Outsourcing jobs to lower-paid workers in lesser developed countries (LDCs) has been a standard practice of big business for some time. Now, the Royal Bank of Canada is beginning the process of “outside-insourcing.”
At the end of April, 45 tenured employees of the Royal Bank of Canada will be terminated and replaced with immigrants from India who have arrived in Canada since the start of the year. The to-be fired employees are currently training their lower-paid replacements in how to do their jobs, one of their last official duties before being let go. RBC currently outsources some call center responsibilities to India, however, the jobs in question cannot be performed remotely, which is why the bank has used Canada’s liberal immigration laws to import non-Canadians to work on-site.
The new workers were recruited by IGATE, which specializes in importing workers from LDCs to developed countries so companies can replace their higher-paid workers with employees who have lower salary expectations. According to the CBC, IGATE plans to aggressively expand its operations in Canada in the coming years as more companies seek to rid themselves of pricey Canadian laborers.
The workers also said they were not offered jobs with iGATE and were told this “realignment” might expand to affect more of the bank’s 57,500 employees in Canada.
“We were told this is almost like a pilot project,” the unnamed employee said.
“I am certain this isn’t an isolated incident,” Moreau said. “I know that iGATE has a very aggressive plan to grow their business over the next few years, and that’s going to be at the expense of Canadian citizens who are working.”
In March, 55,0000 jobs were lost in Canada and the nation’s unemployment rate surged to 7.2%.