You got to love outsourcing. You can keep your job if you move to India and work for the local wages. See, no one wants to move to India so India isn't really competitive. How would the outsourcer feel if the government said it would tariff the imports at a rate to make up for lost revenue and taxes? That would make the domestic producers "competitive" in the process. Or how would they like it if they were told they can outsource to India but they can't charge 1st world prices? Outsourcing isn't really about being competitive, it's more about cheap labor and making the 1st world revert to 2nd and 3rd world levels over time. Of course, no one would actually accept the offer to move to say India. India wouldn't let them take jobs that could go to their own. They're not quite as stupid as America and western nations.
http://blogs.moneycentral.msn.com/topstocks/archive/2009/05/13/employees-offered-worst-deal-ever.aspx
http://blogs.moneycentral.msn.com/topstocks/archive/2009/05/13/employees-offered-worst-deal-ever.aspx
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 search on Kumo.com 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.
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