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Post Outsourcing
Created by Ronald Hilton on 05/29/04 9:20 AM

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Outsourcing (Ronald Hilton, USA, 05/29/04 9:20 am)

John Gehl reports: "A new study from Forrester Research estimates that 830,000 U.S. service-sector jobs will move abroad by the end of 2005 and 3.4 million jobs will leave by 2015. Although short-term job losses have surged as companies have begun experimenting, Forrester believes that the long-term numbers will probably moderate. The report also suggests that a new wave of white-collar offshoring among manufacturing companies will bring the trend to parts of the U.S. that have not yet experienced it, such as the Midwest, though it's unclear what impact the loss of accountants, programmers and business analysts would have in places like Detroit, Chicago and Cincinnati. (AP 5/17/04). http://www.siliconvalley.com/mld/siliconvalley/8688896.htm

Mark Krikorian calls our attention to the article "Some Lost Jobs Never Leave Home. Skilled Foreigners Flow In to Fill Them " by Jessica Vaughan (Washington Post, 5/2/ 04). For the full text, see http://www.cis.org/articles/2004/jmvoped050204.html. Here is an excerpt: Less remarked upon, though, is another, even more worrisome, trend -- the importation into the United States of hundreds of thousands of professional guest workers each year to fill jobs and do work that Americans once did. This sort of on-shore offshoring is known in the parlance of the World Trade Organization (WTO) as "movement of natural persons" and is considered to be a form of trade in services. But it, too, contributes to American job losses and disadvantages our workers in significant ways. And yet facilitating this activity is a primary item on the global free-trade agenda being actively promoted by both the Office of the U.S. Trade Representative (USTR) and the WTO.
. . .
Last month, Zoellick told Congress that there are trade agreements with 30 more countries in the pipeline, and that he plans to continue working with the WTO to promote more international trade in services. We don't need to scrap our involvement in these efforts. But while American workers scramble for employment, it behooves Congress to clean up our immigration laws and fix these visa programs now, to allow for the legitimate conduct of trade without unleashing a flood of permanent "guest workers" in the future.

American corporations are firing American workers and importing Asians who will work for lower wages. Randy Black comments: "Verizon Communications employs more than 2,000 Pakistanis in their Dallas-area headquarters in technical positions (on L1 and H1 visas), despite that there are still about 10,000 US citizens in the Dallas area who lost their high tech jobs when the industry.nuked in 1999-2000. And this is only one major US corporation in Dallas among many nationwide using cheap, but talented foreign workers within the borders of the USA".

The California Assembly has approved a bill that would ban state contractors from offshoring jobs and require all contractors and subcontractors to certify that the "contract work will be performed by people in the state of California." The bill applies only to contracts paid for with state tax money. Assemblyman John Campbell, a Republican, expressed
his opposition for the bill defended outsourcing jobs as a way of keeping contracts cheaper: "What you call outsourcing is capital going to its most efficient place, and when capital goes to its most efficient place, we all benefit." (AP 5/27/04) http://www.siliconvalley.com/mld/siliconvalley/8777193.htm.

RH: "We all benefit"? It turns out that when a company fires a large number of workers, the value of its shares shoots up. "The most efficient place"? India?

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