U.S. Labor Unions: Why China Can Harvest Wool

Mondo Technology Updated on 2024-02-23

**Thousands of Fans Incentive Plan Historically, unions have been seen as the vanguard of the struggle for the welfare of employees and the leadership of the revolution. However, "water can carry a boat, but it can also capsize a boat", and the US trade unions have not only caused damage to local manufacturing enterprises, but also become the biggest obstacle to international trade and investment.

With the rise of China, trade unions have gradually become a "stumbling block" on the road to emerging business. According to the statistics of the General Administration of Customs, in 2021, China's exports of goods exceeded 6 trillion US dollars, continuing to maintain its leading position in the world.

At the same time, China's outward FDI flows reached 1,537 in 2020100 million US dollars, a year-on-year increase of 123. For the first time, it surpassed the United States and became the first in the world.

China is expanding globally, but it has faced various headwinds in terms of trade and investment in the United States. The war between China and the United States has been going on for three years, and there is still no sign of improvement.

TikTok's overseas company (the international version of Douyin) was nearly forced to sell cheaply, an incident that reflects the difficult situation faced by Chinese companies in the U.S. market. China's exports and investment in the United States are facing obstacles, and in addition to the United States using the name of "**" to engage in ideological confrontation, American labor unions have also become a stumbling block to Sino-US commerce.

The union's boycott of Chinese goods is aimed at protecting local manufacturing, which is still competitive in areas such as aircraft, chips, engines, precision instruments and chemicals, although the U.S. manufacturing industry is declining.

To crack down on foreign goods and protect the interests of the blue-collar class, U.S. unions spend $48 million a year lobbying members of Congress to speak for unions.

The successful case of Fuyao Glass investing in the United States proves the feasibility and potential of Chinese enterprises investing and building factories in the United States. However, the persistence of labor unions to demand the rights of American workers and the high labor costs have become a challenge for Chinese companies to invest in the United States.

This challenge is reflected in the open and covert struggle between Fuyao's American factory and the American labor union. Despite this, Fuyao Glass has successfully established the world's largest automotive monocoque glass factory in the United States with its "Chinese concept" and innovative spirit, and has contributed a lot of tax money and employment opportunities to the local area, breaking this "magic barrier".

This once again proves the strength and determination of Chinese companies to invest and build factories in the United States.

In order to improve the profitability of the factory, Fuyao has adopted the method of reducing workers' wages and increasing work intensity. While in some places workers are willing to accept low wages to avoid losing their jobs, in the United States, the Fuyao factory has come under the attention of unions.

The U.S. UAW union considers the Fuyao factory to be their "fat sheep" and can negotiate and coerce Fuyao to raise employees' wages as long as the workers agree. Since 2015, UAW has been in contact with workers to discuss the details of joining a union.

In October 2016, at the groundbreaking ceremony of the Fuyao plant, an Ohio senator publicly supported the union, hoping that the Fuyao plant would establish a union.

In 2015, union leaders in UAW, Michigan, tried to use negative press to pressure Fuyao Glass's local factory to intervene in management and negotiate wages.

But Cao Dewang was not ignorant of the threat of American unions, and he decided to fight back. Fuyao began to mobilize the ideas of the workers' leaders and selected outstanding employees to go to the Chinese main factory to learn from China's successful experience.

Since Fuyao provides a large number of jobs in the local area, they have an unparalleled advantage. Letting Fuyao go would be detrimental to the long-term interests of local workers.

In the November 2017 vote, nearly twice as many votes were cast against the union as in favor, and Fuyao managed to win the game. The UAW union had to temporarily suspend its activities and wait for the next opportunity.

Fuyao's U.S. factory successfully resolved the union crisis in 2017, achieving a profit of more than 5.8 million yuan that year. However, as the shadow of the union persisted, Fuyao's U.S. factory achieved 2Net profit of 4.6 billion yuan.

Cao Dewang and Fuyao knew that it was only a matter of time before the union was restored, and that American workers would eventually blame Fuyao for the wage problem. In order to solve this problem, Fuyao's U.S. factory, which had just made a profit, began to gradually introduce automated robot production lines, replacing employees with hard-working and willing "007" robots.

However, the future of American workers remains uncertain. This is a portrayal of the Oscar-winning documentary "American Factory", and it is also a microcosm of Chinese companies investing and building factories in the United States.

The same situation has also been seen in Haier and other companies that have built factories in the United States.

