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To: poinq
The Wisconsin worker is under utilized because few companies have moved to Wisconsin. And many of its larger companies have moved out to states that have easier union laws. Several years of this have left Wisconsin, a state with a large education well trained workforce, without anyone to hire them. Remember when Milwaukee was a beer town. While beer is still consumed in Milwaukee more than anywhere else. The beer is more likely to be made somewhere else.

Not necessarily true of beer, but for most everything else, "somewhere else" seems to be China, Mexico, or some other Third World country. Even if all unions disappeared from the US tomorrow, US wages would still be an order of magnitude more expensive than Third World labor.

27 posted on 02/20/2015 10:57:31 AM PST by ek_hornbeck
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To: ek_hornbeck

I think union wages are not the biggest issue for companies. Union rules are far more of an issue. Companies can handle higher wages pretty easily. But labor flexibility is far more important. Most companies create a process and then change it, evolve it, shrink it or grow it. If unions did not stand in the way, or slow down the modern adaptation of a company, I would think many companies would not mind the higher salaries.

I just retired as a CEO of a public company. And I can tell you that costs are a simple issue that is easily handled. There are input costs, labor costs, energy costs, communication costs, administration and healthcare costs. These go up and down all the time. And we handle them. But what we spend most of our time doing, is adapting to the market place to bring in more revenue. We compete to stay relevant. And we need to change constantly. Dr. Edward Deming pointed out that companies change or die.

Unions want to control change. They want to get paid to accept change. And they want a voice in the change. This puts a CEO at a distinct disadvantage from a CEO that can evolve more quickly. If steel costs go up, a CEO deals with it. If Labor costs go up, a CEO deals with it. But if a CEO can’t adapt to the market. The CEO goes where he can adapt. Or the company slowly dies.


45 posted on 02/20/2015 11:28:37 AM PST by poinq
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