American workers can only blame themselves for loss of jobs overseas
Michael Patterson’s guest column in the Oct. 17 issue of the Annarbor.com parrots the popular position that Democratic candidate for governor Virg Bernero keeps expounding upon. It sounds good, keep jobs in the U.S., pay a living wage, access to good quality workers, and all the other rhetoric with no solid economic basis. Private companies outsource to remain economically viable and competitive. If American workers were willing to do the same with wages and benefits, more jobs would remain in the U.S.
People like Patterson and Bernero speak of job stability, security, and decent wages as a preclude to quality products and service. That’s a falsehood, as evidenced by the American auto industry.
Patterson uses the customer service on his low interest rate student loan as an example of government supporting the outsourcing of jobs. I’d like to point out the obvious; the government is supporting the “availability” of funds for Patterson to finance his education with a “low” interest loan with repayment flexibility. If the government placed the restrictions that Patterson advocates, that “low” interest, flexible repayment student loan wouldn’t exist, and he may not have been able get that education.
Patterson also cites as an example his uncle who dedicated 25 years to GM who is now getting 75 percent of his pension. Allow me to state the obvious again. UAW union employees contributed to GM’s demise with their inflated wages and benefits (think job bank where the company was forced to pay employees full salary for NOT working), poor productivity (think Chrysler employees drinking and smoking dope on their lunch hour), which resulted in inferior quality products, leading to company bankruptcy and a taxpayer bailout to the tune of billions of dollars.
Seems to me we need to redefine exactly what a decent wage is, and start paying people what they’re worth, not what they “think” they’re worth. One more observation I’d like to point out regarding Mr. Patterson’s column, not everybody can afford to shop at L.L. Bean.
Frank Dalimonte Ann Arbor
Comments
tracyann
Wed, Oct 27, 2010 : 9:42 a.m.
For the record, I also worked at the Ford Rawsonville plant and, yes, people would play cards and read books and such, however, most would do it on their break. Don't get me wrong, there were some who were just complete slackers putting in minimal effort, but not everyone. I don't know why people have this general image of the lazy autoworker because of a select few. It upsets me because I worked my best and put out quality products but does that get recognized? No, because we focus on the negative. I was on my feet for 9, 10 sometimes 12 hours, 5-6 days a week. I suffered a herniated disk and needed back surgery, but I wouldn't have what I do now if not for that job.
braggslaw
Wed, Oct 27, 2010 : 5:27 a.m.
specific actions = complaining because of all the bad decisions you made in life and then trying to access other people's hard-won earnings.
AlphaAlpha
Tue, Oct 26, 2010 : 7:40 p.m.
"Workers of the world, unite." Can you suggest any specific actions?
braggslaw
Mon, Oct 25, 2010 : 10:29 p.m.
chains? everybody has choice in this country. Karl Marx? his ideas now reside in the graveyard of bad ideas, unless you consider Cuba and North Korea a success.
L'chaim
Mon, Oct 25, 2010 : 7:37 p.m.
Workers of the world, unite. You have nothing to lose but your chains. Not only will you liberate your class and humanity, you'll stop these idiotic commentaries by middle-class bourgeois wanna-be's.
braggslaw
Mon, Oct 25, 2010 : 9:36 a.m.
Why do people always point to the 10 or 20 CEO's who make millions? It is a negligible amount in the grand scheme of things. Union pensions, VEBAs etc. are in the 100s of billions. Those are the costs that destroyed American industrial companies. If you don't like what you get paid, get a new job. If you can't find anybody who will pay you more than you were not worth what you think to begin with. This entitlement mentality will destroy the U.S. eventually.
clownfish
Mon, Oct 25, 2010 : 8:13 a.m.
Let' see: Unions have taken wage and benefit cuts, both in the public and private sector. Union membership is WAY down. There are fewer union workers in the US than in any time in my life. Across the board wages are stagnant or falling. Worker productivity is up. CEO pay is up, even at non-profits. Business is sitting on 2 trillion is cash. David Brandon oversaw a decrease in Dominos stock price, he still got paid, and got a nice new job. Steve Nardelli ran Home Depots stock price into the ground, then got paid his full severance package, and got a nice new job. Borders CEO did squat, then got a nice severance package. Execs at AIG, Lehman, Goldman and other banks ran the economy into the ground, then took multi-million dollar "bonuses". Yep, it must be the fault of the people that actually WORK for a living. Lazy, greedy workers!!
AlphaAlpha
Sun, Oct 24, 2010 : 8:29 p.m.
Well sir, WTO is a fairly new club. There was plenty of world wide trade in the many centuries preceding it... (It's interesting to note that China has just put huge restrictions on the export of most (extremely important commercially and militarily) rare earths because they were concerned about the 'environmental impact' of the mining.) To the extent that WTO encourages trade not war, it's a good thing; wanton trampling the of status quo, as well as marginalizing hard won constitutional rights, is another.
braggslaw
Sun, Oct 24, 2010 : 7:57 p.m.
