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Title is mis-leading because Mexico does not have a minimum wage.
The story is about a union lowering wages so that the car company they work for can stay competitive. If only some companies here in the USA did that, we might still be producing steel.
Yeah right...Everybody in north america accepts $1.50 per hour as a starting wage, then who can buy the products made of the steel produced? My opinion is that manufacturers are shooting themselves in the foot with NAFTA by shipping the jobs that pay a living wage to countries that pay slave wages...Soon only the wealthy will by able to buy the goods produced. How much do you think the auto companies will lower the price of cars produced in Mexico and sold in North America? Do you really think the prices will reflect the lower cost of labor?
Most of the assembly is done with robots these days, and I didn't see a drop in price when that switch was made years ago. The workers are taking it up the *** once again.
Yeah right...Everybody in north america accepts $1.50 per hour as a starting wage, then who can buy the products made of the steel produced? My opinion is that manufacturers are shooting themselves in the foot with NAFTA by shipping the jobs that pay a living wage to countries that pay slave wages...Soon only the wealthy will by able to buy the goods produced. How much do you think the auto companies will lower the price of cars produced in Mexico and sold in North America? Do you really think the prices will reflect the lower cost of labor?
Most of the assembly is done with robots these days, and I didn't see a drop in price when that switch was made years ago. The workers are taking it up the *** once again.
Actually, companies are moving their companies to countries that do not regulate the he.. out of them and mandate x, y, and z, to the point that they cant afford to compete world wide.
How are "manufacturors" shooting themselves in the foot by moving their companies to Mexico to pay slave wages?
Of course they wont lower the price of the cars produced in Mexico, but I'm sure the unions probably thought that securing their jobs was much more important then more money, especially in a country like Mexico where quality jobs are hard pressed.
For individuals, its microeconomics
For companies, its macroeconomics
Employees will continue to take it up the a... until the USA has more jobs then citizens and we are free to negotiate our own wages, not simply accept what the company is offering.
Title is mis-leading because Mexico does not have a minimum wage.
The story is about a union lowering wages so that the car company they work for can stay competitive. If only some companies here in the USA did that, we might still be producing steel.
Ok, I stand corrected, they actually do have a minimum wage, its $1595 a year.
Which brings up the point that the current wage is nearly 6 times the minimum wage. Why did they pay so much in a country like Mexico? Because other manufacturing companies were going to Mexico also and they had to compete against other companies to hire employees.
There is nothing wrong with the quality in Mexico. I work down there extensively. They have come light years in the past decade. Many companies that left Mexico for China are coming back to Mexico because of quality,leadtime and service issues they have been experiecing.
I agree that the Unions with their free or next to free health care and pensions and restrictive regulations are what is killing U.S. competitiveness in the global automotive industry.
Why many Japanese and Euro companies are also packing up and heading for Canada these days.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,763,471 times
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Quote:
Originally Posted by bily4
There is nothing wrong with the quality in Mexico. I work down there extensively. They have come light years in the past decade. Many companies that left Mexico for China are coming back to Mexico because of quality,leadtime and service issues they have been experiecing.
I agree that the Unions with their free or next to free health care and pensions and restrictive regulations are what is killing U.S. competitiveness in the global automotive industry.
Why many Japanese and Euro companies are also packing up and heading for Canada these days.
Canada is even more unionized than the USA is- although they do not have to pay healthcare cost there.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,763,471 times
Reputation: 3587
Quote:
Originally Posted by pghquest
Ok, I stand corrected, they actually do have a minimum wage, its $1595 a year.
Which brings up the point that the current wage is nearly 6 times the minimum wage. Why did they pay so much in a country like Mexico? Because other manufacturing companies were going to Mexico also and they had to compete against other companies to hire employees.
I think us Americans could live fine on $1595 a year. We could all live in tents or in little camper trailers. Maybe FEMA has some trailers left over for us!
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