Crucial Vote on IT Outsourcing
Source: By Jim McTague, Barron's (subscription req.), 16 July 2007
Big labor and its democratic allies on Capitol Hill have failed twice in recent months to overcome GOP opposition to pro-union legislation. The third time may be the charm. There's a major pro-union provision in the farm bill that will be marked up this week by the House Agricultural Committee.
It is tailored to kill Indiana Gov. Mitch Daniels' $1.6 billion food-stamp/welfare outsourcing contract with International Business Machines, an arrangement that the American Federation of State, County and Municipal Employees says is being championed by right-wing ideologues at the expense of the needy.
The impact would be felt beyond Indiana. If Afscme and its allies, which include farm groups and nutrition advocates, are successful, that would throw a wet blanket on new outsourcing projects in other states.