(H/t to Paul O’Malley for flagging this one). The Wall Street Journal has an interesting article about the Greensburg Honda plant entitled Honda and UAW Clash Over New Factory Jobs. The article discusses the Honda plant’s restriction of applicants to those who live within the 20 counties near Greensburg. The UAW says that the restriction is designed to exclude most of the state’s thousands of laid-off unionized workers. Honda says it’s merely designed to make sure workers live close to the plant and can get to work on time.
According to the WSJ article:
Of the 33 auto, engine and transmission plants in the U.S. that are wholly owned by foreign companies, none have been organized by the UAW, despite repeated attempts. Mainly, foreign auto makers have located plants in Southern states where the UAW has little presence and where right-to-work laws limit union power. When they have ventured into Northern states such as Indiana and Ohio, they have mostly chosen rural locations far from any unionized plants and UAW halls. The moves now are helping the foreign-owned plants begin to lower wage scales.
It used to be that the presence of UAW jobs kept the foreign automakers’ salaries and benefits up, even if the foreign shops weren’t unionized. But now, apparently, with the UAW in decline, foreign manufacturers are decreasing what they offer to workers.
Again, I go to a more generalized question — productivity is way up over the past 30 years. Wages are stagnant. Where is the money going?