Outsourcing and Labor Unions

Outsourcing Jobs and Labor Laws

Outsourcing Jobs to Foreign Countries Without Fair Labor Laws

government currently does not prohibit companies from outsourcing jobs to foreign countries that do not have unions and/or fair labor laws. Whether this practice is acceptable or should be stopped is worthy of consideration. There are two main reasons for researching this topic. First, the cost to outsource to foreign countries is often much less than the cost to pay employees in the United States to do the same work (Baldwin, 2006; Dine, 2007). That means that the profit for the company can be larger, and the amount customers have to pay for the products can be lower, which benefits both the customers and the company (Panitch & Swartz, 2003). Second, not all countries have the same types of labor laws, and some countries have no unions and few labor laws at all (Schifferes, 2004). This can mean that the less expensive labor and higher company profit can come at a serious price for the employees who are making products. Because of the risk to employees, the government should prohibit companies from outsourcing to countries that do not have proper unions and/or fair labor laws for employee protection.

Those who have the power to make these kinds of changes should carefully consider how they address the issue, but it is something that affects everyone who buys goods from U.S. companies that outsource their work (Olive, 2004). The decision-making power lies with the government, but only to a point. For example, if enough people decide not to buy goods that come from companies that outsource, those companies will have to make changes. The current view on the topic is one that is mostly ignored, largely because people do not think that much about where their goods come from (Rowthorn & Coutts, 2004). Some do not realize that outsourcing is so common, or that it often involves countries that do not really care about how workers are treated. The official position also matters, because it is one that does not say anything about the issue at all -- and it is possible that it is time that is changed.

The scope of the paper will address the issue thoroughly, and will look at the way in which employees are treated in the United States in contrast to the way they are treated in other countries to which companies commonly outsource. Major sections will include a clear discussion of the problem, solutions and advantages, and possible disadvantages and answers. By breaking the paper down that way, the researcher can show that there is an issue worth discussing, that there are solutions to the issue and advantages to correcting it, and that there are also possible disadvantages to making changes. There are, however, answers to those disadvantages, as well. The questions to be answered by the study include:

1. Is it necessary for the United States government to make changes that would prohibit companies from outsourcing to countries without proper labor laws?

2. Will making these changes drive up the prices beyond what consumers are willing to pay for common goods?