Abstract
Drawing on examples from the automobile and medical products industries, this paper outlines an approach for confronting outsourcing. Two dimensions define the approach. The first in volves a direct challenge to the costing method used by manage ment in make-or-buy decisions; for various reasons, management often employs a flawed comparison method that unfairly burdens in-house operations. The second dimension involves a shop-level process for systematically collecting data on the full range of costs associated with outsourcing, and then incorporating such costs into the make-or-buy comparison. This paper concludes that the present economic conditions of diminished capacity utilization and layoffs present an opportunity for unions to in-source work and reemploy union members.
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