Over the past ten years, New York lost 37,310 call center jobs. Verizon alone has sent at least 1,000 good NY call center jobs overseas. We're fighting to pass the New York State Call Center Bill to protect our workers and communities and keep good jobs here.
The GOP tax bill passed in December 2017 slashed the corporate tax rate from 35% to 21% with the promise that corporations would use their bigger profits to reinvest in their companies and workers. But in reality, it cuts taxes for the super-wealthy and corporations and actually makes it easier (and cheaper) for companies to send jobs overseas by taxing profit made abroad at an even lower rate.
New York should not subsidize corporations that destroy jobs. Grants, loans, tax benefits, contracts, and other financial assistance should be withheld from companies that shift jobs overseas.
New York should incentivize corporations to bring back good jobs. This legislation creates tax credits for each call center job they bring back from overseas subject to age requirements.
New York needs high-quality jobs. Verizon has outsourced DSL technical service calls and FiOS customer service work overseas to Mexico, Canada, the Philippines and India. Other companies have also moved work overseas. Our state badly needs high-quality jobs.
Overseas Call Centers Fail to Protect Customer Data and Privacy. Domestic call centers protect customer data better than overseas call centers. For example, a PricewaterhouseCoopers survey found that 83 percent of outsourcing companies in India surveyed had information security breaches during the previous year.
Verizon has sent at least 1,000 good New York call center jobs overseas.
- Verizon operates ten call centers in New York, employing approximately 2,500 CWA members. Verizon has already off-shored at least 1,000 high tech customer service jobs from New York State to Mexico, India, Canada and the Philippines. Close to 800 of those are jobs being done in India servicing NYS DSL customers.
- From 2009 to 2013, the Verizon workforce at the Syracuse Fiber Solutions Center shrunk from 386 to about 300 workers even as hundreds of thousands of new customers have signed up for FiOS internet and TV, and FiOS has gained over 1/3 market share where it is being offered. Verizon now uses non-union contractors both domestically and overseas for work previously performed at the Syracuse call center.
- The two locals representing business and residential customer service workers in NYS have lost close to 65% of their membership in the last decade, shrinking from 5100 to under 1900 jobs in that time period.
- Nationally, the United States has lost 200,000 call center jobs in the past decade. New York’s economy is undermined by outsourcing of call center work.
Some major call center employers are in New York.
- Upstate New York is a major center for the call center industry, with many call centers located in the Buffalo and Syracuse areas. Some of the major call centers in New York include:
- Wayfair is expected to open a call center in Big Flats in 2018 and employ 450 workers with a possibility of an additional 125 workers. These jobs would pay roughly $38,000/yr with benefits.
- Paychex is opening a call center in Henrietta that will employ 625 workers. This will replace the Verizon call center that laid off 600 workers when they closed their Henrietta call center in 2016. Verizon is known to outsource customer service operations to the Philippines.
- GEICO operates a call center in Amherst that employs 2,700 workers and is expanding in 2018 to employ a total of 3,300 workers.
- Maximus operates a call center in Gates that employs 2,000 workers.