Privatization, outsourcing and subcontracting2. The hidden costs of outsourcing: A union viewpoint

The author describes the adverse impact that subcontracting and outsourcing have on the lives of American workers, and the hidden or underestimated risks and costs they can entail for the employer. The author recommends that, when a CBA is silent on subcontracting and the employer asks the arbitrator to apply a “rule of reason,” the arbitrator consider, in depth, the hidden and long-term costs of outsourcing, and to provide a sufficient remedy and one that will discourage similar employer action in the future.