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Comment by MR4D | Hacker News Reader

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MR4D·

This sounds great until it comes time to set up a new supplier contract and they go to India.

When they outsource something to India because labor in the US is "too expensive", I'm going to give them hell for it.

For what it's worth, I'm not against the policy, but the second-order effects are going to suck for some.

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This is wrong minded. Microsoft is requiring this of the companies that offer their janitorial services, cooking, etc - which is HUGE

Janitorial company keeps 20% of staff full time with parental leave benefits, 80% are temporary contractors that don't qualify for parental leave.

At least that's how companies in Canada get around the requirement.

Still better for the 20%, right? It would be 100% temp workers otherwise.

Right, so now the cost of maintaining the office space of a US worker has increased and that goes into something called “fully-burdened FTE cost”, which is basically the whole cost of putting an employee on he payroll in the US. The more you raise that cost, the more likely you are to use offshore labor, even if the salaries are the same.

Utilities, insurance, and taxes are three other costs in the fully burdened rate. Salary is only one piece.

Actually in India maternity leave is mandated by law.

What’s wrong with new supplier contacts going to India?

Nothing at all. But if MSFTbdoes Hingis that increase the labor cost and then move jobs overseas because labor costs are too high, then I call BS.

Does that help?

This rule applies to both American and foreign suppliers so why does this disproportionately affect American labor costs?

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