Chapter 527: Moving

John's brow furrowed when he heard the GM strike, and it was a common practice to strike every time he signed a contract!

Each strike lasts at least one or two months, and each strike costs at least billions of dollars.

The welfare of workers is getting higher and higher, the profits of car companies are getting lower and lower, the market competitiveness is getting weaker and weaker, and in the end car companies can only go bankrupt!

GM's skilled workers earn up to $46 an hour, nearly $15 more than the labor costs of Japanese companies like Toyota and Honda, and GM's share of employee health insurance costs per vehicle is $960, Volkswagen $218 and Toyota $97.

With such a high labor cost, how can it compete with other Japanese car companies? In this way, we are not satisfied, and we still want to make trouble, and we have to increase wages and benefits, which is simply excessive greed.

And the main culprit of all this is UAW.

Trade unions in the United States have hindered the development of the manufacturing industry, become a powerful force to undermine the market economy, and have become institutions that use extreme means such as strikes to gain profits.

In addition to the security factor, a large part of Detroit's bankruptcy is due to the fact that the UAW has increased the cost of employment, and the company has moved out one after another, and the government's finances have been reduced.

If a union like UAW were to exist, the U.S. auto industry would be completely destroyed by it.

So John won't be holding back this time.

"Dani, let John Smith and Wednesday President José Elbury meet me. ”

"Okay!"

Dani nodded and went to call.

Ariana on the side looked at John curiously and asked. "Brother JK, how do you handle this?"

Strikes by auto workers are common, but each one ends in a compromise with the automaker.

There is no way, car companies can't afford to delay, and they will lose tens of millions of dollars every day of shutdown, and they can't bear it for a long time, and finally they can only promise to raise wages, and UAW is to seize the weakness of car companies that can't bear it, and they have to make inches again and again, so in the end, the wages of employees are getting higher and higher, and the benefits are getting better and better, which has exceeded the affordability of car companies.

"Today I'm teaching you a lesson: if you can't bear it, you don't have to endure it. John was prepared to deal with this matter with a strong hand.

The next afternoon, John Smith and Jose Elber went to Purple Star Manor.

In the past few days, the staff strike has made John Smith's hair gray and his face even more tired, which shows that this strike has tormented the old man.

“boss!”

“boss!”

"Sit down!"

John pressed his hand for John Smith and Jose Elber to sit down.

Smith didn't sit down, but looked at John apologetically. "Boss, I'm sorry, it's all because we didn't handle it well that caused this to happen. ”

"It's your business, it's all their business, sit down!" John certainly doesn't blame John Smith for this kind of thing, it's not about management, it's all greed.

"How many factories are shut down at the moment, and how many people are on strike?"

"There are six parts factories that have stopped working, 21,233 people have gone on strike, and because the parts factories have been shut down, it has also affected the production of some factories, and the company is now losing nearly $40 million a day. ”

"Tell UAW that we will not compromise this time and give them 24 hours to sign the contract, otherwise it will expire and the six factories will be completely shut down. ”

"What about production?"

"Moving to Alaska is a long-term pain that is better than a short-term pain, and these people go on strike every few years, and the company loses billions of dollars every time, so I decided to solve this problem all at once. ”

"Hehe, President Smith, I've got two prisons for you to produce generic parts, you just need to bring the equipment and send some technicians! And I've got a special price for you. Joseph Elber looked at John Smith with a smile on his face, and his mood was particularly beautiful, taking over the work of General Motors, making high profits and earning a lot.

"What price?" asked John Smith.

"$20 per hour, plus $55 per person for medical insurance, and $8 per person per day for meals, 4 sets of uniforms per quarter, and some small gifts for the New Year, as for pensions, insurance, and grants...... These benefits are not available, of course, the utility bills of the workshop are paid by you. ”

"Boss, I want to move all the factories to Alaska!"

After listening to Jose Elber's offer, John Smith felt that 10,000 horses rushed by, and such a salary was outrageously low.

The general wage for workers is $46 per hour, and now the prison quotes $20, so that the general purpose saves $26 per worker per hour, and $208 per person per day for an eight-hour day.

GM now employs more than 200,000 people, and if it moved all of its factories to Alaska, it could save $41 million a day, $1.2 billion a month, and $15 billion a year.

And that's just the salary, but also health insurance, pensions, 、...... Miscellaneous benefits, GM can save nearly $20 billion a year.

This money is enough for John Smith to move all the factories to Alaska, although GM sells millions of cars a year, but the net profit is not so much, so once GM moves to Alaska, the profit will definitely become the largest among the global car companies.

And Wednesday also wants GM to move the company to Alaska, although he provides cheap labor, but he has low costs and makes a lot of money.

The general pay is $20 per person per hour, of which $2 is for the prisoner, and the remaining $18 will all go into the pocket of the Wednesday company, which is $18 per person per hour, $144 for eight hours, $28 million a day for 200,000 people, $860 million for a month, and $10.3 billion for a year.

And his costs are almost none except for paying taxes and management fees, because the General Motors Group provides food supplements, clothing, medical insurance, and water and electricity bills, and everything that should be paid has already been paid, and the rest is some fraction, which can be ignored.

So don't look at Wednesday as just a prison that provides cheap labor, but his net profit for a year is much more than that of the General Motors Group.

Now the company has 54 prisons, more than 500,000 people, and 30 more are under construction, and in the future it will reach the scale of 200 prisons and 2 million inmates, and as long as it collects $100 a day from each prisoner, Wednesday's annual profit will reach more than $70 billion, which is almost equivalent to nine General Motors groups.

As for so many people, can Wednesday guarantee a job for every inmate?

The answer is yes, cheap labor will always be in short supply in the United States, so there will be no jobs, and for the sake of the local unemployment rate, John deliberately suppressed it, otherwise the company would have exceeded the business standard on Wednesday, how could anyone use it for GM!

"Well, give a notice to the workers in the factory, all workers must quit the union, otherwise they will all be fired, and GM will only recruit non-union personnel in the future, and those who don't want to do it will leave, and they must choose between the union and the company, and then all the vacated factories will be moved to Alaska. "John is going to kill the UAW completely.

These unions in the United States have not only hindered development, but have also evolved into hegemonic groups, using the extreme behavior of strikes to obtain benefits, and they are becoming more and more violent, Hollywood screenwriters' strikes, Chicago teachers' strikes, and the annual salary of $80,000 has exceeded the standard of $10,000 for the middle class, and they are also on strike!

A general strike at the steel mills, protesting against the 10-hour working day, 10 hours is not a very normal working time?