Denver Post outsources 29 call center jobs to Honduras as affiliate ends "horrible experiment"

Categories: Media

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Last week, media writer Jim Romenesko reported about a Michigan newspaper that ended what its editor termed a "horrible experiment" with overseas outsourcing of its call center, and credited parent company CEO John Paton with pulling the plug. Days later, the Denver Post, the largest daily in Paton's stable, has shipped 29 call-center jobs to Honduras. Why? It's a long story.

According to a source close to labor talks between the Post and the Denver Newspaper Guild, Post management asked to move the jobs offshore three years ago. The Guild countered with a proposal to set monetary benchmarks in an effort to prove that cost savings could be achieved without shipping the jobs to another country, as plenty of newspapers and companies in other fields have done over the years.

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We're told these benchmarks were met -- but when it came time for the contract to be renewed, members of the Post team insisted that the majority of the local positions had to move elsewhere -- and after negotiations, the paper offered what the Guild considered to be a fair severance package for workers who'd be losing their jobs. In addition, a handful of positions involving e-mail were allowed to remain in Denver.

The tally? The call center had employed ten full-time and 26 part-time workers. Now, two full-time and five part-time workers will punch the clock here, while the remainder have been moved to Honduras. The switch-over was finalized on Saturday.

When asked about this move, the Guild's Tony Mulligan sent the following statement via e-mail:

In order to reach agreement on the full contract, The Post insisted that any agreement must include the amount of savings from the circulation call centers that the paper could achieve by sending that work to Honduras. Post management argued that several other papers had off-shored that work, achieving huge savings without diminishing the quality of service. After months of trying to negotiate an agreement that would keep the call center work at The Post, but reduce costs enough to be competitive with a Central American call center, it became clear that the math just wouldn't work. So the union agreed to the outsourcing of live calls and negotiated additional compensation and benefits for those displaced. Outsourcing was completed by November 24, 2012. Customer service requests submitted by e-mail are still handled by Post employees here in Denver.
Mulligan adds that "a few papers around the county have brought their customer service work back in-house. Hopefully, The Post will do the same."

Continue to read more about the Post's decision to outsource its call center to Honduras.



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19 comments
kathereen.muniez
kathereen.muniez

So that is the truth behind unemployment in their country. They should stop this as early as they can because they are destroying their economy.

-Kathereen Muniez

kathereen.muniez
kathereen.muniez

So that is the truth behind unemployment in their country. They should stop this as early as they can because they are destroying their economy.

-Kathereen Muniez

Juan_Leg
Juan_Leg

I boycotted the Post last year, while convincing many of my friends and associates to join me.                       The Sports Section, is one of the worst from a major city,  in the nation. I'm constantly fielding endless 'Smack' each time Woody or one of the other idiots open their mouths ! And as far as the rest of the paper is concerned, I hate being told how to think by such a conservative source ! If I was that weak minded, I'd watch Fox News ....

don.giannatti
don.giannatti

Hey, dipshit donkey..."William Dean Singleton, the outgoing chairman of the Associated Press, introduced Obama prior to a recent speech before hundreds of journalists in Washington.

"He inherited the headwinds of the worst economic recession since the Great Depression," Singleton said. "He pushed through Congress the biggest economic recovery plan in history and led a government reorganization of two of the big three auto manufacturers to save them from oblivion. He pursued domestic and foreign-policy agendas that were controversial to many, highlighted by his signature into law of the most comprehensive health care legislation in history. And the budget plans proposed by the president on the one hand, and Republicans on the other hand, aren't even on the same planet.""

The guy is a Democrat, and a liberal.

But you want to blame the Republicans for a Democrat?

Clueless clowns rule the roost in your venomous brain.

You are getting to see the fun underbelly of what you got now... LOL.

Jay Jurgens
Jay Jurgens

and they wonder why there is high unemployment,i know someone that needs a job right now.i read that they are giving away citizenship for illegals that buy a house here.really? hey you know screw the people born here lets just give it all to someone else.screw the government they can kiss my hairy ol butt

Dennis Scalf
Dennis Scalf

Should we be surprised? I'm not. F*** em, that paper blows anyway

Josh Bradley
Josh Bradley

Too bad I dont subscribe to their paper. Maybe I will call em up and ask for info, then decline citing this tidbit as my reason. Weak move DP, extremely weak.

Diane Stinson
Diane Stinson

Thanks for hiring within our country.....?! Wtf

DonkeyHotay
DonkeyHotay topcommenter

These Repuglycan maggots can't die fast enough.

camjam
camjam

Outsourcing?!? 122 jobs applied for (and counting), I still haven't been able to find work in this extremely competitive job market and they're OUTSOURCING  jobs?!? 

BackOffImStarving
BackOffImStarving topcommenter

Yes, let's outsource to Honduras.  No human rights and pesky labor laws mean more money for management here in the states.  Hooray!

davebarnes
davebarnes topcommenter

Another nail in the coffin.

camjam
camjam

@Diane Stinson Not only did they move the jobs to another country, they removed American workers from the already filled positions!!! 

DonkeyHotay
DonkeyHotay topcommenter

@camjam   ... ain't Free Market Capitalism great ?

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