New Survey Shows Americans Deeply Divided Over Off-Shoring By U.S. Companies, But ELA Poll Reveals Strong Preference For Government Penalties; Non-Union Workers Look To Unions For Help

6/7/2004

From: Stephen J. Hirschfeld, Esq., 415-834-2150 or Stephan Rosenfeld, 215-569-4343

SAN FRANCISCO, June 7 -- The latest national survey by the Employment Law Alliance (ELA) reveals a nation deeply divided over the practice of off-shoring by American businesses with nearly 60 percent of those polled saying companies that send work overseas that could be done by US workers should be punished by the federal government, it was announced today.

ELA, the world's largest independent network of labor and employment attorneys, selected the controversial outsourcing practice known as off-shoring as the subject of its latest "America At Work" poll because, according to ELA CEO Stephen J. Hirschfeld, Esq., "it may be the most volatile issue in the American workplace today with profound economic, social and geo- political consequences."

Conducted by the Media, Pennsylvania-based market research firm of Reed, Haldy, McIntosh & Associates, the ELA survey found that:

-- 39 percent of American workers believe that American companies should be free to outsource work overseas

-- 58 percent believe that companies outsourcing work that could be done by Americans to offshore contractors should be penalized by the US government

-- 52 percent said they would turn to government agencies or elected officials for help if their job was threatened by off shoring

-- 37 percent said they would seek help from a labor union if they thought they might lose their job due to off shoring (Note: Only 12 percent of those surveyed said they currently belong to a labor union)

-- 21 percent said they would seek recourse through the courts if their job security was threatened by the possibility of an employer sending their work overseas

Hirschfeld, a partner in the California-based firm of Curiale, Dellaverson, Hirschfeld, & Kraemer, said the ELA poll, which was conducted between of May 21 and May 23, 2004, and has a confidence interval of plus-or-minus 4.04 percent, also asked about personal workplace experiences with off shoring, and their views toward media coverage of the controversy and found the following:

-- 6 percent of those surveyed said they have lost a job because their work was sent overseas

-- 30 percent know of someone, including a family member, friend or co-worker who had lost a job due to off shoring.

-- 8 percent said they personally feel their job security is at risk because their employer might send their work overseas

-- 46 percent said off shoring is not as much as a crisis as the media has made it out to be

"If any employer thinks the debate over off-shoring is an aberration, or that they are somehow immune from its fallout because of the nature of their business, they should think again," said Hirschfeld after reviewing the poll results. "Even though a relatively small number of workers have actually been directly impacted by off shoring, you can see the anxiety in the American workplace when large numbers are advocating federal sanctions for off- shoring and looking for protection from the government and labor unions. This is a textbook case where employers have got to be communicating with their employees even if they have no plans to send work overseas. Perception can easily overwhelm reality in this environment."

Dr. Wayne Cascio, a professor of business at the University of Colorado and author of "Responsible Restructuring", said the survey results are at once somewhat reassuring (the 39 percent who favor in principle off- shoring) and disturbing (the 58 percent who support government sanctions for off shoring).

"Since there are ongoing needs to meet the product and service demands of customers," he said, "the only way for businesses to win is to innovate constantly in order to stay ahead of the competition. Protectionism is not the answer. Competitiveness, workforce development, and superior quality are keys to winning in the information age."

The Employment Law Alliance is the world's largest integrated, global practice network and is comprised of premier, independent law firms distinguished for their practice in employment and labor law. There are member firms in every jurisdiction in the United States and major commercial centers throughout the world. For further information, including access to the survey charts and graphs, visit http://www.employmentlawalliance.com