Bill targets firms that move jobs out of N.Y.

Legislation would withhold fiscal aid

The bill grapples with the hot issue of disappearing jobs, one that has long been a concern in the state and is now part of a national debate reaching into the presidential race.

Two Westchester County legislators -- one a Democrat, the other a Republican -- introduced identical bills in both houses. They define ''outsourcing" as moving jobs out of the state and ban most forms of incentives from going to any company that sends jobs overseas or even out of state.

The topic hits home in the mid-Hudson, where top employer IBM Corp. has confirmed at least one phasing out of local jobs in which the work is going to India.

No help from taxpayers

''This bill does not bar outsourcing,'' Assemblyman Richard Brodsky, D-Greenburgh, said Tuesday. ''This bill is an attempt to say, if the free market requires taking $80,000 jobs in New York and turning them into $10,000 jobs in (New) Delhi, please don't ask the New York state taxpayer to pay for it.''

In the state Senate, Nicholas Spano, R-Yonkers, introduced companion legislation.

Each house has referred the bills to committee. Some observers predict a lot of debate and work when it comes to the practical details.

In the mid-Hudson, Kevin Cahill, D-Kingston, signed as a co-sponsor. ''This bill is part of an overall package of what we in the Assembly are trying to do to create a higher level of accountability in our economic development programs,'' he said.

Favorable comment came Tuesday from two Republicans, Assemblymen Patrick Manning of East Fishkill and Joel Miller of Poughkeepsie.

''I think it's a great bill because many legislators like myself are conflicted that we're trying to assist businesses to stay in New York at the same time jobs are leaving New York for other countries,'' Manning said. ''I don't think that's the proper use of taxpayer money.''

Miller said, ''I find it very, very disturbing the way the American corporate world has elected to outsource almost every type of job we have to an overseas location. ... In the long run, if we continue doing that as a country, we're going to be in woeful shape; and if we do it as a state, we're going to have an economy that suffers.'' Families have already suffered severely from job losses, Miller said.

Sen. Steve Saland, R-Poughkeepsie, was more cautious about the bill, after giving it a quick look.

''Clearly, the problem is a growing one and one which, hopefully, we can address in some fashion,'' he said. ''But looking at this particular bill, it certainly is extremely broad. It appears the loss of one job would be enough to trigger the ramifications of the prohibition, the loss of benefits,'' including being barred from any for five years.

''This bill, if it's going to respond to the issue, is one that is going to require a bit more work,'' Saland said.

The bill's definition of outsourcing differs from that of employers, who use the term for contracting with another company to perform a certain function.

Another term in the debate is ''offshoring,'' which means that local jobs disappear and the work is shifted to a company in another country, one with lower wages.

Last month, IBM Corp. confirmed 80 jobs at Poughkeepsie would be phased out in a global consolidation of procurement paperwork operations. The work goes to India.

Bill addresses fiscal aid

Ralph Montefusco, an organizer with Alliance@IBM, a local of Communications Workers of America, said the New York bill is one of 14 nationwide, but unusual in that it attacks fiscal aid.

''The nut of it is still the same, but the key issue here is still the use of public funds,'' he said. Also, the bill calls for company reports on jobs and aid, ''and that is something that is definitely lacking.''

Ronald Coan, president and CEO of Dutchess County Economic Development Corp., the county's agency for promoting jobs and investment, said, ''It's easy to understand motivations and be supportive of its general purposes,'' but added, ''It becomes obvious that technically, it is going to need significant revision.'' The bill doesn't modify laws that govern actual programs, like Empire Zones, he said.

IBM released a statement on the legislation saying withdrawing economic development assistance is a deterrent to future investment and job growth.

''Rather than adopt an isolationist approach, we believe the public and private sectors can and should work together effectively to ensure the growth and success of the economy,'' IBM said.

Impact on IBM unclear

How the bill would affect IBM is unclear, given that the company simultaneously creates jobs in one place while cutting them in another.

Brodsky declined to explain how that would work, saying he'd welcome the chance to negotiate with IBM.

Bruce Bernstein, president of the New York State Software Industry Association, said he doubts the governor would sign a law that would imperil IBM's investment in New York.

''That's going to be a big problem for the governor. There's a huge amount of aid to IBM,'' he said.

Todd Alhart, a spokesman for Pataki, said the governor's efforts to strengthen New York's economy have created more than a half a million new jobs in the state since he took office in 1995. ''The governor supports any efforts to create new jobs for New Yorkers, but we'll have to review the specifics of the bill,'' Alhart said.

Gannett News Service contributed to this report.