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You can keep your job -- if you move to India

Posted May 13 2009, 01:26 PM by Catherine Holahan
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Pink Slip © BananaStock/SuperStock

  A one-way ticket from France to Bangalore, India: $628

  Pay cut: 1,731 euros per month

  Avoiding a layoff: priceless?

  French textile workers were recently made an offer that most, undoubtedly, refused: relocate to India and work for local wages or lose their job. The Times of London reported May 12 that the Carreman company gave its employees the unenviable choice in part to comply with French labor laws. 

Carreman told workers they could keep their jobs if they moved to Bangalore at a 96% pay cut, according to the Times. They were not offered airline tickets. A recent online search put the cost of a one-way ticket from Charles De Gaulle airport in Paris to Bangalore airport at about $628, with a plane change.

Offshoring jobs to relatively cheaper Asian and Eastern European countries, such as India and the Czech Republic, has long been a subject of contentious debate in both Europe and the United States. But the global economic downturn has pushed the issue into the headlines again. Faced with sharp drops in demand, many companies are choosing to cut costs by moving jobs to cheaper countries. In March, IBM announced that it would cut 4,000 jobs and move them to India, sparking a public outcry.  Forrester research estimates that as many as 3.3 million jobs will move overseas by 2015.

The acceleration of work moving overseas has spurred politicians to take action. This month, President Barack Obama promised to close tax loopholes for companies that move work abroad (whether by hiring foreign workers for the same jobs, aka offshoring, or contracting out jobs to foreign companies, aka outsourcing, is not clear).

"I want to see our companies remain the most competitive in the world. But the way to make sure that happens is not to reward our companies for moving jobs off our shores or transferring profits to overseas tax havens," Obama said in a May 4 speech announcing plans to change the tax code to help discourage outsourcing.

French Prime Minister Nicolas Sarkozy has made similar promises, backing laws intended to reduce the number of jobs moving outside of France and offering to help bail out the country's auto industry only if the auto manufacturers did not move jobs to other countries.

The Carreman case is just one example of the consequences such laws can have, intended or not. IBM also offered to allow employees to keep their jobs if they moved abroad to cheaper countries.

Related links:

Extra: Outsourcing actually creates jobs, study finds

How you can still buy American

10 ways you can still buy American

Could Indian outsourcing be in trouble?

How Obama would fix the economy

Comments

 

Unions brought equal rights & labor laws when they were needed.  There is no longer a need for unions.  If some company tried to do what they did to employees in the 30's, 40's etc.  That employee would own the damn company now days.  

I bet most people who read this article are "shareholders".  I don't know about the rest of them, but I don't want to give up my 8% return just to prove a point.  If that CEO makes the bottom line profitable and people buy their stock, therefore driving up the price so I can profit.  Then more power to him!

Jason:

   I am a share holder; but I don't want jobs overseas with so many US workers out of jobs.  And if profit is what you are after - ask your CEO buddies to cut their pay in 1/2...that would save millions; or ask them to for go bonus checks....

I've seem the results of off shore work as well.  Honestly, the really talented people are already in the US because most US companies complained there were not enough qualified workers in the US.  That was a incorrect.  The real reason was the US companies were not willing to pay what the US workers were asking so they invented the shortage.  

oops -  I mean Wilber in my last post, not Jason...

I've worked for one of the Fortune 500 companies for 35 years.   Life has definitely changed since I first started.   This world has fallen victim to greed.  No one, I don't care if you're a CEO or whatever is worth tens of millions a year.   And if they keep this up without giving some things up also, they may be doing all the work themselves or have all the work outside the US.   I'm personally very tired of the unethical greed I see in corporations and financial groups.   How can you feel good laying people off, yet at the same time taking bonuses for millions of dollars.   I think it's indicative of sociopathic behavior.   Wake up, there's a world around you, you are not the world.  

I like the guy that runs Zappos theories, and he's very successful.  

Working for a large corporation has become a game, and there are sure a bunch of people playing it to the max to win, even if means hurting thousands of people around them.    

Life is a game.  

The rich people are simply the ones that play the game the best.

Wilbur - that doesn't make it acceptable to ruin the livelihood and lives of fellow men and women - pretty soon no one will be able to buy anything in this country -

Lots of truth here regarding life and work in India. Society is different, too. When tens of thousands were killed by the last major Tsunami an American M.D. of  Indian heritage asked me why we were making such a big deal over such a small portion of the population being killed in an overpopulated country. Just this week I saw an early evening national news broadcast feature piece. It was a family hardship article about a UAW worker. He spent ALL of his days fishing to distract himself. His son had quit college. The man was articulate and seemed intelligent but morbidly obese. Drawing 80% of his wage not working. Twice my household income since I became disabled with a very painful progressive disease 12 years ago. I worked two years beyond medical advice to provide for my family. Where are the volunteer programs for the paid-not-to-work UAW hiding? Same news broadcast has featured multiple articles about the needy of Detroit. Want to trade that fishing pole for a paint brush for help to the elderly? Help with reading programs for inner city youth? America has a social problem beyond greed. I can't remember last seeing a teenager going door-to-door with a lawnmower or snow shovel. Nearly 50 years ago, when I was 16, I paid cash for my first used car from money saved using shovels and mowers. I was *not* unique. I graduated from college with savings, *not* loan debt. Greed is a minor portion of a capitalist society--we invest our retirement savings in the most profitable companies; look in the mirror to see the face of greed. We are victims of our own sick society. The "entitlement disease." We've lost the Great American Work Ethic. I hope we find it for the sake of our children.      

When a company goes public, they give up any personal feelings toward their employees, they are just a part of the profit.  Every employee of that company works for shareholders.

A good way to be able to buy more American products, is to buy them from privately held U.S. companies.  They actually care about their employees... most of the time.

I think this was a horrible thing to tell employees.  This shows the french clothing manufacturer to be just another terribly run business!  Even if some of their employees were dumb enough to fall for this statement; the company itself would go bankrupt with all the litigation that would start up just trying to keep current customers happy! This is silly!  No one is FORCING a corporation to outsource its' jobs!  The lousy management does it to keep up the level of profits for management!  Unions aren't the answer.  They can't regulate wages worldwide.  It's actually cheaper in many ways to run a much smaller business and build profit margins and benefits for the workers than to keep playing this game.

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