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That is non-relevant. However, since you brought up the auto industry, I worked as summer help on a GM factory line in 1978 while in college. I earned over $8/hr back in 1978. I was able to earn my tuition and room and board for the entire following year of college. Pay was good back then and college was affordable. Therefore, I was able to move up.
This report provides a catalog of disinvestment events, which is why the bulk of Chapters 16 through 23 are fact-filled, listing actions by companies large and small.
The entries show that some companies left the state entirely while others declined to grow their in-state facilities but invested in expansions elsewhere. A few companies that planned to locate in California decided against doing so –performing a “U-Turn,†so to speak.
Has anyone gone through the trouble of clicking on the link in the OP? I though it would be strange for a company incur moving costs because of something that wouldn't occur for 7 years and would be negated by inflation anyway.. Turns out that the the source is BreitBart. �� The original source has no mention of CA's minimum wage; the min wage link is Beitbart's speculative twist.
If you read the original source you will see that Ashley already has excess capacity in their existing factories and decided to layoff their CA workforce to shift production so that they can take advantage of their spare capacity.
"The majority of production in Colton will move to U.S. plants in Wisconsin, Mississippi and North Carolina, “where we can tap into existing capacity and increase efficiency,” the statement continued.
“By shifting the majority of Colton production to other U.S. facilities we will create more efficiency and better use of existing capacity in our manufacturing network,” the Ashley statement read."
Agreed, Breitbart started with a premice of $15/hr and built the story around speculation.
Although the company denies it, the impending union vote may have had some influence on their decision.
Thus far they have survived 46 years without collective bargaining. Most distribution/ assembly workers have been with the company for decades.
Retail is a whole other deal. Low wage part timers.
The workers should leave with the jobs. They can live more cheaply in those other states.
Laura ----
The climate change legislation will hurt them much worse. But you're correct about moving to other states and being far more comfortable.
I can drive down just about any country road here in WV, and picnic tables, many types of chairs, rockers, all finely crafted out of various hardwoods from People's wood shop garages and sold right off the side of the road for bargain prices.
Between the roadside craftsman and all the super fine dovetailed furnutire and appliances from the 20's, 30's 40's and 50's that you can purchase from yard sales and second hand stores, I don't see how Ashley's stays in business.
Ashley puts their money where they need to, and low skill jobs are easy to fill.
I have 2 friends who drive 18 wheelers for Ashley and while they do work hard, they also make 80K a year. Clean, reliable, safe truckers are hard to replace.
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