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> So, Slovakian workers are now realizing their current leverage, they might actually receive raises, but soon auto companies will move on. Then they actually
by charlesdm 9y ago
> So, Slovakian workers are now realizing their current leverage, they might actually receive raises, but soon auto companies will move on.
Then they actually have no (sustainable) leverage at all.
In the end, the shareholders just matter more to these companies than the employees. They're often the ones signing off on the renumeration of the CEO and the executive team.
- vetinari 9y ago>> So, Slovakian workers are now realizing their current leverage, they might actually receive raises, but soon auto companies will move on. > Then they actually have no (sustainable) leverage at all. They kind of have. To go any lower with the wages, the car companies would have go outside of EU - to Serbia or Ukraine, for example. Then, they would be hit by the import duties they themselves lobbied for. So the workers can ask for such increase, that is still a bit below the costs of having it behind EU borders plus duties. The trend of the plant operators is currently exactly the other way: they try to import workers from these cheaper countries. Undocumented, of course.
- sgt101 9y agoWhich is the result of property laws. Democracies could rebalance this easily.
- matt4077 9y agoIt's not that easy... Moving a factory isn't free, nor does it happen instantly. And at some point, you're also running out of impoverished countries to move to, especially if you also want them to be politically stable and come with the infrastructure you need. Plus, this being VW, a German company, half of the board seats is held by union representatives, and a significant portion of the rest are held by local politicians (the state is a minority shareholder in VW).