Replies

I’m no fan of the modern union, but why should the state legislature get involved in such a private agreement?

_________________________________________________________

The state forgoes taxes so that a company will locate there. The state did not forgo taxes so that union members can take advantage of the taxpayers for higher wages. In other words if the union gets in the state will be subsidizing the wages, in effect helping the people that get the subsidy make more money than the average taxpayer in TN. The company came in because of the lower cost represented by the tax incentives, the company has a lot more invested than what they get by reduced taxes. They could have gone to another state but TN told them they could make a better profit there. Now the UAW wants to get their piece of that profit, and for what? What value do they provide. The German company already has better benefits than most companies in the US. About the only place you can get a better deal than a German company is working for the Federal Government.

We have seen what the unions did to International Harvester, to GM and to Chrysler. Ok, now we want to kill another American Factory. VW could have gone to Mexico but they came here. Being here has a lot of advantages to TN, many people in high paying jobs that likely would not be were it not for the plant. Sure we need to kill another golden egg laying goose.

In other words if the union gets in the state will be subsidizing the wages, in effect helping the people that get the subsidy make more money than the average taxpayer in TN.

Won't those higher wages mean more for the state in the form of higher income tax receipts? Isn't that a good thing?

I think that’s the crux of the matter. The state tax breaks are helping drive VW’s net revenue. The union wants it’s cut ( which will be paid out of mber dues)

Therefore TN is functionally subsidizing the presence of the union.

The state has much less of an interest in doing that than it does in subsidizing VW’s presence. Not saying that they should be, but it’s a matter of degree...

We have seen what the unions did to International Harvester, to GM and to Chrysler. Ok, now we want to kill another American Factory.

Volkswagen is almost all unionized and they had a $33 billion PROFIT (not revenues, PROFIT) last year. I'm no fan of unions, but they seem to know what they're doing. Why would you have a bunch of two-bit state legislators telling them how to run their own private business?

The state forgoes taxes so that a company will locate there. The state did not forgo taxes so that union members can take advantage of the taxpayers for higher wages.

If VW wants to negotiate with the Unions over wages and bennies, I don't see how that means the Union empoyees make more than they are worth. If VW is paying them what they are worth already, the Unionistas will likely take home less pay, as they have to pay the Union Dues.

Now, it is possible that the UAW is making a special offer to stay relevant, not getting involved in regulations, firings, etc. And VW thought that was a good long-term bet to shut these guys up once and for all, or even a nefarious plan to keep wages low, like in the old Communist unions, where the Unions lay low for a piece of the action.

I am a little surprised the freepers talk about tax breaks as "giving the company money". It's the company's money until they spend it, lose it, have it stolen from them or have it taxed from them. My main beef is that the other companies don't get the same break, but that's not what we are discussing.

The state forgoes taxes so that a company will locate there. The state did not forgo taxes so that union members can take advantage of the taxpayers for higher wages.

The state subsidizes the net revenue of VW, how VW divides it up between profits and wages is their business. You'd think that the Tennessee legislature would be happy to have more money in the hands of Tennessee workers who will spend money at Tennessee businesses instead of in the hands of stockholders in Germany, but maybe the politicians are playing the politics of unthinking envy and resentment.