The Concept of Outsourcing Labor
A major dilemma in the United States today is outsourcing. Major companies, mainly manufacturing companies, are looking towards other means to find cheap labor costs. These companies that are on American soil, and sometimes even owned by American citizens, are looking for cheaper labor costs in other countries. Instead of hiring fellow Americans, they would rather go to another country where labor costs are so much cheaper. Money rules the world and it can ruin countries.
Unions have been a back bone to the American economy since the Unions have been created. It creates a secure workforce for blue collar workers when it comes to a reasonable working wage, health care and a safe working environment.
Management and union officials often debate over what is considered a reasonable working wage. Union memberships have been on the decline in recent years because what unions consider a reasonable working wage, major companies cannot (or will not) pay. This causes large manufacturing companies to seek out a cheaper workforce. But because of past obligations that imply that these companies must hire within a Labor Union in the United States, are "forcing" them to seek a cheaper workforce outside the US.
Mexico is the first country considered when it comes to hiring a cheaper workforce. The automotive industry have known this for quite some time and are slowly relocating assembly plants just south of the border.
That's what it's all about, isn't it, a cheaper workforce? Well, yes it is, kind of, but that's only half of the answer. The other half of the answer has to do with profits. These companies strive to make a profit; in fact, they expect to make a larger profit than the year before - every year. If taking their business elsewhere, outside the United States, means paying less for labor, then so be it.
That is when the Union steps in. They will announce and remind those responsible about their prior obligations these big businesses agreed to, and will try to come to terms that will benefit both parties. If nothing is decided on and nothing can be agreed to, a strike will come into place and nobody really gets what they want.
There are quite a few countries that have a cheaper workforce than the United States. Mexico and Canada are the first two that come to mind when big businesses are thinking about relocating. China is also a country that may be a possibility and other Asian countries. But it's India that has the cheapest available workforce. India has been number one since 2007 and has gotten stronger as the years past.
India has not only have a cheaper workforce when it comes to "blue collar" workers, but "white collar" workers as well.
You can catch all the latest news when it comes to companies in the United States that are outsourcing or are considering it at Madeinta.com. You will be updated on what is happening around us and what is going to done about it.