It isn't the corporation that you can't win against, it is the market. No one beats the market, long term.
Just say UPS had eaten the cost increase of the labor component of their services. Their choices would be to deliver packages at a loss, or to put their prices up.
If they operate at a loss, then they lose money for every package they deliver. So UPD immediately wants to deliver less packages. UPS will keep only the most profitable clients and contracts and they will reduce capacity to stop from going out of business. This condition is called a Margin Retreat, and it can lead to a death spiral of a company if they don't develop other revenue streams.
The other option is to pass the costs on to their customers, then UPS will lose customers to other mail carriers that don't have to pay union rates. This also causes UPS to shed excess capacity, because paying for capacity that they don't use is very expensive and doesn't give any returns.
This was exactly the situation in the UK coal mining industry in the 1980s. Low grade thermal coal was being mined at fantastic costs. The government was subsiding the mines to keep miners in jobs and buy votes. The union leaders were literally socialists and had swung two elections demanding that the government pour money into mines that would never be profitable again. Enter Margaret Thatcher, who did nothing more or less than restore the free market and make mines pay their own wages.
If you want UOS to pay workers better, then change market conditions by preventing immigrants from taking transport jobs. Reduce the oversupply of cheap labor to the market and then every carrier wil pay the new market rate for truck drivers.
If you want UOS to pay workers better, then change market conditions by preventing immigrants from taking transport jobs. Reduce the oversupply of cheap labor to the market and then every carrier wil pay the new market rate for truck drivers.
While I am ambivalent on unions, If UPS falls it is going to be significantly more due to the amount of cheap immigrant labor rather than the Teamsters campaigning for higher wages. If every transport company had to pay Americans fair wages, then UPS raising their prices to compensate for increased labor cost wouldn't put them out of business.
It's honestly quite astonishing how about 95% of our problems boil down to third world aliens and the globohomos who deliberately let them in, and how just ejecting them solves most of the problems almost overnight.
One of Henry Ford's insights was that paying his workers well created a market for his Model T Fords.
Mechanisation (farming with tractors, using cars for transport) leads to effect and more of the Value Added Step.
Wealth in the economy creates the middle class. All of our professionals, inventors and innovators come from the middle class.
It takes generations to convince people that their rural homestead has less to offer than the city.
In 1890 the average middle-class farmer had a better standard of living than someone in a big city. It took a long time for city life to be anything but slims and open sewers for almost everyone.
It seems we are going backwards fairly quickly right now.
It isn't the corporation that you can't win against, it is the market. No one beats the market, long term.
Just say UPS had eaten the cost increase of the labor component of their services. Their choices would be to deliver packages at a loss, or to put their prices up.
If they operate at a loss, then they lose money for every package they deliver. So UPD immediately wants to deliver less packages. UPS will keep only the most profitable clients and contracts and they will reduce capacity to stop from going out of business. This condition is called a Margin Retreat, and it can lead to a death spiral of a company if they don't develop other revenue streams.
The other option is to pass the costs on to their customers, then UPS will lose customers to other mail carriers that don't have to pay union rates. This also causes UPS to shed excess capacity, because paying for capacity that they don't use is very expensive and doesn't give any returns.
This was exactly the situation in the UK coal mining industry in the 1980s. Low grade thermal coal was being mined at fantastic costs. The government was subsiding the mines to keep miners in jobs and buy votes. The union leaders were literally socialists and had swung two elections demanding that the government pour money into mines that would never be profitable again. Enter Margaret Thatcher, who did nothing more or less than restore the free market and make mines pay their own wages.
If you want UOS to pay workers better, then change market conditions by preventing immigrants from taking transport jobs. Reduce the oversupply of cheap labor to the market and then every carrier wil pay the new market rate for truck drivers.
While I am ambivalent on unions, If UPS falls it is going to be significantly more due to the amount of cheap immigrant labor rather than the Teamsters campaigning for higher wages. If every transport company had to pay Americans fair wages, then UPS raising their prices to compensate for increased labor cost wouldn't put them out of business.
It's honestly quite astonishing how about 95% of our problems boil down to third world aliens and the globohomos who deliberately let them in, and how just ejecting them solves most of the problems almost overnight.
One of Henry Ford's insights was that paying his workers well created a market for his Model T Fords.
Mechanisation (farming with tractors, using cars for transport) leads to effect and more of the Value Added Step.
Wealth in the economy creates the middle class. All of our professionals, inventors and innovators come from the middle class.
It takes generations to convince people that their rural homestead has less to offer than the city.
In 1890 the average middle-class farmer had a better standard of living than someone in a big city. It took a long time for city life to be anything but slims and open sewers for almost everyone.
It seems we are going backwards fairly quickly right now.