Political Forums - Michigan and Job Growth

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Michigan and Job Growth

Quote:

Unions congratulate themselves for protecting workers’ wages, but they have imposed a heavy price on everyone else. Not a single foreign automaker has ever taken advantage of Michigan’s legions of out-of-work but highly trained employees, preferring to train novices in right-to-work states.

The upshot is that the economies of these states grew on average 18.1 percent between 2001 and 2006, according to Paul Kersey of the Mackinac Center for Public Policy. Michigan’s? It grew too—a grand total of 3.4 percent over the same five years.

Since jobs can’t come to Michigan, Michigan residents have followed the jobs. Michigan lost 11.7 percent of its 25-34 age group between 1993 and 2003—while right-to-work states gained 3.8 percent. Indeed, the 2009 Census revealed that Michigan had experienced the third-highest emigration in the country. Otherwise, Michigan’s unemployment situation would be even grimmer.

http://www.thedaily.com/page/2011/09...rk-dalmia-1-3/

How does one fix Michigan's labor problems?

Quote:

Originally Posted by bhunter (Post 74099)

http://www.thedaily.com/page/2011/09...rk-dalmia-1-3/

How does one fix Michigan's labor problems?

Build cars with the quality, reliablility, prestige and performance of the Germans???

Germany is heavily unionized and still the number 2 exporter in the world (just overtaken by China last year), despite the economic downturn in Europe. The (real or perceived) quality/price ratio is still favorable for their goods.

For the most part, I think the management of the Big Three has failed the autoworkers, not the other way around. Consider for a moment that a modern automobile takes only ~15 hours to assemble. $10/hour wage difference represents $150 per car, or 0.5%. That's not where the problem lies.

People want Accords, Camry's and BMW's and not Tauruses and Impalas (for the most part). Simple as that.

Actually, I thought heavily unionized, socialist Ontario was now the biggest producer of cars in North America. One of the reasons we keep hearing is that the foreign companies just don't want to deal with the US Health Insurance industry. I can't remember how many dollars pet hour they saved by having access to OHIP.

Wonder how much more money they could have invested in their cars if GM didn't have to pay for health care?

Problem is, it's not $10...

And a lot of folks talk pro union, and drive a Accord Camry or BMW.

Still the main question - why are auto makers building in the south, while closing in the (heavily democratic) rust belt?

Pete

PS it's no longer simply 'Michigan', according to the state line sign it's 'Pure Michigan'. I asked my bud up there if they fumigated Detroit :D

I'm no friend of the UAW, but don't really blame them for the (perceived) lack of quality, prestige, reliability, etc. of American cars that has driven the reduced demand for American automotive products.

That said, if I were a large industrial company, I too would locate in a right-to-work state and not in the heavily unionized American rust belt.

Do these workers in the right to work states starve, or work at McDonalds, or are they actually decent blue collar jobs?

Good luck finding one of those in a rust belt city nowadays.

Pete

Quote:

Originally Posted by piece-itpete (Post 74115)

Again, why is Ontario still gaining plants then?

I have no idea Erik. More business friendly?

Pete

Quote:

Originally Posted by finnbow (Post 74109)

Damn! Got to hand it to the Germans; they are the ones carrying Europe.

Quote:

Originally Posted by finnbow (Post 74118)

You don't understand, Alan...This is America, shit rolls downhill, you NEVER blame management, it's always the guy at the bottom of the hills fault.

When I was laid off from Federal Mogul here in VA, that's all I heard from relatives, friends and neighbors about how we "did it to yourselves", "the union" was to blame for the plant closing.......it was a non-union plant.

The reason the company went bankrupt was due to sloppy acquisitions----they bought up some brake companies that were carrying nearly 3 billion in asbestos liabilities.

http://www.ewg.org/sites/asbestos/federalmogul.php

Tell me something; How is ANY of that MY fault?

They're brainwashed, my friend. You won't convince them of anything. Every plant closing is because of "the union" even when there are no unions invloved. I know it's true, Limbaugh and Beck et al told me so, and they are the great beacon of truth................:mad:

Dave