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Public
Employee Press
Part
2 in a series of articles on
privatization and outsourcing
Exporting U.S. jobs
Bush is under attack for encouraging U.S. firms to
ship jobs overseas.
By GREGORY N. HEIRES
Natasha Humphries, 31, enjoyed a $90,000 a year job as a software engineer
for the Palm handheld computer maker in California.
But then she became a victim of an ugly side of globalization the
outsourcing of U.S. jobs to other countries, where companies are able
to pay vastly lower wages.
Discarded by her employer, after she was ordered to train her own replacement
workers thousands of miles away in India, Ms. Humphries was thrown into
the ranks of the unemployed. She lost the company-provided health-insurance
plan that had covered her 6-year-old child, who has sickle-cell anemia.
I was told repeatedly before training the Indian team in Bangalore
that my job was safe, Ms. Humphries said. Then I got laid
off. Recently, Ms. Humphries joined 50 other workers on the AFL-CIOs
nationwide Show Us the Jobs bus tour, which called public
attention to President Bushs dismal jobs record the worst
since the Great Depression of the 1930s.
Outsourcing has become a hot-button political issue partly because of
the presidential race this year. Manufacturing jobs have been one of our
nations major exports for many years. But the rising outcry also
reflects an intense concern that shipping white-collar jobs abroad represents
a new long-term threat to our standard of living and the employment prospects
of our children and grandchildren.
When $90,000-a-year workers are dumped, no job is safe.
In the public sector, states and localities havent yet directly
replaced huge numbers of employees with foreign workers. But contractors
hired with public funds are offshoring work out of the country as fast
as they can.
More than 40 states have contracts with companies including J.P.
Morgan that are exporting computerized food stamp service jobs
to countries such as Mexico and India, according to DC 37s parent
union, the American Federation of State, County and Municipal Employees.
AFSCME and other unions are backing legislation in statehouses around
the country, including New York, to ban companies from using public funds
to send work offshore.
Any job that doesnt require face-to-face con-tact is up for grabs.
Computer-based jobs are particularly at risk. India, for example, has
a highly educated, English-speaking workforce paid a fraction of what
U.S. workers receive. Since 2000, India has increased its employment of
workers who provide information technology and other services to overseas
customers from 152,000 to 505,000, according to the National Association
of Software and Service Companies of India and the U.S. Commerce Dept.
By the end of the decade, the number of manufacturing and white collar
jobs moved overseas will increase from 300,000 a year to 600,000, according
to economist Mark Zandi of Economy.com, a research firm in West Chester,
Pa. The Bush administration is under fire for supporting tax policies
that encourage U.S. companies to move work abroad. Since 2001, when Mr.
Bush took office, U.S. companies and their subsidiaries have shipped up
to 1 million jobs overseas, according to Goldman Sachs.
In February, N. Gregory Mankiw, chair of Bushs Council of Economic
Advisors, was forced to apologize for speaking favorably about outsourcing
when the White House released its annual report on the economy. Outsourcing
is just a new way of doing international trade, he said. More
things are tradable than were tradable in the past. And thats a
good thing.
The administration may have believed Mr. Mankiws apology could mask
its support for free-trade policies that promote profits at the expense
of American jobs. But Treasury Secretary John Snow exposed that lie by
backing outsourcing during a March visit to Ohio. You can outsource
a lot of activities and get them done just as well, or better, at a lower
cost, he said.
The quarter million Ohio workers whose jobs have disappeared overseas
since 1999 did not receive Mr. Snows remarks warmly. And job exports
are becoming one of the top issues moving voters into the Kerry column
for the November presidential election.
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