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The size of the stater brothers operation sounds much smaller than amazon’s. So I would assume the potential upside would be small for somebody to come in and c
by xt00 9y ago
The size of the stater brothers operation sounds much smaller than amazon’s. So I would assume the potential upside would be small for somebody to come in and compete. But good point. I’ve been following the whole union thing with Boeing for years and the situation I described is exactly what happened with them for both the machinists and the engineers. Both groups are heavily unionized for Boeing in the Seattle area. After years of the union continuously pushing Boeing to improve wages and benefits, and that made Boeing start looking for a way to get around the union.. moved to “right to work” states, moved head quarters, outsourced to other contractors.. basically the unions pushed the company to diversify their options for building planes. And this is in one of the most expensive product categories you can imagine. So in low margin industries, unionization is without a doubt risky for the future of those workers. You may say I’m speaking the company line but a review of history in the factories in the US shows that unless the company can directly compete with the overseas competitors, they are run out of business by people buying the cheaper and often similar quality product. There are many people in China right now trying to automate as much of their business as possible so that people in more developed countries cannot undercut them once they figure out how to automate before they do.. and if a particular factory in China decides not to do it to help keep their workers, somebody else will do it that currently is not rich and doesn’t own a factory.. why should they let the other guys who already own the factory be the last people to own a factory and no innovation after them? So yea they will get funding and start their own automated factories. So it’s a continuous race to the bottom and every time people say “oh hey stop, we are good” somebody sneaks past them and keeps the race going.. I think the real take away is we need to figure out how to have something like a union that helps people but doesn’t basically hurt the companies competiveness globally.. maybe having the people get paid the same but the robots do more.. the people should push for that instead of unionizing and asking for more money to work less.. because let’s not kid ourselves, that is what people that are unionizing are hoping happens..
- xt00 9y agoI should also mention, one thing that doesn’t seem obvious to me is why rich companies don’t actually just pay their fulfillment employees more? I’m assuming they are worried that they may not be able to expand their operation due to costs if they have set wages too high. I mean basically somebody is punching numbers into spreadsheets for lots of big companies and saying if we pay X then it means we have operating expenses that are some fraction of revenue and that is “bad”.. but I would imagine having people excited to work there because the job pays well and they can see them doing it for 10 years is probably much better than burning people out in 1 year.. it would be interesting to have somebody who sits in front of one of those spreadsheets to explain why they don’t think it works out that way.. My understanding with people in Germany working at various technical jobs like the automakers and suppliers to the automakers, they don’t get paid too much but have lots of vacation time and a nice quality of life. My take is that it is equivalently in the US would be like getting paid 50k per year but get 40 days of vacation per year that are paid. So the net result is the company employs more people to cover the workload. And have like 32 or 36 hour work weeks.
- xt00 9y agoJust thinking about it actually, I just realized.. if Germany has free healthcare then that takes a big chunk out of the spreadsheet. Companies adding more employees don’t have a fixed per worker cost that is as high if the government pays for healthcare.. basically adding more people and lowering hours everybody works is easy math if the fixed per worker costs are small compared to wage costs.