New Jobs Bill to Curb Outsourcing

A new jobs bill has been proposed, which will make it mandatory for U.S companies to disclose the number people employed abroad. The sponsor of the bill is Rep. Gary Peters, a Democrat from Michigan. Until now, companies disclosed the number of people on their payrolls in entirety, but never broke-down the data. The new bill will ask companies to provide information regarding the number of employees Country-wise, in the U.S; the information will have to be provided State-wise.

Within the framework of the current rules, huge multi-national corporations like Apple and IBM have kept such data confidential. The Outsourcing Accountability Act, H.R. 3875 would direct firms with revenue over 1 Billion to classify such data. Companies would also have to keep a track of the increase or decrease in percentage of jobs.

Rep. Peters believes the law will make Americans more prudent when it comes to choices, they would not like to spend their hard-earned dollars on a company that puts Americans out-of-work.

“It will help consumers and investors make informed choices about whether they want to spend their hard-earned dollars on companies that create American jobs or companies that outsource them.” “People have the right to know which companies are shipping jobs overseas, and which companies are creating jobs for well-qualified Americans,” he said

Rep. Tim Bishop from New York , the second sponsor for the bill said “The first step in incentivizing the creation of jobs in America is having an honest assessment of our companies’ employment practices and empowering the American people to reward good corporate citizens who hire American workers, if they choose to do so,”. Rep. Jerry McNerney, democrat from California is the third sponsor of the bill.

Data suggests that almost 2.9 million jobs were cut in the U.S, in between 2000 and 2009, in the same period 2.4 million jobs were added overseas. The existing high rate of unemployment and outsourcing has forced President Obama to consult industry majors like Jeff Immelt, the CEO of GE to create more domestic jobs. General Electric is one of the few companies that already discloses its outsourcing data.

All said and done, one will have to wait and see how this bill pans out and see if it does anything to tackle unemployment, which is the actual problem.

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