7 ms·

i don't see how uaw bargaining is good for tesla. that just sounds like capitalist logic with unsubstantiated data. wouldn't higher wages at a ford factory will

i don't see how uaw bargaining is good for tesla. that just sounds like capitalist logic with unsubstantiated data. wouldn't higher wages at a ford factory will force telsa to match those wages if they want to be competitive in the labor market? maybe the owning class should take less profit so the consumer doesn't have to take on that extra cost, but unfortunately the incentive structure of capitalist enterprise doesn't work like that.

JumpCrisscross 3y ago
> higher wages at a ford factory will force telsa to match those wages if they want to be competitive in the labor market Given perfect mobility, yes. But the labor market Tesla and foreign manufacturers in the United States compete in are separate from those of the UAW's. The evidence for this is in their present labor cost differential: $45 and 55/hour for Tesla and Toyota, respectively, vs $65/hour for UAW factories, en route to $100+ [1]. Keep in mind, too, that union jobs are supply constrained. The UAW represents about 200,000 automotive workers [2]. That's a fifth of all motor vehicles and parts manufacturing workers [3]. > maybe the owning class should take less profit so the consumer doesn't have to take on that extra cost It's going the other way. Tesla can cut prices to below where Detroit can turn a profit. That matters when the latter are asking for capital to fund their investments. One solution would be to tax non-union produced cars such as to equalize the gap. But again, that would require a state to trade their consumers' welfare for another's employees'. A better one is to pass into law worker protections for all Americans. [1] https://en.wikipedia.org/wiki/2023_United_Auto_Workers_strike https://en.wikipedia.org/wiki/2023_United_Auto_Workers_strik... [2] https://www.npr.org/2023/10/19/1206209107/united-auto-workers-union-uaw-membership-grad-students-big-3-strike https://www.npr.org/2023/10/19/1206209107/united-auto-worker... [3] https://www.bls.gov/iag/tgs/iagauto.htm https://www.bls.gov/iag/tgs/iagauto.htm

JumpCrisscross 3y ago

> higher wages at a ford factory will force telsa to match those wages if they want to be competitive in the labor market Given perfect mobility, yes. But the labor market Tesla and foreign manufacturers in the United States compete in are separate from those of the UAW's. The evidence for this is in their present labor cost differential: $45 and 55/hour for Tesla and Toyota, respectively, vs $65/hour for UAW factories, en route to $100+ [1]. Keep in mind, too, that union jobs are supply constrained. The UAW represents about 200,000 automotive workers [2]. That's a fifth of all motor vehicles and parts manufacturing workers [3]. > maybe the owning class should take less profit so the consumer doesn't have to take on that extra cost It's going the other way. Tesla can cut prices to below where Detroit can turn a profit. That matters when the latter are asking for capital to fund their investments. One solution would be to tax non-union produced cars such as to equalize the gap. But again, that would require a state to trade their consumers' welfare for another's employees'. A better one is to pass into law worker protections for all Americans. [1] https://en.wikipedia.org/wiki/2023_United_Auto_Workers_strike https://en.wikipedia.org/wiki/2023_United_Auto_Workers_strik... [2] https://www.npr.org/2023/10/19/1206209107/united-auto-workers-union-uaw-membership-grad-students-big-3-strike https://www.npr.org/2023/10/19/1206209107/united-auto-worker... [3] https://www.bls.gov/iag/tgs/iagauto.htm https://www.bls.gov/iag/tgs/iagauto.htm