There is no doubt the wto is flawed But if we want rare earth elements from china or lithium from bolivia, it is the only mechanism to make international trade rules
AlphaAlpha
Sun, Oct 24, 2010 : 7:09 p.m.
WTO is the acronym for the World Trade Organization. The WTO negotiates treaties pertaining to the rules of commerce signatory nations (essentially all nations are signatories) will follow. The rules are negotiated by folks whose interests are quite different from yours, and quite different than those of the average US citizen. However, the rules are quite similar to what the 'globalists' (the multi national corporations) want. The globalists contribute heavily to both political parties, and both parties comply with WTO goals...by signing whatever treaty rules are 'negotiated'. The WTO enjoys a low profile, but there is plenty of documentation of it. Wiki makes it sound generally benign, and it has some value, but be sure to read the Criticism of the World Trade Organization article as well, the list of WTO critics is long and growing. It's uncommon conversation because it's a vague concept, and nearly all Yankees are completely uneducated about boring topics like world trade. Sadly, their ignorance has been used against them. This issue is beyond political parties, yet most folks, in ignorance, only parrot the lines of whichever political party they are (in fact not) a part of. It's a shame. And nothing at the state level can change it.
braggslaw
Sun, Oct 24, 2010 : 6:50 p.m.
If you don't like your job and your salary, make a change. Otherwise stop complaining.
Rob
Sun, Oct 24, 2010 : 6:07 p.m.
It`s all pretty plain to me.All this free trade is all about corporations paying next to slave wages for a bigger profit. In China and other countries there is little or no environmental laws,no health and safety or workers rights which lower the costs even more.Maybe the U.S. should throw all those out to compete? I don`t think so.How about making China and the rest live up to our standards? No,the corporations don`t want that because it would cost them more. You really want to see how China treats it`s people you only have to look as far as Liu Xiaobo.A Chinese democracy activist who is less than a year into an 11-year prison sentence for "subverting state power.Speaking out against the Chinese government get`s you thrown in prison. This is the country that these spin masters rave about and would like to mirror the same conditions right here in the United States. Putting lip stick on a pig really applies here.The elite want you to except living standards of third world countries.
snapshot
Sun, Oct 24, 2010 : 5:36 p.m.
Alpha,What is WTO? I agree that unions have way too much power. Their position is that they need them to protect the "average" worker from the "wicked" corporation. We now have many labor laws since the 1920's when labor had a legitimate reason to organize. Now the unions just keep taking. The UAW is basically on the taxpayers welfare system. Speechless, did you read An's post? Do you think it's OK for the union to keep the lazy, drinking, dopers, sleepers, and incompetent on the union payroll? Sounds like you do. I suspect you'd have a different view if "you" were forced to pay a living wage for incompetance. If you hired someone to fix your furnace and they didn't, I'm sure you wouldn't call them back to fix it again at no cost because you'd be "cutting' their living wage. Mmoradian, I admire your patriotism. The union folks that work for Ford now can afford to buy several new products, a big house, snowmobiles, motorcycles, all while being less productive, less loyal, and dependent upon the taxpayer for their wages with no intention or concern for providing a return on the taxpayer investment. The unions are now on the public welfare system and consider this to be productive employment. Scary.
braggslaw
Sun, Oct 24, 2010 : 12:15 p.m.
Why do people think business and govt owe them something?
Basic Bob
Sun, Oct 24, 2010 : 9:43 a.m.
@Somewhat Concerned, I agree. How many years have people been telling their kids that they should get a job where they don't have to work and don't produce any value? Because that would be hard. Well, guess what, now Americans don't work in all those automotive and appliance plants, electronics and textile manufacturers, and genuine hard labor like mining and landscaping. They just want to sit at a desk and shuffle other people's money. Yes, work is not as hard as it once was. But unless someone is creating value, it is a race to the bottom of our own creation.
AlphaAlpha
Sun, Oct 24, 2010 : 9:36 a.m.
It is astounding that the WTO remains unrecognized for the key role it has played (with support from both parties) in creating the status quo.
Somewhat Concerned
Sun, Oct 24, 2010 : 7:57 a.m.
American auto workers bought Japanese televisions and Korean microwaves, not American televisions and microwaves. Why? My guess is because they were made better or cost less. The auto workers never said "Buy American" when it came to anything but cars. And, they were right. Merit counts. Entitlement favors English aristocrats and Indian Brahmins and whoever is at the top of whatever caste system is in place. UAW workers and their brethren liked being at the top of the American worker caste system. Let merit prevail. Americans can win that game if they are willing to get off their overweight, over-entitled rears and get to work.
mmouradian
Sun, Oct 24, 2010 : 7:43 a.m.
