Cheap Labor

[d-ray657]

Friday I was visiting with the business manager of one of the local construction unions. One of the local contractors approached him about setting up a production shop (production shops are not subject to the construction CBA, and don't require journeymen workers). This company had entered into a venture with a German company that has a patent on a new type of product. The companies were looking for a low-ball deal in which they would not even offer retirement benefits, and lower wages than most of the production shops around.

I mentioned that Germany was more unionized than the US, so the company shouldn't be averse to paying a union scale. It appears, however, that the company is coming over here looking for cheap wages. It has happened - the powers that be have managed to frighten the working class enough that we are moving toward third world wages.:eek:

Regards,

D-Ray

[finnbow]

BMW has done this for years (Spartansburg, SC). Interestingly, IG Metall (the German equivalent of the UAW (only smarter)), does not protest. They figure that as long as the company stays profitable by making money in foreign markets, they will retain their jobs with a profitable company in der Vaterland.

BTW, some call centers are being opened by Indian entrepreneurs in the US as labor is getting cheaper here than in Bangalore.

What goes around comes around. I have no issue with the Germans coming here and opening up a non-union shop. It beats the hell out of no shop at all.

[d-ray657]

It appears that they want the union label on this product. They just don't want to have to pay too much for it.

Regards,

D-ray

[Charles]

Whenever China moves in because we will work cheaper than slaves, then it's time to turn out the lights.

Chas

[finnbow]

Maybe the Deutcher's should built it in Mexico and import its finished product duty free via NAFTA?

A bunch of modest paying jobs beat the hell out of a zero higher paying jobs. Wasn't this what the US auto industry debacle was all about? The unions should not let the perfect be the enemy of the good IMHO.

[merrylander]

Besides if we don't let them in we will get another lecture from Angela Merkle.

[BlueStreak]

Friday I was visiting with the business manager of one of the local construction unions. One of the local contractors approached him about setting up a production shop (production shops are not subject to the construction CBA, and don't require journeymen workers). This company had entered into a venture with a German company that has a patent on a new type of product. The companies were looking for a low-ball deal in which they would not even offer retirement benefits, and lower wages than most of the production shops around.

I mentioned that Germany was more unionized than the US, so the company shouldn't be averse to paying a union scale. It appears, however, that the company is coming over here looking for cheap wages. It has happened - the powers that be have managed to frighten the working class enough that we are moving toward third world wages.:eek:

Regards,

D-Ray

Well, GOOD! Think of all of the money businesses will save, Don! That's just awesome. I'm so happy for them. I'm gonna go get out my poster of Ronnie Reagan and give it a big, wet kiss. I'm so happy his dream of turning Americas workforce into a bunch of yazzabossin' step-n-fetchits is coming true. It's a glorious day for unfettered capitalism and greedy corporate freedom indeedy. Do ya think they'll finally be free to bullwhip us as well? One can only hope. We've been real uppity the last few decades, God knows we deserve a good whoopin'.

Jus, doan lay me off, Massa. I be good sho' 'nough. Shine dose shoes up real nice!:)

Dave

[finnbow]

Besides if we don't let them in we will get another lecture from Angela Merkle.

Unfortunately, Frau Merkle could probably teach us a great deal about running the economy. I doubt we'll listen, however.

http://www.ft.com/cms/s/0/4aad862e-e27b-11df-9ea3-00144feabdc0.html#axzz17vyeUt00

http://www.bloomberg.com/news/2010-11-30/unemployment-in-germany-declined-to-lowest-level-in-18-years-in-november.html

[Charles]

Unfortunately, Frau Merkle could probably teach us a great deal about running the economy. I doubt we'll listen, however.

http://www.ft.com/cms/s/0/4aad862e-e27b-11df-9ea3-00144feabdc0.html#axzz17vyeUt00

http://www.bloomberg.com/news/2010-11-30/unemployment-in-germany-declined-to-lowest-level-in-18-years-in-november.html

Damn, Finn, you're putting a shot across everyone's bow today.

Did you take sourpuss pills for breakfast???

Go eat your chicken, maybe you'll be less cantankerous with a full belly.

Chas

[finnbow]

Damn, Finn, you're putting a shot across everyone's bow today.

Did you take sourpuss pills for breakfast???

Go eat your chicken, maybe you'll be less cantankerous with a full belly.

Chas

I thought I was being charming.:D

I'll also admit having a little bit of a thin skin with regard to contemporary Germany, having lived there for over a decade. I loved it and still have a lot of friends there, not to mention a son who just moved there in September.

[d-ray657]

My entry was not intended to aim criticism at Germany. I was pointing our both the irony and the sadness that another company was coming here looking for cheap labor. I don't mind foreign companies setting up shop here at all. However, if anyone want's the advantage of a union label - which shows that the goods were built under a union contract, and makes them more marketable in most of the construction market - they should pay the union wages and benefits that the union label represents.

Studies show that the level of unionism has an inverse relationship to the wealth gap, and thus a direct relationship to a healthy middle class. I don't understand why a great majority of Americans would not want to strengthen the middle class.

Regards,

D-Ray

[Grumpy]

You get what you pay for. Oh wait, thats only if its made in Asia..

[finnbow]

My entry was not intended to aim criticism at Germany. I was pointing our both the irony and the sadness that another company was coming here looking for cheap labor. I don't mind foreign companies setting up shop here at all. However, if anyone want's the advantage of a union label - which shows that the goods were built under a union contract, and makes them more marketable in most of the construction market - they should pay the union wages and benefits that the union label represents.

Don - Don't worry about any sensitivities I may have about modern Germany. They're my own hangups. :D

As for unions in construction, it's down to about 15% I think. I'm not so sure that a union label, per se, makes anything in construction more marketable. I do understand though that if one wants the union label, you have to pay the tariff.

[merrylander]

Finn, I have (well had, unfortunately she was killed in a traffic accident) a very dear friend in Germany and enjoed my times there but the people and the government are two different things. Just as my friends in Europe like us as a people but did not always find our various administrations exactly loveable.

[finnbow]

Finn, I have (well had, unfortunately she was killed in a traffic accident) a very dear friend in Germany and enjoed my times there but the people and the government are two different things. Just as my friends in Europe like us as a people but did not always find our various administrations exactly loveable.

What's interesting though are the European countries that we just love to criticize making the tough decisions to get their economic houses in order. Somehow, their political systems (in the northern European countries, anyway) seem to allow tough decisions to be made. Ours, on the other hand ........