March 06, 2020

As New Yorkers Struggle To Maintain Jobs Moved Overseas, Gillibrand Visits Utica To Announce New, Bicameral Legislation Prohibiting Federal Incentives For Outsourced Jobs

The End Outsourcing Act Would Protect Jobs in New York and Nationwide by Ensuring Federal Policies Only Reward Companies that Invest in the United States

UTICA, NY— Today, U.S. Senator Kirsten Gillibrand visited the CNY Labor Council 9 to announce her bicameral legislation, the End Outsourcing Act. The bill would protect jobs in the United States by denying tax benefits to companies that try to deduct the cost of sending jobs overseas. It would prevent outsourcing companies from bidding on federal contracts or grants, without disclosing their outsourcing practices.

Additionally, the legislation would create a new tax benefit to help companies bring jobs back to America, and would require companies that have outsourced jobs within a five year period to pay back federal tax incentives and grants from facilities closed due to outsourcing. The announcement comes as hundreds of New Yorkers have lost good paying jobs to outsourcing, most commonly in manufacturing.

It’s time to stop helping companies that ship jobs overseas, and reward those bringing jobs back home,” said Senator Gillibrand. “For far too long, companies have been allowed to use tax incentives to move facilities overseas for cheap labor, leaving hundreds of New Yorkers — and millions of Americans — struggling without jobs. I’m proud that my End Outsourcing Act would eliminate tax benefits for outsourcers and impose significant penalties on companies that outsource, while also providing incentives for companies that invest in the United States. No one should fear losing their job because their company doesn’t want to invest in American labor. This legislation will be a key step to bringing jobs back to the United States and employing workers across New York State.”

“Our government should implement policies that support companies that invest in the United States and employ American workers. This is a critically important issue as the loss of manufacturing jobs has had a negative impact in communities across the country. I commend Senator Gillibrand for her leadership and continued advocacy on behalf of middle class families.” - Mayor Robert Palmieri, City of Utica

“For our federal government to rely on companies that outsource jobs to fulfill contracts is a disservice to hardworking people right here at home. Ensuring that federal contracts are awarded to companies that employ American workers not only supports families across the nation working to make ends meet – it helps our communities thrive. I want to thank Senator Gillibrand and her colleagues for their work on this bill and continued commitment to the success of our working families.” - Assemblywoman Marianne Buttenschon, 119th District

“The Central New York Labor Council and its 18,000 union members across Oneida and Herkimer County stand united in opposition to outsourcing away our best service sector jobs. We will not stand by and watch American corporate greed continue to relocate jobs to other countries in order to meet their bottom line while receiving tax breaks and incentives. We will continue to work with Senator Gillibrand to help pass the End the Outsourcing Act into legislation.” - Samantha DeRiso, President of Central New York Labor Council

In recent decades, the United States has experienced a shift away from domestic manufacturing to low-cost, low-wage countries as companies aim to cut costs and increase profit. Meanwhile, the loss of manufacturing jobs has devastated families and communities in states across the country. The End Outsourcing Act is designed to reverse this trend and ensure that federal contracts funded by taxpayers support companies that employ American workers.

The legislation will address the growing outsourcing crisis in several ways. First, the End Outsourcing Act will prohibit companies who outsource from using federal tax incentives like tax breaks and federal contracts. In addition, the bill will offer a 20 percent tax credit for companies to bring jobs back to the United States; the tax credit will help pay for permits fees, leases, and general moving costs of relocating a new facility or new jobs into the country. Finally, federal agencies will require companies to make mandatory disclosures — on applications for grants, loans, or loan guarantees — if they have outsourced jobs within the last three years.

For decades, Central New York communities have struggled as large companies like Carrier, Honeywell, and National Grid have moved their facilities oversees and left hundreds of New Yorkers jobless. Manufacturing in the region has declined by more than half and one in every five manufacturing jobs in Utica has been lost since the early 2000s.

The End Outsourcing Act is cosponsored in the Senate by U.S. Senators Tammy Baldwin and Gary Peters and will be introduced in the House of Representatives by Rep. Mark Pocan (D-WI-02). The legislation has also received the endorsement of several labor unions, including: the International Association of Machinists and Aerospace Workers, United Steelworkers, Communications Workers of America, the International Brotherhood of Teamsters, and the American Federation of Labor.