Posts tagged Labor cost
Boeing strike costs top $1.4 billion as pressure on company mounts
September 27, 2024 // The second week of the strike was more costly than the first, “as is typical for major industrial strikes,” Anderson noted. After union members overwhelmingly voted to reject an initial contract proposal earlier this month, the IAM refused to vote this week on Boeing’s “best and final offer” that included a 30 percent pay hike and a $6,000 contract ratification bonus, double the initial offer.
Opinion: The Dangers of Union Expansion in Missouri
September 25, 2024 // Consider the fact also that the UAW has spent lavishly on travel, hotels, and executive salaries over the past several years. For example, from 2013 to 2018, the UAW spent $43 million on hotels and resorts and $4 million on restaurants and bars. Two past UAW Presidents have been convicted of felonies involving financial mismanagement. Meanwhile, current President Shawn Fain is under investigation by a federal court-appointed watchdog. Fain has been accused by two union officials of retaliating against them when they refused to take actions that would have benefited Fain’s fiancé and her sister.
Who Loves Minimum Wage Laws? Kiosk Makers
July 3, 2024 // Average voters who might think they are helping downtrodden, exploited workers might mean well, but they should realize that they are actually enriching higher-skill workers (who don’t need the help as much), software developers, and people who own shares in ordering kiosk companies.
Opinion: UAW settlement will increase cost of new vehicle
January 12, 2024 // These additional labor costs will add about $900 to the price of a new vehicle. Manufacturing output per hour in the U.S. has grown by just .02% since 2009. As a bargaining strategy it makes sense for John Fein, president of the UAW, to argue that auto manufacturers are enjoying significant profits, and that some auto executives are paid giant salaries. However, what is not as well publicized is that productivity in the domestic automobile industry, as measured by output per hour, has declined by 32% since 2012. Some of this precipitous drop in productivity can be blamed on the pandemic, but such drastic productivity decreases were not as apparent in Asia. Simply put, American auto manufacturers and workers are not very efficient.
Opinion: California’s minimum wage woes are a cautionary tale for the nation
January 10, 2024 // California politicians seem to have a penchant for doing whatever they can to reduce housing affordability and otherwise increase the cost of living in the state — high taxes, burdensome labor and environmental mandates, waste for boondoggles like the high-speed rail project and countless other laws and regulations. Then they attempt to be saviors by passing still more laws to benefit one group or another and alleviate the situation they have largely created.
Three New Regulations That Will Make It Harder to Serve the Needy
October 12, 2023 // In our Opportunity Playbook, we highlighted the Institute for the American Worker as an organization fighting for pro-labor policies that respect individual workers’ choices and freedom in the workforce. They join many others who are educating policymakers and regulators on how to ensure policies do not limit charitable organizations from serving communities.
Musk May Face Someone Else Who’s Ready for a Cage Fight
October 10, 2023 // The long-running decline in union membership mirrors the decline in Detroit’s share of the US vehicle market. That was 90% during the industry’s, and organized labor’s, 1960s heyday. By the time of the debacle of 2009, it had fallen to about 50%. Now it’s closer to 40%. As Kevin Tynan, automotive analyst at Bloomberg Intelligence, points out, the Big Three have effectively downsized by ditching cheaper models and focusing on higher-priced trucks and SUVs to chase profits. As they attempt to open up a new avenue of growth, EVs, they are confronted with big near-term costs that higher pay settlements will exacerbate. “The UAW must broaden its view if it is going to increase its membership,” says Tynan, adding “they have to stop only going back to GM, Ford and Stellantis. There is no more blood in those stones.” The UAW has been aware of this for some time, which is why it targeted foreign automakers’ factories — so called “transplants” — and Tesla itself at various points over the past decade. Such effort has been largely in vain. Tesla, meanwhile, has become profitable at scale only recently. The company’s identity as a disruptive newcomer, with plants far from the UAW’s heartland around the Great Lakes, is another barrier. It is harder to entice workers into a union when their employer is hiring at breakneck speed rather than shedding thousands of jobs. Tesla has also pushed back aggressively against unionization, as those NLRB rulings attest (Tesla is appealing several of these).
Opinion: Collective Manipulation; Whether in courts or in legislatures, public employee unions need to be reined in.
February 22, 2023 // The book contains countless examples of collective bargaining agreements effectively allowing employees to get away with gross misconduct and preventing managers from sanctioning them for lackluster work. An EPA employee was caught surfing porn in his cubicle at work and was paid for nearly two years before agreeing to retire. An IRS agent systematically denied benefits to African immigrants, repeatedly made discriminatory remarks in the office, and tried to run another employee off the road. His union lawyers got him a deal that left him with a clean personnel record when he left the agency, allowing him to get a job with the Forestry Service. “As a practical matter,” Howard writes, “almost no public employee can be dismissed without a massive managerial commitment,” and even that commitment does not guarantee success. California has 300,000 teachers and only about two or three a year lose their jobs because of poor performance. At the federal level, more employees die at work than face termination for poor performance. Public sector unions provide more than direct financial contributions to political campaigns. Howard recounts how they recruit and train candidates, manage phone banks, lead door-to-door canvassing drives, staff campaigns, and run ads. Such union political activity makes them larger and more influential than other political interest groups. The protracted legal battles former Wisconsin Governor Scott Walker faced after he proposed reining in public-union power supports Howard’s thesis that union power is formidable. Walker beat a union-led recall effort against him, but union opposition to modest changes led to electoral annihilation in New Jersey in the 1990s.
Starbucks will go grande on workforce-lite future
January 6, 2023 // At the same time, Starbucks is moving quickly to automate, which will continue into 2023 under incoming CEO Laxman Narasimhan. In September, it laid out a reinvention plan that includes robotizing more in-store tasks. An investor presentation recently outlined plans to “simplify operations” and “leverage automation.” Many companies like McDonald’s (MCD.N) and Target (TGT.N) have had to find technological solutions just as workers seek higher wages. Over 12 months through November, hourly wages for private, nonfarm workers have increased more than 5% to $32.82, according to data from the Bureau of Labor Statistic. Labor costs are eating into margins that are also being squeezed by rising prices for materials and transportation. If an ornery workforce can be replaced by a robotic one, there’s no better time than the present.
Fears rise that UC strike could have long-lasting consequences on vaunted research, teaching
November 30, 2022 // “As long as this strike lasts, faculty across the system will be exercising their right to honor the picket line by refusing to conduct university labor up to and including submission of grades — labor that would not be possible without the labor of all other academic workers as well as university staff,” the faculty said in a statement. “We do this toward bettering the working and learning conditions of all students present and future.” The union is demanding significant pay increases to ease the burden of high rents in the pricey areas where UC campuses are located, along with more support for child care, parental leave, transportation, healthcare and international students. UC’s offers of wage increases don’t come close to meeting union demands but would make academic workers some of the highest paid among comparable public and private institutions, university officials say.