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BTW
Posted by Reality (more from Reality) on Sat, 21 Jan 2012 08:19:23
In Reply to: Wrong again, No Snaab, Sat, 21 Jan 2012 05:50:43
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Given that thousands of people in the same local area lined up for $14.5/hr jobs doing the same thing, the cost of hiring should be around $20/hr (after tax, training cost amortized, etc.), not $52/hr. The mere attempt to compare to Ford cost is indicative of typical UAW mentality: Ford is operating under similar silly UAW contracts.
The Japanese and Western European autoworkers are also operating under delusional legacy contracts from the days when they had a leg up on the rest of the world. That's why companies like VW, Toyota and etc. are accused of shipping jobs overseas in their own countries. Even extremely high margin car makers like MB and BMW have been building the overwhelming majority of their newer and better plants in East Europe, Latin America, Africa and Asia. Why? Because the irrational labor cost back home is restricting production volume. Out of all the major car brands (i.e. excluding tiny volume producers like RR, Ferrari, Lambo, etc.) home based in North America, West Europe and Japan, only Lexus' top of the line products like LS, GS and LX are still exclusively produced in the home country. Even S class, 7 series and A8 are routinely produced in plants with much lower cost of labor.
The reality on the ground is that the work on a automobile production no longer commands an enormous productivity advantage over all other industries like it did back in the 1920's. Any wage advantage auto workers enjoy over the wage of an average worker in the population is essentially the result of looting at the expense of the latter. Of course, the unions know that; that's why the unions took over the industry in the 1930's just as the relative productivity advantage started declining. The companies, led by GM, embraced union in the 1950's in order to keep out competition. It was a cozy relationship, at the expense of the consumers and the dealers and the parts suppliers (e.g. even an ads agency would have more clients to choose from if there had been more carmakers competing against each other, instead of having new carmakers killed off by union labor rules for the whole industry as it happened so many times in the post-war era). All that is coming to an end.
posted by 75.67.1...
Posts in this Thread:
- Kodak's going down, Siegfried, Thu, 19 Jan 2012 11:27:47
- GM=Number one car company in the world, No Snaab, Fri, 20 Jan 2012 05:59:42
- VW wants you to wait for the Mann truck sales #s, JohnA , Fri, 20 Jan 2012 08:54:30
- Did American Airline stop flying, Reality, Fri, 20 Jan 2012 08:47:05
- got your point, Siegfried, Fri, 20 Jan 2012 07:41:01
- Yes, No Snaab, Fri, 20 Jan 2012 09:21:14
- ok, Siegfried, Fri, 20 Jan 2012 12:27:11
- Re: ok, No Snaab, Fri, 20 Jan 2012 13:43:55
- Re:, Siegfried, Fri, 20 Jan 2012 14:50:20
- WAR, AdamSAAB2kAero , Thu, 19 Jan 2012 13:58:46
- you had plenty recently, Siegfried, Fri, 20 Jan 2012 04:53:47
- Wrong on every account, Reality, Thu, 19 Jan 2012 14:53:38
- Re: Wrong on every account, dtech, Thu, 19 Jan 2012 18:50:52
- Much more to Kodak than cameras and film, Noel, Thu, 19 Jan 2012 15:30:21
- Re: Wrong on every account, James, Thu, 19 Jan 2012 15:16:21
- Not so very wrong, IMO, 50N40W, Thu, 19 Jan 2012 15:03:33
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