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It was a ~$600 million (2024 dollars) investment to build the plant and its economic footprint is about $1.5 billion a year. No matter how MB management feels
by gwbrooks 3y ago
It was a ~$600 million (2024 dollars) investment to build the plant and its economic footprint is about $1.5 billion a year.
No matter how MB management feels about Alabama and its laws, stockholders would hang 'em from lamposts if they shut down that plant on a whim.
- jojobas 3y agoIt's not necessarily a whim, and maybe is a sunk costs fallacy. The 600M wouldn't mark down to zero if they decided to shut it down.
- wnc3141 3y agoFuture switching costs to a new plant are non trivial as well
- NotSammyHagar 3y agoIf the plant is producing at expected amounts, the cost of paying a human and union acceptable wage won't be that much. A union contract means you won't have labor strife later, just negotiate a contact. Without a union you have endless turmoil and mad workers who are thinking about having a union.
- linksnapzz 3y ago>Without a union you have endless turmoil and mad workers who are thinking about having a union That plant has been in operation for almost 30 years without a union. The UAW staffing rules are probably a bigger sticking-point than the dollar-amount of salary.
- wnc3141 3y agoInteresting points about unions providing reliability to the firm . Hadn't considered that benefit.
- snapplebobapple 3y agoThe wage cost of a union to a company is isually minor vs the loss of control of the firing process