Ictu fears huge job losses from outsourcing

New measures to mitigate the effects of the outsourcing of thousands of Irish jobs have been called for by the Irish Congress…

New measures to mitigate the effects of the outsourcing of thousands of Irish jobs have been called for by the Irish Congress of Trade Unions.

In a study of offshore outsourcing published yesterday, Ictu says it is likely that between 10,000 and 25,000 Irish jobs are being lost each year to lower-cost economies.

Offshore outsourcing, or "offshoring", occurs when companies move jobs to different countries, usually to avail of lower labour costs. The practice is not new and Ireland has been a beneficiary in the past, Ictu points out in its study, "Offshore Outsourcing: the Implications for Ireland".

What is new, however, is that a significant number of "white collar, middle-class" jobs are now under threat of being "shipped abroad", the study states.

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It adds that an increasing number of firms are threatening to move jobs offshore unless they secure harsh changes in work practices and remuneration.

It calls for the Government, employers and unions to adopt a range of initiatives to ameliorate the effects of this trend.

For unions, this means officials and shop stewards must become more adaptable and "seek re-training and upskilling for members".

"Simultaneously, we must try to persuade management to invest in the firm and not take profit at the expense of the firm as some do."

Ictu admits its suggestion that up to 25,000 jobs a year are being outsourced abroad is a "guestimate", because there is an insufficiency of available data.

The study calls for labour laws to be strengthened and better enforced, particularly in light of the Gama Construction and Irish Ferries' controversies.

It recommends that all major public spending projects should carry a requirement that the winning bid "must be in full compliance with good practice in Ireland in areas including health, safety, equality, tax compliance and trade union recognition".

It also calls for systems to be put in place to keep displaced workers in touch with the labour market.

Chris Dooley

Chris Dooley

Chris Dooley is Foreign Editor of The Irish Times