By Lewis Loflin
In the early 2000s, Southwest Virginia—Bristol, VA/TN; Wise; Buchanan—saw call centers as a fix for NAFTA’s ~10,000 textile job losses. By 2003, ~2,000 workers filled 11 centers, earning $7–$8/hour, some at minimum wage ($5.15). Branded “high-tech,” most jobs were low-skill, fueled by $186 million in Virginia Coalfield Economic Development Authority (VCEDA) subsidies and ties to Congressman Rick Boucher, who shaped telecom policy until 2010. Bristol Herald Courier, September 28, 2003
While non-unionized centers crumbled under offshoring to India and the Philippines ($1–$5/hour), Lebanon’s unionized AT&T site showed a different path, exposing the flaws of subsidy-driven models.
VCEDA’s Clintwood projects highlight subsidy failures. Nexus was projected to create 550 jobs with ~$5 million in incentives; it hired ~188, all fired by November 2000, yet VCEDA still claims 550. Travelocity promised 500 jobs, backed by ~$5 million and $1.6 million for daycare; it employed ~250, closing in 2004. These gaps cost millions with no enduring benefit. Bristol Herald Courier, 2000, 2004
VCEDA’s inflated figures—~9,000 jobs claimed region-wide—lacked evidence, leaving communities short-changed as firms exited swiftly.
In Lebanon, Northrop Grumman promised 700 call center jobs, backed by a $9 million local subsidy and a $2.1 billion state IT contract. It peaked at ~200 workers, paying ~$8–$9/hour, and is nearly closed by 2025. Meanwhile, AT&T’s unionized call center, paying ~$15–$17/hour without subsidies, likely persists, its higher wages drawing workers away from Northrop. Virginia Employment Commission, 2019; local insights
Northrop’s reliance on public funds mirrored VCEDA’s errors, while AT&T’s union model—backed by the Communications Workers of America—proved resilient.
A LENOWISCO study foresaw non-unionized call centers’ collapse, warning of offshoring risks (Asia’s $1–$5/hour wages), low-skill reliance (~30% no high school diploma, 2003), and firms exploiting subsidies, like VCEDA’s $5.6 million for Sykes. Non-unionized sites lost ~2 million U.S. jobs by 2015, unlike AT&T’s protected workforce. Education gaps—~50% no diploma in Dickenson County (2008)—worsened vulnerabilities. LENOWISCO Study, sullivan-county.com
Bristol Virginia Utilities’ (BVU) $50 million OptiNet broadband push sought firms but drew none named, accruing debt until its 2016 sale. Cross Stone Products closed in 2004, costing ~$2 million. Boise Cascade, stable but pre-broadband, wasn’t a gain. Bristol, TN’s BTES grew broadband, but jobs stayed flat. Bristol Herald Courier, 2016
Efforts in Pennington Gap, Marion, and VEC’s Buchanan site focused on retention, not growth, echoing LENOWISCO’s telecom doubts.
By 2025, Southwest Virginia’s non-unionized call centers are gone, except possibly Scott County’s TTEC, which promised 300 jobs in 2016 but shows minimal activity. Automation cut ~20% of such roles globally, alongside offshoring’s toll. AT&T’s unionized Lebanon site stands out. The retail-service economy (<1% high-tech) falters, with population down 2–4% (2010–2025) and ~25% lacking high school diplomas. Gartner, 2024
VCEDA’s 2024 push added 487 jobs ($18.86 million), none telecom-related, proving LENOWISCO’s foresight. WJHL, 2024
AT&T’s unionized stability in Lebanon outshone Northrop’s $9 million/$2.1 billion flop and VCEDA’s Clintwood failures, as LENOWISCO warned of non-unionized risks. Subsidies fueled short-term hype, not jobs. Education and union models are critical for progress.
Originally posted May 2005. Updated April 15, 2025.
Acknowledgment: I’d like to thank Grok, an AI by xAI, for assisting with drafting and refining this article. The final content reflects my analysis, informed by local insights.
