[net.politics] Unions, Management and Japan : Reply to Jeff Sonntag

orb@whuxl.UUCP (SEVENER) (02/14/85)

> Jeff Sonntag
>       Yeah, UAW workers have compromised with management.  Instead of the
> unlimited amount they really want, they've settled for only $20/hr and enough
> benefits to cost management $50/hr.  Of course, many UAW workers are now out
> of work since American automobiles cannot compete with imports at these rates.
> And they wonder why it's economical to replace them with expensive robots.
 
There are several fallacies in this response.
  1)Foreign workers (e.g. Japanese) get far less than American workers
Actually Japanese workers get only several dollars per hour less than
American workers and also get the benefit of virtually guaranteed lifetime
employment.  This is on the level of manual assembly-line workers.
On the level of management and particularly the highest executives however
there are enormous differences in compensation. The highest Japanese auto
executives get about $100,000 per year if I recall correctly.  (this is
based on memories of a report on NPR so the exact figure may be wrong)
The highest American auto executives however get over $500,000 per year.
Calvin Trilling had an excellent article in the Nation pointing out the
absurdity of the CEO of Ford getting over a 10% raise in pay at the same
time Ford was in a major economic slump and was asking Union workers for
major wage concessions.  There *are* major discrepancies in personnel costs:
the question is for which personnel and at which levels?
 
  2)American workers, because of expense are more likely to be replaced
    with expensive robots
Actually Japan has several times the number of industrial robots that we
have in the U.S.  That is one of the ways they can hold their costs down.
The reason this is not as big a problem for Japanese workers is that
they have far more security with the Japanese system of guaranteed lifetime
employment.  They do not have to worry as American workers do that
automation will mean that they will be directly replaced with a robot.
 
        tim sevener      whuxl!orb

mjk@tty3b.UUCP (Mike Kelly) (02/17/85)

Another argument re: Japanese competition is that it was U.S. postwar
policy that allowed the Japanese and the Germans to get where they are
today.  Basically, the U.S. made the decision that it was in its
security interests to have strong friendly powers in Europe and the
Far East, so they allowed these nations to play outside the normal
rules of international markets.  In the case of Europe, it was the massive
subsidy for rebuilding of the industrial plant.   In the case of Japan,
it was not only that, but also a pass on international trade parity.
Japan was allowed to maintain very strong control of its internal
markets while having free access to markets in the U.S.  

The arguments Jeff Sonntag raised in his note are the familiar anti-union
cant.  Productivity among unionized
workers is higher than among non-unionized workers, and the wage
differentials, as Tim Severner began to point out, are greatly exaggerated
for political reasons in the U.S.  Never factored in are the value of job
security and  practically free vacations that the U.S. worker doesn't get.

Furthermore, if you want to blame unions for our troubles, you must explain
why other countries with much higher rates of unionization do quite well
economically.   And some do not nearly as well.  The unions do not seem to
be a determining factor of industry health.

Mike Kelly