House Hearing on White Collar Job Loss

Date: Thursday, June 26, 2003 3:27 PM

JOB DESTRUCTION NEWSLETTER

www.ZaZona.com

The House Committee on Small Business held a hearing on White Collar
Job Loss. The hearing is online at www.c-span.org. Just plug "white
collar" into the video search box. The question and answer part of the
discussion drags somewhat, so if you have limited time watch everything
before that.

Here are some speakers and the approximate time they speak:

Rep. Donald A. Manzullo, Congresswoman Velasquez, and seveal others
Rep. Nancy Johnson 10:48
Bruce Mehlman (U.S. Commerce Department) 17:55
Ron Hira (IEEE) 32:30
John Challenger 38:45
John Peletello 45:00

recess 52:00 - 1:20:00
Christopher Kenton (business) 1:20:30
Paul Almeida (AFL-CIO) 1:28:00
Question and Answer 1:34:00

PLEASE NOTE THAT IF YOU DO NOT HAVE THE REAL AUDIO PLAYER INSTALLED YOU
PROBABLY CAN NOT RUN IT. You can download a free real audio player
from the Real Audio website.

http://washingtontimes.com/business/20030618-102508-8676r.htm

The Washington Times

'Good' jobs can fall to new economy
By Jeffrey Sparshott

Published June 19, 2003

Improving technology, lower trade barriers and strong low-wage

competition from abroad threaten the high-paying jobs of American
white-collar workers, industry and government officials told lawmakers
yesterday.

"Engineers, accountants, architects, programmers and other

high-skilled professionals are learning quickly that someone equally or
more qualified than they are, are taking their jobs for far less money
both here in the U.S. and half-way around the world," said Rep. Donald
A. Manzullo, Illinois Republican and chairman of the House Small
Business Committee.

Mr. Manzullo called a committee hearing to examine the loss of

white-collar jobs as major U.S. corporations such as General Electric
and Oracle shift high-end work overseas.

The trend would parallel already-painful blue-collar job losses.
American manufacturers have shed more than 2.6 million jobs in the

past three years.

Over the next 12 years, 3.3 million white-collar jobs and about

$136 billion in wages will follow, shifting to other nations, Mr.
Manzullo said, citing research from Forrester Research, which analyzes
tech-industry trends.

"The [outsourcing] trend is gaining momentum by the day," said Ron

Hira, chairman of the research and development policy committee for the
Institute of Electrical and Electronics Engineers, a professional
association.

China, India, the Philippines and other countries in Eastern Europe

and Latin America are able to fill the white-collar jobs because
workers are paid less, are well-educated, and are close to
manufacturing facilities that have already moved offshore. Further,
some host countries offer fewer regulations.

Technology such as broadband Internet allows offshore facilities to

stay in real-time contact with U.S.-based headquarters.

While professionals are alarmed, the impact on the U.S. economy is

unclear. Bruce Mehlman, assistant secretary for technology policy at
the U.S. Commerce Department, noted that companies are able to reduce
costs and focus on core business by outsourcing, and that trade in
information-technology services has benefited the United States.

The overall economic situation the loss of jobs fueled by new

millennium preparations, the bursting Internet bubble, a slowdown in
corporate investment and other setbacks also has hurt the job market,
he noted.

"It's difficult to precisely separate American job losses due to

this post-bubble business cycle from slower job growth resulting from
global competition or offshoring of work," Mr. Mehlman said.

But he conceded that growing competition is having an impact on

wages and workers.

"One thing we already know is that U.S. workers and employers are

going to face unprecedented competition going forward," Mr. Mehlman
said.

John Challenger, chief executive of outsourcing firm Challenger,

Gray and Christmas, said it would be futile to try to stop forces of
globalization, but suggested the changes provide opportunities.

"As certain kinds of jobs dry up here, there is no reason to think

that our talented work force will not redeploy their skills in new
directions and endeavors," he said.

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