The suit, which seeks class-action status, was filed
Jan 2 in the US Court of International Trade
in New York, said Michael
Smith, attorney for the plaintiffs. The suit wants a
judge to order the Labour Department to make laid-off software
workers eligible for weekly cash payments and other
benefits under the Trade
Adjustment Assistance program.
In recent years, US companies have laid off thousands
of software
workers and other high-technology employees. At the same
time, companies are adding technology staff in India and
other developing countries where labour is inexpensive,
in what's known as "offshore outsourcing."
Some displaced American workers have turned to the Trade
Adjustment Assistance programme for help. Begun in the
1960's, TAA was designed to soften the blow to US
workers of increased imports or transfers of jobs
overseas. Traditionally, workers in manufacturing have
been eligible for the benefits, which include vouchers
for job-training classes and cash payments after regular
unemployment compensation runs out.
But over the past two years, the Labour Department
has ruled many software
workers ineligible for TAA benefits. The Labour
Department has said software
and information-technology services don't qualify as
products, or "articles," under TAA guidelines. Only
workers who made more tangible products, such as
clothing and furniture, can get TAA benefits, the
department has ruled.
The lawsuit claims that about 10,000 software
workers in the United States should be eligible for TAA
benefits, but would be ruled ineligible under current
Labour Department practices. Those that have been denied
benefits include former workers at International
Business Machines Corp, Electronic Data Systems Corp,
Nortel Networks Corp and Motorola Inc, according to the
lawsuit.