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Pages: I just shut down my California factory [1]
Author Topic: I just shut down my California factory
Viva

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2010-09-21 15-49-23

I just shut down my California factory and moved it to Tijuana. My costs per employee hour in California is over $35 per hour, fully burdened what with wages, taxes, UI, Workman's Comp, and a hundred other taxes. I got about $60 worth of sales per hour under this system. In Mexico I get the same $60 value for a net cost of $4.50 per hour. My competition is China, at a buck an hour. But I can make it up through logistics. That's the reality of today's job market. Google San Diego Union Tribune keyword Kyocera for a real look into the fake premise that alternative energy will create AMERICAN jobs.
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canty

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2010-09-26 7-08-48-

Well uh Plenty of smart people in need of jobs that would probably do the work for $25/hr. if you bothered to restructure your labor costs. Dork.
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homburg

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2010-09-29 13-24-39

I think he means his total cost per employee is $35/hr. If this is true he's not paying them $25/hr. Much less. Doing business in CA is expensive.
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besser

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2010-10-03 11-49-49

^^^^Knows nothing
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smyers

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2010-10-10 15-27-45

Ah right Yeah, probably $20 or so then, not much less imo. Just checked out the company. I guess that shipping/receiving supervisor job in Costa Mesa isn't available anymore :( While Sparky is right about the costs in America there is a feedback problem to consider as well. And this feedback problem is this: As more and more jobs go overseas for cheap labor so companies can increase profits who's going to buy their good or service? Not the Mexican making $3/hr, not the American now making $10/hr.
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lias

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2010-10-13 8-35-49-

Correct My line supervisor gets $12 before his IRS per hour. My cost for this employee includes health insurance, Unemployment Insurance, Workman's Comp, local taxes the SS payment, liability insurance, rent, light, management costs. Then there is the APCD which creates a whole new bureaucracy in addition to OSHA and the Union threat every month.
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  • cardamone

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    2010-10-15 4-20-15-

    Bend, OR Sparky, if you haven't moved just yet have you thought about Oregon? I'm an investor in XsunX (probably you heard of them) and also hoping to work for them at their manufacturing plant in Bend, OR if I get lucky and they make the leap from 'cusp of manufacturing' to 'manufacturing and selling'. We'll see. They went to OR because apparently OR is doing a LOT to entice green companies there, which I assume means massive tax breaks, maybe grants, who knows. You might want to check it out, and as I mentioned keeping a job in America means at least someone can afford your product eh.
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    killin

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    2010-10-16 7-18-49-

    My buddy from Buck Knifes moved to Idaho But another neighbor of mine, Taylor Guitars, is moving to TJ and his operation is really sweet. Besides, I live very close to the border and my commute time will be zilch what with the SENTRI pass. Good luck!
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  • Indira

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    2010-11-18 5-24-47-

    Need any help? I'm in lovely Cherry Valley, and will work relatively cheap if only to relieve the boredom of no job. Document control, inventory control, logistics (international and domestic), database administration, QA. Sort of an "operations" person obviously. Hard and smart worker, too. Why be one and not the other? I can't work for $3/hr in Mexico though lol. Good luck to us all.
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    beever

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    2010-12-01 19-48-45

    Some American buying power went away. I sympathize. Anyone who thinks businesses should be paying taxes is nuts. They don't. If they can't pass on the cost, they go elsewhere. Those employees of yours will be buying less goods and services, and in return, those businesses will cut back. Or move. What will happen when ALL the jobs are gone? Who will buy then? I've gotten to the point where I look at what I buy. I'll pay extra to keep a fellow American employed. Someone has to draw the line.
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    coddington

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    2010-12-17 5-23-36-

    McCormick When Rural Electrification was snaking through farm country, farmers turned their inventive geniuses into modified harvesters, plows and the like using Forney welders sold to them by traveling sales reps. McCormick bought these innovations and created Int'l Harvester. Automated agriculture is what is keeping this nation thriving. We feed most of the world. As long as we continue to export at today's rate we will have stuff from all over the world, even for those who can't work. In fact, we are seeing the start of reverse taxation.
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  • alvardo

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    2010-12-20 3-18-33-

    Ah, the purple wage. Was in an SF story i read. Most everyone was on the dole. Written in the early 70's I think. I like to work and be useful. I don't want stuff to be given to me. It seems to be not as precious as something earned with my effort and sweat. Hope we don't come to reverse taxation for everyone. I was a business owner, single proprietor. It's ridiculous. Quarterly estimated income tax payments. Also, one finds out just how big a bite those employer contributions really are when they work for themselves and how many state and local governments have their hand out for more money. Everyone pays taxes. It's a part of having government. It's just that it should be all upfront. Businesses do not need to do employer "contributions", nor health insurance, nor any of the other BS.
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    pavone

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    2011-01-01 10-07-12

    $35 per hour is actually cheap in the US Cost of UI, costs of health care, etc. If I hire someone and offer then $10 an hour, it will cost me about $32 an hour when the added government requirements are summed. If I hire them for $15 an hour through a temp agency, they'll get paid min wage, the temp agency deals somehow with the rest of the mess. Through a temp agency, they get no benes. If you want to manufacture in the US, the only way is to go automated assembly, so that you don't need very many employees. Sad, really. I'd rather have 20 people at $10 an hour, than just one guy at $60k a year. But...I go with "the one guy", and instead, spend my money on automation equipment - which is made in Germany and Taiwan, very little is US-made, for the same government overhead problem.
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    draughn

