Axne Introduces Legislation to Hold Corporations Accountable for Outsourcing
WASHINGTON – Today, U.S. Rep. Cindy Axne (IA-03) introduced the Outsourcing Accountability Act, legislation that seeks to curb the practice of corporate outsourcing. The legislation would require publicly-traded companies to disclose in their annual report where employees are located by State and Country in order to hold companies accountable for shipping American jobs overseas.
Currently, publicly-traded companies are not required to list where their employees are located, making it easy for corporations to deceive laid-off workers and the American public when they ship jobs overseas. This legislation will disincentivize the practice by increasing transparency by allowing the American public to identify which companies are outsourcing their jobs.
Additionally, the legislation would help ensure workers have access to Trade Adjustment Assistance (TAA), a program that provides American workers with support and training if they can certify that they were laid off due to outsourcing.
“In our increasingly global economy, Iowa workers are constantly at risk of losing their jobs to lower paid workers overseas, a practice that is hurting Iowa families and consumers. In order to protect their public image, it is far too common for corporations to deceive laid off workers and the American public when they ship jobs overseas,” said Rep. Axne. “By holding companies accountable for outsourcing, this bill will help disincentivize the practice and give Iowans the information they need to make informed decisions about supporting companies that support Iowa jobs.”
Congresswoman Axne began looking into this issue following a March 12th House Financial Services Committee hearing where she questioned former Wells Fargo CEO Tim Sloan about the 400 Des Moines workers the company laid off in late 2018. When Ms. Axne asked Mr. Sloan if those jobs were moved overseas, he said no. However, her office has since heard from dozens of Des Moines Wells Fargo current and former employees who said that they were told to train replacements India, some were even sent overseas to do so.