Henry Ford understood, that for his product to sell he needed a middle class able to pay for his cars. He instituted the $5 per day pay and doubled workers pay. As a result of this long standing policy Ford was the last of the car companies to unionize. What is happening currently is a move to depress the pay rate of the middle class to that of China.... Who will buy the cars then. I recently bought a car. Looking at all the cars I found the US made cars to be of equal quality and value. As a patriotic American I felt it was my way to support our country and its workers to buy American. That money I spent will circulate around a few times and if more folks bought these cars we wouldn't have tax shortfalls.
Speechless
Sun, Oct 24, 2010 : 7:42 a.m.
A vernacular translation for the above letter: American workers are truly horrible, selfish and lazy for refusing to work for under two dollars per hour — unlike the more "competitive" third world, the place where corporations outsourced many of our former jobs. Wages any higher than that are uncompetitive, special-interest entitlements. So we must get going now to speed up the great race to the bottom! Hence, it is essential that state voters send Snyder to the governor's office. If Bernero gets in, the pace of Michigan's working class poverty might slow. In reality, no one really needs to make a living through their job. That's only union propaganda designed to drive up employers' costs. And Bernero panders to voters' self-centered desire for a living wage. Let's give back most of our falling incomes to our needy corporate masters. We wrongly deny them the third or fourth vacation estate that they deserve.
An
Sun, Oct 24, 2010 : 7:38 a.m.
"And people wonder why consumers look to a foreign brand, i.e., what is "standard" on most foreign brands such as Nissan, is an "option" on American made cars. That's one of the MANY reasons that I drive a Nissan, i.e., affordable monthly payment, more "standard" options, and I get 35 miles per gallon. Duh, it's not difficult to figure out. All of this entitlement is bringing us down." That's why I drive a Honda, even though my father worked at Ford for 30 years and I was a contract employee at Ford for 3 years. (Ford keeps it's administrative salaries down by hiring contract employees in engineering and as administrative assistants...) I looked to buy a Ford 5 years ago when I was car shopping and even with a Ford A Plan discount that a friend was willing to get me, my Honda was still cheaper, had more goodies on it and got better gas mileage. When I worked at the Rawsonville plant, as I walked to the front of the plant (my office was in the very back of the plant) I would pass workers who were playing their game boys, sleeping at their machines, playing cards, doing crossword puzzles and reading comic books while punched in. I got written up for moving my own printer 6 inches on my desk because I didn't schedule for a millwright to come do it. Sounds like these people were hard working and certainly deserved the high wages, great benefits, etc.
braggslaw
Sun, Oct 24, 2010 : 7:33 a.m.
I always thought the best way to guarantee job security is to be the best. Best service, best products, best prices, best productivity... etc. That is my America As a sidenote, the super-majority of GM's debt held by various bond holders was taken to fund the UAW pension. This debt combined with the 30 billion dollar VEBA (health care) owed to the UAW inevitably led to GM's bankrupty. Owing your labor force close to 70 billion dollars equals bankruptcy. When your competitors can hire unskilled labor (in the south) for $14 bucks and hour there is no way you can compete. $14 bucks an hour for unskilled, uneducated labor is a fair wage. If people don't like what they are earning brush up on your skills and get a new career.
PaperTigerSaline
Sun, Oct 24, 2010 : 7:23 a.m.
AMEN and another AMEN! If those auto workers would put themselves in the employer's position, they, too, would be paying their workers what they could and also be able to turn a profit. Doesn't make much sense to pay a higher wage, and not be able to turn a profit. All of those wages, health care benefits, etc., goes into the price of a car. Why don't they "get" it. And people wonder why consumers look to a foreign brand, i.e., what is "standard" on most foreign brands such as Nissan, is an "option" on American made cars. That's one of the MANY reasons that I drive a Nissan, i.e., affordable monthly payment, more "standard" options, and I get 35 miles per gallon. Duh, it's not difficult to figure out. All of this entitlement is bringing us down.
KJMClark
Sun, Oct 24, 2010 : 7:18 a.m.
How about a compromise? Put back the income tax rates of the Eisenhower administration, put back the labor situation in the 1950s (no living wages, but strong unions), and slap tariffs on China and any other currency manipulators - everyone has to float their currency to be in the WTO. Unfortunately, since the early 80s we've done the opposite; drastically lower tax rates for the wealthy, hamstrung unions, and doing nothing about mercantilist trade policies from other countries. We now have the predictable result: accumulation of wealth at the top of the income ladder, a rigged political and economic system to keep it that way, economic stagnation, loss of jobs overseas, and falling/stagnating incomes for lower income people. Unfortunately, it will probably take considerable conflict to get back to the solution that worked in the 50s. Coming in about a decade to a theater near you!
actionjackson
Sun, Oct 24, 2010 : 7:15 a.m.
well Frank, Do you get paid what you're worth? Or could it be done overseas for a slightly lower rate with no chance at ever having a wage that would support you and yours!
braggslaw
Sun, Oct 24, 2010 : 6:31 a.m.
Amen The entitlement mentality is killing this country This country stll has an opportunity to bury the organized labor culture and work towards a productive labor force that relies on merit and productivity rather than strikes and entitlement