Although American unions have been criticized for "sucking the marrow," they have played an important role in history. Not only did they win the "eight-hour workday" and the May Day holiday for workers during the 1886 Chicago workers' strike, but they also gave the working class the power to elect representatives and negotiate labor benefits in the Wagner Act of 1935.

While unions are now considered an obstacle to the revival of manufacturing in the United States, they still play a role in driving social redistribution and reviving the economy.

The birth of this bill was a compromise and life-saving measure made by the United States during the Great Depression to ensure social stability and curb the proletarian revolution. However, the Act does objectively protect the legitimate rights and interests of workers.

For example, in 1936, automobile workers in Michigan, the United States, successfully controlled the parts factory of General Motors for more than two months through non-violent non-cooperation, resulting in a significant decline in GM's production due to the shortage of spare parts.

Over the next three months, GM's U.S. shipments plummeted from 50,000 to 125, and Ford and Chrysler quickly seized market share.

Eventually, GM compromised with the union, giving union members a 5% pay rise and allowing workers to chat during lunchtime. As strikes continue to occur across the United States, workers' wages and union sizes have increased significantly.

According to statistics, in just five years, from 1933 to 1938, the number of union members in the United States increased by a factor of three, according to the statistics of Nobel laureate Krugman.

Although strikes organized by trade unions may bring short-term losses to enterprises, they can improve workers' wages and working conditions, thereby improving work efficiency and have a positive impact on the long-term development of enterprises.

According to Hirsch and Addison's research, the existence of unions can make workers' wages **10%-20%. In addition, according to the U.S. Bureau of Labor Statistics, the median weekly wage for union members in 2017 was $1,041, which was $212 higher than for non-participants.

As a result, workers have become the middle class of society, providing a huge consumer market for American business and promoting the development of the American economy. For example, the average annual salary of a General Motors worker can reach $6$50,000, with an average weekly salary of $1,250, is enough for a family to feed a family.

Therefore, we can see that the existence of labor unions has played an important role in promoting the development of the American economy.

During the Cold War, the United States attracted people from Eastern European countries with a middle-class life of abundant materials and harmonious life. The rise of consumption by the working class has also become the cornerstone of the prosperity and development of the tertiary industry in American society.

Trade unions have played an important role in the struggle for the economic rights of the American working class. The German philosopher Friedrich Nietzsche once said, "If you fight with an evil dragon for too long, you will become a dragon yourself", which can be used to describe the American trade union organization.

In the '50s, U.S. union organization reached its peak, when 35 percent of workers in the U.S. were unionized.

Since peaking in 1954, union membership in the U.S. has been declining, and by 2018, union membership in the U.S. accounted for only 10 percent of the nation's workforce5%, the number is only 14.74 million.

Among them, ** employees had the highest union participation rate of 339%, while in the private sector, only 64% are unionized. This is the "full moon is lost", the ** and corruption brought about by the peak of the trade union movement, pushing the American manufacturing and labor movement into the abyss.

DATA**: There are multiple reasons behind the decline of the U.S. Bureau of Economic Analysis unions, both external and internal. The reasons that lead American workers to leave unions are varied, both policy and economic.

First, the greed of the unions led to an exodus of American manufacturing. While trade unions fought for many rights for the working class, their excessive greed overwhelmed the company, which eventually chose to relocate factories to cheaper locations.

Take General Motors, for example, which was once the leader of the U.S. auto industry, but suffered because of the greed of the UAW union. In order to obtain more profits, the UAW union organized several strikes, which brought huge economic losses to General Motors.

1.The GM strike took a heavy toll on it. In 1998, for example, a 54-day strike at two component factories resulted in $2.2 billion in damages; In 2007, a nationwide strike shut down 30 GM plants in the U.S., and $2.8 billion went down the drain.

2.The union's "never-ending" strikes and demands have brought GM workers to $63 an hour, at least $13 an hour higher than those of workers at auto factories such as Ford and Toyota.

This means that GM's profit is at least 26% lower than that of its competitors in the case of the same quality, same price and same volume. 3.GM's near-"all-in-the-blue" approach eventually led to its bankruptcy filing two years later, and in 2018, GM announced layoffs150,000 people.

In GM's view, the high cost of labor puts a lot of pressure on the company, and it is only a matter of time before it is eliminated. Since I can't solve the problem of employees asking for a pay increase, I can only get to the root of the problem.

