Tuesday, July 05, 2005

Staying Competitive

Jesus. Toyota is going to build its seventh North American factory in Canada because US workers are too illiterate to train economically, and Canada's national health care makes medical coverage much cheaper per worker. CBC News (07.05.05), via LeftCoaster:
"'The level of the workforce in general is so high that the training program you need for people, even for people who have not worked in a Toyota plant before, is minimal compared to what you have to go through in the southeastern United States,' said Gerry Fedchun, president of the Automotive Parts Manufacturers' Association, whose members will see increased business with the new plant. Several U.S. states were reportedly prepared to offer more than double that amount of subsidy. But Fedchun said much of that extra money would have been eaten away by higher training costs than are necessary for the Woodstock project." Toyota to build 100,000 vehicles per year in Woodstock, Ont., starting 2008
"He said Nissan and Honda have encountered difficulties getting new plants up to full production in recent years in Mississippi and Alabama due to an untrained - and often illiterate - workforce. In Alabama, trainers had to use "pictorials" to teach some illiterate workers how to use high-tech plant equipment." "'The educational level and the skill level of the people down there is so much lower than it is in Ontario,' Fedchun said." C'mon, Gerry! How do you really feel? "In addition to lower training costs, Canadian workers are also ...cheaper to employ partly thanks to the taxpayer-funded health-care system in Canada, said federal Industry Minister David Emmerson. 'Most people don't think of our health-care system as being a competitive advantage,' he said." Note: the article says "$4 to $5 cheaper", but doesn't provide any context. Is this per hour, per day, per month? Wonder if the free marketeer, unfettered capitalism crowd will take note of this.

1 Comments:

Anonymous Anonymous said...

Any thoughts as to why the South East has such a lock on new automotive plants in the US? If an educatable workforce were a priority, I wouldn't be poking around Alabama unless some other, more important force was also at play. Outside of cheap labor, loose regulation, and easily blackmailed communities, is there something else at work? Like out-of-control right-to-work laws or something? How is it that that region is competitive at all?

12:01 PM  

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