Question

In a globalized workplace, many companies actively seek to move their base of operations and manufacturing plants to cities and countries with a low-cost labor force. What steps, if any, can workers take, either within a union or outside of a union, to protect their jobs and prevent companies from offshoring their positions and responsibilities? What is an historical or current event example of when workers who have successfully prevented their companies from offshoring their positions? Why were the workers successful?

Answer 1

Over the past decade data from the United States Department of Commerce show that U.S. multinational corporations - the big brand-name companies that employ a fifth of all American workers - reduced their work forces by approximately 3 million jobs while increasing employment overseas. Going on strike is the most commonly used method by the labor unions to protect their jobs and prevent companies from offshoring their positions and responsibilities. Another method could be putting restrictions on the immigrant workers. In an recent example, 36,000 employees of Verzon has gone on strike protesting outsourcing. Verizon has outsourced 5,000 jobs to workers in Mexico, the Philippines and the Dominican Republic. Verizon is hiring more low-wage, non-union contractors, the union says. The union also claims Verizon won't negotiate with people who work in Verizon stores and is closing call centers. And Verizon is asking workers to work out of state, away from their homes, for months at a time. The effect of this is yet to be seen. But this could might work for the workers as sales have been steadily falling over the past several years. Last year sales fell by nearly 2%, and Verizon lost 1.4 million voice customers.