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Carrier is owned by United Technologies Electric Controls ( UTEC). More than 60% of the companies sales are now offshore. Why would another country want to pay a premium to support the US middle class, when the product can be manufactured according to spec, elsewhere for a lot less?
It's certainly not all about the cheap labor. Like European and US automakers who have had plants in Mexico for decades, Mexico's free trade agreements, amongst the most open in the world, allow other countries to import from Mexico without a tariff.
Tariffs are a two- way street.
Guess UTEC could choose to not compete for global business and close their doors, eh.
"Close their doors" gmab. This company has continued to gain, not lose. They were in no threat of needing to "close their doors".
This was a dumb move on the part of the company. You've just demoralized 1,400 employees as well as businesses in the area communities and you've given them at least a year to figure out ways to get even. What's the employees' motivation to continue to do quality work? What's the motivation for area businesses to continue to conduct business with the company's factory and distribution center you plan on shutting down. Be prepared for shoddy workmanship, employee theft, destruction of company property, and possibly revenge attacks on upper management (vandalism of their vehicles, homes, and possibly physical attacks). Add to that the negative publicity of not only the announcement, but also the release of this video and what it could do to their product and service sales.
Which jobs are we suppose to retrain for? This is quite the standard boiler plate answer with no real information provided. Are other jobs with training immune from being done in 3rd world countries? Do you mean programmers dont exist in 3rd world countries?
Also another thing incorrect with your post is saying Americans dont have to pay inflated prices because this work is being done in 3rd world countries. This is a fallacy, the reason why this is done is for more profit not for lower prices.
Youre right regarding conservatives being champions of the free market. they never met a trade agreement they didnt love. The more its screws the middle class the better. Yet they whine about illegal immigration? Hypocrites.
How many businesses do you know that close their doors when customers come in? How many businesses cut the phones off when they start ringing? How many businesses refuse to accept money in return for the goods or services it provides?
So why do you think a manufacturer should shun 6.8 billion people who could never afford goods made by Americans? How would they go about being able to make those goods so that people in other countries can afford those things as well?
Or are you with that other poster and feel like the world revolves around you and the billions of other people should all bow down to your petulant demands?
This was a dumb move on the part of the company. You've just demoralized 1,400 employees as well as businesses in the area communities and you've given them at least a year to figure out ways to get even. What's the employees' motivation to continue to do quality work? What's the motivation for area businesses to continue to conduct business with the company's factory and distribution center you plan on shutting down. Be prepared for shoddy workmanship, employee theft, destruction of company property, and possibly revenge attacks on upper management (vandalism of their vehicles, homes, and possibly physical attacks). Add to that the negative publicity of not only the announcement, but also the release of this video and what it could do to their product and service sales.
Depends on how you look at it. If you look at your employees as criminals who happen to have a job working for you, maybe. If you look at them as people with families and lives outside of work you'd realize after the initial shock people will have a full year to try and figure something else out including changing their habits for the harder times coming up.
The business world is like the real world. Evolution occurs in business as well. If you're not increasing sales you're losing market share and becoming less viable, less interesting, less desirable, less everything... Until you fade away to nothingness...
It is OUR demand for cheaper products while insisting on high wages that is pushing manufacturing out of our country. Something has to give. Either pay more for products made here or accept lower wages here.
Which is exactly why places like Walmart are such a pariah.
Anyway, notice he said there would be several phases. Basically company execs always seek to reduce labor costs. It's never low enough for them. In the US, corporations exist to make money for shareholders, not employees. So phase one, reduce labor costs by moving that labor to a location that will allow you to pay pennies on the dollar compared to US labor costs. Phase two, you now reap increased profit. Phase three.. well, Mexico labor costs are still to high. Damn employees actually want raises, those little bastards. Labor costs are still above $0; we gotta fix that. So now let's just automate all those jobs out of existence altogether. Voila', maximum profit for shareholders, and a handful of company execs (who never dream to automate out their own labor costs). Oh oops, down the road a ways, and onto phase four: no one has jobs anymore thanks to wanting to be paid for their work, and thus were replaced by automation/AI, so now no one can buy your air conditioner anyway.
Lol. I love the pinto bean spin. How is this Obama's fault or doing or is the article just good for the click bait/ad revenue.
Pinto bean recovery?!
Care to post any articles on the tens of billions of infrastructure being built along the gulf coast to take advantage of our oil and gas infrastructure?
This was a dumb move on the part of the company. You've just demoralized 1,400 employees as well as businesses in the area communities and you've given them at least a year to figure out ways to get even. What's the employees' motivation to continue to do quality work? What's the motivation for area businesses to continue to conduct business with the company's factory and distribution center you plan on shutting down. Be prepared for shoddy workmanship, employee theft, destruction of company property, and possibly revenge attacks on upper management (vandalism of their vehicles, homes, and possibly physical attacks). Add to that the negative publicity of not only the announcement, but also the release of this video and what it could do to their product and service sales.
Like you say where is the motivation? If companies cannot be loyal to their own employees; why should employees be loyal to their company? I have watched one large, local, company spend years training tech workers and management; only to see those employees leave for other employment. But, the ones that left, could be the smart ones. Today nothing is guaranteed and everything you know can change in the blink of an eye. I worked for one company for 25 years that just shut it's doors to 30,000 employees in 2001.
As far as your statement "employee theft, destruction of company property, and possibly revenge attacks on upper management (vandalism of their vehicles, homes, and possibly physical attacks)" - companies minimize damage today. When the end is near; they hire guards and only give employees minutes to vacate the property. Employees do not have the time to think about revenge; they are scrambling to get other employment before their other (previous) coworkers take their potential new job. On your "shoddy workmanship": Yes, employees that sense the end is near; will not put the same 'effort' into the product.
Mexico is not the only hole in the dyke for American jobs; we are loosing plenty right here: 2016 Silicon Valley Index: Tech economy surging to new levels. That article states: ".....nearly 74% of all Silicon Valley employed Computer and Mathematical workers ages 25-44 in 2014 were foreign-born." So, I have to ask the question: Does it make any difference if we loose the jobs to Mexico or any other country; if we give our jobs away at home?
That does not mean that I approve of any of this 'one world order' thing. At the height of the industrial revolution workers worked hard for their companies and the companies worked hard to retain their employees. We had structure and expected rewards for our loyalty and our companies had employees that would go that extra mile. Like Ford's idea: workers could afford to buy the products that he produced. Today's average American, with no savings, is not in the position to help facilitate the growth of these no-nation, disloyal, unfaithful, corporations. It is easy to understand why Trump has such appeal.
fisheye, you keep bringing up that durable urban legend that Ford gave his workers "living wages" so they "could afford to buy his own cars." That's a progressive urban myth.
He calculated his wage increases to compete in a tight labor market for workers in which he hoped to expect low turnover at his shops.
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