By Chidanand Rajghatta, Presented by Lewis Loflin
Published: February 14, 2004, Times of India
Source: Original Article
By Chidanand Rajghatta
Clintwood, Virginia (population approximately 2,000), is not a town readily found on standard U.S. maps. Tucked within the Appalachians along the Virginia-Kentucky border, it’s a remote locale—often termed “boondocks” in urban vernacular—far from notable cities like Johnson City or Lexington, which themselves hold modest prominence. The town is 98% white, with no significant presence of Indian surnames like Patel or Singh; the only “Indians” known locally are Native Americans, comprising 0.6% of residents. Economic and social conditions here have been bleak over the past decade.
For three years, however, Clintwood celebrated a modest economic uplift. In 2001, Travelocity established a 250-seat call center, offering relief from the region’s reliance on fading coal mines and a vanishing apparel industry. Plans aimed to expand it to 500 seats, positioning Travelocity as Dickenson County’s largest private employer. The county welcomed the online firm enthusiastically, granting tax breaks, a $250,000 loan for facility expansion, and securing $1.4 million in federal funds for a childcare center adjacent to the site, with 45 of 107 slots reserved for Travelocity employees. For 30 months, the Dickenson County Technology Park flourished, with Travelocity symbolizing white-collar opportunity in a blue-collar region. Young locals, 80% women, handled nationwide calls with their distinct Southern accents, improving quality of life.
That optimism ended abruptly on a Wednesday morning in February 2004. A senior Travelocity executive announced the call center’s closure by December. After losing $55 million the previous year and lagging behind competitors like Expedia, which had outsourced to cut costs, Travelocity opted to relocate jobs to India. Employees received severance and limited openings in Texas and Pennsylvania, with ten months to plan their next steps.
The news met with shock, gasps, and quiet tears. Though outsourcing was a known trend, its arrival in Clintwood was unforeseen. Earning $8-$10 hourly—among America’s lowest wages—workers questioned the savings. Company officials cited $10 million annually, though the financial rationale extended beyond salaries.
When I contacted Clintwood Mayor Donald Baker on Thursday, he responded with measured resilience. “We’ve faced this before and will persevere,” he said, noting ongoing talks with two telecom firms to potentially occupy the vacated space. Will Mullins, 23, hopes they succeed. Having tasted white-collar work, he dreads returning to construction at just above minimum wage ($5.50 hourly). Outsourcing’s impact isn’t confined to Wall Street or Silicon Valley—Middle America feels the sting, fueling political discontent.
Commentary by Lewis Loflin: Taxpayers invested over $10 million in various forms of corporate welfare to cycle call centers through Clintwood, Virginia. Employment never surpassed 250, despite claims of over 1,100 “created” jobs. Ultimately, SI International (since restructured) took over, maintaining 130 positions at $8-$9 hourly. The Pikeville call center remains closed for similar reasons.
Acknowledgment: Thanks to Grok, an AI by xAI, for formatting assistance. The original reporting is by Chidanand Rajghatta; the commentary is my own. —Lewis Loflin
