Unions warn firms over mad rush to ‘offshore’ UK jobsOn 18 May 2004 in Personnel Today UK businesses must consider the true business case for moving jobs abroad,and not rush “in a lemming-like fashion” into offshoring. Speaking at the Employment Lawyers Association (ELA) annual conference last week,Roger Lyons, joint general-secretary of Amicus and TUC president, said therewas no excuse for fad-driven changes that “disrupt employment andcommunities”. He pinpointed an increase in consultants advising businesses to movefunctions abroad as the chief culprits. “These are people who may havemade fortunes out of mergers and acquisitions in previous years,” he said.”And now they want their new Porsche paid for by the fashion foroffshoring.” Lyons cited a recent CBI survey which showed that 43 per cent of its membersfelt under pressure to offshore, regardless of the business case or lack ofone. “We [the unions] have no objection in principle to the redistributionof work around the world,” Lyons said. “But we have seen a move bymany employers to making these types of decisions without carefully examiningthe advantages and the disadvantages.” His views were echoed by Barry Clark, partner and head of employment law atRussell Jones & Walker, who said offshoring was not a panacea for businessand, if done for the wrong reasons, can be disastrous. “Offshoring has now gone beyond call centres and the general consensusfrom the Government seems to be short-term pain for long-term gain,” hesaid. Malcolm McKinnon, head of the services and investment policy unit at theDTI, said the Government had an open mind about the whole issue and will bepublishing a White Paper in July. “We do recognise the impact of offshoring decisions, and no-one cheerswhen people lose their jobs,” he said. McKinnon added that the Governmentwas trying to maintain a balance by encouraging inward investment to the UK byoverseas companies. By Mike Berry Comments are closed. Previous Article Next Article Related posts:No related photos.