3.07.2004

US business fearful as Senate votes for outsourcing curbs The Business Times Online (3/06)
"Legislation still faces hurdles, but companies are raising profit alarm"

"The London paper said GE, like many multinationals, rejects the crude analysis that a job outsourced is a job lost, and points to the fact that its employment levels in the US have remained steady for 10 years. However, it has judged the backlash serious enough to warrant an extended warning to the SEC. 'The political climate in the US could change so that it would not be practical for us to use international operations centres, such as call centres,' GE said an updated prospectus.

In contrast to earlier filings, it also warns specifically of bills recently introduced in Congress that would require employees of call centres to disclose their physical location at the beginning of each phone call.

'If enacted, this legislation could result in consumer pressure to curtail our use of low-cost operations outside the US, which could reduce the cost benefits we currently realise from using them,' added GE's Genworth division in the filing."

Uh, hello you ding-dongs: that's the point of the legislation. See, it's all about profit and there is no guarantee of "new jobs" because the traditional economnic rules have all changed now and no one knows what the new ones exactly are, but in a rigged, uneven game you know the advantage won't go to the "little guy."

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