NEW YORK (AP) -- Laid-off programmers have filed a lawsuit
accusing the U.S. Department of Labor of illegally denying
them job-training benefits available to workers in industries
where jobs have moved overseas.
The suit, which seeks class-action status, was filed Jan. 2
in the U.S. Court of International Trade in New York, said
Michael G. Smith, attorney for the plaintiffs. The suit wants
a judge to order the Labor Department to make laid-off
software workers eligible for weekly cash payments and other
benefits under the Trade Adjustment Assistance program.
In recent years, U.S. 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 labor is inexpensive, in
what's known as "offshore outsourcing."
Some displaced American workers have turned to the Trade
Adjustment Assistance program for help. Begun in the 1960's,
TAA was designed to soften the blow to U.S. 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 Labor Department has ruled
many software workers ineligible for TAA benefits. The Labor
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 Labor 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.
Labor Department spokeswoman Lorette Post said the
department doesn't comment on pending litigation. Justice
Department spokesman Charles Miller said the department
wouldn't comment because it hasn't yet filed its response to
the trade court.
Copyright 2004 Associated Press. All rights reserved.