3.23.2004

GM To Cut Costs By Outsourcing White-Collar Work: Company Says Work Will Not Displace American Workers ClickOnDetroit.com (3/23)
"As part of sweeping cost-cutting efforts, General Motors Corp.'s manufacturing arm plans to dramatically increase spending on white-collar work in Canada and overseas, the company said.

The latest spending plan, outlined in an internal company report, represents less than 1 percent of GM's global vehicle operations budget, said company spokesman Dan Flores.

"In 2003, we began offshoring activities moving $3.5 (million) of work to lower-cost locations," the report said, "and we are planning to increase that to $48 (million) in 2004."

Read that again: from $3.5 million in 2003 to $48 million in 2004. WOW

Most of the white-collar work sent out of the country has gone to Canada, and that's likely to be the case again in 2004, Flores said.

GM said the work involves tasks not currently done by American workers and will not displace American workers.

Wait, so it's work that was sent to Canada first, so who was doing it before? Oompah-Lumpahs? Wouldn't that be creepy if GM had Oompah Lumpahs toiling for them? Oompah lumpah, lumpah-dee-do, I've got a little riddle for you...

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