Jim Cramer Says OEMs Should Move American Auto Manufacturing To Mexico For $5/hour In Response To UAW Demands
Jim Cramer Says OEMs Should Move American Auto Manufacturing To Mexico In Response To UAW Demands
Unionize Mexico
Nafta has restrictions around worker pay. Overall though it might be bad for auto workers in the US but much more beneficial to the average American.
Is protectionism really the solution?
In this case, yes. NAFTA screws the average American and boosts the stock market which pur government is beholden to. The net effect around the globe is more exploitation for all.
Yeah, I'm already paying more for American made products, in search of better oversight and safety. If it offered workers better pay, that would be a huge win for "voting with my wallet".
Canada really isn't that much cheaper than the US to manufacture and they are also unionized. You just get the currency advantage (1USD = ~$0.72 CAD). Stellantis already moved Ram production to Mexico. The bigger issue is relative competition with Asian imports and Tesla who have no union factories because they produce mostly in the south.
Either way, it would make little sense to move F150 and Silverado to Mexico. Hard to claim you drive American industry but produce in Mexico. I think the frustration is that multiple reasonable offers have been made and the UAW has yet to move from their original position. Which is ironic given they accused Stellantis and GM with bargaining in bad faith.
It's important to note that Mexico and Canada have unions.
Musk and his team has been very successful at surpressing unionization. They quickly gets rid of those that try.
The Japanese and Korean makers try to keep people placated so that they don't think about unionization. Or in Hyundai's case, using child labor and getting caught. In the South, some people are too ignorant to understand what the benefits of unions are which is one reason why it's a popular destination for manufacturing jobs.
Volkswagen Auto Group has two separate unions, a minority UAW and a competing American Council of Employees specifically at the Chattanooga plant. The others are probably not unionized YET.
Unionization gets more popular as more conpanies try to extract more productivity without proper compensation.
Hard to claim you drive American industry but produce in Mexico.
Yeah Ford's multi-million dollar "all in on America" football ad campaign will look pretty fucking ironic if they move all of their production elsewhere.
(Not that I believe it anyway)