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National Grid looks at outsourcing jobs, Gillibrand asks the profitable company to rethink plans

By Billie Owens

This is from Sen. Kirsten Gillibrand's office.

National Grid USA is considering outsourcing much of its Northeast operations that would result in significant job losses across New York. Gillibrand is urging National Grid to reconsider its plans and keep jobs in New York.

The company is considering outsourcing much of its information-services work, including software programming, computer networking and other functions. One request for proposals (RFP) for outside vendors has already been issued, with possibly three more in the works. The plan could send as many as 1,200 jobs in New York and New England overseas.

Yet National Grid USA made nearly $1.5 billion in profits last year, due in large part to the quality American workforce it relies on.

In a letter to National Grid President Tom King, Gillibrand wrote:

“In this economic time, it is very disconcerting to hear that any company would consider outsourcing its jobs to overseas businesses when we have a competent and capable workforce here in the United States. A workforce that you have been utilizing since 2002.  It is even more upsetting to know that a company who made $1.43 billion in profits last year would look for ways to cut costs by reducing it employees.”

The senator is working with businesses in all sectors in all regions of the state to keep their workforces in New York, and she is working on new legislation that would encourage businesses to start hiring again – putting New Yorkers back to work.

Howard B. Owens

Actually, I'm with Gillibrand on this one. National Grid is actually a regulated monopoly. It's not a truly competitive company that needs to stay lean to compete in the global economy.

Their so called competitors all have to buy their power from them.

This isn't, to me, a free market question, because there is no free market that National Grid is part of.

We as consumers really have no other choice but to be National Grid customers, so if we don't like their practices, what are we supposed to do?

Paying for utilities is not much different than paying taxes. When you consider that without utilities you won't be able to heat your home or feed your family, the coercion National Grid has over our lives is really no different than the gun the Feds hold to our heads every April 15.

So with that kind of power, somebody like Gillibrand should step forward and say, "wait a minute -- you owe us these jobs."

Now you may argue that outsourcing these jobs will save consumers money, but that's not really long term thinking. In the long run outsourcing these jobs will have longer lasting and deeper negative economic impact than any cost savings benefits achieved by outsourcing.

National Grid has no business outsourcing these jobs and somebody like Gillibrand should step forward and say it's wrong, because it is wrong.

Jan 5, 2010, 12:49pm Permalink
Jennifer Keys

I agree, Howard. I can't even fathom the long term negative econcomic impact the loss of jobs would have on our area. Every store front empty? More empty houses?

I'm glad the Senator is looking out for us.

Jan 5, 2010, 1:24pm Permalink
Philip Green

Maybe if the Senator had worked to protect jobs while a NYS Assemblyperson we would be better off. It seems that NYS's policies are toxic to job growth and job retention! It is my opinion that she is simply trying to garner positive press while attacking a problem she helped to create while in the NYS legislature

Jan 5, 2010, 1:27pm Permalink
Sean Valdes

Jennifer, I don't know if the entire local economy revolves around National Grid's employment level - so much so that every store will close and we'll become a ghost town. I wouldn't be surprised if Senator Schumer passed this issue on to Gilibrand to help bolster her chances of re-election - remember all of these press releases on both sides are very coordinated. Also, I remember this happening with RG&E a few years ago - then it was revealed (I think in the D & C), that it was mostly a bluff on RG&E's part to ease some regulations from the PSC and be allowed to increase rates.

Wouldn't it be nice if the politicians that write those great press releases were actually the politicians that were in Albany and Washington?

Jan 5, 2010, 2:59pm Permalink
Lorie Longhany

Philip, Senator Gillibrand was never a NY State Assembly person. She was the Congresswoman from NY 20 and before that she was a practicing attorney.

Jan 5, 2010, 4:09pm Permalink
John Roach

National Grid is not a US company, it is British. So, maybe they can do what they want?

Or maybe a US company will offer to buy them?

Maybe Gillirand can get General Motors, which we all now own, to stop outsourcing. That would make more sense for her to spend her time on.

Jan 5, 2010, 5:22pm Permalink
Rick Pastecki

Unfortunately this will continue to happen in New York. If the Senator were looking out for her constituents, she would abandon her liberal policies/ideology. These companies are in the business to make money. She needs to fight to cut taxes and the beaurocracy in this state. That will keep these companies here. Not conjoling or righteous indignation. She needs to go along with Schumer.

Jan 5, 2010, 7:38pm Permalink
John Roach

Gillirand voted to raise their taxes with health care. She allowed the Bush tax cuts to expire.

You might think that the tax increases are fair, that they have to pay their "fair share" and that they can afford it. But are you really surprised they will try to move jobs to aviod the increases?

This is a forgien company that invested here to make money, not give the money to Washington and Albany.

And, if they try to raise rates to cover the tax increases, the same people will scream "corporate greed".

Maybe Rick is right. Make it more attractive to hire here. Help companies keep and creat jobs, not drive them away.

Jan 6, 2010, 7:32am Permalink

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