This is the core issue. Trump can't fix this.
The union has to decide if it's more important to keep the jobs, or preserve the unreasonable cost of labor. They can't keep ramping up the cost of labor over and above cost of living, and remain competitive.
There are alternatives: increasing productivity faster than the cost of labor is a net win for both employer and employee. But, that requires compromise on work rules.
Labor Union Spokesperson...
Now there’s a voice we can trust.
It never dawns on him he prices his workforce out of existence.
Or does it? Was that the goal all along. We know the Leftist plans for the U.S.
No U.S.
“Trump can’t fix this.”
Of course he can. Abandon NAFTA and tariff countries with cheap labor. The solution is actually quite simple. It’s just a matter of political will.
Besides, $25.00/hr for factory workers is still below what it ought to be relative to inflation since the early days of Henry Ford, and if President Trump succeeds in halting and reversing illegal immigration, that rate should go even higher due to ACTUAL market forces. Imagine that, reduce the illegal labor supply and watch market forces at work! What will they think of next?
Will it cost us more to buy stuff? Absolutely, but we’ll also be able to afford it because of higher wages, AND we’ll have full employment, the original vision of Henry Ford: pay people who make stuff enough that they can buy the stuff they make.
What would be considered a “reasonable wage”?
$25/hr x 52 weeks at 40 hrs. a week = $52,000 / year. In Indianapolis, that’s a decent income for, say, a family of 4, but taking the middle figure (for Mexican labor) the differential with Mexico is nearly 9.1:1. If that differential gets cut to 5:1, and again assuming the middle of the Mexican wage range, $2.75/hr, then the resulting $13.75/hr comes out to $28,600 / yr. It’d be pretty tough for a family to scrape by on that, in 2017, without lots of gov’t assistance. :-(
Carrier may be able to curb labor costs relative to productivity, but, it probably takes a lot more than that.
The unions have lost membership over their contracts. I know a worker in Indianapolis cannot live on $3 an hour-—but there has to be room for a major compromise.
The unions have blindly followed the Dems for years. NOW—Wisconsin & other states have/are working on breaking up the Teacher’s union & SEIU is in court trouble in many places.
They have been running with the bit in their teeth & Trump will rein them in.
Funny how many current union pension recipients are now getting their pensions cut drastically because their beloved Union didn’t invest the money very well. With the skimming that happens in Unions, I am surprised their cuts are not greater.
Local man was here 10 days ago whining about his years as a body shop man in a union has led to them stating his pension will be cut in half...He tried to convince me that ALL body shops & machine shops were union...I told him no way. Ge worked in the S F Bay area all of his life. He only knows what was going on there.
I think part of the theory of corporate formation is one of it’s principle reasons is for the public good.
In fact incorporating is a PRIVILEGE.
A privilege can easily be revoked.
Dissolved.
Liquidated.
“According to United Steel Workers Union President Chuck Jones, the manufacturing company cited the wage difference as the reason they are moving. In Indianapolis, workers were making $25 per hour, plus benefits. The workers in Mexico will be making $2.50-$3 per hour, plus benefits.
This is the core issue. Trump can’t fix this.
The union has to decide if it’s more important to keep the jobs, or preserve the unreasonable cost of labor. They can’t keep ramping up the cost of labor over and above cost of living, and remain competitive.
There are alternatives: increasing productivity faster than the cost of labor is a net win for both employer and employee. But, that requires compromise on work rules. “
There will be some type of compromise. Perhaps a reduction in work force too. But, the inducement to the company will be substantial tax benefits. Like those Trump mentioned regarding Apple and their potential for manufacturing in the United States.