1. 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?
Globalization has been the primary driving force behind the offshoring of jobs. Offshoring can be comingled with the occurrence of outsourcing, but the two are actually divergent concepts. Companies outsource when management hires another company to perform work or services the hiring company used to perform (Miah, 2004). In some situations, it is possible that the hiring company is unable to perform the work or services it outsources. What distinguishes offshoring from outsourcing is that outsourcing can occur domestically. In other words, companies that perform work on the behalf of other organizations can be based in the same country. Offshoring, on the other hand, means that the jobs and work that used to be performed by domestic workers has been moved overseas (Miah, 2004).
Offshoring is a concern for American workers since it cannot only result in the loss of available jobs, but cause average wages for domestic-based work to decline (Miah, 2004). Workers within the United States can advocate for employee ownership of companies, legislation that protects the rights of workers, and build skill sets that are superior to international competition. Union membership is one way to advocate for workers’ rights, but outside of union membership, American workers can develop versatile skill sets, seek out additional training, develop creative, non-routine skills, and developing strong customer relationships (Buhl, 2016).
While it is impossible to predict whether a company will decide to offshore the jobs currently performed by its employees based in the United States, American workers can help protect their employment prospects by differentiating their skill sets. Although union membership gives workers bargaining power and strength in numbers when it comes to advocating for adequate pay, benefits and job stability, workers also need to know what skills and expertise gaps exist. Similar to a company, workers need to define and develop a competitive advantage that has the capacity to span across several different types of jobs and specializations.
2. What is an example of workers who have prevented their companies from offshoring their positions?
An example of workers that were able to prevent the offshoring of their positions was observed in 2004. Contracts to move call-center positions overseas were thwarted by political pressure to keep those jobs within the states of Indiana and New Jersey (Gongloff, 2004). These call center jobs existed due to government contracts, which gave the workers increased bargaining power. At the time, there was a high degree of controversy over awarding U.S. government contracts to foreign-based companies and workers (Gongloff, 2004). One can surmise that this controversy likely still exists due to the perception that the U.S. government should be supporting its own citizen, especially when it comes to those citizens’ economic well-being.
3. What are the strengths of the workers’ approach?
The strength of the workers’ approach lied in the fact that these were jobs made possible by government money. Even though call center jobs are particularly vulnerable since these jobs are typically viewed as low-skilled positions, the workers were well aware that government politicians did not want to be perceived as unsupportive of American citizens. In the private sector, workers in similar call center positions would not have this same degree of leverage. Even though there are plenty of examples of domestic call center employees working for private sector organizations, those positions have a tendency to be low-wage and possess fewer skill requirements.
4. What are the weaknesses of the workers’ approach?
The same strength that the government call center workers used to keep their jobs in the United States is also a weakness. By using political pressure, the workers probably came across as demanding and uncooperative. In addition, the workers did not present reasons related to skills and expertise as to why the jobs should remain in the United States. It would have been highly effective to compare the skill sets and ability to relate to the call centers’ clientele in a superior manner to the competition than to simply use the card of political influence.
References
Buhl, Larry (2016). Six ways to protect your career from offshoring. Monster. Retrieved from
http://www.monster.com/career-advice/article/six-ways-to-protect-your-career-from-offshoring-hot-jobs
Gongloff, Mark (2004). Outsourcing: What to do? CNN Money. Retrieved from
http://money.cnn.com/2004/03/01/news/economy/outsourcing_solutions/
Miah, Malik (2004). Outsourcing & the unions. Solidarity. Retrieved from
https://www.solidarity-us.org/node/411
