DFLers push call-center option bill

01/25/2007

Northshore jobs - not Offshore jobs


By Dane Smith, Star Tribune
Last update: January 24, 2007 – 8:25 PM


State Rep. Joe Atkins was talking on the phone with a computer company's customer representative recently when he asked the technician, "What's up with that?' "And she said, 'Up where?' " said Atkins, DFL-Inver Grove Heights.

Only after more conversation did he discover that she was unfamiliar with American idioms and had answered from a call center in New Delhi, India, Atkins said.

Fueled by increasing consumer concerns about the explosive growth of offshore call centers, and more specifically about the security of information transmitted to foreigners, Atkins and other DFLers are pushing for legislation that would entitle Minnesotans to request an alternative U.S. call center if personal or financial information is being sought.

The bill, sponsored by Atkins and Sen. Dan Sparks, DFL-Austin, also would require those on the other end of the line to disclose, if asked, what country they are in.

"We're getting more complaints from folks who say they can't understand customer service people, with the language barrier, and people are extra nervous about giving out personal information," Sparks said.

Versions of the "where-are-you" and "give-me-an-American-number" proposals have been pushed for at least a couple of years at the Legislature. They were opposed by businesses and have been modified to address corporate concerns. Business interests are studying it, willing to work further with sponsors, but still haven't approved it, said Tom Hesse, vice president for governmental affairs of the Minnesota Chamber of Commerce.

"Any time one state wants to regulate interstate or international commerce, it raises red flags," Hesse said. Federal laws that address identity theft are sufficient to protect consumers dealing with companies that use foreign call centers, Hesse said. Companies concerned about the bill include financial institutions, health-care companies and retailers, he said.

Atkins scoffed at the idea that Minnesota can't regulate international commerce. "We do it all the time. If they are doing business here, they are subject to Minnesota law, and it doesn't matter if they are in Pakistan or India."

Labor power

The sponsors acknowledge that an impetus for the bills is organized labor's support, specifically the Communications Workers of America (CWA). Union leaders say hundreds of thousands of communication and information technology jobs have been "outsourced" to foreign countries, especially India, in the past decade.

The legislation might not have much effect on the continuing outsourcing of American jobs, said Tim Lovaasen, president of the Minnesota council of the CWA, adding that it really serves as more of an "awareness bill" than a solution to the problem.

"If enough people raise enough stink about this, maybe they'll bring a service center or two back to the United States," Lovaasen said. "And there is very legitimate fear about identify theft. If it happens in a foreign country, it can be very hard to prosecute, and you are in big trouble."

Some form of the legislation might be pushed by the new Democratic majorities in Congress. A Call Center Consumer's Right to Know Act was introduced by Sen. John Kerry in 2003. Atkins said Democratic majorities in Washington and St. Paul give the bills new life.

A Minnesota legislator with roots in India, Sen. Satveer Chaudhary, R-Fridley, said he is concerned that some support for the bill is driven by resentment of foreigners and "jingoism."I have just as many difficulties dealing with call centers in Louisiana," he said.

But any effort to help consumers and encourage more call centers in Minnesota, especially in rural areas, makes sense, Chaudhary said. "We shouldn't be off-shoring, we should be North-Shoring," Chaudhary said, referring to efforts to establish call centers in economically distressed rural areas, especially northeastern Minnesota.

Strong support for the legislation is building in the union stronghold of the Iron Range, said Sen. David Tomassoni, DFL-Chisholm. He said call centers for Northwest Airlines and Blue Cross-Blue Shield are doing well on the Range.