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Ohio Democrats Focusing on Making Call Center Moves Tougher
While in recent months, call center jobs have been coming back to the United States—some have even called it a call center renaissance—there are still those considering moves overseas, taking jobs from Americans and giving these to people in completely different countries. This is an emotionally-charged issue, with lives and livelihoods often at stake, and so Ohio Democrats are pulling together a bill making it harder to leave the country with call center jobs in tow.
The Democrats' effort focuses on new requirements that those planning a move out of the country must notify the Ohio Job and Family Services Director 120 days in advance, and those companies that do move jobs out of the country are in turn barred from receiving aid from the state. Similar protections came from an executive order established by governor and former Presidential nominee candidate John Kasich, but with that order set to expire with his term, lawmakers are eager to get more permanent protection in place.
Frank Matthews, a spokesman with the Communications Workers of America, commented “While we are taught never to give our social security number and bank information to a stranger, many companies that we do business with daily have no issues with contracting companies in other countries and handing our most private information over to them.”
Though Matthews may be overstating things a bit—the people in United States call centers are generally no less strangers than those overseas—the ramifications for call centers could be substantial. First, many call centers could simply just pull up stakes for another state with less restrictive measures; when state regulations get in play, it's comparatively easy to move to another state that doesn't have the restrictions.
Call centers commonly have one major reason to move to another country: lower costs. Not only are exchange rates often in favor to the dollar, but cost of living in these countries is often much lower. Thus, lower salaries are called for, and businesses save money. However, given the emotionally-charged nature of such measures, it can be a mark against a company sufficient to keep people from doing business with that company, potentially lowering revenue. Companies are thus left to balance the value; an overseas move can be a huge cost saver, but it can damage public perception and revenue, potentially even funneling business directly to competitors who didn't make the move overseas.
The Democrats' move to put some protection in place for Ohio jobs is a fairly smart if cynical one, given that it's an election year. It also may not provide a whole lot of protection to begin with given that all it takes to get around it is just a move to another state. With state aid tied to it, it may have a little extra impact, but it remains to be seen just how much benefit this will have for Ohio jobs.
Edited by Alicia Young