You somehow forgot to mention the jobs are being OUTSOURCED.
To Mexico.
This is not about unions. It is about globalism, and “free trade”.
Traitors.
So you support unions?
Unions make it too difficult and expensive to run a business profitably.
Govt regulations and unions push jobs overseas.
The unions are what made the labor costs so high that the company had no option but to outsource or perish.
Come on, CNN, don’t you know putting Americans out of work is down right patriotic?
jobs are outsourced because it cost too much locally. This is not the business’s fault, but the law/regulation/taxes of the country. Businesses move to Mexico because they’re obviously more friendly to business than America
Why do you think the jobs are being outsourced??? Union involvement is a major reason why.
The jobs aren’t being outsourced, they are being OUTFORCED.
It’s a Swedish company.
Try paying drunken UAW goons ridiculous salaries to not work for a few years.
Then see if you will still claim that it’s not about unions.
Why are jobs being outsourced?
Because Mexicans, Chinese, & billions of others in the world will work for jobs that pay far less than they do in America while not demanding 30 days vacation, 10 days sick, being paid for time spent in the bathroom, and demanding that someone hired to put bolts on CANNOT also put the nuts on the bolts.
You want to keep jobs in America with the above rules in place then you must go all over the world and convince the rest of the world those rules are best for them also. Good luck with that one.
Sheese.
True, now let’s get back to supporting all of those bonuses this move makes possible.
Ok. Say you are running a company that has a number of factories that supply components for large ticket items.
After looking at production variables vs costs, you find one factory that has great output, but is not profitable because of production to overhead is negative. Looking deeper into the causes, you find the wages extorted out of you by the unions are stifling profitability of that factory to operate. What do you do?
You can bust the union, generating a lawsuit that locks up even more funds and closes the plant.
You can consolidate factories and move to another location, like Memphis TN(new 700,000 sq ft facility going up there) but that takes time and capital investment and there is no guarantee that the unions won't do the same thing at the new factory.(TN is RTW)
You can ask for renegotiation of the contract to reduce the possibility of closing the plant and the jobs associated with it. That means strikes, courts, and closing the factory anyway to cover those costs.
Find cheaper labor to improve the profit of the company.
Now, I said this about the auto industry going to mexico, so I will try it here...it takes more people to produce the same product in mexico...paying more people less money per comes up at about the same per unit labor cost...management makes the same money (the difference in pay here per unit is neglegable) so, the big question is, if there is little to no change in labor cost per unit to manufacture, why go outside the US to do it? (hint, it has something to do with government interference)
Businesses exist for only one rational purpose, to make money for their owners (shareholders). They do not exist to provide jobs - that is merely a side benefit
When unions and governmental regulations and taxes makes it difficult or impossible to make money for the owners the business has an obligation to take appropriate steps to fix the situation and return to profitability. If this means closing down the unionized, taxed and highly regulated plant then so be it.
Its a Swedish company, owned by people and institutions from all over the world, making and selling all over the world. They made/make things that people all over the world with their money want to buy.
Now, what’s the problem? What, are they trapped here? Can you point me to any private industry with unionized people that is growing in labor force? I can’t think of one. Hummmm.
Think of the American things that have grown. Computers, pharma, software, agriculture, home building. Union or non union? Hummm..
If the wages were as low as in Mexico, do you think the jobs would have been outsourced? Or do you think companies outsource just for the sake of outsourcing?
“This is not about unions. It is about globalism, and “free trade.”
Actually, the Electrolux move to Mexico is about unions, and their wage demands, and the economy of modern transportation. Tax and Tariff all you like, Smoot, but, most else being somewhat equal, cheaper labor usually gets the jobs.
Of course it's about globalism and "free trade" and not unions. But many here hate unions more than they love their fellow countrymen.
Mexico is going down the toilets. How long will Electrolux last in Mexico when they’re ruled by the cartels?
This is the fault of the unions and the politicians, not the company.