For the US Labor Department, 1,900 workers laid off in March and another 900 in the month of May just did not seem right as the public unit recently levelled allegations on American telecommunication giant, T-Mobile, that it has been moving those jobs abroad in order to save money.
In April, the labor union, Communication Workers of America, filed an official complaint with the department as to have an inquiry in what was really going on as thousands of former American employees had been shown the door in such a sudden manner.
After investigations, the Labor Department came up with the conclusion, following the complaint which was filed in April of 2012, that T-Mobile USA had outsourced call-centre jobs. The exact number of employees laid off was not given in the report, but the department termed it to be “a significant number”.
In accordance with law, those laid off U.S. employees will be eligible to apply for retraining and assistance until and unless work is provided to them in another manner. The main motive behind T-Mobile USA’s laying off is reported to be hiring employees overseas for, “services like or directly competitive with services”, of former workers in America.
According to Bloomberg, the telecommunications giant denied all allegations levelled on it by the Labor Departmet and instead, retaliated by saying such accusations are baseless.
As the job market in the United States continues to shrivel, big companies like T-Mobile USA are said to be creating further constraints by shipping off employment to countries which have already been a main factor in shrivelling up the industry, especially the call-center business.
The biggest reason in outsourcing work to other nations is due to the comparatively cheaper labor and ability to get more for the cost of one in the US. Call-centers have been booming in countries, especially India, where employees work longer hours throughout the week for modest wages, along with companies not having to add extra benefits.
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