A new trend – American and European companies start facing legal challenges from white-collar unions against sending jobs overseas and outsourcing of services
Sunil Sen
Apr. 10, 2005

It is a new trend that cripples Indian outsourcing bonanza.

American and European companies are facing increasing legal challenges from the white-collar unions against sending jobs overseas and outsourcing services.

A union representing US employees of Reuters Group Plc is mounting a legal challenge against outsourcing of many of their editorial jobs to Bangalore in India. An independent arbitrator will hear the Newspaper Guild of New York's charge that offshoring US-based editorial jobs violate its contract with Reuters. The arbitrator's decision will be legally binding. The case could take months to complete. The employees have planned a protest against outsourcing on Thursday. As the lawyers square off, journalists and other employees will picket Reuters'' US headquarters in Times Square and other US bureaus at lunchtime to call attention to the dispute.

"Instead of focusing on producing the highest quality news, Reuters is now focused on producing the cheapest news," New York Guild President Barry Lipton was quoted as saying in a press release. "This change is not just bad for our members, it's bad for Reuters and its clients."

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