Capitalism at its Finest: Ford Dumps Half of its Blue-Collar Workforce

The tone of this Detroit News article is so upbeat! This is wonderful news!

38,000 hourly Ford workers see the writing on the wall and are deserting the sinking ship. Of course Ford is more than happy to see them go. Now they can hire temporary and part-time workers at just over half the salary and pay no benefits or pensions!

This move promises to boost the company's bottomline as rapidly as it destroys Ford's already legendary poor vehicle quality (F-O-R-D = Fixed Or Repaired Daily or Found On the Road Dead), and will bolster rising Japanese automakers in their quest to dominate the North American market.

Many overpaid autoworkers will now look for work in a dismal domestic labor market while others who took the 4-year tuition option will go to college and exit four years from now with even fewer domestic jobs available.

Wall Street is thrilled! Ford is ecstatic! Workers are overjoyed! Japanese automakers are celebrating!

Hopefully some of these newly freed blue collar workers will become entrepreneurs. Here is a hot idea for a new business: relocating laid-off US workers to India. The US jobs are going there and to China anyway, and unlike China, Indians already speak English. Workers should go where the jobs are, right? I offer this advice to any enterprising former Ford employees free of charge.


Paul Hue said...

Capitalism does not promise utopia; it only promises the best possible outcome. It does not promise that every factory will exist forever and that all workforces will increase in size forever.

Imagine how many times that the US economy has shifted since 1950, then look at the stagnant rampant poverty in Cuba, and the same in the USSR until it broke into various free states.

The magic of capitalism is that free people organized into a civilization always produce wealth.

Nadir said...

"The magic of capitalism is that free people organized into a civilization always produce wealth."

Interesting that the mantra of corporate capitalism is "increase shareholder wealth" while the workers who create that wealth are considered to be "expenses". UAW workers were allowed to share in that wealth for a while with some of the best contracts ever seen. Now their modest gains are being blamed for the company's failure. Not bad management or poor quality or changes in the global market.

So Paul, when are you going to desert that sinking ship and put your time into a real growth industry -- like educating these uneducated children in America?