la vista, baby. Outsourcing was the new magic pill for all the woes of big business, little business, all businesses. There's not a business that isn't a candidate to outsource. DOW does it, so does DUPONT and Wal-Mart, K-Mart, Bristol-Meyers, even the US Department of Defense. In fact, according to Dow's outsourcing partner, ACCENTURE, they saved $70 million since 1992 and their employee output surged over 50%, they just weren't American workers. Accenture, however, is closed mouth about their other partners. Accenture's Stacey Jones told me, "We do not divulge our client list," which made me ponder, why the secrecy? However, among the companies that are public knowledge are Microsoft, Hewlett Packard, Virgin Wines, Sony Computer and Entertainment, Chrysler, Visa USA, SunTrust Bank, British Airlines, Barclays Stock Brokers, Chubb Insurance, AstraZeneca Pharmaceuticals, Sharp Electronics, Bank One, World Rally Championship, Time Warner Trade Publishers, BP, Citgo, Halliburton, Boise Cascade, Sonoco, Ryder, Arizona Department of Revenue, US Air Force, US Department of Defense, and Federal Voting Assistance Program, to name just a few. In their sales brochure, Accenture pitches that they offer "a cool savings of up to 30% or more" for "dramatically improving the efficiency and effectiveness of back offices operations." Also known as, BPO. They also promise to reduce "credit card processing with a $10 - $20 per card per annum savings." That's nothing to sneeze at. Additionally, Accenture proclaims, "two-thirds of US retail and commercial banks with assets of at least $3 billion outsource one or more of its business functions." As significant as Accenture is, number one in the outsourcing industry is, Cognizant Technology Solutions. Based in New Jersey, Cognizant claims that they "deliver the best of both worlds: the transparency of an American company, backed by an offshore organization that is rated one of India's top employers." Some of their outsourcing clients are: Blue Cross of NE Pennsylvania, John Deere Health Plan, Philadelphia Stock Exchange, Pacific Stock Exchange, MetLife, Liberty Insurance, Dun and Bradstreet, AC Nielsen, Coors, Schwans, Ace Hardware, Radio Shack, Marks and Spencer, Fortunoff, and The Maritime Life Assurance Company. Every time one of us buys a product, orders a service, signs a contract, becomes a client, from a company that outsources jobs that were once the American workers stronghold we are giving our permission to them to continue firing, dismissing, and replacing the American worker for cheaper labor abroad. Do we have a right to be upset? Damn right we do! Don't misunderstand me, I wish every one, in every land a job worthy of supporting themselves and their families. I just don't want it to be at the expense of the American worker and the American worker's families. It's simply not fair and if it's bad for the American worker, it should be bad for American businesses. But it's not. It's not because most of us are unaware of this travesty and, let's face it, we have a very narrow focus. If it's cheaper, it's sold. How many times do we check first to see where it's made before we buy it? Even that however, isn't reliable anymore. It doesn't tell the whole story. Companies could outsource their payroll department, or their mortgage department, or their inventory department and we would never know it. Furthermore, if you did know, would it make a difference? Would it still make a difference if you could save $10? In my book, the corporations that were formed in America, built in America by the sweat and ingenuity of the American worker, that are now fleeing for greener pastures where there are no regulations, no workman's comp, no insurance, no promises of a future, owe the American worker a huge debt and at the very least, Corporate America owes their American workforce their promised security. With the signing of NAFTA, American workers working for these same American corporations were dismissed as so much excess trash. Dismissed for the almighty dollar. ©Norma Sherry 2003 by permission of the author. norma@togetherforeverchanging.org Norma Sherry is V.P. of Together Forever Changing. http://www.togetherforeverchanging.org/ Together Forever Changing, Inc. is anon-profit organization and all donations or contributions are tax deductible. She is also an award-winning writer/producer. See also: "What is America without Freedom?" by Norma Sherry
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