Imagine
If You Will
You
are CEO of an automobile manufacturing company with several plants in
low labor cost Mexico.
Political
pressure is being applied to encourage, if not force you to close
those plants and open new ones in the high labor cost United States.
A
35 % tariff and other disincentives make the move financially
mandatory if your company is to survive, if it survives.
Now
you have to choose from a menu of difficult choices:
a.
Not move and add the35% to your selling price and lose market share.
Nah!
b.
Move and pay the significant wage and benefit labor cost increases
then pass that cost on to the consumer and/or the investors. Maybe?
c.
Return to the pre-globalization model and negotiate with labor. Build
a new factory with all the human needs accounted for. See b
d.
Build a inexpensive windowless, toilet-less, cafeteria-less factory
with no parking lot. Install an automation system and reduce labor
to a few dozen operators and a few low payed robot polishers.
Fire
the HR directorate. Yes that's the ticket!
Paul
Hunter
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