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Outsourcing Attack Backfires

Democratic congresswoman heavily invested in companies that have profited from outsourcing

Kathy Hochul / Wikimedia Commons
August 24, 2012

Rep. Kathy Hochul (D., N.Y.) recently attacked her election opponent for allegedly outsourcing American jobs, yet Hochul has personally profited from investments in companies, such as her own family’s, that outsource to, and do business with, China, India, and Russia.

Chris Collins, Hochul’s Republican opponent in the race for New York’s 26th congressional district, has come under fire from Hochul and Democrats for allegedly outsourcing American jobs to China.

But a close look at Hochul’s personal financial disclosure form for 2011 shows net assets totaling between about $1 million and $2.25 million, but she could be worth much more, thanks to two blind family trusts, about which she has thus far refused to disclose any details.

Her family wealth comes from the Computer Task Group (CTG), a company that her father cofounded. CTG admitted as recently as last year to outsourcing jobs to Russia.

"In the past few years, more companies started using or are considering using low cost offshore outsourcing centers to perform technology-related work and complete projects," the company stated in its last annual report to the SEC. "Currently, we have partnered with clients to perform services in Russia to mitigate and reduce this risk to our Company."

CTG regularly does business with companies like the China Steel Corporation and the Chengdu Seamless Steel Tube Plant.

According to Hochul’s 2011 Financial Disclosure, Hochul also holds up to $45,000 in funds that invest in countries like Japan, China, South Korea and India.

Despite these ties, Hochul has attempted to make an issue of her opponent’s business background and has accused him of trying to "hide" his connection to businesses engaged in outsourcing.

Collins campaign aide Chris Grant said Hochul’s ties to outsourcing "highlights our opponent’s hypocrisy and just how weak her record is on job creation."

"Voters are disappointed that someone that’s never created a job in the private sector and was part of a company would attack someone who’s created 500 American jobs in the 26th District of New York," Grant said. "Not only has Chris not done what the Hochul campaign has accused him of, but he’s done the exact opposite."

Grant pointed to an instance where Collins insourced jobs from Mexico to the United States.

"One of the first things he did as the head of the company, was shut down the facility in Mexico and move those jobs to Buffalo," Grant said.

The Hochul campaign did not return multiple requests for comment.