- Sep 19, 2011
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The experts tell us there are at least 3 primary reasons manufacturing jobs go offshore and labor costs is one of them.
And the following is an example of labor unions killing the golden goose !
Take grass cutting.
As defined by the current United Auto Worker contract negotiated with the "Big Five" (GM, Ford, Chrysler, and top parts makers Delphi and Visteon),
an auto "production worker" is a job description that covers anything from mowing grass to cleaning the toilets.
In the real world, these jobs would be outsourced to $8 an hour, no-benefit wage earners, but on Planet Big Five, these jobs get the same wages
as any auto line-worker: an average $26 an hour ($60,000 a year) plus benefits that bring the company's total cost per worker to a staggering $65 an hour."[/I]
http://answers.yahoo.com/question/index?qid=20070924073107AAuGk8O
There is a real three-fold reason to offshore production:
Lower labor rates,
lower bill of material costs and an
indefinite deferral of corporate income taxes.
One other significant reason for offshoring is the assistance provided by the Asian countries to acquire and build factories at very low costs, reduced environmental regulations, health and safety regulations and very business friendly perks for doing business in Asia.
US corporations save over $100 billion a year in direct labor costs from offshoring production (on 2.4 million jobs transferred from the USA.) On a worldwide basis, corporations have accumulated over $20 trillion in deferred tax benefits as well. Its good business to do what these corporations have done.
PRIMARY REASONS TO OFFSHORE PRODUCTION
And the following is an example of labor unions killing the golden goose !
Take grass cutting.
As defined by the current United Auto Worker contract negotiated with the "Big Five" (GM, Ford, Chrysler, and top parts makers Delphi and Visteon),
an auto "production worker" is a job description that covers anything from mowing grass to cleaning the toilets.
In the real world, these jobs would be outsourced to $8 an hour, no-benefit wage earners, but on Planet Big Five, these jobs get the same wages
as any auto line-worker: an average $26 an hour ($60,000 a year) plus benefits that bring the company's total cost per worker to a staggering $65 an hour."[/I]
http://answers.yahoo.com/question/index?qid=20070924073107AAuGk8O
There is a real three-fold reason to offshore production:
Lower labor rates,
lower bill of material costs and an
indefinite deferral of corporate income taxes.
One other significant reason for offshoring is the assistance provided by the Asian countries to acquire and build factories at very low costs, reduced environmental regulations, health and safety regulations and very business friendly perks for doing business in Asia.
US corporations save over $100 billion a year in direct labor costs from offshoring production (on 2.4 million jobs transferred from the USA.) On a worldwide basis, corporations have accumulated over $20 trillion in deferred tax benefits as well. Its good business to do what these corporations have done.
PRIMARY REASONS TO OFFSHORE PRODUCTION