Shakedown of Dr. Pepper in NY

The Buffalo News ^ | 7/5/2010 | Douglas Turner

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Six years ago, Sen. Charles E. Schumer urged company site selectors to take a fresh look at upstate New York. He said Buffalo and Rochester were among the best places in the country to build a factory.

What would those private sector decision- makers think now of the campaign that Schumer and the rest of the state’s Democratic notables are making to muscle a national company into making a deal with its labor union?

more at: http://www.buffalonews.com/2010/07/05/1104029/politicians-wade-into-private.html

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Thanks to Dan Riehl at http://www.riehlworldview.com/ for linking to this article.

[Gondring]

There's the issue of whether it's appropriate for the comptroller, et al., to involve themselves, but then there's the even more basic question of whether what they push for even makes sense.

It may also be about whether the plant winds up shuttered. It is about whether Maffei and the others are kidding the locals into thinking they can hold back the eternal night of wage competition from China, where half the apple juice consumed in the United States is made.

Problem is, even many "conservatives" don't seem to get this. They rally strongly against illegal immigration, but then have no answer for what happens when the rising costs make it no longer competitive for a company to stay in business here.

The conservative answer, of course, is that the American workers have to increase productivity or reduce their labor cost to compete with others in the world--i.e., get in line with the market conditions. But many so-called conservatives seem to think they can ignore the market, despite their knowledge that the market isn't something you can just pretend doesn't exist.

So whether we like it or not, a letter from a state or federal official, or legislation against illegal immigration, can't change the fact that Americans must accept lower wages if they can't increase their productivity to make up for their excessive costs (which includes OSHA protections, SSI contributions, corporate taxes, etc.)

TANSTAAFL.

[Steven Tyler]

The incremental extra wage in the US is partially offset by transport cost.
The largest cost difference comes from legacy (pension) cost and restrictive work rules.

The Union negotiators made off with hugh bonus’ based on Pension benefits that are not affordable for the company nor will be collected by Union retirees