Date:14/08/2004 URL: http://www.thehindubusinessline.com/2004/08/14/stories/2004081402620400.htm

Back Reuters firm on expanding Bangalore centre

Abhrajit Gangopadhyay

Bangalore , Aug. 13

REUTERS will go ahead with its plan to shift some editorial jobs to the low-cost Bangalore centre despite legal threats from Newspaper Guild of New York.

The company is of the opinion that it has not violated any collective bargaining norm in the US as alleged by the Guild.

Speaking to Business Line, the Reuters spokesperson, Ms Susan Allsopp, said, "We don't believe we are in violation as they claim, and intend to pursue our plans as outlined."

Earlier this week, the union representing the US employees of Reuters threatened to challenge the company's move to outsource some US-based financial reporting work to Bangalore.

The migration is likely to take away about 20 jobs from the US and the Newspaper Guild of New York is against such job loss, alleging violation of collective bargaining agreement by the company.

The collective bargaining agreement, which is currently being renegotiated, allows the Guild to pursue violations through a grievance process that includes binding arbitration.

However, Ms Allsopp said that Reuters was hopeful of minimising the job cut by finding "new roles" for those who were likely to be affected.

Reuters plans to beef up its now-small content team in Bangalore to close to 40 journalists to expand data collection efforts.

"This is about providing more content on our news service and doing it efficiently. Much of the data is released electronically and isn't tied to a specific location. By collecting it via the dedicated team in Bangalore it will free correspondents in other locations to do more of primary reporting on companies and events where they are based," she said. "The developments in Bangalore are about creating new content, not cutting back."