Toyota Relocating Corporate Offices To Texas

[Rajoo]

Texas to pay $10,000 for each Toyota job relocated
www.marketwatch.com/story/texas-to-pay-10000-for-each-toyota-job-relocated-2014-04-28

This is bribery. I don't believe that the state of Texas is paying this bribe to relocate workers from other states, especially California. Question I would have is if the cost of operation is so much lower than California, why didn't they move on their own rather than be enticed monetarily?

It is a rhetorical question.

[mpholland]

Originally Posted by BeamOn

Texas to pay $10,000 for each Toyota job relocated
www.marketwatch.com/story/texas-to-pay-10000-for-each-toyota-job-relocated-2014-04-28

This is bribery. I don't believe that the state of Texas is paying this bribe to relocate workers from other states, especially California. Question I would have is if the cost of operation is so much lower than California, why didn't they move on their own rather than be enticed monetarily?

It is a rhetorical question.

They were going to move on their own. They had already narrowed it down to Denver, Atlanta, Charlotte, or Dallas.
Texas just happened to be willing offer a big financial incentive to boot.

[Rajoo]

Originally Posted by mpholland

They were going to move on their own. They had already narrowed it down to a few key places, Texas just happened to be willing offer a big financial incentive to boot.

Agreed. I have not looked into all of the details of the Texas transaction, but my intuition tells me that relocating current employees from California is not in the cards. Typically a state (or city) will offer incentives based on the number of "local" jobs they create.

[mpholland]

Originally Posted by BeamOn

Agreed. I have not looked into all of the details of the Texas transaction, but my intuition tells me that relocating current employees from California is not in the cards. Typically a state (or city) will offer incentives based on the number of "local" jobs they create.

Typically, corporate jobs are offered an opportunity to move with the company. Since this is a fairly extreme restructure, I am sure there will be some job loss as they are bringing folks from New York and Kentucky, as well as from California. I don't think there are going to be a whole lot of Texans working for Toyota for a while. It will however bring a lot of money to the local economy with several thousand new people spending money and paying taxes, plus a whole lot of Texans working to build the facilities.

[4-2-7]

Originally Posted by mpholland

They were going to move on their own. They had already narrowed it down to Denver, Atlanta, Charlotte, or Dallas.
Texas just happened to be willing offer a big financial incentive to boot.

I keep saying the incentive is mute as it's extremely lower than what other states offer big corporations.

[BlueStreak]

Originally Posted by JCricket

Some interesting points. I am not sure they are all accurate, but well intended for sure.

I have to ask, is this a good thing that Toyota is moving to texas? I understand that it is for their bottom line. But what about the employees? When should a companies dedication to its employees trump increases to the bottom line? At some point "free market" no longer is free and the people become slaves to the businesses. I can't see when that is ever good. When a business has to move, that is one thing. To me it is a bit unethical to fire a plant full of people so that you can rehire a new group of employees at a lower wage.

I do think you are correct in the reasoning that Toyota did this for income tax, energy cost, real-estate costs, etc. So why not bring the employees with them to texas and share some of the savings with them. Thus they are more competitive and the employees win too? Just a thought

It's not a manufacturing operation. Very few hourly employees involved.

Originally Posted by mpholland

If I get this correctly, these are corporate/management jobs and not manufacturing jobs so the union question is pretty much a moot point. I also get the impression that Toyota was going to move somewhere else to consolidate, no matter what. It sounds like Toyota is going to offer many of their current employees the opportunity to move to Texas and keep their jobs, which could work out even better for the employee as long as they are paid the same.

^What Mark said.^

Originally Posted by BeamOn

Texas to pay $10,000 for each Toyota job relocated
www.marketwatch.com/story/texas-to-pay-10000-for-each-toyota-job-relocated-2014-04-28

This is bribery. I don't believe that the state of Texas is paying this bribe to relocate workers from other states, especially California. Question I would have is if the cost of operation is so much lower than California, why didn't they move on their own rather than be enticed monetarily?

It is a rhetorical question.

Oh, yes, they would. In fact, states have been pitted against each other in the "race to the bottom" just as workers have.

Originally Posted by mpholland

They were going to move on their own. They had already narrowed it down to Denver, Atlanta, Charlotte, or Dallas.
Texas just happened to be willing offer a big financial incentive to boot.

And, that's what it's all about. Thing is, just as it is with workers, once states give so much tax incentive or possibly even start paying companies to locate in their states..........what is to be gained from their presence? Remember the thread about TEXAS crowing about having rapid job growth but struggling to figure out how they are going to pay for the infrastructure to support it? The discussions we've had about the millions of Americans who DO WORK, but can't support a basic cost of living with their wages?

Hello!

Welcome to America in the 21st Century. It's a Brave New World, isn't it?

Dave

[Rajoo]

Originally Posted by BlueStreak

Hello!

Welcome to America in the 21st Century. It's a Brave New World, isn't it?

Dave

Precisely what I was trying to point out. Not a simple cost reduction but a bidding process. Once again governments giving away money that they do not have or cannot afford to in the long run. Hate to be a cynic.