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TCS Faces Class-action Suit in US Over 'Anti-American Bias' in Jobs

The federal judge expanded the case filed by American workers who lost their jobs at TCS offices in the US into a class-action suit, adding to the worries of the IT giant.

Rounak Kumar Gunjan | News18.com

Updated:December 28, 2017, 3:10 PM IST
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TCS Faces Class-action Suit in US Over 'Anti-American Bias' in Jobs
Representative image. (Reuters)
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India’s largest software company Tata Consultancy Services (TCS) is facing a legal trial in the US over allegations of being biased against American workers. According to a Bloomberg report, TCS’ request to dismiss a 2015 lawsuit that accused it of violating anti-discrimination laws by favouring South Asian workers was rejected by a federal judge in California.

The federal judge expanded the case filed by American workers who lost their jobs at TCS offices in the US into a class-action suit, adding to the worries of the IT giant.

On Wednesday, the federal judge in Oakland, California, rejected a request from TCS to dismiss the 2015 lawsuit accusing it of violating anti-discrimination laws by favouring South Asians workers.

Interestingly, TCS hired 12,500 people in the US between 2011 and 2016, creating more, according to a study by The Cambridge Report.

The software major spent over $3 billion (Rs 19,360 crore) on employment, education and academic partnerships over the past three years in the US.

While the case predates President Donald Trump’s election, its objective mirrors one of his campaign promises: ‘To reduce the use of overseas workers in US’.

A class action suit is a case wherein one of the parties is a group of people who are represented collectively by a member of that group. In such a case, a representative sues a defendant or a number of defendants on behalf of the group, or class of parties. This differs from a traditional lawsuit, where one party sues another party for redress of a wrong, and all the parties are present in court.

Earlier, TCS bagged a $2.25-billion outsourcing contract from Nielsen, global data and measurement firm. The partnership, signed in October this year, is a renewal of

TCS’ existing collaboration with Nielsen. The two companies had struck a 10-year deal in 2008 for $1.2 billion, which was expanded to $2.5 billion in 2013.

Under the new deal, the terms of the agreement have been extended for an additional five years to expire on December 31, 2025, with three one-year renewal options granted to Nielsen.
| Edited by: Puja Menon
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