Letter to Nancy Pelosi, Speaker of the House, Steny Hoyer, House, Majority Leader, James E. Clyburn, House Majority Whip - Congressman Cohen Asks House Leaders to Prevent Privatization of Federal Jobs

Letter

Date: May 12, 2020
Location: Washington, DC

Dear Speaker Pelosi, Majority Leader Hoyer and Majority Whip Clyburn,

I am writing to express my concern regarding the Tennessee Valley Authority's (TVA) decision to
outsource 108 of its Information Technology (IT) jobs to private contractors. In the middle of a
global health pandemic and national emergency, it is incomprehensible that TVA would outsource
jobs held by hard-working Americans.

According to the latest unemployment numbers, over 22 million Americans find themselves
unemployed as the country continues to deal with the economic consequences caused by COVID-19. Protecting and creating American jobs should be Congress' top priority. Unfortunately, it does
not seem to be of top consideration for TVA.

It has been reported that TVA is outsourcing these jobs to Capgemini, CGI and Accenture Federal
Services. While TVA has insisted that these jobs will remain in the United States, I remain skeptical
since outsourcing labor is integral to these companies' business models. For instance, in a publication titled "Outsourcing: IT," Capgemini, which is based in France, stated, "Outsourcing has long been used by Fortune 500 corporations to control costs and enhance IT operations. But for many midsize companies, it has been out of reach… Capgemini helps companies recast that formula… Through a variety of tailored outsourcing arrangements, we have enabled companies to shift people and resources from tactical, day-to-day operations -- and have focused them on keeping IT aligned with business." It is no surprise that Capgemini has half of its workforce, or 100,000 workers, in India alone.

Additionally, judging by other utility companies' actions, it is hard to remain optimistic that these
jobs will remain in the United States. In 2017, when Pacific Gas and Electric (PG&E) laid off
hundreds of workers in California, at least 70 of those jobs were outsourced to India. Initially, PG&E did not disclose the outsourcing of these jobs in its layoff announcement.

It is extremely disappointing that TVA is going against its own mission of "making life better for the
people of the Tennessee Valley" and is defending its decision to eliminate these jobs to "leverage the market." Unfortunately, it is clear that Congress must step in to ensure additional jobs are not
outsourced as the economy begins to recover from the effects of COVID-19.

Therefore, as you negotiate the next coronavirus relief package with the U.S. Senate, I respectfully
request the inclusion of language that prohibits federal government agencies, including the TVA,
from privatizing federal jobs during the COVID-19 pandemic and any other national emergency in
the future.

I appreciate your consideration of this request, and I am grateful to work alongside you in the House of Representatives. Thank you for your unwavering commitment to the safety, health and prosperity of all Americans.

As always, I remain,
Sincerely,


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