Friday, January 20, 2006
Let The Race To The Bottom Continue
Say bye-bye to more union-wage jobs in Germany. An AEG home appliance factory in the southern city of Nuremburg is set to close its doors. The move will throw some 1,700 people out of work. On Friday, the workers there walked off the job in a quixotic strike action. Apropos of our globalizing world, the decision to shut down the factory was made far away in Sweden in the offices of Electrolux, the parent company of AEG. The company said it will move production to Poland and Italy where wages are a fraction of those in Germany. The IG Metall trade union has admitted that there is little chance of getting Electrolux to reverse its decision. In a sign of the sinking bargaining position of labor, AEG said yesterday's strike at AEG in Nuremburg was aimed not at saving jobs but rather salvaging decent severance packages. How low can we go, folks?