Jobs moving to Mexico. Is jobs leaving your town?

[JoeR]

"Funny thing (well now it seems funny), I as well as others that were displaced are much better off now than five years ago."

I know a few people from my company were let go, and they now are doing better. Our company keeps telling us, "Be grateful you have a job." Then people leave, are happier, and make more money.

Joe

 

[EddieWalker]

In the early 90's Kellogs closed their plant in San Leandro, CA and moved it to Mexico thanks to NAFTA. My ex-wifes dad worked there driving a forklift. He was making $27 an hour back then. It was a union shop with full benifits too. His hourly wage with benifits and pension was in the $40 an hour.

I'm not for companies moving overseas, but at some point, you have to wonder about paying a forklift driver that much money.

I was also a union steward with enough connections that I had numerous job oportunities for him starting at $15 an hour doing the same thing he's always done. Even the same hours he'd always liked.

We said he'd only go back to work for $20 an hour at the very least. No skills other than operating a forklift, and he's being picky.

He spends his life badmouthing the company, the government and the lack of jobs, but never tells anybody that he's turned down jobs at numerous comanies that I personally had lined up for him.

Eddie

 

[RobertN]

Out here, I think it is an attempt to reclaim what was taken. After all, California was a Mexican state.../forums/images/graemlins/grin.gif

I have found there is work for those who want to do it. But, there are still companies moving out. In some cases it is the labor costs, in others it is having the factories near an emerging market. Seeing as how we import so much stuff at low cost, you would think we could export... But at the wages we expect, it is hard to do...

It is interesting, that some factory setups in other countries follow not only a wage, but also the worker education and ability. I work for a hi-tech company again now. They make chips, and are building another IC fabrication plant in Isreal. A really big reason, is they have a well educated workforce that can staff a technically leading edge Fab.

Another thing that works in to that is land costs AND EPA/environmental issues in the US. Even if the company makes an effort to be a clean and green company, it is more expensive here in the US. Two of the biggest chip makers in the US make some pretty clean manufatering plants, yet it still behooves them to build offshore(although they do still build here).

Of course, there's the twist of big wages, as another poster mentioned of $40/hr to operate a forklift.

Do you want to work for $2-$3/hr so we can be competitive?

This is a tough one. Some people think of strength as military(the US is the strongest out there). But, the biggest strength is in making stuff. That is where we are weakening. We don't make as much stuff any more. If the du-du hit the fan, where would the US be? We do'nt make stuff like we used to(as a percentage per populace). What made the US strong? In the late 1800's through the a960's, we made stuff...

 

[HGM]

The thing that scares me is that the only way I can see things getting better is for them to get much worse.. Basicly a market crash... Housing and automotive primarilly, but everything else as well.. What I mean is that for the past 100yrs, this country has prospered through the good times.. Prices for everything have gone through the roof.. Has anyone priced a home(or condo) in Miami lately, typically starting at $1M? This is the same across the country, though some spots are much more overpriced than others.. The average American cannot afford to work for less than, say,$40,000 per year when the majority of homes in the cities(where the work is) start at $250,000... The union scenerio Eddie mentioned plays a large part in the cause nationwide.. If you work for a company that pays you $40hr to drive a forklift, would you leave for another company that pays $15hr? Dont think so.. Then it becomes a question of, whether you can afford to take the pay cut, or does the unemployment pay more??

I hope it never happens here, but you cant deny the availability of cheap operating costs in other countries where a large majority of the population lives at the poverty level..

 

[Sigarms]

Honestly, with proper management, you don't need a union.

Worked as a temp in a warehouse doing garbage in garbage out data input for a food distributor (union) a very long time ago. I will never forget this. Always finished up my "assignments" in half the time they gave me, so I had nothing to do in the office the rest of the day. Second day on the job, had 3 hours left of nothing to do so I looked around and found a broom and began sweeping the office. Guy came in and chewed my butt off. Told me sweeping was not my "job" and to sit down (I wasn't in the union, "management" brought me in for the temp work). Funny thing was that for the time I worked there, I NEVER saw anyone sweep the office.

One thing I'll say about Mexican workers here in the U.S, they can work thier butts off all day long, seven days a week and never complain and just ask if they can work more overtime.
Don't take this the wrong way (all Americans here like myself), a dedicated mexican laborer (sp?) can do the job in the same time frame as it takes 4 "average" U.S American workers. They also don't wine about work, do what they are told the first time (you usually don't have to repeat yourself), and will tell you if they made a mistake (knowing you will find out anyway).

I never thought I'd say that, but after living 6 years in N.C and being on job sites with them (Mexican and American), I mean it.

 

[EddieWalker]

Sigarms,

You reminded me of another story.

I met a friend of a friend who decided to give up on his auto business and work for the city as a mechanic.

The first day on the job, he finished up everything that he was asked to do before lunch. After lunch he started helping out the other mechanics on their jobs.

After work that day, he was confronted by several of the other mechanics and threatened about working too hard. It seems they had spent years getting managment to accept their work pace and there was no way that they would let him ruin it for them.

Now he's bored out of his mind doing the bare minimum, but collecting a check for it.

Don't let me get started on government waste and work ethic.

Eddie

 

[BB_TX]

<font color="blue">Iroinically, jobs are leaving Mexico for China. Lowest cost of labor wins. </font>
Yep. Good friend of mine works for a local branch of a national company. He spent several years helping transfer some of their production lines to Mexico. Now he is in the process of moving some of those to China and the Phillipines since Mexican costs of labor have risen so much.

 

[billbill1]

The medical care has gone through the roof because of the malpractice suits and the cost of malpractice insurance. Medical care is going overseas and so are the doctors, they can function much cheaper without malpractice issues that they have in the USA.

 

[gsganzer]

</font><font color="blue" class="small">( The medical care has gone through the roof because of the malpractice suits and the cost of malpractice insurance. )</font>

That's only part of the healthcare problem. The largest problem is that our healthcare system isn't consumer based (the reason G. Bush has pushed for "Health Savings Accounts").

Go to the hospital because you cut your hand and need a few stitches and you're bill will probably be in excess of 1K. There was someone on TBN who was un-insured and was complaining of exactly that, he was willing to pay cash for reasonable services. He was seen by DR. for less than 30 minutes and got a few stitches. When he was handed the bill, he nearly fell over. Was that a reasonable fee?

The point is, they charge those fee's because the average consumer that has health insurance doesn't care what it costs. They never see the bill for the services. They just make a $25 co-pay. This allows the healthcare providers to never worry about being "competitive" and "cost conscious". Need proof? The average RN in Massachusetts makes approximately $95,000/yr before overtime (partly due to a shortage of healthcare workers too). If it was a competitive market, I don't believe those salaries would be sustainable.

(I just used the RN as an example because I had the figures at hand, the same case could be made for medical supplies and other services.)

 

[billbill1]

I agree with you 100% /forums/images/graemlins/smirk.gif