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    2011-01-09 21-01-05

    This is BS! Posted same thing on Sea R & R.
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    bruna

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    2011-02-20 11-00-27

    That is the reason for, so many americans beng unemployed. Cheaper labor in other countries.
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    murchie

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    2011-03-10 11-30-21

    it is not the, hourly wage my total cost per hour is double the hourly wage, therefore if i pay 12 an hour, it cost me 24. this is not even the big cost for me. in the trucking world the labor iss the cheapest thing. the gov't make me carry lib insur of 1.5 mil per truck, and then the eco laws are so heavy handed that they are now telling me i have 1 1/2 years to buy a new fleet. new emission laws say i can not run my trucks, but at the same time they are letting mex trucks into this country, these trucks do not meet 2000 standards and i have to meet 2011 standards?
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  • bosko

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    2011-03-29 19-48-52

    Consider this: The unions have killed most efforts to give labor better tools to create more, with less effort through robotics and automation. The American worker is the most productive in the world when given the right tools, machines and training. The unions prohibit this and thus we manufacturers move to offshore facilities and more amenable workers... who, by the way, get the best tools, machines and training.
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  • ocain

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    2011-04-11 11-50-30

    union is paid by the dues to prevent job loss, to get all they can for there people. no different then you selling what ever you make for all you can. do you care about the person buying as long as they pay?
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    detochkina

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    2011-04-12 5-27-36-

    Now all you have to worry about is that the drug gang violence in Mexico escalates to the point that all your workers get killed or flee over the border to the US en masse Texas officials are working on a plan to respond to a potential collapse of the Mexican government and the specter of thousands fleeing north in fear for their lives after recent reports indicated the country could be on the verge of chaos. "You hope for the best, plan for the worst," Katherine Cesinger, spokeswoman for Gov. Rick Perry, said last week. "At this point, we've got a contingency plan that's in development." Homeland Security Secretary Janet Napolitano denied Thursday that the latest drug-fueled violence in Mexico has spilled across the border, even as local officials throughout the country see troubling signs of Mexican gang activity. "Right now it has not (crossed the border). But it is a contingency we have in mind because it could," the former Arizona governor told reporters. "We have contingency plans should violence spread into the United States." The situation is so unstable the Obama administration's new director of national intelligence warned Congress last week that the Mexican government is losing control.
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  • mcpeck

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    2011-04-20 20-03-23

    yes - Unions are a big part of this problem
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    bouwens

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    2011-05-07 18-32-26

    why are unions so bad? funny how the same people that bitch all day about low wages hate the unions, who are there to get better wages and insuance for there members
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    lindroth

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    2011-05-21 21-31-13

    Here's why: Six times I created systems to tool up workers so they could produce three or four times the output with LESS EFFORT including a pay raise. In each time the labor union leaders made it impossible to implement. I'm not alone. Every manufacturer worth his salt has done the same with the same result.
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  • Barbra

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    2011-06-21 2-08-39-

    A bit of history? I was chairman of the Robotics Society some time ago. Our group convinced the local College to create an Automation Technology associates degree course. We attempted to post announcements in many local unionized factories. We were denied permission. The reason they gave us was "No Automation Technologist category" - Oh, yes, light bulb changer, sanitation engineer... You want another five or six actual examples of reality? If you don't belive this, Google Solar Turbines Div Caterpillar, City College, Robotics SME... Go for it.
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    carbin

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    2011-07-13 20-27-58

    what union is it and also what local?
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  • grasty

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    2011-08-02 1-34-31-

    Why are unions so bad??!!!? Here's why: -less productivity -it's insanely hard to fire someone, so you're stuck with your incompetent coworkers workload -you pay union dues which fatten the pockets of some corrupt people -forced to go on strike -no merit based promotions. Promotions based on seniority, so you don't get ahead by working hard. And probably 1000s of other things. Sure, they served their purpose and did help the economy at one point before the days of minimum wage. They helped a worker have a voice and sparked safer environments for employees. Now they do more harm than good. Detriot is a prime example.
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    manne

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    2011-08-25 18-37-22

    Pfft. Fuck that. I wouldn't want to work w/out union representation. Why? Because the cards are stacked against you. There's more workers than managers, but who has all the power? The managers. Now, the company wants to cut pay and increase hours. They'll implement this by going one-on-one with each of the employees and telling them to take it or leave it. One employee leaving in protest doesn't change a thing. But if all the employees threaten to stop work at the same time, all of a sudden the company's profit is at stake. Guess what? They find a way to cut costs elsewhere. I've worked with union representation and without. Given the choice, I'll always go with the union. Because what's in the company's best interest is frequently NOT in mine.
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    pittman

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    2011-08-27 2-11-00-

    Two problems: What you mention-companies cutting pay but requiring more hours-is against the law. Doesn't happen, unless you work for some mom and pop-which in that case you deserve it. And since it's unlawful, you can sue for lots of money, so if that happens, it's actually in your best interests. The pros you give don't outweigh the cons I gave earlier.
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    Gzl

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    2011-09-01 4-36-59-

    Well, that's a matter of opinion. And it's only your opinion, after all. By which I mean: it's only your opinion.
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    meath

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    2011-09-11 16-19-21

    Yeah, that's why union membership represents a whopping 12% of employees. It's a pretty popular opinion really. Detriot was a big wake up on how terrible unions are. Again, they served their purpose before the days of minimum wage and laws out there to protect employees, but they're worthless now. They do far more harm than good. My points about unions aren't merely opinions, that is factual information.
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