41–50 of 121 posts
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Yes, US workers get to enjoy unemployment instead. Brilliant solution.
Maybe not. If you raise wages in Mexico, the number who come to the US looking for jobs goes down. That may move the supply-vs-demand more in favor of labor in the US.
> The US-Mexico-Canada Agreement requires 40% or more of parts for each passenger vehicle be manufactured by workers who are paid at least $16 per hour... On face value this seems to be a very progressive condition.
It's kinda two ways. It raises the cost of automobiles (that's why analyses project a reduction in automobile sales by a bit over a million vehicles per year), reduces labour demand, and erases more low-skilled work; but those who do get the jobs may be paid more than otherwise, until the numbers expire.
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> It raises the cost of automobiles (that's why analyses project a reduction in automobile sales by a bit over a million vehicles per year) What do new cars cost in the US? Does a price difference of $500 or $1000 really make someone say "all right, I'd rather do without a car"?
Yes. Of all the people considering buying new cars, there are some at the margin of buying or not buying.
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What are these 'wages' of which you speak? Robots do not have hourly wages: "Auto component maker Piolax, will also raise the hourly wage at its Mexican plant to $16 within the year. The company is also installing robots to mitigate rising labor costs, President Yukihiko Shimazu said."
Anyone else a 'robotic automation takeover of all jobs' skeptic? There are obviously places where it makes sense, but a $15/hr human is preeeetty cheap compared to the price, programming, and maintenance of a robot. Seeing the quote from Yukihiko, I feel it reads like PR or a soothing word to stockholders who hate to hear about employees and wages
But such a robot is a good insurance against further increases of minimum wages.
Sounds like a boon for Mexico, good for them. I guess it's kind of satisfying to see these policies have the opposite of the intended effect.
>it's kind of satisfying to see these policies have the opposite of the intended effect This policy is actually doing exactly what it is suppose to. It is preventing more auto manufacturers from moving operations to Mexico or Canada where labor and Exchange rates are more favorable. GM, FORD, Toyota, Honda, Chrysler all had their eye on moving more production to Mexico, this new agreement probably stops that. I don't…
16$ an hour is less than what they pay in Canada.
Source: I work for a supplier in the Automotive Capital of Canada. These comments are so egregiously false.
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It's kinda two ways. It raises the cost of automobiles (that's why analyses project a reduction in automobile sales by a bit over a million vehicles per year), reduces labour demand, and erases more low-skilled work; but those who do get the jobs may be paid more than otherwise, until the numbers expire.
Doesn't it also reduce the incentive to outsource jobs overseas? It's harder for lower-skilled jobs in the US to compete with overseas workers working for less than minimum wage.
The article is making it sound like some kind of backfire, and I'm not really sure why. It's gotta be good in the long run for US auto workers if their competitors' wages triple.
What are these 'wages' of which you speak? Robots do not have hourly wages: "Auto component maker Piolax, will also raise the hourly wage at its Mexican plant to $16 within the year. The company is also installing robots to mitigate rising labor costs, President Yukihiko Shimazu said."
Earlier quoted context omitted.
Doesn't it also reduce the incentive to outsource jobs overseas? It's harder for lower-skilled jobs in the US to compete with overseas workers working for less than minimum wage.
If wage is the only cost, sure. But it's not, and hiring a mexican metalworker at $16/hr is still cheaper than hiring an american metalworker at $16/hr
It also makes American workers start to ask questions about why it's so much cheaper to pay a Mexican worker "the same amount" and whether or not the things that money buys are worth what it's costing them.