The Royal Bank of Canada.
RBC’s President came out the latter part of last week and apologized to Canadians for allegedly hiring migrant (foreign) workers to replace 45 of its employees.
I say ‘alleged’ since these foreign workers were not coming into Canada to work rather they were coming here for training and were then going to take these 45 jobs back with them to India – a.k.a. ‘outsourcing’ which is an even worse case scenario but which has been going on now for decades.
Question. Where are most of your ‘things’ manufactured?
If you said China – you get full marks.
If you added the fact that this work was originally ‘outsourced’ from the West – you’d get bonus marks.
Can you imagine how much our cost of living would be if the things made in developing countries like China were made in North America. It would be astronomically high.
So I do not fault RBC in the least for doing what they were in the process of doing – if they did not do it – one of their rivals would and RBC would be at a disadvantage and sooner than later, thousands of its workers’ would be out on the street.
Speaking of that, RBC has over 60,000 employees in Canada and is in the top 5 when it comes to profitability.
I do though think it was tacky of RBC to have the very employees, who were going to lose their jobs – do the training. RBC at the outset should have assured these 45 employees that other comparable work would be found for them in return for their assistance.
But getting back to the issue of outsourcing.
Capitalism requires that businesses stay competitive in order to survive. And in that regard, outsourcing has proven to be a good way for western companies to stay competitive. We cannot compete with developing countries’ much lower wages but we can take advantage of them in the way that RBC and countless others have been doing successfully via outsourcing.
In that regard, I was most surprised to hear Jason Kenney come out and say he was shocked by RBC’s action. He said something along the lines that ‘migrant workers were not intended to steal jobs away from Canadians’ despite the fact that this is often the result and despite the fact that, as mentioned, they were not migrant workers to begin with.
Kenney knows better – he is after all the Minister of Immigration and knows full well the difference between migrant workers (e.g. apple pickers) and outsourcing (e.g. textile workers).
More to the point, he is supposed to be a Minister in a Conservative (i.e. business friendly) Government and dissing companies like RBC which are only trying to stay viable is reckless.
But Kenney is also an astute politician; he knows that more and more Canadians (read also Americans, Europeans etc.) have less and less use for Capitalism despite the benefits it has brought us all.
It seems these days that there is a growing belief that most of the ills facing society are the result of cold, calculating Capitalism.
And as more and more members of society become takers and not makers, this sentiment is bound to worsen.
Indeed, the Guy Currently In The White House has made his career out of bad mouthing Business and it comes a no surprise then that America is spiralling down under the weight of debt in similar fashion to Europe.
As a result, we find ourselves being replaced by Developing Countries when it comes to employing Capitalism to increase the standard of living. In just a few years, China’s economy will out pace that of America’s. It did not have to be.
So back once again to RBC – 45 workers in the scheme of things is small potatoes (unless you are one of the 45 that is) but on the broader scale the huge negative reaction to RBC speaks volumes.
The other day I called the local Ottawa office of a international company (not a bank) and my call was answered by someone in the deep american south. The next day I called the same local number and was put through to the Philippines. It is just a way of life now.
For all those who have lost patience with Capitalism I would be most interested in hearing from them what system they would use in place of it.
As for RBC President Gord Nixon – he made a mistake …. not for permitting outsourcing…but in apologizing for having done so.
As I see it …
‘K.D. Galagher’