July 23, 2004
GLOBALIZATION MEANS EVERYONE (via John Resnick):
Germans OK Longer Hours to Save Jobs (Sabine Siebold and Mark Thompson, July 23, 2004, Reuters)
Pressure to lengthen Germany's working week looked set to increase after employees at carmaker DaimlerChrysler and tourism firm Thomas Cook agreed on Friday to work longer hours to save jobs and cut costs.DaimlerChrysler workers agreed to implement a 40-hour week for some workers and to cut paid break time to secure 6,000 jobs in Germany, in a deal that will save the company 500 million euros ($613 million) a year from 2007.
German Chancellor Gerhard Schroeder greeted the carmaker's deal with the IG Metall union as "a victory for common sense," which would strengthen Germany's economic recovery and set a precedent for talks at rival car maker Volkswagen.
"I am certain that after DaimlerChrysler the negotiations at Volkswagen over cost cuts and job security will lead to a successful agreement," said Schroeder, who is on holiday in Italy, in a statement.
You can run from market forces... Posted by Orrin Judd at July 23, 2004 3:54 PM
If Germany's lucky, they are about at the same stage the U.S. was in 1979 or 80, when the threat of globalism made workers realize that the days of growing wages without productivity increases were over (and just as with Germany today, the government of the time was at a loss to see or react to what was happening, though Germany has yet to find its Reagam to contrast with Schroder's Jimmy Carter).
Posted by: John at July 23, 2004 7:31 PMIf you're right, you'd better buy a spare Suburban and store it in cosmoline, because GM won't be around to be building replacements when the current one wears out.
Posted by: Harry Eagar at July 24, 2004 9:46 PMAnyone can make the parts--so long as we're designing them and the machinery to tool them. Manufacture should not occur in developed countries.
Posted by: oj at July 24, 2004 11:18 PMNonsense.
That's similar to saying that agriculture shouldn't occur in developed countries. There are many legitimate reasons for developed nations to grow their own food and produce their own goods, not the least of which is that labor costs are not the end-all and be-all of deciding where to produce.
Yes they are. We grow our own food still only because corporate farming and illegal immigration hold labor costs to a minimum.
Posted by: oj at July 25, 2004 3:54 PMBut Americans don't know how to design good cars. Given a choice between a Cadillac and a Lexus, how many will choose the Cadillac?
Posted by: Harry Eagar at July 26, 2004 12:28 AMAmericans invented everything in the Lexus--the Japanese just tweaked it. For isntance, the big new thing is on-board navigation. That was us.
Posted by: oj at July 26, 2004 7:06 AMThat's right, corporate farming works because, among other things, labor needs are minimized, which is just the flip side of maximizing labor efficiency, and not at all the same as paying low wages.
Ask Harry about how many hands are needed to process sugar in the US, and what they're paid, vs. in the Phillipines.
Posted by: Michael Herdegen at July 27, 2004 9:52 AMMichael:
If a machine can do your job your boss isn't going to give you a raise.
Posted by: oj at July 27, 2004 10:48 AM