Union Victory Means Ford Relocates Manufacturing to Mexico

Business gets shipped out of the country because of a union victory winning higher pay (and, thus, fewer jobs).

Here’s the beginning of a Wall Street Journal article on how a union victory means another wound in the American economy. Emphasis added:

Ford Motor Co. will build a new assembly plant in Mexico and sharply increase factory output from that country, representing the latest shift of investment abroad by a Detroit auto maker following the signing of a costly new labor deal.

The No. 2 light-vehicle seller in the U.S. plans to add 500,000 units of annual Mexican capacity starting in 2018, more than double what it built in 2015, according to people briefed on the plan. The plan mirrors General Motors Co.’s $5 billion investment to double Mexican capacity by 2018.

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This is straightforward economic cause and effect. The United Auto Workers negotiated a deal that made it so expensive to build cars in the United States that Ford finds it worthwhile to invest billions of dollars to move manufacturing to Mexico.

Keep in mind, auto workers in the United States were some of the highest paid laborers with the highest standard of living before the UAW negotiated this deal. But they couldn’t let it rest. They had to squeeze the company for more. How much more? According to the Wall Street Journal, wages will “approach nearly $30 an hour in coming years, representing as much as a $10 increase for some newer hires.”

Meanwhile, other potential American workers who need a job will be left to rot in unemployment because Ford can only build their most profitable vehicles in the United States. The rest must be built by Mexicans.

Of course, instead of blaming the culprits—the Unions and the government that empowers them—Ford will be condemned for being greedy and unpatriotic.

The UAW is greedy and unpatriotic. They are also elitist since they have procured wealth for fewer workers and consigned the rest to unemployment.

Ford only remains in business if it can make cars for less than the consumer is willing to pay. If their vehicles cost more than the price Ford can get for them, then Ford will cease to exist, and all the jobs will cease to exist as well.

Unions, like the government that empowers them, are parasites that can’t restrain themselves from killing the host.

Every union victory brings the day closer to when there will be no industries left in the United States.


Joe Scudder

Joe Scudder is the "nom de plume" (or "nom de guerre") of a fifty-ish-year-old writer and stroke survivor. He lives in St Louis with his wife and still-at-home children. He has been a freelance writer and occasional political activist since the early nineties. He describes his politics as Tolkienesque.

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