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> Truth About Outsourcing Emerges Slowly
post Aug 19 2004, 12:24 PM [ Post #1 ]

Christopher Paige

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We would like to be recorded at the first news site to declare that the REAL motive behind outsourcing was to avoid paying health benefits and retirement benefits to aging White Males.

There continues to be a lot of press comparing the hourly wage of a worker in India to the hourly wage of a worker in the US. This has nothing whatsoever to do with the outsourcing NEED.

In general, the hourly cost of producing a price or service in factored into the sell price of the product or service. However, when companies have to pay retirement benefits to old White Men who are no longer producing anything then you have a problem.

The real motive for outsourcing is the desire by companies to be as "employeeless ™" as possible. And the reason why being employeeless is desirable is that the companies don't have to pay healthcare and retirement benefits to old White Men who are no longer producing anything for the companies.

In our article on the real motive for outsourcing, were indicated that the reported biggest fixed cost faced by US Autoworkers is paying healthcare and retirement benefits to retired autoworkers.

The New York Times today has an article discussing whether healtcare costs is the real reason why companies are not hiring new workers.

The Big Three automakers spent $8.5 billion last year on health care. General Motors estimates that providing health coverage for its workers and retirees adds about $1,400 to the price of each of its vehicles built in the United States.

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