So, you think that one example, with no specificity BTW, proves the rule, eh? It's still a load of crap.
There was also a cordless phone maker in Chicago that closed it's plant and moved to Mexico, only to be forced to return to the U.S. because it discovered that paying pennies on the dollar in labor costs resulted in deep losses from poor workmanship.
Now, since weÂ’ve traded single offsetting examples, perhaps youÂ’re prepared to show us some real evidence that proves your hypothesis.
OK, you're right, I apologize. Demanding that workers be paid 70 grand a year for a job that is worth half that has nothing to do with a company moving somewhere where they can pay workers a dollar an hour or less. My apologies.
Elvis,
The fact that there are examples of companies that have moved operations out of the country when confronted with union demands simply doesnÂ’t mean that unions are inherently bad, or even that the union in a case such as yours was bad.
LetÂ’s take your example in further detail. It may be your opinion that the workers werenÂ’t worth 70 thousand dollars a year. It could be that others may disagree. And, what the media reported was the average wage for the workers may not have been accurate or honest.
IÂ’ve seen cases where the media is provided wage averages by employers that are artificially inflated. For example, an employer, or a reporter sympathetic to the employer, may take an average of all employees including management rather than an average of only the workers represented by the union involved. That happened years ago when Iacocca was at Chrysler and concessions were being demanded of the union workers. News reports of their average wages included all of management, even IacoccaÂ’s millions in salary and perks!
Lately, when the big 3 went to Congress, the public was led to believe that the workers at the big 3 were significantly above those at the imports such as Toyota. But, that wasnÂ’t true.
And, there is no way to know if the wage level dispute was all there was to the decision to move to Mexico. For, example, a common sticking point in recent years has been health care. It could well be that the union was refusing to settle because the employer was also demanding deep cuts in employee health care, or that the workers take on more than a fair share of their health insurance.
And, then thereÂ’s the question of productivity. ItÂ’s quite possible that the workers in question were more productive than their peers at other companies. In such a case, the union would be justified in negotiating for higher wages for their members.
Another question is how these workers compared to their peers in regard to their wages overall. In other words, were their wages on par with other similar plants making similar parts?
Finally, it could be that this company was one that received federal money to relocate its plant to Mexico. As I posted earlier, this has been a huge problem.
These are details that your example leaves out and which would have a real impact on how the actions of the union should be judged.