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The article states that American Axle didn't ask for wage cuts, and also proposed transferring some operations from Mexico to the Buffalo area plant. The union rejected their proposal.
Here's one.......
American Axle closing last plant here - Business - The Buffalo News (http://www.buffalonews.com/business/article526909.ece - broken link)
The fact is the average auto worker in Mexico is getting $6.94 an hour. What auto worker in America could live on that kind of a wage? American Axle, three years ago, was asking its workers to take a deep cut in wages down to $14.00 an hour. They settled the contract at $18.50 an hour. Profits soared (see link) but the company still came back recently to ask for more concessions from the workers. With soaring profits how can anyone not call that company greed to ask for more concessions?
I prefer countervailing tariffs to eliminate the price advantage created by low wages, dirty environments and government subsidies. "FREE TRADE" is not free. It costs far too many their living while making far too few ever wealthier.
In the case of this business I would forbid importing any of their goods. They want to build overseas let them sell overseas. See how much money they can make in a $1 per hour economy.
These tariffs should apply to all imported manufactured goods. If a foreign company wants to avoid these tariffs they can manufacture their products here. This seems to be working for several automobile companies so why not the rest?
The article says the union workers made substantial sacrifices and the company doubled its profits, Doesnt sound like the union workers were the problem in this case..
Quote:
"The men and women in Cheektowaga stepped up to the plate and made huge sacrifices when the company was in trouble," said Scott Adams, director of Amherst-based UAW Region 9.
"Clearly, American Axle CEO Dick Dauch is more concerned with advancing his pay from millionaire to billionaire status at the continued expense of his employees."
A bit more checking on this Dauch guy
Quote:
By a “market-competitive cost structure,” Dauch means sharply lower wages. In particular, he is demanding that workers accept a wage cut from $28.15 to $14.50 an hour and, in some cases, as low as $11.50. He is also seeking a sharp reduction in health coverage, the elimination of employer-paid pensions and the destruction of at least 1,000 more jobs.
Here's one.......
American Axle closing last plant here - Business - The Buffalo News (http://www.buffalonews.com/business/article526909.ece - broken link)
The fact is the average auto worker in Mexico is getting $6.94 an hour. What auto worker in America could live on that kind of a wage? American Axle, three years ago, was asking its workers to take a deep cut in wages down to $14.00 an hour. They settled the contract at $18.50 an hour. Profits soared (see link) but the company still came back recently to ask for more concessions from the workers. With soaring profits how can anyone not call that company greed to ask for more concessions?
Read your own link:
Quote:
Son contended that while the company did want to reduce overall labor costs, it did not seek to reduce workers' base pay. He also said the company's proposal offered to move some work to the Cheektowaga plant from Mexico, which he said would have created jobs.
They were NOT asking for them to reduce their pay. And they offered to bring jobs currently in Mexico to that plant.
No loss of pay & more jobs, but unions said no.
They were NOT asking for them to reduce their pay. And they offered to bring jobs currently in Mexico to that plant. No loss of pay & more jobs, but unions said no.
They do this all the time, but still try to claim that they are FOR the working people.
Socialists always enjoy deciding who the winners and losers are. In this case the losers would not only be the company executives, but their American stockholders and the American consumer. The Unions have created this environment of cheaper manufacturing costs overseas and they need to lie in the bed they made.
Alternatively, what you are supporting is a race to the bottom until American workers earn the same ultra-low wages as Chinese workers who have no benefits and no protections.
China has protections on their markets (China imposes Tariffs and has trade quotas. If a company wants to sell in China, it must produce in China) while China has completely free unimpeded reign over our markets which forces us to directly compete with slave children in sweat shops getting paid 35 cents a day. I don't want to compete with that. I want us to slap heavy tariffs on anything made with child slave labor.
Corporations have no patriotism, or duty to protect America. Their duty is to make as much profit as possible and if exploiting children is profitable; poisoning the rivers and polluting the air is profitable, they'll do it.
The government has the legitimate role to make the rules of the road and form tariff policy to protect our citizens -- it has nothing to do with the hard-right red herring -- Socialism. It has to do with common sense.
Here's one.......
American Axle closing last plant here - Business - The Buffalo News (http://www.buffalonews.com/business/article526909.ece - broken link)
The fact is the average auto worker in Mexico is getting $6.94 an hour. What auto worker in America could live on that kind of a wage? American Axle, three years ago, was asking its workers to take a deep cut in wages down to $14.00 an hour. They settled the contract at $18.50 an hour. Profits soared (see link) but the company still came back recently to ask for more concessions from the workers. With soaring profits how can anyone not call that company greed to ask for more concessions?
Yes, that's the original link.
In which it states:
Son contended that while the company did want to reduce overall labor costs, it did not seek to reduce workers' base pay. He also said the company's proposal offered to move some work to the Cheektowaga plant from Mexico, which he said would have created jobs.
Labor costs eat up soaring profits. And to pretend that only one side is greedy is about bias. The union is about greed also. Everyone wants a bigger slice of the pie. That's all. That's why they negotiate. In this case, the union miscalculated its bargaining position. The company was willing to close its doors if they didn't get what they wanted from the negotiation. The union wasn't willing to give in. Now the union represents workers who will be unemployed in a few months.
Allowing the "Free Trade" really has been a devastating to the American economy as losing a major war. A steel mill scrapped because Korean steel is cheaper is just a destroyed as if it were bombed by terrorists. We need to wake up to the fact that our trading "partners" are our competitors and NOT our friends. They would be just as happy if we went away commercially so long as we paid for their defense against their enemies. Time to say Fair prices or you pay for your own defense.
We need FAIR Trade, not unfair trade that is robbing us of any semblance of previous prosperity. I would rather the Union workers, along with most of the rest of us, be the winners. The executives, stockholders and bankers have already stolen enough.
What about all the people living off those mythical trust funds you complain about all the time? Haven't they stolen enough too?
I do agree that we need fair trade, not unfair trade. Unions however need no protection. Remember, every single foreign brand auto plant in the US is operated by non-union workers.
Any move by the US to add tariffs to foreign goods will create shock waves throughout the world - since we are the biggest economy and buy from everyone, including Europe.
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Union WIN! American Axle closes plant, ships operations overseas