I'm in a showdown, don't pretend, I'm going to run! "In fact, the tragedy of General Motors is just a microcosm of the decline of American manufacturing. Because of the continuous increase in local labor costs, in order to ensure the competitiveness of products, enterprises can only choose to "go abroad".

When the pandemic hit in 2020, U.S. companies wouldn't even make basic masks. Originally, I only wanted to get benefits from the enterprise, but I didn't expect it to turn out to be "chicken feathers".

In the absence of alternative businesses, laid-off workers are often unemployed at home, reducing the vitality of the local economy. The people of the Rust Belt are left to sink in declining cities and soaring violent crime.

Second, U.S. companies are trying to curb the rise of trade unions. As the center of global capitalism, private enterprise in the United States accounts for more than half of the nation's enterprises.

The core purpose of the private sector is to extract as much surplus value as possible from employees, which is completely contrary to the purpose of trade unions. As a result, private business is considered the number one enemy of American trade unions.

The chart below vividly illustrates the inverse relationship between the profit margins of the private sector and the trade union movement in the United States. When the trade union movement flourishes, the residual profits of private enterprise falls; Conversely, when the American labor movement is in a downturn, private companies are aggressively profit-free.

U.S. companies spend more than $2.5 billion a year lobbying to crack down on unions, while union lobbying funds are only $48 million, a difference of more than 52 times.

This phenomenon reflects the nature of the money game in American democracy. Due to the strong financial resources of American companies, successive ** have passed bills and regulations that are unfavorable to trade unions.

As a result, the union's politically weak position has dictated its difficult position in the United States. In addition, in order to prevent union strikes from affecting business operations, many U.S. companies will use methods such as monitoring workers and preventing employees from forming unions to suppress unions.

Walmart is the epitome of this.

In accordance with U.S. law, the involvement of labor unions in the operation of a business is subject to a democratic process. However, this provided an opportunity for businesses to escape and covertly buy off the workers' leaders.

As a result, Walmart has been blocking the formation of unions. The political and business circles of American society colluded with each other, and it was only a matter of time before American unions declined. In addition, corruption within the American labor unions has led members to turn their backs on them.

Corruption and involvement in criminal scandals at the top of the trade unions have caused great damage to the public image of the trade unions. There are two main parts to the funding of American unions**: one is to collect 5% of the salaries of all members as activity funds; The other part is to carry out capital appreciation operations through the management of members' pensions.

At present, the union's pension has become the largest investor in the US financial market.

In trade unions, leaders can face threats from politicians, representatives of the financial community, and gangsters when they come to power. This pressure can cause them to turn their backs on the trust and aspirations of others and become tools of the ruling class.

In the context of the electoral system in the United States, the Democratic and Republican parties will actively enlist the support of trade unions because they have a large number of votes.

The fact that the Ohio senator personally went to Fuyao to put pressure on the union is a manifestation of the political influence of the union. Similarly, some unions with large pensions have been involved in gang crimes.

For example, Jimmy Hoffa, the former president of the International Brotherhood of Teamsters, who won a large number of victories in the labor movement through his ties to the party, was also sentenced to prison for using the union to provide "low-interest loans" to gangsters.

The 2019 film The Irishman vividly illustrates this historical event.

Some senior leaders of trade unions have taken advantage of their positions to seek personal gains, which has seriously damaged the credibility of trade unions. For example, the UAW, a union that left GM in a desperate situation as a result of the strike, was exposed to multiple cases of rights and responsibilities.

UAW board member Vance Pearson has been prosecuted for alleged misappropriation of the union**. In addition, a number of senior executives, including Chairman Gary Jones, have also been investigated for allegedly blackmailing car executives and receiving kickbacks, as well as misappropriating** for golf, high-end cigars and private villas.

As representatives of the workers' group, they openly betray the interests of their brothers in the industry, and their selfishness is too heavy. This has led them to turn their backs on the general public, to have no program and line of long-term struggle, and to change from opinion leaders to the ruling class.

This is the root cause of the continued decline of American labor unions.

The deformed, filthy, and blood-sucking behavior of the U.S. labor unions is constantly encroaching on the living space of the U.S. manufacturing industry, making Chinese companies, the world's largest foreign investors, a formidable rival.

Manufacturing is the foundation of the country, and only by making the cake bigger first and then distributing it fairly can we achieve common prosperity. We hope that Fuyao's success in the United States will enlighten the American workers, and rebirth those once progressive and pure trade unions in the United States.

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